Takeda Pharmaceutical Company (TAK) AI Stock Analysis

• Market Cap: $45.36B
• Dividend Yield: 4.25%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 169.5
• 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: 3,341,677
• 30 Day Avg. Volume: 2,994,636
• 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: 1.61
• 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 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	4.42T	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: 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 above the 20-day moving average (MA) of 13.87, below the 50-day MA of 14.29, and below the 200-day MA of 14.54, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 72.46 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	79 Outperform	$14.44B	34.28	14.96%	―	19.61%	11.36%
RDY	73 Outperform	$11.72B	17.09	17.72%	0.65%	10.63%	6.35%
HLN	67 Neutral	$41.49B	21.43	9.20%	1.83%	0.58%	45.74%
TAK	63 Neutral	$45.36B	169.51	0.54%	4.25%	-1.98%	-86.20%
TEVA	63 Neutral	$29.76B	40.16	10.77%	―	-0.25%	―
VTRS	60 Neutral	$12.35B	―	-21.09%	4.58%	-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’s Earnings Call: Mixed Outlook Amid Challenges

Takeda Pharmaceutical Company’s recent earnings call presented a mixed outlook, highlighting both promising developments and notable challenges. While the company showcased strong pipeline advancements and strategic partnerships, these positives were overshadowed by significant losses from VYVANSE’s generic impact and currency headwinds affecting profitability.

Takeda Pharmaceutical Reports Decline in Revenue and Profit

Takeda Pharmaceutical Company Limited is a global pharmaceutical company based in Japan, focusing on research and development in areas such as oncology, gastroenterology, and neuroscience. It is listed on multiple stock exchanges, including Tokyo and Nagoya.