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 194 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 is valued correctly, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

TARO had positive earnings in the past year.

In the past year TARO had a positive cash flow from operations.

Of the past 5 years TARO 4 years were profitable.

Of the past 5 years TARO 4 years had a positive operating cash flow.

1.2 Ratios

TARO has a Return On Assets of 2.49%. This is amongst the best in the industry. TARO outperforms 84.97% of its industry peers.

With an excellent Return On Equity value of 3.00%, TARO belongs to the best 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.

TARO had an Average Return On Invested Capital over the past 3 years of 2.06%. This is significantly below the industry average of 14.91%.

		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

Looking at the Profit Margin, with a value of 8.55%, TARO belongs to the top of the industry, outperforming 86.53% of the companies in the same industry.

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.

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.

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.

TARO has about the same amout of shares outstanding than it did 1 year ago.

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

TARO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	N/A

ROIC/WACC0.08

WACC9.43%

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.

TARO has a Current ratio (3.61) which is in line with its industry peers.

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.

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%.

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.

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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 26.82, TARO is valued at the same level.

		Industry Rank	Sector Rank
PE	24.98
Fwd PE	N/A

4.2 Price Multiples

96.37% of the companies in the same industry are more expensive than TARO, based on the Enterprise Value to EBITDA ratio.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of TARO indicates a rather cheap valuation: TARO is cheaper than 83.42% of the companies listed 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

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5. Dividend

5.1 Amount

No dividends for TARO!.

		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 Change0%

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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