TARO PHARMACEUTICAL INDUS (TARO) Stock Fundamental Analysis

NYSE:TARO • IL0010827181

42.97 USD
0 (0%)
At close: Jun 21, 2024
42.97 USD
0 (0%)
After Hours: 6/21/2024, 8:26:37 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to TARO. TARO was compared to 191 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.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • TARO had positive earnings in the past year.
  • TARO had a positive operating cash flow in the past year.
  • Of the past 5 years TARO 4 years were profitable.
  • 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

  • TARO has a better Return On Assets (2.49%) than 84.97% of its industry peers.
  • Looking at the Return On Equity, with a value of 3.00%, TARO belongs to the top of the industry, outperforming 83.94% of the companies in the same industry.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for TARO is significantly below the industry average of 12.64%.
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.
  • TARO has a better Operating Margin (3.42%) than 79.27% of its industry peers.
  • In the last couple of years the Operating Margin of TARO has declined.
  • With a decent Gross Margin value of 48.47%, TARO is doing good in the industry, outperforming 60.62% of the companies in the same industry.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • TARO has about the same amout of shares outstanding than it did 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 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.
  • 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.
  • Looking at the Quick ratio, with a value of 3.04, TARO is in line with its industry, outperforming 51.81% of the companies in the same 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. 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.
  • Measured over the past years, TARO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.80% on average per year.
  • TARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.81%.
  • Measured over the past years, TARO shows a decrease in Revenue. The Revenue has been decreasing by -1.25% on average per year.
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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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 24.98, the valuation of TARO can be described as rather expensive.
  • Based on the Price/Earnings ratio, TARO is valued cheaply inside the industry as 82.90% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.97, 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

  • 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.
  • 83.42% of the companies in the same industry are more expensive than TARO, based on the Price/Free Cash Flow ratio.
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

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • TARO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

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 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%.