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TARO PHARMACEUTICAL INDUS (TARO) Stock Fundamental Analysis

NYSE:TARO - New York Stock Exchange, Inc. - IL0010827181 - Common Stock - Currency: USD

42.97  0 (0%)

After market: 42.97 0 (0%)

Fundamental Rating

5

Overall TARO gets a fundamental rating of 5 out of 10. We evaluated TARO against 194 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.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year TARO was profitable.
In the past year TARO had a positive cash flow from operations.
Of the past 5 years TARO 4 years were profitable.
TARO had a positive operating cash flow in 4 of the past 5 years.
TARO Yearly Net Income VS EBIT VS OCF VS FCFTARO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M

1.2 Ratios

With an excellent Return On Assets value of 2.49%, TARO belongs to the best of the industry, outperforming 84.97% of the companies in the same industry.
The Return On Equity of TARO (3.00%) is better than 83.94% of its industry peers.
TARO has a Return On Invested Capital of 0.79%. This is in the better half of the industry: TARO outperforms 77.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TARO is significantly below the industry average of 14.87%.
Industry RankSector Rank
ROA 2.49%
ROE 3%
ROIC 0.79%
ROA(3y)2.12%
ROA(5y)0.14%
ROE(3y)2.63%
ROE(5y)-0.64%
ROIC(3y)2.06%
ROIC(5y)3.87%
TARO Yearly ROA, ROE, ROICTARO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20 30

1.3 Margins

TARO's Profit Margin of 8.55% is amongst the best of the industry. TARO outperforms 86.53% of its industry peers.
TARO's Profit Margin has declined in the last couple of years.
TARO has a Operating Margin of 3.42%. This is in the better half of the industry: TARO outperforms 79.27% of its industry peers.
TARO's Operating Margin has declined in the last couple of years.
TARO has a Gross Margin of 48.47%. This is in the better half of the industry: TARO outperforms 60.62% of its industry peers.
TARO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 3.42%
PM (TTM) 8.55%
GM 48.47%
OM growth 3Y-49.43%
OM growth 5Y-39.92%
PM growth 3YN/A
PM growth 5Y-27.27%
GM growth 3Y-3.56%
GM growth 5Y-6.14%
TARO Yearly Profit, Operating, Gross MarginsTARO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TARO is destroying value.
The number of shares outstanding for TARO remains at a similar level compared to 1 year ago.
The number of shares outstanding for TARO has been reduced compared to 5 years ago.
There is no outstanding debt for TARO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TARO Yearly Shares OutstandingTARO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
TARO Yearly Total Debt VS Total AssetsTARO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

There is no outstanding debt for TARO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACC0.08
WACC9.43%
TARO Yearly LT Debt VS Equity VS FCFTARO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 3.61 indicates that TARO has no problem at all paying its short term obligations.
TARO has a Current ratio (3.61) which is comparable to the rest of the industry.
TARO has a Quick Ratio of 3.04. This indicates that TARO is financially healthy and has no problem in meeting its short term obligations.
TARO has a Quick ratio (3.04) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 3.61
Quick Ratio 3.04
TARO Yearly Current Assets VS Current LiabilitesTARO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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2

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 156.72% over the past year.
The earnings per share for TARO have been decreasing by -24.80% on average. This is quite bad
The Revenue has grown by 9.81% in the past year. This is quite good.
The Revenue has been decreasing by -1.25% on average over the past years.
EPS 1Y (TTM)156.72%
EPS 3YN/A
EPS 5Y-24.8%
EPS Q2Q%122.22%
Revenue 1Y (TTM)9.81%
Revenue growth 3Y4.65%
Revenue growth 5Y-1.25%
Sales Q2Q%12.52%

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 YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
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.
TARO Yearly Revenue VS EstimatesTARO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
TARO Yearly EPS VS EstimatesTARO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 -10

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4

4. Valuation

4.1 Price/Earnings Ratio

TARO is valuated rather expensively with a Price/Earnings ratio of 24.98.
TARO's Price/Earnings ratio is rather cheap when compared to the industry. TARO is cheaper than 82.90% of the companies in the same industry.
TARO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.61.
Industry RankSector Rank
PE 24.98
Fwd PE N/A
TARO Price Earnings VS Forward Price EarningsTARO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TARO is valued cheaply inside the industry as 96.37% of the companies are valued more expensively.
TARO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TARO is cheaper than 83.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22.96
EV/EBITDA 5.29
TARO Per share dataTARO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The decent profitability rating of TARO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for TARO!.
Industry RankSector Rank
Dividend Yield N/A

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TARO PHARMACEUTICAL INDUS

NYSE:TARO (6/21/2024, 8:26:37 PM)

After market: 42.97 0 (0%)

42.97

0 (0%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)05-20 2024-05-20/amc
Earnings (Next)07-24 2024-07-24/amc
Inst Owners1.69%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.61B
Analysts43.33
Price Target43.86 (2.07%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.49%
Min EPS beat(2)26.5%
Max EPS beat(2)76.47%
EPS beat(4)4
Avg EPS beat(4)59.11%
Min EPS beat(4)26.5%
Max EPS beat(4)106.97%
EPS beat(8)4
Avg EPS beat(8)-3.86%
EPS beat(12)5
Avg EPS beat(12)-6.96%
EPS beat(16)6
Avg EPS beat(16)-80.87%
Revenue beat(2)1
Avg Revenue beat(2)1.54%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)3.62%
Revenue beat(4)2
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-9.83%
Max Revenue beat(4)4.53%
Revenue beat(8)3
Avg Revenue beat(8)-5.15%
Revenue beat(12)4
Avg Revenue beat(12)-5.03%
Revenue beat(16)5
Avg Revenue beat(16)-5.45%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 24.98
Fwd PE N/A
P/S 2.57
P/FCF 22.96
P/OCF 12.96
P/B 0.9
P/tB 0.91
EV/EBITDA 5.29
EPS(TTM)1.72
EY4%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)1.87
FCFY4.36%
OCF(TTM)3.31
OCFY7.71%
SpS16.74
BVpS47.71
TBVpS47.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.49%
ROE 3%
ROCE 1.19%
ROIC 0.79%
ROICexc 1.53%
ROICexgc 1.56%
OM 3.42%
PM (TTM) 8.55%
GM 48.47%
FCFM 11.18%
ROA(3y)2.12%
ROA(5y)0.14%
ROE(3y)2.63%
ROE(5y)-0.64%
ROIC(3y)2.06%
ROIC(5y)3.87%
ROICexc(3y)3.91%
ROICexc(5y)8.26%
ROICexgc(3y)4.17%
ROICexgc(5y)8.52%
ROCE(3y)3.12%
ROCE(5y)5.88%
ROICexcg growth 3Y-51.57%
ROICexcg growth 5Y-41.36%
ROICexc growth 3Y-51.56%
ROICexc growth 5Y-41.36%
OM growth 3Y-49.43%
OM growth 5Y-39.92%
PM growth 3YN/A
PM growth 5Y-27.27%
GM growth 3Y-3.56%
GM growth 5Y-6.14%
F-Score8
Asset Turnover0.29
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 174.37%
Cap/Sales 8.62%
Interest Coverage 250
Cash Conversion 236.87%
Profit Quality 130.77%
Current Ratio 3.61
Quick Ratio 3.04
Altman-Z N/A
F-Score8
WACC9.43%
ROIC/WACC0.08
Cap/Depr(3y)221.93%
Cap/Depr(5y)174.21%
Cap/Sales(3y)10.63%
Cap/Sales(5y)7.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)156.72%
EPS 3YN/A
EPS 5Y-24.8%
EPS Q2Q%122.22%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.81%
Revenue growth 3Y4.65%
Revenue growth 5Y-1.25%
Sales Q2Q%12.52%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.73%
EBIT growth 3Y-47.08%
EBIT growth 5Y-40.67%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y486.14%
FCF growth 3Y34.98%
FCF growth 5Y-24.83%
OCF growth 1Y291.68%
OCF growth 3Y39.58%
OCF growth 5Y-17.39%