TAKEDA PHARMACEUTIC-SP ADR (TAK)
US8740602052 - ADR
TAK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 197 industry peers in the Pharmaceuticals industry. While TAK has a great profitability rating, there are quite some 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
TAK had positive earnings in the past year.
In the past year TAK had a positive cash flow from operations.
In the past 5 years TAK has always been profitable.
In the past 5 years TAK always reported a positive cash flow from operatings.
1.2 Ratios
TAK's Return On Assets of 0.95% is amongst the best of the industry. TAK outperforms 84.62% of its industry peers.
With an excellent Return On Equity value of 1.98%, TAK belongs to the best of the industry, outperforming 84.10% of the companies in the same industry.
The Return On Invested Capital of TAK (2.35%) is better than 80.51% of its industry peers.
TAK had an Average Return On Invested Capital over the past 3 years of 3.22%. This is significantly below the industry average of 18.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 1.98% | ||
| ROIC | 2.35% |
ROA(3y)1.66%
ROA(5y)1.65%
ROE(3y)3.67%
ROE(5y)3.84%
ROIC(3y)3.22%
ROIC(5y)2.89%
1.3 Margins
TAK has a better Profit Margin (3.38%) than 85.64% of its industry peers.
TAK's Profit Margin has declined in the last couple of years.
TAK's Operating Margin of 8.33% is amongst the best of the industry. TAK outperforms 82.56% of its industry peers.
TAK's Operating Margin has declined in the last couple of years.
TAK's Gross Margin of 66.54% is fine compared to the rest of the industry. TAK outperforms 70.77% of its industry peers.
TAK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.33% | ||
| PM (TTM) | 3.38% | ||
| GM | 66.54% |
OM growth 3Y-21.8%
OM growth 5Y-10.51%
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TAK is destroying value.
Compared to 1 year ago, TAK has more shares outstanding
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 1.00. 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 1.00, TAK perfoms like the industry average, outperforming 57.95% of the companies in the same industry.
The Debt to FCF ratio of TAK is 20.56, which is on the high side as it means it would take TAK, 20.56 years of fcf income to pay off all of its debts.
TAK has a better Debt to FCF ratio (20.56) than 78.97% of its industry peers.
TAK has a Debt/Equity ratio of 0.62. This is a neutral value indicating TAK is somewhat dependend on debt financing.
TAK's Debt to Equity ratio of 0.62 is on the low side compared to the rest of the industry. TAK is outperformed by 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 1 |
ROIC/WACC0.46
WACC5.12%
2.3 Liquidity
A Current Ratio of 1.11 indicates that TAK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, TAK is not doing good in the industry: 87.18% of the companies in the same industry are doing better.
A Quick Ratio of 0.58 indicates that TAK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.58, TAK is doing worse than 91.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for TAK have decreased strongly by -54.95% in the last year.
The Earnings Per Share has been decreasing by -4.22% on average over the past years.
The Revenue has been growing slightly by 5.87% in the past year.
The Revenue has been growing by 15.25% on average over the past years. This is quite good.
EPS 1Y (TTM)-54.95%
EPS 3Y-27.36%
EPS 5Y-4.22%
EPS growth Q2Q-110.03%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y10.06%
Revenue growth 5Y15.25%
Revenue growth Q2Q9.91%
3.2 Future
TAK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.55% yearly.
TAK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.03% yearly.
EPS Next Y70.71%
EPS Next 2Y44.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.92%
Revenue Next 2Y0.03%
Revenue Next 3YN/A
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
TAK is valuated quite expensively with a Price/Earnings ratio of 44.07.
80.51% of the companies in the same industry are more expensive than TAK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.60. TAK is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 26.21 indicates a quite expensive valuation of TAK.
76.92% 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 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.07 | ||
| Fwd PE | 26.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TAK indicates a rather cheap valuation: TAK is cheaper than 86.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TAK indicates a rather cheap valuation: TAK is cheaper than 82.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.43 | ||
| EV/EBITDA | 9.99 |
4.3 Compensation for Growth
TAK's 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 44.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y44.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.74%, TAK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.04, TAK pays a better dividend. On top of this TAK pays more dividend than 96.92% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.48%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
199.35% 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.
DP199.35%
EPS Next 2Y44.55%
EPS Next 3YN/A
TAKEDA PHARMACEUTIC-SP ADR
NYSE:TAK (5/17/2024, 7:04:00 PM)
13.22
-0.09 (-0.68%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.07 | ||
| Fwd PE | 26.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 1.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.33% | ||
| PM (TTM) | 3.38% | ||
| GM | 66.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-54.95%
EPS 3Y-27.36%
EPS 5Y
EPS growth Q2Q
EPS Next Y70.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.87%
Revenue growth 3Y10.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y