TARO PHARMACEUTICAL INDUS (TARO) Stock Fundamental Analysis
NYSE:TARO - New York Stock Exchange, Inc. - IL0010827181 - Common Stock - Currency: USD
Overall TARO gets a fundamental rating of 5 out of 10. We evaluated TARO against 195 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 it does not seem to be growing.
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.
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.
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.
TARO has a better Return On Equity (3.00%) than 83.94% of its industry peers.
TARO has a better Return On Invested Capital (0.79%) than 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 14.70%.
| 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 has a Profit Margin of 8.55%. This is amongst the best in 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 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
TARO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TARO has about the same amount of shares outstanding.
TARO has less shares outstanding than it did 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
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.
TARO has a Current ratio of 3.61. This is comparable 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.61 | ||
| Quick Ratio | 3.04 |
3. Growth
3.1 Past
TARO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 156.72%, which is quite impressive.
TARO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.80% yearly.
Looking at the last year, TARO shows a quite strong growth in Revenue. The Revenue has grown by 9.81% in the last year.
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
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.
When comparing the Price/Earnings ratio of TARO to the average of the S&P500 Index (26.46), we can say TARO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | N/A |
4.2 Price Multiples
TARO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TARO is cheaper than 96.37% of the companies 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 Change-99.99%
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 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
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%
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 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%