TAKEDA PHARMACEUTIC-SP ADR (TAK) Stock Fundamental Analysis
NYSE:TAK - New York Stock Exchange, Inc. - US8740602052 - ADR - Currency: USD
Taking everything into account, TAK scores 5 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate. Finally TAK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TAK was profitable.
TAK had a positive operating cash flow in the past year.
Each year in the past 5 years TAK has been profitable.
In the past 5 years TAK always reported a positive cash flow from operatings.
1.2 Ratios
TAK has a better Return On Assets (0.76%) than 82.56% of its industry peers.
TAK has a Return On Equity of 1.56%. This is amongst the best in the industry. TAK outperforms 83.08% of its industry peers.
TAK has a better Return On Invested Capital (1.95%) than 78.46% of its industry peers.
TAK had an Average Return On Invested Capital over the past 3 years of 2.28%. This is significantly below the industry average of 14.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 1.56% | ||
| ROIC | 1.95% |
ROA(3y)1.33%
ROA(5y)1.73%
ROE(3y)2.84%
ROE(5y)3.97%
ROIC(3y)2.28%
ROIC(5y)2.35%
1.3 Margins
Looking at the Profit Margin, with a value of 2.36%, TAK belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
TAK's Profit Margin has improved in the last couple of years.
TAK has a better Operating Margin (8.10%) than 81.03% of its industry peers.
TAK's Operating Margin has declined in the last couple of years.
The Gross Margin of TAK (65.51%) is better than 72.82% of its industry peers.
TAK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 2.36% | ||
| GM | 65.51% |
OM growth 3Y-21.2%
OM growth 5Y-2.99%
PM growth 3Y-28.5%
PM growth 5Y11.87%
GM growth 3Y-1.71%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TAK is creating some value.
The number of shares outstanding for TAK has been increased compared to 1 year ago.
The number of shares outstanding for TAK has been increased compared to 5 years ago.
The debt/assets ratio for TAK has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that TAK is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.08, TAK perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
TAK has a debt to FCF ratio of 6.37. This is a slightly negative value and a sign of low solvency as TAK would need 6.37 years to pay back of all of its debts.
TAK has a better Debt to FCF ratio (6.37) than 82.05% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that TAK is somewhat dependend on debt financing.
The Debt to Equity ratio of TAK (0.57) is worse than 63.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | 1.08 |
ROIC/WACC1.22
WACC1.6%
2.3 Liquidity
TAK has a Current Ratio of 1.01. This is a normal value and indicates that TAK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TAK (1.01) is worse than 83.08% of its industry peers.
TAK has a Quick Ratio of 1.01. 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 0.52 is on the low side compared to the rest of the industry. TAK is outperformed by 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for TAK have decreased strongly by -25.77% in the last year.
The Earnings Per Share has been growing by 19.20% on average over the past years. This is quite good.
Looking at the last year, TAK shows a small growth in Revenue. The Revenue has grown by 7.45% in the last year.
Measured over the past years, TAK shows a small growth in Revenue. The Revenue has been growing by 6.84% on average per year.
EPS 1Y (TTM)-25.77%
EPS 3Y-22.57%
EPS 5Y19.2%
EPS Q2Q%-3151.24%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y8.68%
Revenue growth 5Y6.84%
Sales Q2Q%0.24%
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 63.07% on average per year.
Based on estimates for the next years, TAK will show a small growth in Revenue. The Revenue will grow by 0.27% on average per year.
EPS Next Y116.82%
EPS Next 2Y63.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.25%
Revenue Next 2Y0.39%
Revenue Next 3Y0.27%
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.
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
TAK is valuated quite expensively with a Price/Earnings ratio of 61.17.
Based on the Price/Earnings ratio, TAK is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TAK to the average of the S&P500 Index (27.30), we can say TAK is valued expensively.
TAK is valuated quite expensively with a Price/Forward Earnings ratio of 28.66.
69.74% of the companies in the same industry are more expensive than TAK, based on the Price/Forward Earnings ratio.
TAK's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.17 | ||
| Fwd PE | 28.66 |
4.2 Price Multiples
TAK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TAK is cheaper than 86.67% of the companies in the same industry.
91.79% 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 | 9.46 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TAK may justify a higher PE ratio.
TAK's earnings are expected to grow with 63.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)3.19
EPS Next 2Y63.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TAK has a Yearly Dividend Yield of 4.52%, which is a nice return.
Compared to an average industry Dividend Yield of 4.05, TAK pays a better dividend. On top of this TAK pays more dividend than 96.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, TAK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
The dividend of TAK has a limited annual growth rate of 1.18%.
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)1.18%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
TAK pays out 280.28% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TAK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP280.28%
EPS Next 2Y63.07%
EPS Next 3YN/A
14.68
-0.16 (-1.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners44.74%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap45.86B
Analysts74
Price Target17.69 (20.5%)
Short Float %0.21%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend0.67
Dividend Growth(5Y)1.18%
DP280.28%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-29.36%
Min EPS beat(2)-41.58%
Max EPS beat(2)-17.13%
EPS beat(4)2
Avg EPS beat(4)13.53%
Min EPS beat(4)-41.58%
Max EPS beat(4)75.5%
EPS beat(8)3
Avg EPS beat(8)-46.34%
EPS beat(12)6
Avg EPS beat(12)-26.98%
EPS beat(16)7
Avg EPS beat(16)-36.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)-0.48%
Revenue beat(4)2
Avg Revenue beat(4)3.31%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)9.45%
Revenue beat(8)6
Avg Revenue beat(8)5.89%
Revenue beat(12)9
Avg Revenue beat(12)5.19%
Revenue beat(16)13
Avg Revenue beat(16)5.18%
PT rev (1m)-0.68%
PT rev (3m)5.3%
EPS NQ rev (1m)1.79%
EPS NQ rev (3m)16.65%
EPS NY rev (1m)0%
EPS NY rev (3m)9.44%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)3.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.17 | ||
| Fwd PE | 28.66 | ||
| P/S | 1.46 | ||
| P/FCF | 9.46 | ||
| P/OCF | 6.35 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)0.24
EY1.63%
EPS(NY)0.51
Fwd EY3.49%
FCF(TTM)1.55
FCFY10.57%
OCF(TTM)2.31
OCFY15.76%
SpS10.02
BVpS15.17
TBVpS-4.42
PEG (NY)0.52
PEG (5Y)3.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 1.56% | ||
| ROCE | 3.16% | ||
| ROIC | 1.95% | ||
| ROICexc | 2.02% | ||
| ROICexgc | 9.63% | ||
| OM | 8.1% | ||
| PM (TTM) | 2.36% | ||
| GM | 65.51% | ||
| FCFM | 15.48% |
ROA(3y)1.33%
ROA(5y)1.73%
ROE(3y)2.84%
ROE(5y)3.97%
ROIC(3y)2.28%
ROIC(5y)2.35%
ROICexc(3y)2.4%
ROICexc(5y)2.51%
ROICexgc(3y)12.77%
ROICexgc(5y)13.04%
ROCE(3y)3.69%
ROCE(5y)3.81%
ROICexcg growth 3Y-20.13%
ROICexcg growth 5Y-1.85%
ROICexc growth 3Y-17.44%
ROICexc growth 5Y1.07%
OM growth 3Y-21.2%
OM growth 5Y-2.99%
PM growth 3Y-28.5%
PM growth 5Y11.87%
GM growth 3Y-1.71%
GM growth 5Y-0.42%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 6.37 | ||
| Debt/EBITDA | 3.5 | ||
| Cap/Depr | 45.68% | ||
| Cap/Sales | 7.59% | ||
| Interest Coverage | 3.28 | ||
| Cash Conversion | 93.35% | ||
| Profit Quality | 657.24% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.08 |
F-Score6
WACC1.6%
ROIC/WACC1.22
Cap/Depr(3y)69.03%
Cap/Depr(5y)56.25%
Cap/Sales(3y)11.53%
Cap/Sales(5y)9.44%
Profit Quality(3y)309.71%
Profit Quality(5y)308.48%
High Growth Momentum
Growth
EPS 1Y (TTM)-25.77%
EPS 3Y-22.57%
EPS 5Y19.2%
EPS Q2Q%-3151.24%
EPS Next Y116.82%
EPS Next 2Y63.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.45%
Revenue growth 3Y8.68%
Revenue growth 5Y6.84%
Sales Q2Q%0.24%
Revenue Next Year-0.25%
Revenue Next 2Y0.39%
Revenue Next 3Y0.27%
Revenue Next 5YN/A
EBIT growth 1Y-6.91%
EBIT growth 3Y-14.36%
EBIT growth 5Y3.64%
EBIT Next Year435.25%
EBIT Next 3Y77.68%
EBIT Next 5YN/A
FCF growth 1Y201.06%
FCF growth 3Y-8.86%
FCF growth 5Y9.4%
OCF growth 1Y47.58%
OCF growth 3Y-2%
OCF growth 5Y9.54%