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Takeda Pharmaceutical Company (TAK)
NYSE:TAK
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Takeda Pharmaceutical Company
(NYSE:TAK)
71Outperform
Takeda Pharmaceutical Company (TAK) vs. S&P 500 (SPY)
Market Cap
$43.70B
Dividend Yield4.22%
Average Volume (3M)2.21M
Price to Earnings (P/E)32.1
Beta (1Y)0.10
Revenue Growth1.92%
EPS Growth6.40%
CountryUS
Employees49,281
SectorHealthcare
Sector Strength71
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.43
Shares Outstanding3,181,899,200
10 Day Avg. Volume3,326,886
30 Day Avg. Volume2,210,940
Financial Highlights & Ratios
PEG Ratio5.02
Price to Book (P/B)N/A
Price to Sales (P/S)1.66
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.71Price Target Upside156.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Takeda Pharmaceutical Company Business Overview & Revenue Model
Company DescriptionTakeda Pharmaceutical Company Limited engages in the research, development, manufacture, marketing, and out-licensing of pharmaceutical products in Japan, the United States, Europe, Canada, Latin America, Russia, rest of Asia, and internationally. It offers pharmaceutical products in the areas of gastroenterology, rare diseases, plasma derived therapies, oncology, and neuroscience. The company provides its products under the Entyvio, Gattex/Revestive, Takecab, Alofisel, Dexilant, Natpara, Adynovate/Adynovi, Takhzyro, Livtencity, Elaprase, Replagal, Advate, Vpriv, Gammagard Liquid/Kiovig, Hyqvia, Cuvitru, Exkivity, Velcade, Leuplin/Enantone, Adcetris, Vyvansese, Trintellix, and Alunbrig brands. Takeda Pharmaceutical Company Limited has out-licensing agreement with Neurocrine Biosciences, Inc.; collaborations and in-licensing agreements with the University of Texas MD Anderson Cancer Center, Arrowhead Pharmaceuticals Inc., and Ovid Therapeutics Inc.; and collaboration with Evox Therapeutics Ltd., as well as a licensing agreement with ProThera Biologics Inc. It also has research collaboration and licensing agreement with Crescendo Biologics, Code Bio, Immusoft, Poseida Therapeutics, Selecta Biosciences, BridGene Biosciences, Skyhawk Therapeutics, and StrideBio; and strategic alliances with Egle Therapeutics SAS; Evotec SE; Neurocrine Biosciences, Inc.; Carmine Therapeutics; KSQ Therapeutics; and Anima Biotech. Takeda Pharmaceutical Company Limited was founded in 1781 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyTakeda Pharmaceutical Company generates revenue primarily through the sale of its pharmaceutical products and therapies across its core therapeutic areas. The company invests heavily in research and development to discover and bring to market novel treatments that address unmet medical needs. Key revenue streams include prescription drug sales, with significant contributions from its oncology and rare diseases portfolios. Additionally, Takeda engages in strategic partnerships and collaborations to enhance its research capabilities and expand its market reach, further contributing to its earnings. Revenue is also bolstered by its global presence, allowing Takeda to tap into diverse markets and healthcare systems.
Takeda Pharmaceutical Company Financial Statement Overview
Summary
Takeda Pharmaceutical Company exhibits strong financial health with consistent revenue and profit growth, a solid balance sheet, and effective cash flow management. While profitability is a key strength, potential improvements in operational efficiency and careful monitoring of leverage and capital expenditures could further enhance financial performance.Income Statement
Takeda Pharmaceutical Company shows strong financial performance with consistent revenue growth and robust profitability margins. The Gross Profit Margin is healthy, reflecting effective cost management. The Net Profit Margin has improved significantly over the last year, showcasing enhanced operational efficiency. However, the EBIT margin saw a dip in recent periods, which could be an area for improvement.80
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a moderate Debt-to-Equity Ratio, suggesting a balanced approach to leveraging. The Return on Equity is solid, indicating efficient use of equity, though there is room for improvement. The Equity Ratio indicates a healthy proportion of equity in the asset base, supporting financial stability.75
Positive
Cash Flow
Cash flows are robust, with strong operating cash flow supporting the company's financial flexibility. The Free Cash Flow has seen significant growth, highlighting effective capital management. The Operating Cash Flow to Net Income Ratio is favorable, indicating good cash conversion, though fluctuations in capital expenditures may warrant monitoring.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.55T | 4.26T | 4.03T | 3.57T | 3.20T | 3.29T | Gross Profit |
| 2.51T | 2.83T | 2.78T | 2.46T | 2.20T | 2.20T | EBIT |
| 509.41B | 214.07B | 490.50B | 460.84B | 509.27B | 100.41B | EBITDA |
| 1.24T | 874.60B | 1.18T | 1.18T | 983.72B | 880.33B | Net Income Common Stockholders |
| 290.00B | 144.07B | 317.02B | 230.06B | 376.00B | 44.24B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 883.22B | 457.80B | 553.70B | 875.00B | 1.00T | 653.44B | Total Assets |
| 2.82T | 15.11T | 13.96T | 13.18T | 12.91T | 12.82T | Total Debt |
| 18.80B | 4.84T | 4.38T | 4.35T | 4.64T | 5.09T | Net Debt |
| -247.73B | 4.39T | 3.85T | 3.50T | 3.67T | 4.46T | Total Liabilities |
| 658.53B | 7.83T | 7.60T | 7.49T | 7.74T | 8.09T | Stockholders Equity |
| 2.12T | 7.27T | 6.35T | 5.68T | 5.17T | 4.72T |
| Cash Flow | Free Cash Flow | ||||
| 508.58B | 235.61B | 343.47B | 937.07B | 774.46B | 452.04B | Operating Cash Flow |
| 837.30B | 716.34B | 977.16B | 1.12T | 1.01T | 669.75B | Investing Cash Flow |
| -393.56B | -463.86B | -607.10B | -198.13B | 393.53B | 292.12B | Financing Cash Flow |
| 114.34B | -354.42B | -709.15B | -1.07T | -1.09T | -1.01T |
Takeda Pharmaceutical Company Technical Analysis
Positive
14.30
Price Trends
14.20
Positive
13.62
Positive
13.63
Positive
Market Momentum
-0.05
Positive
47.35
Neutral
23.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TAK, the sentiment is Positive. The current price of 14.3 is below the 20-day moving average (MA) of 14.63, above the 50-day MA of 14.20, and above the 200-day MA of 13.63, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 47.35 is Neutral, neither overbought nor oversold. The STOCH value of 23.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TAK.
Takeda Pharmaceutical Company Risk Analysis
Takeda Pharmaceutical Company disclosed 40 risk factors in its most recent earnings report. Takeda Pharmaceutical Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Takeda Pharmaceutical Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $44.31B | 24.93 | 8.90% | 1.58% | 2.16% | 43.24% | |
71 Outperform | $43.70B | 32.10 | 2.87% | 4.22% | 1.92% | 6.40% | |
70 Outperform | $10.75B | 17.18 | 18.51% | 0.61% | 13.26% | 1.33% | |
63 Neutral | $14.05B | ― | -8.58% | ― | 46.62% | 50.50% | |
54 Neutral | $9.00B | ― | -3.24% | 6.37% | -4.58% | -1269.23% | |
50 Neutral | $15.52B | ― | -25.44% | ― | 4.34% | -206.85% | |
48 Neutral | $6.46B | 1.17 | -47.75% | 2.67% | 19.50% | 0.61% |
* Healthcare Sector Average
Performance Comparison
TAK
Takeda Pharmaceutical Company
14.30
1.64
12.95%
RDY
Dr Reddy's Laboratories
13.25
-0.90
-6.36%
VTRS
Viatris
7.63
-3.21
-29.61%
TEVA
Teva Pharmaceutical
13.60
0.37
2.80%
ITCI
Intra-Cellular Therapies
131.87
67.11
103.63%
HLN
Haleon PLC Sponsored ADR
10.11
2.09
26.06%
Takeda Pharmaceutical Company Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: 9.75% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance with notable achievements in product launches and pipeline progress, offset by challenges from generic competition and profit declines. While growth in new products is promising, the financial impact of loss of exclusivity on core products remains a concern.Highlights
Growth in Launch Products
Launch products now represent 43% of total revenue, with a growth of 12.7% at constant exchange rates.
Strong Pipeline Progress
Approval of two new molecular entities, FRUZAQLA for metastatic colorectal cancer and ADZYNMA for congenital thrombocytopenic purpura in the U.S.
ENTYVIO Performance
ENTYVIO outperformed the IBD market with 7% revenue growth and maintained its lead as the most prescribed treatment for IBD in the U.S.
Global Expansion of Qdenga
Qdenga was launched in 21 countries with strong initial demand, including a significant recommendation for inclusion in Brazil's national immunization program.
Lowlights
Core Operating Profit Decline
Core operating profit declined by 12.7% at constant exchange rates, reflecting loss of exclusivity on high-margin products.
Impact of Generic Competition
Significant generic competition for key products such as VYVANSE and AZILVA, leading to revenue and profit challenges.
Reported Operating Profit Impacted
Reported operating profit declined by 44.2% due to large non-core items and impairment of intangible assets.
Company Guidance
During Takeda's fiscal year 2023 third-quarter earnings call, executives provided detailed guidance and discussed several key metrics. The company reported a revenue of JPY 3.2 trillion, reflecting flat growth at constant exchange rates and a 4.6% increase at actual exchange rates. This was driven by a 12.7% growth in its growth and launch products, which now comprise 43% of total revenue. Despite a 12.7% decline in core operating profit at constant exchange rates (9.3% at actual exchange rates), primarily due to the loss of exclusivity on high-margin products like VYVANSE and AZILVA, Takeda remains on track to exceed JPY 1 trillion in core operating profit for the year. The company is optimistic about future revenue, profit, and margin growth driven by its innovative pipeline and strategic R&D investments, with a return to core operating profit margins in the low to mid-30s. Takeda also highlighted its robust pipeline developments, including the approval of two new drugs in the U.S., and continued expansion in markets for existing products like ENTYVIO and Qdenga.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.