Taiko Pharmaceutical Co., Ltd. (4574) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fuji Pharma Co., Ltd.

Koa Shoji Holdings Co., Ltd.

Elan Corp.

ASKA Pharmaceutical Holdings Co., Ltd.

Taiko Pharmaceutical Co., Ltd.

Daito Pharmaceutical Co., Ltd.

CellSource Co., Ltd.

Noile-Immune Biotech, Inc.

Seikagaku Corp.

Fuso Pharmaceutical Industries Ltd.

SanBio Co., Ltd.

Why is Taiko Pharmaceutical Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.99%

The company has been able to generate a Return on Equity (avg) of 5.99% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -16.57% and Operating profit at -34.62% over the last 5 years

The company has declared Positive results for the last 5 consecutive quarters

NET PROFIT(9M) Higher at JPY 557.49 MM
DEBT-EQUITY RATIO (HY) Lowest at -35.41 %

With ROE of 13.05%, it has a attractive valuation with a 1.57 Price to Book Value

Over the past year, while the stock has generated a return of -13.73%, its profits have risen by 464% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.73% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Taiko Pharmaceutical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Taiko Pharmaceutical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Taiko Pharmaceutical Co., Ltd.

-13.73%

-0.55

46.81%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-16.57%

EBIT Growth (5y)

-34.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.58

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.85%

ROE (avg)

5.99%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.57

EV to EBIT

20.68

EV to EBITDA

13.34

EV to Capital Employed

1.93

EV to Sales

1.57

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

9.32%

ROE (Latest)

13.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

NET PROFIT(9M)

Higher at JPY 557.49 MM

DEBT-EQUITY RATIO (HY)

Lowest at -35.41 %

-22What is not working for the Company

NET SALES(Q)

At JPY 1,262 MM has Fallen at -16.77%

PRE-TAX PROFIT(Q)

At JPY 10 MM has Fallen at -95.15%

INTEREST(Q)

At JPY 2 MM has Grown at 100%

RAW MATERIAL COST(Y)

Grown by 14.52% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.42%

NET PROFIT(Q)

Lowest at JPY -9.57 MM

Here's what is working for Taiko Pharmaceutical Co., Ltd.

Debt-Equity Ratio

Lowest at -35.41 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Taiko Pharmaceutical Co., Ltd.

Net Sales

At JPY 1,262 MM has Fallen at -16.77%

over average net sales of the previous four periods of JPY 1,516.25 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 10 MM has Fallen at -95.15%

over average net sales of the previous four periods of JPY 206.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -9.57 MM has Fallen at -103.68%

over average net sales of the previous four periods of JPY 260.26 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 2 MM has Grown at 100%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Lowest at JPY -9.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 1.42%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 14.52% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales