TARO PHARMACEUTICAL INDUS (TARO) Stock Fundamental Analysis
USA - NYSE:TARO - IL0010827181 - Common Stock
42.97 USD
0 (0%)
42.97 USD
0 (0%)
Overall TARO gets a fundamental rating of 5 out of 10. We evaluated TARO against 192 industry peers in the Pharmaceuticals industry. TARO has an excellent financial health rating, but there are some minor concerns on its profitability. TARO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
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.
TARO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.49%, TARO belongs to the top of the industry, outperforming 84.97% of the companies in the same industry.
TARO has a better Return On Equity (3.00%) 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 15.45%.
| Industry Rank | Sector 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%
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.
The Operating Margin of TARO (3.42%) is better than 79.27% of its industry peers.
In the last couple of years the Operating Margin of TARO has declined.
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 Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TARO is destroying value.
Compared to 1 year ago, TARO has about the same amount of shares outstanding.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.08
WACC9.43%
2.3 Liquidity
A Current Ratio of 3.61 indicates that TARO has no problem at all paying its short term obligations.
With a Current ratio value of 3.61, TARO perfoms like the industry average, outperforming 53.89% of the companies in the same industry.
A Quick Ratio of 3.04 indicates that TARO has no problem at all paying its short term obligations.
TARO has a Quick ratio of 3.04. This is comparable to the rest of the industry: TARO outperforms 51.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.61 | ||
| Quick Ratio | 3.04 |
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
TARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.81%.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.98 indicates a rather expensive valuation of TARO.
82.90% of the companies in the same industry are more expensive than TARO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.89. TARO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TARO indicates a rather cheap valuation: TARO is cheaper than 96.37% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TARO is valued cheaply inside the industry as 83.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.96 | ||
| EV/EBITDA | 5.29 |
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
5. Dividend
5.1 Amount
TARO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.97
0 (0%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 FAQ
What is the fundamental rating for TARO stock?
ChartMill assigns a fundamental rating of 5 / 10 to TARO.
Can you provide the valuation status for TARO PHARMACEUTICAL INDUS?
ChartMill assigns a valuation rating of 4 / 10 to TARO PHARMACEUTICAL INDUS (TARO). This can be considered as Fairly Valued.
How profitable is TARO PHARMACEUTICAL INDUS (TARO) stock?
TARO PHARMACEUTICAL INDUS (TARO) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for TARO stock?
The Price/Earnings (PE) ratio for TARO PHARMACEUTICAL INDUS (TARO) is 24.98 and the Price/Book (PB) ratio is 0.9.