TAKEDA PHARMACEUTIC-SP ADR (TAK)
US8740602052 - ADR
Taking everything into account, TAK scores 5 out of 10 in our fundamental rating. TAK was compared to 196 industry peers in the Pharmaceuticals industry. TAK has an excellent profitability rating, but there are concerns on its financial health. TAK has a decent growth rate and is not valued too expensively. 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 has a better Return On Assets (0.95%) than 83.51% of its industry peers.
TAK's Return On Equity of 1.98% is amongst the best of the industry. TAK outperforms 83.51% of its industry peers.
TAK has a better Return On Invested Capital (2.35%) than 79.90% 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 17.66%.
| 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
Looking at the Profit Margin, with a value of 3.38%, TAK belongs to the top of the industry, outperforming 84.54% of the companies in the same industry.
TAK's Profit Margin has declined in the last couple of years.
The Operating Margin of TAK (8.33%) is better than 81.96% of its industry peers.
TAK's Operating Margin has declined in the last couple of years.
The Gross Margin of TAK (66.54%) is better than 71.13% of its industry peers.
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 | 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
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.
The number of shares outstanding for TAK has been increased compared to 5 years ago.
TAK has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that TAK is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TAK (1.01) is comparable to the rest of the industry.
TAK has a debt to FCF ratio of 20.56. This is a negative value and a sign of low solvency as TAK would need 20.56 years to pay back of all of its debts.
TAK's Debt to FCF ratio of 20.56 is fine compared to the rest of the industry. TAK outperforms 77.32% 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.
Looking at the Debt to Equity ratio, with a value of 0.62, TAK is doing worse than 64.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.44
WACC5.28%
2.3 Liquidity
TAK has a Current Ratio of 1.11. This is a normal value and indicates that TAK is financially healthy and should not expect problems in meeting its short term obligations.
TAK has a Current ratio of 1.11. This is amonst the worse of the industry: TAK underperforms 84.02% of its industry peers.
A Quick Ratio of 0.58 indicates that TAK may have some problems paying its short term obligations.
With a Quick ratio value of 0.58, TAK is not doing good in the industry: 91.75% of the companies in the same industry are doing better.
| 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.
Looking at the last year, TAK shows a small growth in Revenue. The Revenue has grown by 5.87% in the last 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 Q2Q%-110.03%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y10.06%
Revenue growth 5Y15.25%
Sales Q2Q%9.91%
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 31.54% on average per year.
TAK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.25% yearly.
EPS Next Y45.58%
EPS Next 2Y37.07%
EPS Next 3Y31.54%
EPS Next 5YN/A
Revenue Next Year-0.57%
Revenue Next 2Y0.63%
Revenue Next 3Y1.25%
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
With a Price/Earnings ratio of 46.03, TAK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TAK indicates a rather cheap valuation: TAK is cheaper than 80.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.05, TAK is valued quite expensively.
The Price/Forward Earnings ratio is 31.31, which means the current valuation is very expensive for TAK.
75.77% of the companies in the same industry are more expensive than TAK, based on the Price/Forward Earnings ratio.
TAK is valuated expensively when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.03 | ||
| Fwd PE | 31.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAK is valued cheaply inside the industry as 86.60% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TAK is valued cheaper than 81.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.94 | ||
| EV/EBITDA | 10.1 |
4.3 Compensation for Growth
TAK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent 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 31.54% in the coming years.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y37.07%
EPS Next 3Y31.54%
5. Dividend
5.1 Amount
TAK has a Yearly Dividend Yield of 4.79%, which is a nice return.
Compared to an average industry Dividend Yield of 4.14, TAK pays a better dividend. On top of this TAK pays more dividend than 96.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TAK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.48%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
TAK pays out 199.35% 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.
DP199.35%
EPS Next 2Y37.07%
EPS Next 3Y31.54%
TAKEDA PHARMACEUTIC-SP ADR
NYSE:TAK (5/31/2024, 7:08:14 PM)
After market: 12.95 -0.4 (-3%)13.35
+0.32 (+2.46%)
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 Cap41.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 | 46.03 | ||
| Fwd PE | 31.31 | ||
| 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)1.01
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-54.95%
EPS 3Y-27.36%
EPS 5Y
EPS Q2Q%
EPS Next Y45.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.87%
Revenue growth 3Y10.06%
Revenue growth 5Y
Sales 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