Takeda Pharmaceutical Company (TAK) AI Stock Analysis

• Market Cap: $45.65B
• Dividend Yield: 4.15%
• Average Volume (3M): 2.88M
• Price to Earnings (P/E): 170.5
• Beta (1Y): 0.02
• Revenue Growth: -1.98%
• EPS Growth: -86.20%
• Country: US
• Employees: 49,281
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.03
• Shares Outstanding: 3,181,971,700
• 10 Day Avg. Volume: 1,911,071
• 30 Day Avg. Volume: 2,881,457
• PEG Ratio: -2.57
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 8.36
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.06
• 1Y Price Target: $18.00
• Price Target Upside: 27.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $15.00 ▲(6.53% Upside)

Takeda Pharmaceutical's overall stock score reflects a stable financial position with strong cash flow generation but faces challenges in revenue growth and profitability. The technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation despite a strong dividend yield. The earnings call highlighted both opportunities in pipeline advancements and strategic partnerships, as well as risks from VYVANSE's generic impact and currency headwinds.

Positive Factors

Strategic Partnerships

The partnership with Innovent Biologics enhances Takeda's oncology pipeline, leveraging synergies to develop transformative cancer treatments, which could strengthen its market position in oncology over the long term.

Cash Flow Generation

Strong cash flow growth enhances Takeda's financial flexibility, allowing for strategic investments and debt management, supporting long-term business sustainability.

Vaccine Development

Successful completion of the TIDES trial for Qdenga positions Takeda to capitalize on global vaccine markets, potentially driving future revenue growth and market expansion.

Negative Factors

Revenue Decline

Negative revenue growth indicates potential market or operational challenges, which could impact Takeda's ability to maintain its competitive position and financial performance.

Profitability Challenges

Declining net profit margins suggest difficulties in maintaining profitability, which could affect Takeda's ability to reinvest in growth initiatives and sustain long-term competitiveness.

Impairment Losses

Significant impairment losses from discontinued cell therapy efforts highlight resource allocation challenges, potentially impacting future profitability and strategic focus.

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. Established in 1781, Takeda specializes in innovative medicines and has a diverse portfolio that includes treatments for oncology, gastroenterology, neuroscience, and rare diseases. The company is committed to improving patient outcomes through its extensive pipeline of therapies and a strong focus on biopharmaceuticals, including vaccines and plasma-derived therapies.

How the Company Makes Money

Takeda generates revenue primarily through the sale of prescription pharmaceuticals, which are developed and marketed for various therapeutic areas, including oncology, gastrointestinal disorders, and rare diseases. The company has a robust pipeline of drugs that contribute to its revenue stream through both new product launches and ongoing sales of established medications. Additionally, Takeda engages in strategic partnerships and collaborations with other pharmaceutical companies, research institutions, and biotech firms, which can provide additional revenue through licensing agreements and joint ventures. The company also benefits from its focus on biologics and specialty medicines, which generally have higher price points and demand. Furthermore, Takeda's global presence allows it to tap into diverse markets, enhancing its overall sales potential and stability.

Takeda Pharmaceutical Company Financial Statement Overview

Summary

Takeda Pharmaceutical shows a stable financial position with strong cash flow generation and manageable leverage. However, challenges in revenue growth and profitability margins indicate areas for improvement. The company should focus on enhancing revenue growth and maintaining cost efficiency.

Income Statement

Takeda Pharmaceutical's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -1.41%, which is concerning. However, the company maintains a stable EBIT margin of 10.05% and a net profit margin of 3.06%, reflecting decent profitability. The gross profit margin has decreased compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.66, indicating manageable leverage. The return on equity (ROE) is relatively low at 1.95%, suggesting limited efficiency in generating returns from equity. However, the equity ratio is healthy, indicating a solid asset base supported by equity.

Cash Flow

Cash flow analysis reveals a positive trend with a 10.63% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.46 suggests that the company is generating sufficient cash from operations relative to its net income. The free cash flow to net income ratio is strong at 0.81, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.42T	4.58T	4.26T	4.03T	3.57T	3.20T
Gross Profit	2.85T	3.00T	2.83T	2.78T	2.46T	2.20T
EBITDA	1.13T	1.21T	1.14T	1.28T	1.18T	983.72B
Net Income	33.03B	107.93B	144.07B	317.02B	230.06B	376.00B
Balance Sheet
Total Assets	14.47T	14.25T	15.11T	13.96T	13.18T	12.91T
Cash, Cash Equivalents and Short-Term Investments	739.68B	405.59B	472.89B	553.70B	875.00B	1.00T
Total Debt	4.65T	5.07T	5.46T	4.86T	4.81T	4.64T
Total Liabilities	7.34T	7.31T	7.83T	7.60T	7.49T	7.74T
Stockholders Equity	7.13T	6.94T	7.27T	6.35T	5.68T	5.17T
Cash Flow
Free Cash Flow	977.79B	856.39B	235.61B	343.47B	937.07B	774.46B
Operating Cash Flow	1.20T	1.06T	716.34B	977.16B	1.12T	1.01T
Investing Cash Flow	-216.56B	-367.06B	-463.86B	-607.10B	-198.13B	393.53B
Financing Cash Flow	-1.18T	-751.42B	-354.42B	-709.15B	-1.07T	-1.09T

Takeda Pharmaceutical Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.08
• 50DMA: Positive
• 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 Positive. The current price of 14.08 is below the 20-day moving average (MA) of 14.28, above the 50-day MA of 14.08, and below the 200-day MA of 14.61, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.29 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TAK.

Takeda Pharmaceutical Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBIX	80 Outperform	$15.52B	36.96	14.96%	―	19.61%	11.36%
RDY	73 Outperform	$11.56B	16.96	17.72%	0.66%	10.63%	6.35%
HLN	67 Neutral	$41.49B	21.43	9.20%	1.83%	0.58%	45.74%
TAK	63 Neutral	$45.65B	170.46	0.54%	4.15%	-1.98%	-86.20%
TEVA	63 Neutral	$33.58B	49.29	10.77%	―	-0.25%	―
VTRS	60 Neutral	$12.89B	―	-21.09%	4.14%	-6.40%	-320.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Takeda Pharmaceutical Company Corporate Events

Takeda Advances Late-Stage Pipeline with Positive Phase 3 Data

In November 2025, Takeda Pharmaceutical Company announced significant advancements in its late-stage pipeline, including positive Phase 3 data for rusfertide and oveporexton, targeting polycythemia vera and narcolepsy type 1, respectively. These developments, along with anticipated regulatory submissions and commercialization preparations, are expected to drive substantial growth, with potential peak revenue between USD 10 and 20 billion. The company also highlighted its strategic partnership with Innovent Biologics, reinforcing its commitment to expanding its R&D pipeline and delivering transformative treatments. Additionally, Takeda is undergoing a leadership transition with Julie Kim set to become CEO in June 2026, ensuring continuity and future acceleration.