TAKEDA PHARMACEUTIC-SP ADR (TAK) Stock Fundamental Analysis
NYSE:TAK - New York Stock Exchange, Inc. - US8740602052 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to TAK. TAK was compared to 198 industry peers in the Pharmaceuticals industry. TAK has an excellent profitability rating, 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
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.
TAK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TAK (0.76%) is better than 82.83% of its industry peers.
TAK has a Return On Equity of 1.56%. This is amongst the best in the industry. TAK outperforms 83.33% of its industry peers.
With a decent Return On Invested Capital value of 1.95%, TAK is doing good in the industry, outperforming 77.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TAK is significantly below the industry average of 42.34%.
| 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 has a better Profit Margin (2.36%) than 83.33% of its industry peers.
TAK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.10%, TAK belongs to the top of the industry, outperforming 80.81% of the companies in the same industry.
In the last couple of years the Operating Margin of TAK has declined.
TAK's Gross Margin of 65.51% is fine compared to the rest of the industry. TAK outperforms 72.22% 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) below the Cost of Capital (WACC), TAK is destroying value.
Compared to 1 year ago, TAK has more shares outstanding
TAK has more shares outstanding than it did 5 years ago.
TAK has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.06, 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 1.06, TAK is in the better half of the industry, outperforming 63.64% 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.
With an excellent Debt to FCF ratio value of 6.37, TAK belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
TAK has a Debt/Equity ratio of 0.57. This is a neutral value indicating TAK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, TAK is doing worse than 62.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.33
WACC5.91%
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.
TAK's Current ratio of 1.01 is on the low side compared to the rest of the industry. TAK is outperformed by 81.31% of its industry peers.
A Quick Ratio of 0.52 indicates that TAK may have some problems paying its short term obligations.
TAK has a Quick ratio of 0.52. This is amonst the worse of the industry: TAK underperforms 89.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
TAK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.36%, which is quite impressive.
Measured over the past years, TAK shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.74% on average per year.
Looking at the last year, TAK shows a small growth in Revenue. The Revenue has grown by 7.45% in the last year.
TAK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.84% yearly.
EPS 1Y (TTM)70.36%
EPS 3Y2.13%
EPS 5Y40.74%
EPS Q2Q%1253.07%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y8.68%
Revenue growth 5Y6.84%
Sales Q2Q%-4.76%
3.2 Future
TAK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.64% yearly.
The Revenue is expected to grow by 0.27% on average over the next years.
EPS Next Y-5.52%
EPS Next 2Y7.64%
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 decreasing.
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
Based on the Price/Earnings ratio of 26.52, the valuation of TAK can be described as expensive.
TAK's Price/Earnings ratio is rather cheap when compared to the industry. TAK is cheaper than 81.82% of the companies in the same industry.
TAK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.84, which means the current valuation is very expensive for TAK.
73.23% 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 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 27.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TAK is valued cheaply inside the industry as 85.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TAK is valued cheaper than 92.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.19 | ||
| EV/EBITDA | 9.35 |
4.3 Compensation for Growth
TAK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y7.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TAK has a Yearly Dividend Yield of 4.93%, which is a nice return.
Compared to an average industry Dividend Yield of 4.24, TAK pays a better dividend. On top of this TAK pays more dividend than 96.97% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
5.2 History
The dividend of TAK has a limited annual growth rate of 1.18%.
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)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 2Y7.64%
EPS Next 3YN/A
14.32
+0.05 (+0.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners45.5%
Inst Owner Change-1.6%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap45.07B
Analysts74.55
Price Target17.81 (24.37%)
Short Float %0.15%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
Yearly Dividend0.66
Dividend Growth(5Y)1.18%
DP280.28%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)49.98%
Min EPS beat(2)-41.58%
Max EPS beat(2)141.54%
EPS beat(4)3
Avg EPS beat(4)53.2%
Min EPS beat(4)-41.58%
Max EPS beat(4)141.54%
EPS beat(8)4
Avg EPS beat(8)-26.51%
EPS beat(12)7
Avg EPS beat(12)-13.76%
EPS beat(16)8
Avg EPS beat(16)-26.09%
Revenue beat(2)0
Avg Revenue beat(2)-3.73%
Min Revenue beat(2)-6.98%
Max Revenue beat(2)-0.48%
Revenue beat(4)2
Avg Revenue beat(4)2.08%
Min Revenue beat(4)-6.98%
Max Revenue beat(4)9.45%
Revenue beat(8)6
Avg Revenue beat(8)5.28%
Revenue beat(12)9
Avg Revenue beat(12)4.79%
Revenue beat(16)13
Avg Revenue beat(16)4.88%
PT rev (1m)6.02%
PT rev (3m)13.52%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)26.04%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)15.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 27.84 | ||
| P/S | 1.42 | ||
| P/FCF | 9.19 | ||
| P/OCF | 6.17 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.35 |
EPS(TTM)0.54
EY3.77%
EPS(NY)0.51
Fwd EY3.59%
FCF(TTM)1.56
FCFY10.88%
OCF(TTM)2.32
OCFY16.22%
SpS10.06
BVpS15.23
TBVpS-4.44
PEG (NY)N/A
PEG (5Y)0.65
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 | 1.06 |
F-Score6
WACC5.91%
ROIC/WACC0.33
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)70.36%
EPS 3Y2.13%
EPS 5Y40.74%
EPS Q2Q%1253.07%
EPS Next Y-5.52%
EPS Next 2Y7.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.45%
Revenue growth 3Y8.68%
Revenue growth 5Y6.84%
Sales Q2Q%-4.76%
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 Year444.39%
EBIT Next 3YN/A
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%