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Takeda Pharmaceutical Company (TAK)
NYSE:TAK
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Takeda Pharmaceutical Company
(NYSE:TAK)
Rating:71Outperform
Price Target:―
Takeda Pharmaceutical Company (TAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.71B
Dividend Yield4.07%
Average Volume (3M)2.14M
Price to Earnings (P/E)64.3
Beta (1Y)0.10
Revenue Growth1.92%
EPS Growth6.40%
CountryUS
Employees49,281
SectorHealthcare
Sector Strength42
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.23
Shares Outstanding3,181,923,300
10 Day Avg. Volume2,446,428
30 Day Avg. Volume2,141,145
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)1.03
Price to Sales (P/S)0.00
P/FCF Ratio13.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.00Price Target Upside9.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Takeda Pharmaceutical Company Business Overview & Revenue Model
Company DescriptionTakeda Pharmaceutical Company (TAK) is a leading global biopharmaceutical company headquartered in Japan. It focuses on delivering transformative treatments in several key therapeutic areas, including gastroenterology, oncology, neuroscience, rare diseases, plasma-derived therapies, and vaccines. Takeda is committed to research and development to improve patient health worldwide, leveraging a rich history of scientific innovation and a broad product portfolio.
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
14.57
Price Trends
14.67
Negative
14.05
Positive
13.88
Positive
Market Momentum
-0.12
Negative
51.60
Neutral
89.89
Negative
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 14.57 is below the 20-day moving average (MA) of 14.59, below the 50-day MA of 14.67, and above the 200-day MA of 13.88, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 89.89 is Negative, 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 (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.86B | 17.79 | 18.36% | 0.57% | 13.26% | 1.33% | |
73 Outperform | $50.17B | 27.60 | 8.90% | 1.53% | 2.16% | 43.24% | |
71 Outperform | $45.71B | 64.27 | 1.50% | 4.07% | 1.92% | 6.40% | |
58 Neutral | $18.89B | ― | -18.98% | ― | 3.38% | -175.90% | |
55 Neutral | $9.98B | ― | -21.25% | 5.65% | -6.88% | -6809.78% | |
53 Neutral | $5.14B | 3.03 | -43.89% | 2.83% | 16.75% | -0.06% |
* Healthcare Sector Average
Performance Comparison
TAK
Takeda Pharmaceutical Company
14.57
1.97
15.63%
RDY
Dr Reddy's Laboratories
14.38
0.54
3.90%
VTRS
Viatris
8.29
-1.65
-16.60%
TEVA
Teva Pharmaceutical
16.96
0.36
2.17%
HLN
Haleon PLC Sponsored ADR
11.14
2.90
35.19%
Takeda Pharmaceutical Company Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: -3.25%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
Takeda's earnings call highlighted strong growth in its Growth and Launch Product portfolio and progress in its R&D pipeline, supported by operational efficiencies and cash flow strength. However, the significant impact from VYVANSE generics, ENTYVIO's underperformance, and challenges in China present notable concerns.Q4-2024 Updates
Positive Updates
Growth and Launch Product Portfolio Success
Takeda's Growth and Launch Product portfolio grew by 14.7%, now accounting for 48% of total core revenue. Products like TAKHZYRO, FRUZAQLA, and ADZYNMA exceeded revenue expectations.
R&D Pipeline Progress
Significant progress in the late-stage pipeline with 6 Phase III programs underway. Notable achievements include positive Phase III data for rusfertide in polycythemia vera and completion of Phase III enrollment for zasocitinib in psoriasis and oveporexton in narcolepsy type 1.
Operational Efficiency and Profit Margin Growth
Core operating profit margin reached 25.4%, more than 2 percentage points above original expectations, driven by significant OpEx savings from efficiency programs.
Strong Free Cash Flow
Free cash flow was JPY 769 billion, exceeding forecasts due to lower CapEx and cash taxes, comfortably covering dividends and interest payments.
Dividend Increase
Takeda announced a further dividend increase to JPY 200 per share, in line with its progressive dividend policy.
Negative Updates
VYVANSE Generic Impact
Significant impact from VYVANSE loss of exclusivity, affecting revenue and core EPS, with erosion expected to continue into fiscal year 2025.
ENTYVIO Revenue Performance
ENTYVIO revenue was below expectations due to U.S. access challenges with the new pen formulation, impacting growth despite positive prescriber and patient feedback.
China Market Challenges
Albumin growth was impacted by lower demand in China and planned upgrade to manufacturing operations, with China representing only 4% of overall company revenue.
Higher Tax Expenses
Core EPS fell slightly short of guidance due to higher-than-anticipated tax expenses, including increased U.S. international tax provisions.
Company Guidance
During the FY 2024 earnings call, Takeda shared comprehensive guidance, highlighting several key metrics and strategic developments. The company's fiscal year 2024 core revenue grew by 2.8% at constant exchange rates, driven by a 14.7% increase in their Growth and Launch Product portfolio, which now constitutes 48% of total core revenue. Despite a significant generic impact from VYVANSE's loss of exclusivity, Takeda's core operating profit reached JPY 1.2 billion, reflecting a 4.9% growth at constant exchange rates. The core operating profit margin was recorded at 25.4%, surpassing original expectations by over 2 percentage points. Takeda also reported an adjusted free cash flow of JPY 769 billion, with a leverage ratio improvement to 2.8x. Looking forward to fiscal year 2025, Takeda anticipates broadly flat revenue, core operating profit, and core EPS at constant exchange rates, as continued Growth and Launch Product momentum is expected to offset VYVANSE's decline. The company plans to invest USD 30 billion over the next five years, particularly in the U.S., to support biopharmaceutical innovations. Additionally, Takeda announced a dividend increase to JPY 200 per share, reflecting their progressive dividend policy.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.