Takeda Pharmaceutical Company Limited
Takeda Pharmaceutical Company Limited Fundamental Analysis
Takeda Pharmaceutical Company Limited (TAK) shows weak financial fundamentals with a PE ratio of 79.56, profit margin of 2.56%, and ROE of 1.61%. The company generates $4486.1B in annual revenue with moderate year-over-year growth of 7.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TAK's fundamental strength across five key dimensions:
Efficiency Score
WeakTAK struggles to generate sufficient returns from assets.
Valuation Score
ModerateTAK shows balanced valuation metrics.
Growth Score
ModerateTAK shows steady but slowing expansion.
Financial Health Score
ExcellentTAK maintains a strong and stable balance sheet.
Profitability Score
ModerateTAK maintains healthy but balanced margins.
Key Financial Metrics
Is TAK Expensive or Cheap?
P/E Ratio
TAK trades at 79.56 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TAK's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Takeda Pharmaceutical Company Limited at 1.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.54 times EBITDA. This is generally considered low.
How Well Does TAK Make Money?
Net Profit Margin
For every $100 in sales, Takeda Pharmaceutical Company Limited keeps $2.56 as profit after all expenses.
Operating Margin
Core operations generate 8.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.61 in profit for every $100 of shareholder equity.
ROA
Takeda Pharmaceutical Company Limited generates $0.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Takeda Pharmaceutical Company Limited generates strong operating cash flow of $1.18T, reflecting robust business health.
Free Cash Flow
Takeda Pharmaceutical Company Limited generates strong free cash flow of $956.59B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $302.80 in free cash annually.
FCF Yield
TAK converts 10.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
79.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How TAK Stacks Against Its Sector Peers
| Metric | TAK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 79.56 | 29.43 | Worse (Expensive) |
| ROE | 1.61% | 800.00% | Weak |
| Net Margin | 2.56% | -20145.00% (disorted) | Weak |
| Debt/Equity | 0.64 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.19 | 4.64 | Neutral |
| ROA | 0.74% | -17936.00% (disorted) | Weak |
TAK outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Takeda Pharmaceutical Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.30%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
140.61%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
70.92%
Industry Style: Defensive, Growth, Innovation
High Growth