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Takeda Pharmaceutical Company (TAK)
:TAK
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Takeda Pharmaceutical Company
(NYSE:TAK)
Rating:71Outperform
Price Target:
$17.00
▲(14.40% Upside)
Takeda Pharmaceutical Company (TAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.25B
Dividend Yield4.05%
Average Volume (3M)4.73M
Price to Earnings (P/E)49.5
Beta (1Y)0.13
Revenue Growth1.36%
EPS Growth-1.81%
CountryUS
Employees49,281
SectorHealthcare
Sector Strength47
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.26
Shares Outstanding3,181,943,400
10 Day Avg. Volume2,979,542
30 Day Avg. Volume4,732,647
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.07
Forecast
1Y Price Target
$17.00Price Target Upside14.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Takeda Pharmaceutical Company Business Overview & Revenue Model
Company DescriptionTakeda 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 MoneyTakeda 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 Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
Main Street Data
Main Street DataTakeda Pharmaceutical Company Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Oct 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.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.65
Positive
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.70
Positive
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.75
Positive
| 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
Positive
14.86
Price Trends
14.78
Positive
14.75
Positive
14.16
Positive
Market Momentum
0.14
Negative
50.64
Neutral
25.62
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 14.86 is above the 20-day moving average (MA) of 14.73, above the 50-day MA of 14.78, and above the 200-day MA of 14.16, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 25.62 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 39 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.57B | 40.39 | 13.39% | ― | 18.42% | 1.47% | |
75 Outperform | $12.02B | 18.08 | 17.48% | 0.64% | 13.13% | -0.47% | |
71 Outperform | $47.25B | 49.51 | 1.99% | 4.05% | 1.36% | -1.81% | |
69 Neutral | $44.03B | 22.58 | 9.20% | 1.81% | 0.58% | 45.74% | |
59 Neutral | $12.14B | ― | -19.77% | 4.61% | -7.47% | -438.39% | |
58 Neutral | $21.22B | ― | -2.31% | ― | 2.43% | 64.37% | |
51 Neutral | $7.83B | -0.18 | -40.10% | 2.29% | 21.46% | -2.03% |
* Healthcare Sector Average
Performance Comparison
TAK
Takeda Pharmaceutical Company
14.86
0.50
3.48%
RDY
Dr Reddy's Laboratories
14.24
-2.13
-13.01%
VTRS
Viatris
10.42
-0.92
-8.11%
NBIX
Neurocrine
138.13
9.70
7.55%
TEVA
Teva Pharmaceutical
18.05
-0.68
-3.63%
HLN
Haleon PLC Sponsored ADR
9.71
-0.20
-2.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.