Takeda Pharmaceutical Co (4502) AI Stock Analysis

• Market Cap: ¥7.03T
• Dividend Yield: 4.42%
• Average Volume (3M): 4.54M
• Price to Earnings (P/E): 50.9
• Beta (1Y): 0.48
• Revenue Growth: 1.52%
• EPS Growth: -8.68%
• Country: JP
• Employees: 49,281
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 79.40
• Shares Outstanding: 1,590,983,800
• 10 Day Avg. Volume: 3,928,690
• 30 Day Avg. Volume: 4,543,526
• PEG Ratio: -2.51
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 9.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,549.26
• Price Target Upside: 25.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: ¥4,819.00 ▲(8.58% Upside)

Takeda Pharmaceutical Co's overall stock score is driven by its stable financial performance and solid cash flow management, which provide a strong foundation. However, the high P/E ratio suggests potential overvaluation, which could be a risk if not supported by future growth. Technical analysis indicates a mixed outlook with some bullish momentum but no clear short-term trend. The attractive dividend yield offers a positive aspect for income-focused investors.

Positive Factors

Negative Factors

Takeda Pharmaceutical Co Business Overview & Revenue Model

Company Description

Takeda 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 Money

Takeda Pharmaceutical Co. generates revenue primarily through the research, development, manufacturing, and sale of pharmaceutical products. The company's key revenue streams include prescription drug sales across its core therapeutic areas, such as oncology, gastroenterology, and neuroscience. Takeda invests heavily in research and development to create innovative treatments that address unmet medical needs, which in turn drives sales growth. Additionally, Takeda engages in strategic partnerships and collaborations with other pharmaceutical companies to enhance its product offerings and expand its market reach. Licensing agreements and the commercialization of co-developed drugs also contribute to its earnings. The company's global presence and strong distribution networks enable it to capture market share across different regions, further bolstering its revenue.

Takeda Pharmaceutical Co Financial Statement Overview

Summary

Takeda Pharmaceutical Co exhibits a stable financial profile with strengths in profitability and cash flow management. The income statement reflects solid margins, although revenue growth is a concern. The balance sheet is well-managed with a balanced leverage position, though ROE could be improved. Strong cash flow generation supports the company's financial health, providing a solid foundation for future growth. Addressing revenue growth and enhancing shareholder returns could further bolster the company's financial standing.

Income Statement

Takeda Pharmaceutical Co shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth at -2.21%, which is a concern. However, the company maintains a healthy gross profit margin of 60.54% and a stable net profit margin of 3.06%. The EBIT margin of 10.28% and EBITDA margin of 27.04% reflect decent operational efficiency. Overall, while profitability metrics are solid, the negative revenue growth trend needs attention.

Balance Sheet

The balance sheet of Takeda Pharmaceutical Co is relatively strong. The debt-to-equity ratio stands at 0.66, indicating a balanced leverage position. The return on equity (ROE) is modest at 1.95%, suggesting room for improvement in generating returns for shareholders. The equity ratio is healthy, reflecting a stable capital structure. While the company manages its debt well, enhancing ROE could further strengthen its financial position.

Cash Flow

Takeda Pharmaceutical Co's cash flow statement shows positive trends. The free cash flow growth rate is robust at 16.67%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.49, and the free cash flow to net income ratio is 0.78, both of which suggest efficient cash conversion. Overall, the company demonstrates solid cash flow management, supporting its operational and financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.48T	4.58T	4.26T	4.03T	3.57T	3.20T
Gross Profit	2.36T	2.46T	2.32T	2.30T	2.04T	1.80T
EBITDA	1.20T	1.13T	927.95B	1.18T	1.04T	1.07T
Net Income	136.92B	107.93B	144.07B	317.02B	230.06B	376.00B
Balance Sheet
Total Assets	14.00T	14.25T	15.11T	13.96T	13.18T	12.91T
Cash, Cash Equivalents and Short-Term Investments	350.01B	385.11B	457.80B	533.53B	849.70B	966.22B
Total Debt	4.51T	5.09T	5.46T	4.86T	4.81T	5.07T
Total Liabilities	7.14T	7.31T	7.83T	7.60T	7.49T	7.74T
Stockholders Equity	6.87T	6.94T	7.27T	6.35T	5.68T	5.17T
Cash Flow
Free Cash Flow	815.68B	761.70B	464.90B	736.56B	897.97B	793.87B
Operating Cash Flow	1.01T	962.49B	640.32B	877.22B	1.02T	905.07B
Investing Cash Flow	-262.42B	-385.36B	-488.21B	-615.72B	-204.44B	392.04B
Financing Cash Flow	-1.17T	-638.44B	-254.04B	-600.59B	-962.06B	-981.00B

Takeda Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4438.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4502, the sentiment is Neutral. The current price of 4438 is below the 20-day moving average (MA) of 4488.50, above the 50-day MA of 4411.12, and above the 200-day MA of 4257.91, indicating a neutral trend. The MACD of 4.74 indicates Positive momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 23.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4502.

Takeda Pharmaceutical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4507	83 Outperform	¥2.32T	12.53	12.51%	2.35%	4.04%	21.20%
4530	76 Outperform	¥303.89B	15.57	7.86%	2.52%	6.49%	38.42%
4540	74 Outperform	¥283.23B	10.95	10.79%	3.67%	14.60%	8.97%
4523	67 Neutral	¥1.44T	28.62	5.52%	3.14%	9.43%	56.53%
4502	65 Neutral	¥7.03T	50.90	1.99%	4.42%	1.52%	-8.68%
4506	63 Neutral	¥632.89B	33.48	10.73%	―	26.28%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Takeda Pharmaceutical Co Corporate Events

Takeda’s Oveporexton Shows Promise in Phase 3 Narcolepsy Trials

Takeda Pharmaceutical Co has presented promising data from its Phase 3 clinical trials of oveporexton (TAK-861), an investigational oral orexin receptor 2 agonist, at the World Sleep 2025 Congress. The studies demonstrated statistically significant improvements in narcolepsy type 1 symptoms, with no serious treatment-related adverse events reported, marking a potential breakthrough in addressing the underlying cause of this chronic neurological disease.

The most recent analyst rating on (JP:4502) stock is a Hold with a Yen4693.00 price target. To see the full list of analyst forecasts on Takeda Pharmaceutical Co stock, see the JP:4502 Stock Forecast page.