TARO PHARMACEUTICAL INDUS (TARO)
IL0010827181 - Common Stock
TARO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 198 industry peers in the Pharmaceuticals industry. TARO has an excellent financial health rating, but there are some minor concerns on its profitability. TARO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TARO had positive earnings in the past year.
In the past year TARO had a positive cash flow from operations.
TARO had positive earnings in 4 of the past 5 years.
TARO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 2.11%, TARO belongs to the best of the industry, outperforming 85.64% of the companies in the same industry.
TARO has a Return On Equity of 2.56%. This is amongst the best in the industry. TARO outperforms 85.13% of its industry peers.
TARO has a better Return On Invested Capital (0.87%) than 77.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TARO is significantly below the industry average of 16.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 2.56% | ||
| ROIC | 0.87% |
ROA(3y)-4.07%
ROA(5y)2.29%
ROE(3y)-5.94%
ROE(5y)1.71%
ROIC(3y)3.9%
ROIC(5y)6.14%
1.3 Margins
TARO's Profit Margin of 7.47% is amongst the best of the industry. TARO outperforms 86.67% of its industry peers.
TARO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.60%, TARO is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
In the last couple of years the Operating Margin of TARO has declined.
With a Gross Margin value of 48.02%, TARO perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of TARO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.6% | ||
| PM (TTM) | 7.47% | ||
| GM | 48.02% |
OM growth 3Y-56.77%
OM growth 5Y-41.75%
PM growth 3Y-51.08%
PM growth 5Y-32.62%
GM growth 3Y-8.93%
GM growth 5Y-7.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TARO is destroying value.
TARO has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TARO has been reduced compared to 5 years ago.
TARO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
TARO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC9.01%
2.3 Liquidity
A Current Ratio of 3.60 indicates that TARO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.60, TARO is in line with its industry, outperforming 53.33% of the companies in the same industry.
A Quick Ratio of 3.03 indicates that TARO has no problem at all paying its short term obligations.
With a Quick ratio value of 3.03, TARO perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.6 | ||
| Quick Ratio | 3.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.95% over the past year.
The earnings per share for TARO have been decreasing by -38.79% on average. This is quite bad
The Revenue has been growing slightly by 7.22% in the past year.
The Revenue has been decreasing by -2.84% on average over the past years.
EPS 1Y (TTM)22.95%
EPS 3Y-52.77%
EPS 5Y-38.79%
EPS growth Q2Q184.21%
Revenue 1Y (TTM)7.22%
Revenue growth 3Y-3.86%
Revenue growth 5Y-2.84%
Revenue growth Q2Q12.89%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y67.46%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.11%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.32, the valuation of TARO can be described as expensive.
Based on the Price/Earnings ratio, TARO is valued cheaper than 82.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of TARO to the average of the S&P500 Index (25.20), we can say TARO is valued inline with the index average.
A Price/Forward Earnings ratio of 37.86 indicates a quite expensive valuation of TARO.
77.95% of the companies in the same industry are more expensive than TARO, based on the Price/Forward Earnings ratio.
TARO is valuated expensively when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.32 | ||
| Fwd PE | 37.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TARO is valued cheaply inside the industry as 97.44% of the companies are valued more expensively.
83.08% of the companies in the same industry are more expensive than TARO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.54 | ||
| EV/EBITDA | 3.96 |
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.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
TARO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TARO PHARMACEUTICAL INDUS
NYSE:TARO (4/25/2024, 5:31:31 PM)
After market: 42.48 0 (0%)42.48
+0.28 (+0.66%)
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 Cap1.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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 | 28.32 | ||
| Fwd PE | 37.86 | ||
| 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)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 2.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.6% | ||
| PM (TTM) | 7.47% | ||
| GM | 48.02% | ||
| 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 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.6 | ||
| Quick Ratio | 3.03 | ||
| 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)22.95%
EPS 3Y-52.77%
EPS 5Y
EPS growth Q2Q
EPS Next Y67.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.22%
Revenue growth 3Y-3.86%
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