Takeda Pharmaceutical Co., Ltd. (4502) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ono Pharmaceutical Co., Ltd.

Shionogi & Co., Ltd.

Kyowa Kirin Co., Ltd.

Otsuka Holdings Co., Ltd.

Chugai Pharmaceutical Co., Ltd.

Astellas Pharma, Inc.

Daiichi Sankyo Co., Ltd.

Kobayashi Pharmaceutical Co., Ltd.

Eisai Co., Ltd.

Takeda Pharmaceutical Co., Ltd.

Taisho Pharmaceutical Holdings Co., Ltd.

Why is Takeda Pharmaceutical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.23%

The company has been able to generate a Return on Capital Employed (avg) of 5.23% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.58% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -8.15%, the company declared Very Negative results in Mar 26

INTEREST(HY) At JPY 167,276 MM has Grown at 104.19%
ROCE(HY) Lowest at -2.12%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.6 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 16.75%, its profits have fallen by -22.2%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 16.75% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Takeda Pharmaceutical Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Takeda Pharmaceutical Co., Ltd.

16.75%

655.55

20.82%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.89%

EBIT Growth (5y)

2.47%

EBIT to Interest (avg)

2.45

Debt to EBITDA (avg)

3.32

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

0.37

Tax Ratio

37.38%

Dividend Payout Ratio

286.73%

Pledged Shares

Institutional Holding

0.13%

ROCE (avg)

5.23%

ROE (avg)

4.58%

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

1.22

EV to EBIT

25.82

EV to EBITDA

10.48

EV to Capital Employed

1.14

EV to Sales

3.03

PEG Ratio

Dividend Yield

ROCE (Latest)

4.43%

ROE (Latest)

2.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -14.89% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 5.63

-30What is not working for the Company

INTEREST(HY)

At JPY 167,276 MM has Grown at 104.19%

ROCE(HY)

Lowest at -2.12%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.6 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.63 times

PRE-TAX PROFIT(Q)

Lowest at JPY -342,760 MM

NET PROFIT(Q)

Lowest at JPY -256,568 MM

EPS(Q)

Lowest at JPY -233.23

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

Dividend per share

Highest at JPY 5.63

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -14.89% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Interest

At JPY 167,276 MM has Grown at 104.19%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY -342,760 MM has Fallen at -586.06%

over average net sales of the previous four periods of JPY 70,518.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -256,568 MM has Fallen at -648.73%

over average net sales of the previous four periods of JPY 46,757 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 1.6 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Pre-Tax Profit

Lowest at JPY -342,760 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -256,568 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -233.23

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 5.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio