TARO PHARMACEUTICAL INDUS (TARO) Fundamental Analysis & Valuation

NYSE:TARO • IL0010827181

Current stock price

42.97 USD
0 (0%)
At close:
42.97 USD
0 (0%)
After Hours:

This TARO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. TARO Profitability Analysis

1.1 Basic Checks

  • In the past year TARO was profitable.
  • TARO had a positive operating cash flow in the past year.
  • TARO had positive earnings in 4 of the past 5 years.
  • Of the past 5 years TARO 4 years had a positive operating cash flow.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M

1.2 Ratios

  • The Return On Assets of TARO (2.49%) is better than 84.97% of its industry peers.
  • TARO has a Return On Equity of 3.00%. This is amongst the best in the industry. TARO outperforms 83.94% of its industry peers.
  • TARO's Return On Invested Capital of 0.79% is fine compared to the rest of the industry. TARO outperforms 77.20% of its industry peers.
  • TARO had an Average Return On Invested Capital over the past 3 years of 2.06%. This is significantly below the industry average of 13.06%.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20

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.
  • In the last couple of years the Profit Margin of TARO has declined.
  • With a decent Operating Margin value of 3.42%, TARO is doing good in the industry, outperforming 79.27% of the companies in the same industry.
  • 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.
  • In the last couple of years the Gross Margin of TARO has declined.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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7

2. TARO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
  • TARO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
TARO Yearly Shares OutstandingTARO Yearly Shares OutstandingYearly Shares Outstanding 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 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

  • TARO has a Current Ratio of 3.61. This indicates that TARO is financially healthy and has no problem in meeting its short term obligations.
  • TARO's Current ratio of 3.61 is in line compared to the rest of the industry. TARO outperforms 53.89% of its industry peers.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. TARO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 156.72% over the past year.
  • TARO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.80% yearly.
  • The Revenue has grown by 9.81% in the past year. This is quite good.
  • TARO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.25% yearly.
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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 -10

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4

4. TARO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 24.98, TARO is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Earnings ratio of TARO indicates a rather cheap valuation: TARO is cheaper than 82.90% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.60, TARO is valued at the same level.
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 cheaper than 96.37% of the companies in the same industry.
  • 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

  • TARO has a very decent profitability rating, which 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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. TARO Dividend Analysis

5.1 Amount

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

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TARO Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)07-24
Inst Owners1.69%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.61B
Revenue(TTM)629.19M
Net Income(TTM)53.79M
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
Graham NumberN/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%
ROICexgc growth 3Y-51.57%
ROICexgc 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%

TARO PHARMACEUTICAL INDUS / TARO Fundamental Analysis FAQ

What is the fundamental rating for TARO stock?

ChartMill assigns a fundamental rating of 5 / 10 to TARO.


What is the valuation status for TARO stock?

ChartMill assigns a valuation rating of 4 / 10 to TARO PHARMACEUTICAL INDUS (TARO). This can be considered as Fairly Valued.


Can you provide the profitability details for TARO PHARMACEUTICAL INDUS?

TARO PHARMACEUTICAL INDUS (TARO) has a profitability rating of 6 / 10.


What are the PE and PB ratios of TARO PHARMACEUTICAL INDUS (TARO) stock?

The Price/Earnings (PE) ratio for TARO PHARMACEUTICAL INDUS (TARO) is 24.98 and the Price/Book (PB) ratio is 0.9.


How financially healthy is TARO PHARMACEUTICAL INDUS?

The financial health rating of TARO PHARMACEUTICAL INDUS (TARO) is 7 / 10.