DB:TKDA

Stock Analysis Report

Executive Summary

Takeda Pharmaceutical Company Limited engages in the research, development, manufacturing, and marketing of pharmaceutical products, over-the-counter medicines and quasi-drug consumer products, and other healthcare products.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Takeda Pharmaceutical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TKDA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.1%

TKDA

3.3%

DE Pharmaceuticals

7.1%

DE Market


1 Year Return

-22.2%

TKDA

-10.3%

DE Pharmaceuticals

-17.5%

DE Market

Return vs Industry: TKDA underperformed the German Pharmaceuticals industry which returned -10.3% over the past year.

Return vs Market: TKDA underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

TKDAIndustryMarket
7 Day6.1%3.3%7.1%
30 Day-9.7%-21.1%-20.0%
90 Day-21.9%-22.9%-26.1%
1 Year-22.2%-22.2%-7.3%-10.3%-15.0%-17.5%
3 Yearn/a14.3%1.3%-18.8%-25.8%
5 Yearn/a9.5%-9.2%-17.9%-29.2%

Price Volatility Vs. Market

How volatile is Takeda Pharmaceutical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Takeda Pharmaceutical undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TKDA (€13.9) is trading below our estimate of fair value (€34.87)

Significantly Below Fair Value: TKDA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TKDA is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: TKDA is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TKDA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TKDA is good value based on its PB Ratio (1.1x) compared to the DE Pharmaceuticals industry average (1.6x).


Next Steps

Future Growth

How is Takeda Pharmaceutical forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

52.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TKDA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: TKDA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TKDA's is expected to become profitable in the next 3 years.

Revenue vs Market: TKDA's revenue (0.9% per year) is forecast to grow slower than the German market (4.2% per year).

High Growth Revenue: TKDA's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TKDA's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Takeda Pharmaceutical performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TKDA is currently unprofitable.

Growing Profit Margin: TKDA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TKDA is unprofitable, but has reduced losses over the past 5 years at a rate of 24.1% per year.

Accelerating Growth: Unable to compare TKDA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TKDA is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (1.9%).


Return on Equity

High ROE: TKDA has a negative Return on Equity (-0.26%), as it is currently unprofitable.


Next Steps

Financial Health

How is Takeda Pharmaceutical's financial position?


Financial Position Analysis

Short Term Liabilities: TKDA's short term assets (¥2,520.3B) exceed its short term liabilities (¥2,127.4B).

Long Term Liabilities: TKDA's short term assets (¥2,520.3B) do not cover its long term liabilities (¥6,027.9B).


Debt to Equity History and Analysis

Debt Level: TKDA's debt to equity ratio (107%) is considered high.

Reducing Debt: TKDA's debt to equity ratio has increased from 34.7% to 107% over the past 5 years.


Balance Sheet

Inventory Level: TKDA has a low level of unsold assets or inventory.

Debt Coverage by Assets: TKDA's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TKDA has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: TKDA has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Takeda Pharmaceutical's current dividend yield, its reliability and sustainability?

5.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TKDA's dividend (5.26%) is higher than the bottom 25% of dividend payers in the German market (1.68%).

High Dividend: TKDA's dividend (5.26%) is in the top 25% of dividend payers in the German market (4.96%)


Stability and Growth of Payments

Stable Dividend: TKDA's dividends per share have been stable in the past 10 years.

Growing Dividend: TKDA's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: TKDA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Christophe Weber (53yo)

4.92s

Tenure

JP¥1,758,000,000

Compensation

Mr. Christophe Weber has been the President and Chief Executive Officer of Takeda Pharmaceutical Company Limited since June 27, 2014 and April 2015 respectively and served as its Chief Operating Officer fr ...


CEO Compensation Analysis

Compensation vs Market: Christophe's total compensation ($USD16.27M) is above average for companies of similar size in the German market ($USD5.11M).

Compensation vs Earnings: Christophe's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Christophe Weber
President4.92yrsJP¥1.76b0.019% ¥8.4m
Masato Iwasaki
President of Japan Pharma Business Unit & Director7.75yrsJP¥193.00m0.000010% ¥4.5k
Andrew S. Plump
President of Research & Development and Director4.75yrsJP¥795.00m0.00034% ¥151.4k
Seigo Izumo
Chair of Management Boardno datano datano data
Constantine Saroukos
CFO & Director0.75yrno data0.000080% ¥35.6k
Haruhiko Hirate
Member of Management Board & Corporate Communications and Public Affairs Officerno datano datano data
Salvatore Alesci
Member of Management Board and Head of R&D Global Science & Biomedical Policyno datano datano data
Iwaaki Taniguchi
Senior Vice President of Corporate Finance & Controlling Department7yrsno datano data
Takashi Okubo
Global Head of IRno datano datano data
Yoshihiro Nakagawa
Global General Counsel5.42yrsno datano data

5.4yrs

Average Tenure

56.5yo

Average Age

Experienced Management: TKDA's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christophe Weber
President4.92yrsJP¥1.76b0.019% ¥8.4m
Masato Iwasaki
President of Japan Pharma Business Unit & Director7.75yrsJP¥193.00m0.000010% ¥4.5k
Andrew S. Plump
President of Research & Development and Director4.75yrsJP¥795.00m0.00034% ¥151.4k
Constantine Saroukos
CFO & Director0.75yrno data0.000080% ¥35.6k
Karen Katen
Member of Takeda Global Advisory Boardno datano datano data
Sidney Taurel
Member of Takeda Global Advisory Boardno datano datano data
Bruno Francois Angelici
Member of Takeda Global Advisory Board9.42yrsno datano data
Masahiro Sakane
Chairman of the Board2.75yrsno datano data
Yasuhiko Yamanaka
Director3.75yrsJP¥101.00m0.000020% ¥8.9k
Koji Hatsukawa
External Director3.75yrsno datano data

4.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: TKDA's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 96.9%.


Top Shareholders

Company Information

Takeda Pharmaceutical Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Takeda Pharmaceutical Company Limited
  • Ticker: TKDA
  • Exchange: DB
  • Founded: 1781
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: JP¥5.334t
  • Listing Market Cap: JP¥44.519b
  • Shares outstanding: 1.56b
  • Website: https://www.takeda.com

Number of Employees


Location

  • Takeda Pharmaceutical Company Limited
  • 1-1, Nihonbashi-Honcho 2-chome
  • Chuo-ku
  • Tokyo
  • 103-8668
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TKPH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
4502TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
0RN3LSE (London Stock Exchange)YesCommon StockGBEURJan 1992
TKDDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
TAKNYSE (New York Stock Exchange)SPONSORED ADSUSUSDMay 2010
TAK NBMV (Bolsa Mexicana de Valores)SPONSORED ADSMXMXNMay 2010
TKDABST (Boerse-Stuttgart)SPONSORED ADSDEEURMay 2010
TKDADB (Deutsche Boerse AG)SPONSORED ADSDEEURMay 2010

Biography

Takeda Pharmaceutical Company Limited engages in the research, development, manufacturing, and marketing of pharmaceutical products, over-the-counter medicines and quasi-drug consumer products, and other healthcare products. It offers medicines in various therapeutic areas, including gastroenterology; cancer; neurological and psychiatric diseases; and rare diseases, such as immunology and hematology, as well as plasma-derived therapies and vaccines. The company provides its products under the ENTYVIO, GATTEX/REVESTIVE, ALOFISEL, NATPARA, ADYNOVATE/ADYNOVI, TAKHZYRO, ELAPRASE, VPRIV, GAMMAGARD LIQUID, HYQVIA, CUVITRU, ALBUMIN/FLEXBUMIN, NINLARO, and ALUNBRIG brands. It operates in Japan, the United States, Europe and Canada, Russia/CIS, Latin America, Asia, the Middle East, Oceania, and Africa. The company has licensing agreements with TESARO, Inc., Denali Therapeutics, and Wave Life Sciences Ltd; collaboration agreements with Rani Therapeutics LLC, Novimmune S.A., AB Biosciences Inc., Sosei Group Corporation, and LogicBio Therapeutics, Inc.; strategic collaboration with Prometheus Biosciences, Inc; a license and research agreement with The University of Texas MD Anderson Cancer Center; a research collaboration agreements with Enzyre BV and Cerevance; a collaboration agreement with Artisan Bio, Inc.; and a multi-target rare disease collaboration with Evox Therapeutics Ltd. Takeda Pharmaceutical Company Limited was founded in 1781 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:05
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.