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 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. 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.
TAK had positive earnings in each of the past 5 years.
Each year in the past 5 years TAK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.76%, TAK belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.56%, TAK belongs to the top of the industry, outperforming 82.56% of the companies in the same industry.
With a decent Return On Invested Capital value of 1.95%, TAK is doing good in the industry, outperforming 77.95% of the companies in the same industry.
TAK had an Average Return On Invested Capital over the past 3 years of 2.28%. This is significantly below the industry average of 14.70%.
| 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
TAK's Profit Margin of 2.36% is amongst the best of the industry. TAK outperforms 82.56% of its industry peers.
In the last couple of years the Profit Margin of TAK has grown nicely.
Looking at the Operating Margin, with a value of 8.10%, TAK belongs to the top of the industry, outperforming 80.51% of the companies in the same industry.
TAK's Operating Margin has declined in the last couple of years.
TAK has a Gross Margin of 65.51%. This is in the better half of the industry: TAK outperforms 72.82% 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 | 8.1% | ||
| 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
TAK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TAK has more shares outstanding
TAK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TAK has been reduced compared to a year ago.
2.2 Solvency
TAK has an Altman-Z score of 1.09. This is a bad value and indicates that TAK is not financially healthy and even has some risk of bankruptcy.
TAK's Altman-Z score of 1.09 is fine compared to the rest of the industry. TAK outperforms 61.03% of its industry peers.
The Debt to FCF ratio of TAK is 6.37, which is on the high side as it means it would take TAK, 6.37 years of fcf income to pay off all of its debts.
TAK's Debt to FCF ratio of 6.37 is amongst the best of the industry. TAK outperforms 81.54% of its industry peers.
TAK has a Debt/Equity ratio of 0.57. This is a neutral value indicating TAK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, TAK is not doing good in the industry: 63.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.32
WACC6.15%
2.3 Liquidity
A Current Ratio of 1.01 indicates that TAK should not have too much problems paying its short term obligations.
TAK's Current ratio of 1.01 is on the low side compared to the rest of the industry. TAK is outperformed by 83.08% of its industry peers.
A Quick Ratio of 0.52 indicates that TAK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, TAK is doing worse than 90.77% of the companies in the same industry.
| 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.
TAK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.27% yearly.
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
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 63.33.
TAK's Price/Earnings ratio is a bit cheaper when compared to the industry. TAK is cheaper than 78.97% of the companies in the same industry.
TAK is valuated expensively when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
TAK is valuated quite expensively with a Price/Forward Earnings ratio of 29.15.
70.77% of the companies in the same industry are more expensive than TAK, based on the Price/Forward Earnings ratio.
TAK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.33 | ||
| Fwd PE | 29.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAK is valued cheaper than 86.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TAK is valued cheaply inside the industry as 91.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.62 | ||
| EV/EBITDA | 9.71 |
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 63.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)3.3
EPS Next 2Y63.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TAK has a Yearly Dividend Yield of 4.68%, which is a nice return.
TAK's Dividend Yield is rather good when compared to the industry average which is at 4.16. TAK pays more dividend than 96.92% of the companies in the same industry.
TAK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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
280.28% 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.
DP280.28%
EPS Next 2Y63.07%
EPS Next 3YN/A
15.2
-0.19 (-1.23%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners45.5%
Inst Owner Change-1.59%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap47.48B
Analysts74.29
Price Target17.79 (17.04%)
Short Float %0.2%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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)-1.76%
PT rev (3m)11.32%
EPS NQ rev (1m)-9.03%
EPS NQ rev (3m)14.49%
EPS NY rev (1m)0.45%
EPS NY rev (3m)11.26%
Revenue NQ rev (1m)1.35%
Revenue NQ rev (3m)3.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.33 | ||
| Fwd PE | 29.15 | ||
| P/S | 1.49 | ||
| P/FCF | 9.62 | ||
| P/OCF | 6.46 | ||
| P/B | 0.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.71 |
EPS(TTM)0.24
EY1.58%
EPS(NY)0.52
Fwd EY3.43%
FCF(TTM)1.58
FCFY10.39%
OCF(TTM)2.35
OCFY15.49%
SpS10.2
BVpS15.45
TBVpS-4.5
PEG (NY)0.54
PEG (5Y)3.3
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 | 1.09 |
F-Score6
WACC6.15%
ROIC/WACC0.32
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%