TARO Fundamental Analysis - TARO PHARMACEUTICAL INDUS

Fundamental Rating

Taking everything into account, TARO scores 5 out of 10 in our fundamental rating. TARO was compared to 193 industry peers in the Pharmaceuticals industry. TARO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TARO has a valuation in line with the averages, but it does not seem to be growing.

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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

The Return On Assets of TARO (2.49%) is better than 84.97% of its industry peers.

The Return On Equity of TARO (3.00%) is better than 83.94% of its industry peers.

With a decent Return On Invested Capital value of 0.79%, TARO is doing good in the industry, outperforming 77.20% of the companies in the same industry.

The Average Return On Invested Capital over the past 3 years for TARO is significantly below the industry average of 15.38%.

		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.

In the last couple of years the Profit Margin of TARO has declined.

TARO's Operating Margin of 3.42% is fine compared to the rest of the industry. TARO outperforms 79.27% of its industry peers.

TARO's Operating Margin has declined in the last couple of years.

TARO's Gross Margin of 48.47% is fine compared to the rest 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

Compared to 5 years ago, TARO has less shares outstanding

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.

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.

The Quick ratio of TARO (3.04) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	3.61
Quick Ratio	3.04

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 156.72% over the past year.

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%.

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.

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4. Valuation

4.1 Price/Earnings Ratio

TARO is valuated rather expensively with a Price/Earnings ratio of 24.98.

82.90% of the companies in the same industry are more expensive than TARO, based on the Price/Earnings ratio.

TARO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.

		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 cheaper than 96.37% of the companies 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 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

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5. Dividend

5.1 Amount

TARO does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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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 2024-05-20/amc

Earnings (Next)07-24 2024-07-24/amc

Inst Owners1.69%

Inst Owner Change-9.52%

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%

TARO PHARMACEUTICAL INDUS (TARO) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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