TAKEDA PHARMACEUTIC-SP ADR (TAK) Stock Fundamental Analysis
NYSE:TAK - New York Stock Exchange, Inc. - US8740602052 - ADR - Currency: USD
Overall TAK gets a fundamental rating of 5 out of 10. We evaluated TAK against 194 industry peers in the Pharmaceuticals industry. While TAK has a great profitability rating, there are quite some concerns on its financial health. TAK has a correct valuation and a medium growth rate. 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
The Return On Assets of TAK (1.38%) is better than 83.24% of its industry peers.
TAK has a better Return On Equity (2.80%) than 84.32% of its industry peers.
The Return On Invested Capital of TAK (3.12%) is better than 80.54% of its industry peers.
TAK had an Average Return On Invested Capital over the past 3 years of 3.69%. This is significantly below the industry average of 44.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 2.8% | ||
| ROIC | 3.12% |
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
The Profit Margin of TAK (4.54%) is better than 84.86% of its industry peers.
TAK's Profit Margin has declined in the last couple of years.
TAK has a Operating Margin of 10.47%. This is amongst the best in the industry. TAK outperforms 82.70% of its industry peers.
In the last couple of years the Operating Margin of TAK has grown nicely.
With a decent Gross Margin value of 65.48%, TAK is doing good in the industry, outperforming 69.73% of the companies in the same industry.
In the last couple of years the Gross Margin of TAK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.47% | ||
| PM (TTM) | 4.54% | ||
| GM | 65.48% |
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.
TAK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TAK has been increased compared to 5 years ago.
The debt/assets ratio for TAK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that TAK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.09, TAK is in the better half of the industry, outperforming 61.08% of the companies in the same industry.
TAK has a debt to FCF ratio of 6.09. This is a slightly negative value and a sign of low solvency as TAK would need 6.09 years to pay back of all of its debts.
TAK has a Debt to FCF ratio of 6.09. This is amongst the best in the industry. TAK outperforms 83.78% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that TAK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, TAK is not doing good in the industry: 67.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.49
WACC6.41%
2.3 Liquidity
A Current Ratio of 1.31 indicates that TAK should not have too much problems paying its short term obligations.
The Current ratio of TAK (1.31) is worse than 80.54% of its industry peers.
TAK has a Quick Ratio of 1.31. This is a bad value and indicates that TAK is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.72, TAK is not doing good in the industry: 90.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
TAK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.39%, which is quite good.
TAK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.23% yearly.
The Revenue has grown by 9.83% in the past year. This is quite good.
The Revenue has been growing by 15.25% on average over the past years. This is quite good.
EPS 1Y (TTM)15.39%
EPS 3Y-27.36%
EPS 5Y-4.23%
EPS Q2Q%-78.01%
Revenue 1Y (TTM)9.83%
Revenue growth 3Y10.06%
Revenue growth 5Y15.25%
Sales Q2Q%2.96%
3.2 Future
Based on estimates for the next years, TAK will show a very strong growth in Earnings Per Share. The EPS will grow by 20.35% on average per year.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y-10.86%
EPS Next 2Y18.25%
EPS Next 3Y20.35%
EPS Next 5YN/A
Revenue Next Year9.14%
Revenue Next 2Y4.76%
Revenue Next 3Y3.74%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.94, TAK can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TAK is valued cheaper than 81.08% of the companies in the same industry.
TAK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 30.30.
TAK is valuated quite expensively with a Price/Forward Earnings ratio of 32.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TAK indicates a somewhat cheap valuation: TAK is cheaper than 77.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.06, TAK is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 32.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAK is valued cheaply inside the industry as 87.57% of the companies are valued more expensively.
92.97% 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 | 8.41 | ||
| EV/EBITDA | 8.78 |
4.3 Compensation for Growth
TAK has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TAK's earnings are expected to grow with 20.35% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.25%
EPS Next 3Y20.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.69%, TAK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.34, TAK pays a better dividend. On top of this TAK pays more dividend than 97.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, TAK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
5.2 History
The dividend of TAK is nicely growing with an annual growth rate of 8.48%!
TAK has been paying a dividend for at least 10 years, so it has 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
145.09% of the earnings are spent on dividend by TAK. This is not a sustainable payout ratio.
The dividend of TAK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP145.09%
EPS Next 2Y18.25%
EPS Next 3Y20.35%
NYSE:TAK (2/21/2025, 1:00:07 PM)
14.055
+0.2 (+1.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners44.53%
Inst Owner Change-4.77%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap44.56B
Analysts73.33
Price Target15.69 (11.63%)
Short Float %0.12%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
Yearly Dividend183.89
Dividend Growth(5Y)8.48%
DP145.09%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.96%
Min EPS beat(2)-41.58%
Max EPS beat(2)75.5%
EPS beat(4)2
Avg EPS beat(4)-71.63%
Min EPS beat(4)-357.78%
Max EPS beat(4)75.5%
EPS beat(8)4
Avg EPS beat(8)-38.26%
EPS beat(12)6
Avg EPS beat(12)-43.5%
EPS beat(16)8
Avg EPS beat(16)-24.9%
Revenue beat(2)1
Avg Revenue beat(2)2.93%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)6.35%
Revenue beat(4)3
Avg Revenue beat(4)7.48%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)14.6%
Revenue beat(8)6
Avg Revenue beat(8)6.02%
Revenue beat(12)10
Avg Revenue beat(12)5.62%
Revenue beat(16)13
Avg Revenue beat(16)5.14%
PT rev (1m)2.5%
PT rev (3m)-3.15%
EPS NQ rev (1m)-126.87%
EPS NQ rev (3m)-537.2%
EPS NY rev (1m)3.62%
EPS NY rev (3m)4.94%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 32.75 | ||
| P/S | 1.46 | ||
| P/FCF | 8.41 | ||
| P/OCF | 6 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.78 |
EPS(TTM)0.44
EY3.13%
EPS(NY)0.43
Fwd EY3.05%
FCF(TTM)1.67
FCFY11.89%
OCF(TTM)2.34
OCFY16.67%
SpS9.63
BVpS15.6
TBVpS-4.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 2.8% | ||
| ROCE | 3.69% | ||
| ROIC | 3.12% | ||
| ROICexc | 3.25% | ||
| ROICexgc | 13.47% | ||
| OM | 10.47% | ||
| PM (TTM) | 4.54% | ||
| GM | 65.48% | ||
| FCFM | 17.34% |
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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.09 | ||
| Debt/EBITDA | 3.8 | ||
| Cap/Depr | 42.12% | ||
| Cap/Sales | 6.98% | ||
| Interest Coverage | 4.8 | ||
| Cash Conversion | 89.96% | ||
| Profit Quality | 381.69% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.09 |
F-Score7
WACC6.41%
ROIC/WACC0.49
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)15.39%
EPS 3Y-27.36%
EPS 5Y-4.23%
EPS Q2Q%-78.01%
EPS Next Y-10.86%
EPS Next 2Y18.25%
EPS Next 3Y20.35%
EPS Next 5YN/A
Revenue 1Y (TTM)9.83%
Revenue growth 3Y10.06%
Revenue growth 5Y15.25%
Sales Q2Q%2.96%
Revenue Next Year9.14%
Revenue Next 2Y4.76%
Revenue Next 3Y3.74%
Revenue Next 5YN/A
EBIT growth 1Y3.14%
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-2.87%
FCF growth 3Y-32.74%
FCF growth 5Y3.94%
OCF growth 1Y5.15%
OCF growth 3Y-10.85%
OCF growth 5Y16.89%