TARO PHARMACEUTICAL INDUS (TARO) Stock Fundamental Analysis
USA - New York Stock Exchange - 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 190 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
- 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.
- TARO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- TARO has a better Return On Assets (2.49%) than 84.97% of its industry peers.
- The Return On Equity of TARO (3.00%) is better 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 12.84%.
| 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 better Profit Margin (8.55%) than 86.53% of its industry peers.
- TARO's Profit Margin has declined in the last couple of years.
- TARO has a better Operating Margin (3.42%) than 79.27% of its industry peers.
- TARO's Operating Margin has declined in the last couple of years.
- TARO has a better Gross Margin (48.47%) than 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
- 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.
- Compared to 5 years ago, TARO has less shares outstanding
- 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.
- Looking at the Current ratio, with a value of 3.61, TARO is in line with its industry, outperforming 53.89% of the companies in the same 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's Quick ratio of 3.04 is in line compared 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
- 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.
- TARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.81%.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 24.98, TARO is valued on the expensive side.
- 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.
- When comparing the Price/Earnings ratio of TARO to the average of the S&P500 Index (27.33), 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
- 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.
- Based on the Price/Free Cash Flow ratio, TARO is valued cheaper than 83.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.96 | ||
| EV/EBITDA | 5.29 |
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
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)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
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.
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.
How profitable is TARO PHARMACEUTICAL INDUS (TARO) stock?
TARO PHARMACEUTICAL INDUS (TARO) has a profitability rating of 6 / 10.
Is the dividend of TARO PHARMACEUTICAL INDUS sustainable?
The dividend rating of TARO PHARMACEUTICAL INDUS (TARO) is 0 / 10 and the dividend payout ratio is 0%.