Takeda Pharmaceutical Company (TAK) AI Stock Analysis

• Market Cap: $44.69B
• Dividend Yield: 4.24%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 46.0
• Beta (1Y): 0.12
• Revenue Growth: 1.36%
• EPS Growth: -1.81%
• Country: US
• Employees: 49,281
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 3,181,971,700
• 10 Day Avg. Volume: 2,571,927
• 30 Day Avg. Volume: 2,547,074
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.07
• 1Y Price Target: $18.00
• Price Target Upside: 27.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $15.00 ▲(6.53% Upside)

Takeda Pharmaceutical's overall stock score reflects a stable financial position and strong cash flow generation, which are offset by technical weakness and valuation concerns. The stock's high P/E ratio suggests overvaluation, while the technical indicators point to potential short-term bearish momentum. Despite these challenges, the company's solid dividend yield offers some appeal to income-focused investors.

Positive Factors

Strategic Partnerships

The partnership with Vela Transport enhances Takeda's supply chain efficiency and sustainability, potentially reducing costs and environmental impact.

Product Pipeline

Successful Phase 3 results for Oveporexton strengthen Takeda's product pipeline, potentially leading to new revenue streams in the narcolepsy market.

Regulatory Approvals

The FDA approval for VONVENDI expands its market potential, enhancing Takeda's competitive position in treating von Willebrand Disease.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential market or operational challenges, which could impact long-term financial performance and market position.

Profitability Margins

Declining net profit margins suggest difficulties in maintaining profitability, which could affect Takeda's ability to invest in growth and innovation.

Debt Issuance

Increased debt levels may strain financial flexibility, potentially impacting Takeda's ability to respond to market changes and invest in strategic initiatives.

Takeda Pharmaceutical Company Business Overview & Revenue Model

Company Description

Takeda Pharmaceutical Company Limited is a global, research and development-driven pharmaceutical company headquartered in Japan. Founded in 1781, Takeda focuses on delivering innovative medicines in key therapeutic areas such as oncology, gastroenterology, neuroscience, rare diseases, and vaccines. The company operates in various segments, including pharmaceuticals and vaccines, with a commitment to improving patient outcomes through groundbreaking research and partnerships.

How the Company Makes Money

Takeda generates revenue primarily through the sale of prescription pharmaceuticals and vaccines. The company’s revenue model is built on a diversified portfolio of products, which includes both well-established medications and newer, innovative therapies. Key revenue streams comprise direct sales of pharmaceutical products, royalties from licensing agreements, and collaborations with other pharmaceutical companies for drug development and commercialization. Significant partnerships, such as collaborations with biotechnology firms and research institutions, enhance Takeda’s pipeline and market presence, contributing to its earnings. Additionally, Takeda has a strategic focus on expanding its operations in emerging markets, which further diversifies its revenue sources.

Takeda Pharmaceutical Company Financial Statement Overview

Summary

Takeda Pharmaceutical demonstrates a stable financial position with strengths in cash flow generation and a balanced leverage profile. However, challenges in revenue growth and profitability margins highlight areas for improvement. The company maintains a solid equity base, supporting long-term stability amidst industry-specific challenges.

Income Statement

Takeda Pharmaceutical's income statement shows moderate performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 60.54%, indicating efficient cost management. However, the net profit margin has declined to 3.06%, reflecting challenges in maintaining profitability. Revenue growth has been negative recently, with a -2.21% decline, suggesting potential market or operational challenges. EBIT and EBITDA margins are stable but show room for improvement.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.66, indicating a balanced approach to leveraging. The return on equity (ROE) is modest at 1.95%, suggesting limited returns on shareholder investments. The equity ratio is healthy, showing a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 15.98% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.49, suggesting efficient cash conversion from earnings. The free cash flow to net income ratio of 0.78 reflects a strong ability to generate cash relative to net income, supporting financial flexibility.

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	2.90T	3.00T	2.83T	2.78T	2.46T	2.20T
EBITDA	1.19T	1.21T	874.60B	1.18T	1.18T	983.72B
Net Income	136.88B	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	419.18B	385.11B	457.80B	553.70B	875.00B	1.00T
Total Debt	4.51T	5.07T	4.84T	4.38T	4.35T	4.64T
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	861.91B	856.39B	235.61B	343.47B	937.07B	774.46B
Operating Cash Flow	1.08T	1.06T	716.34B	977.16B	1.12T	1.01T
Investing Cash Flow	-243.56B	-367.06B	-463.86B	-607.10B	-198.13B	393.53B
Financing Cash Flow	-1.28T	-751.42B	-354.42B	-709.15B	-1.07T	-1.09T

Takeda Pharmaceutical Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TAK, the sentiment is Negative. The current price of 14.08 is below the 20-day moving average (MA) of 14.14, below the 50-day MA of 14.71, and below the 200-day MA of 14.47, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 73.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TAK.

Takeda Pharmaceutical Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBIX	―	$14.62B	43.50	13.39%	―	18.42%	1.47%
RDY	―	$12.20B	17.87	17.72%	0.63%	10.63%	6.35%
HLN	―	$42.09B	21.80	9.20%	1.93%	0.58%	45.74%
TAK	―	$44.69B	46.02	1.99%	4.24%	1.36%	-1.81%
TEVA	―	$22.01B	―	-2.31%	―	2.43%	64.37%
VTRS	―	$11.88B	―	-19.77%	4.66%	-7.47%	-438.39%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Takeda Pharmaceutical Company Corporate Events

Takeda Pharmaceutical Releases Corporate Governance Report

On July 9, 2025, Takeda Pharmaceutical Company released its Corporate Governance Report, highlighting its adherence to the Corporate Governance Code and its commitment to enhancing corporate value through sound decision-making and transparency. The report emphasizes Takeda’s strategies for shareholder engagement, diversity in its workforce, and sustainability initiatives, which are integral to its long-term business strategy and stakeholder relations.

Takeda Pharmaceutical Issues $2.4 Billion in Guaranteed Notes

On July 2, 2025, Takeda Pharmaceutical Company Limited, through its subsidiary Takeda U.S. Financing, Inc., executed an indenture agreement involving the issuance of two series of guaranteed notes. The notes include $1.65 billion at 5.200% due in 2035 and $750 million at 5.900% due in 2055. This financial maneuver, involving The Bank of New York Mellon as trustee and paying agent, is expected to enhance Takeda’s financial flexibility and support its strategic initiatives.

Takeda Pharmaceutical’s 149th Shareholders Meeting Approves Key Resolutions

On June 25, 2025, Takeda Pharmaceutical Company held its 149th Ordinary General Meeting of Shareholders, where several key resolutions were passed. The meeting approved a year-end dividend of 98 JPY per share, the election of ten directors, and the payment of bonuses to directors, reflecting strong shareholder support for the company’s strategic direction. These decisions are expected to reinforce Takeda’s governance structure and financial strategy, potentially strengthening its market position and enhancing shareholder value.

Takeda’s 2025 Report Highlights Strong Growth and Leadership Transition

Takeda Pharmaceutical Company released its 2025 Annual Integrated Report, highlighting significant progress in its business operations and R&D pipeline during FY2024. The company achieved strong business momentum with key growth drivers like ENTYVIO®, FRUZAQLA®, and immunoglobulin products, and launched several new licensing deals to expand its reach. Takeda’s strategic focus on innovation and efficiency, coupled with a multi-year efficiency program, is expected to sustain its growth and enhance its competitive positioning in the global pharmaceutical industry. The report also announced a leadership transition, with Julie Kim set to succeed Christophe Weber as CEO in June 2026, ensuring continuity in Takeda’s commitment to patients and stakeholders.