TAKEDA PHARMACEUTIC-SP ADR (TAK) Stock Fundamental Analysis
NYSE:TAK - New York Stock Exchange, Inc. - US8740602052 - ADR
We assign a fundamental rating of 6 out of 10 to TAK. TAK was compared to 195 industry peers in the Pharmaceuticals industry. TAK scores excellent on profitability, but there are concerns on its financial health. TAK has a correct valuation and a medium growth rate. Finally TAK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TAK had positive earnings in the past year.
In the past year TAK had a positive cash flow from operations.
Each year in the past 5 years TAK has been profitable.
TAK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TAK's Return On Assets of 1.99% is amongst the best of the industry. TAK outperforms 85.48% of its industry peers.
The Return On Equity of TAK (4.19%) is better than 85.48% of its industry peers.
TAK has a Return On Invested Capital of 3.76%. This is amongst the best in the industry. TAK outperforms 80.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TAK is significantly below the industry average of 43.99%.
The 3 year average ROIC (3.69%) for TAK is below the current ROIC(3.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 4.19% | ||
| ROIC | 3.76% |
ROA(3y)1.66%
ROA(5y)1.65%
ROE(3y)3.67%
ROE(5y)3.84%
ROIC(3y)3.69%
ROIC(5y)3.18%
1.3 Margins
Looking at the Profit Margin, with a value of 6.38%, TAK belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
In the last couple of years the Profit Margin of TAK has declined.
The Operating Margin of TAK (11.92%) is better than 83.33% of its industry peers.
In the last couple of years the Operating Margin of TAK has grown nicely.
TAK has a better Gross Margin (66.05%) than 69.35% of its industry peers.
TAK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.92% | ||
| PM (TTM) | 6.38% | ||
| GM | 66.05% |
OM growth 3Y-1.27%
OM growth 5Y2.92%
PM growth 3Y-34.01%
PM growth 5Y-12.12%
GM growth 3Y-1.16%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TAK is destroying value.
The number of shares outstanding for TAK has been increased compared to 1 year ago.
Compared to 5 years ago, TAK has more shares outstanding
TAK has a worse debt/assets ratio than last year.
2.2 Solvency
TAK has an Altman-Z score of 1.13. This is a bad value and indicates that TAK is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.13, TAK perfoms like the industry average, outperforming 59.14% of the companies in the same industry.
The Debt to FCF ratio of TAK is 9.42, which is on the high side as it means it would take TAK, 9.42 years of fcf income to pay off all of its debts.
TAK's Debt to FCF ratio of 9.42 is amongst the best of the industry. TAK outperforms 82.26% of its industry peers.
TAK has a Debt/Equity ratio of 0.64. This is a neutral value indicating TAK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, TAK is not doing good in the industry: 67.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 9.42 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.54
WACC6.96%
2.3 Liquidity
A Current Ratio of 1.28 indicates that TAK should not have too much problems paying its short term obligations.
TAK has a worse Current ratio (1.28) than 79.57% of its industry peers.
TAK has a Quick Ratio of 1.28. This is a bad value and indicates that TAK is not financially healthy enough and could expect problems in meeting its short term obligations.
TAK's Quick ratio of 0.77 is on the low side compared to the rest of the industry. TAK is outperformed by 86.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
TAK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.65%, which is quite impressive.
TAK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.92% yearly.
Looking at the last year, TAK shows a quite strong growth in Revenue. The Revenue has grown by 9.43% in the last year.
TAK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.25% yearly.
EPS 1Y (TTM)49.65%
EPS 3Y-27.36%
EPS 5Y-3.92%
EPS Q2Q%287.55%
Revenue 1Y (TTM)9.43%
Revenue growth 3Y10.06%
Revenue growth 5Y15.25%
Sales Q2Q%12.75%
3.2 Future
TAK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.93% yearly.
Based on estimates for the next years, TAK will show a small growth in Revenue. The Revenue will grow by 3.92% on average per year.
EPS Next Y-15.32%
EPS Next 2Y24.08%
EPS Next 3Y26.93%
EPS Next 5YN/A
Revenue Next Year8.93%
Revenue Next 2Y4.82%
Revenue Next 3Y3.92%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.53, TAK is valued on the expensive side.
TAK's Price/Earnings ratio is rather cheap when compared to the industry. TAK is cheaper than 82.80% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.96. TAK is valued slightly cheaper when compared to this.
TAK is valuated quite expensively with a Price/Forward Earnings ratio of 27.93.
Based on the Price/Forward Earnings ratio, TAK is valued a bit cheaper than the industry average as 78.49% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TAK to the average of the S&P500 Index (24.11), we can say TAK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 27.93 |
4.2 Price Multiples
TAK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TAK is cheaper than 89.25% of the companies in the same industry.
90.86% of the companies in the same industry are more expensive than TAK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.88 | ||
| EV/EBITDA | 8.05 |
4.3 Compensation for Growth
The excellent profitability rating of TAK may justify a higher PE ratio.
A more expensive valuation may be justified as TAK's earnings are expected to grow with 26.93% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.08%
EPS Next 3Y26.93%
5. Dividend
5.1 Amount
TAK has a Yearly Dividend Yield of 4.85%, which is a nice return.
Compared to an average industry Dividend Yield of 4.08, TAK pays a better dividend. On top of this TAK pays more dividend than 97.31% of the companies listed in the same industry.
TAK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
5.2 History
The dividend of TAK is nicely growing with an annual growth rate of 8.48%!
TAK has paid a dividend for at least 10 years, which is a reliable track record.
TAK has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.48%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
101.62% of the earnings are spent on dividend by TAK. This is not a sustainable payout ratio.
TAK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.62%
EPS Next 2Y24.08%
EPS Next 3Y26.93%
TAKEDA PHARMACEUTIC-SP ADR
NYSE:TAK (1/17/2025, 8:04:00 PM)
After market: 12.9 -0.02 (-0.15%)12.92
-0.13 (-1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners44.53%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap40.96B
Analysts73.33
Price Target15.31 (18.5%)
Short Float %0.16%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
Yearly Dividend183.89
Dividend Growth(5Y)8.48%
DP101.62%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)56.42%
Min EPS beat(2)37.34%
Max EPS beat(2)75.5%
EPS beat(4)3
Avg EPS beat(4)-27.53%
Min EPS beat(4)-357.78%
Max EPS beat(4)134.84%
EPS beat(8)5
Avg EPS beat(8)-32.82%
EPS beat(12)6
Avg EPS beat(12)-42.33%
EPS beat(16)9
Avg EPS beat(16)-20.13%
Revenue beat(2)2
Avg Revenue beat(2)7.9%
Min Revenue beat(2)6.35%
Max Revenue beat(2)9.45%
Revenue beat(4)4
Avg Revenue beat(4)9.91%
Min Revenue beat(4)6.35%
Max Revenue beat(4)14.6%
Revenue beat(8)7
Avg Revenue beat(8)7.08%
Revenue beat(12)11
Avg Revenue beat(12)6.2%
Revenue beat(16)13
Avg Revenue beat(16)5.09%
PT rev (1m)-2.37%
PT rev (3m)-9.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.3%
EPS NY rev (1m)0%
EPS NY rev (3m)19.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)1.67%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 27.93 | ||
| P/S | 1.4 | ||
| P/FCF | 11.88 | ||
| P/OCF | 7.27 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.05 |
EPS(TTM)0.6
EY4.64%
EPS(NY)0.46
Fwd EY3.58%
FCF(TTM)1.09
FCFY8.42%
OCF(TTM)1.78
OCFY13.75%
SpS9.22
BVpS14.03
TBVpS-4.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 4.19% | ||
| ROCE | 4.45% | ||
| ROIC | 3.76% | ||
| ROICexc | 4.06% | ||
| ROICexgc | 19.5% | ||
| OM | 11.92% | ||
| PM (TTM) | 6.38% | ||
| GM | 66.05% | ||
| FCFM | 11.8% |
ROA(3y)1.66%
ROA(5y)1.65%
ROE(3y)3.67%
ROE(5y)3.84%
ROIC(3y)3.69%
ROIC(5y)3.18%
ROICexc(3y)3.94%
ROICexc(5y)3.41%
ROICexgc(3y)21.38%
ROICexgc(5y)18.09%
ROCE(3y)4.37%
ROCE(5y)3.76%
ROICexcg growth 3Y5.66%
ROICexcg growth 5Y14.76%
ROICexc growth 3Y2.52%
ROICexc growth 5Y16.46%
OM growth 3Y-1.27%
OM growth 5Y2.92%
PM growth 3Y-34.01%
PM growth 5Y-12.12%
GM growth 3Y-1.16%
GM growth 5Y-0.7%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 9.42 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 44.82% | ||
| Cap/Sales | 7.48% | ||
| Interest Coverage | 5.83 | ||
| Cash Conversion | 67.39% | ||
| Profit Quality | 184.97% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.13 |
F-Score7
WACC6.96%
ROIC/WACC0.54
Cap/Depr(3y)64.44%
Cap/Depr(5y)54.57%
Cap/Sales(3y)10.74%
Cap/Sales(5y)9.25%
Profit Quality(3y)226.4%
Profit Quality(5y)381.67%
High Growth Momentum
Growth
EPS 1Y (TTM)49.65%
EPS 3Y-27.36%
EPS 5Y-3.92%
EPS Q2Q%287.55%
EPS Next Y-15.32%
EPS Next 2Y24.08%
EPS Next 3Y26.93%
EPS Next 5YN/A
Revenue 1Y (TTM)9.43%
Revenue growth 3Y10.06%
Revenue growth 5Y15.25%
Sales Q2Q%12.75%
Revenue Next Year8.93%
Revenue Next 2Y4.82%
Revenue Next 3Y3.92%
Revenue Next 5YN/A
EBIT growth 1Y9.11%
EBIT growth 3Y8.67%
EBIT growth 5Y18.61%
EBIT Next Year-99.74%
EBIT Next 3Y-85.88%
EBIT Next 5YN/A
FCF growth 1Y-32.02%
FCF growth 3Y-32.74%
FCF growth 5Y3.94%
OCF growth 1Y-14.78%
OCF growth 3Y-10.85%
OCF growth 5Y16.89%