Taro Pharmaceutical Industries (NYSE:TARO) - Share price, News & Analysis

TARO fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	1/6
Financial Health	6/6
Dividends	0/6

TARO Stock Overview

Rewards

Earnings are forecast to grow 158.7% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Taro Pharmaceutical Industries Competitors

Eli Lilly

NYSE:LLY

US$269.0b

Merck

NYSE:MRK

US$236.6b

Viatris

NasdaqGS:VTRS

US$14.3b

Teva Pharmaceutical Industries

NYSE:TEVA

US$9.4b

Price History & Performance

Summary of all time highs, changes and price drops for Taro Pharmaceutical Industries
Historical stock prices
Current Share Price	US$37.60
52 Week High	US$76.00
52 Week Low	US$35.80
Beta	0.82
1 Month Change	-5.60%
3 Month Change	-20.98%
1 Year Change	-47.17%
3 Year Change	-59.96%
5 Year Change	-63.80%
Change since IPO	652.00%

Shareholder Returns

	TARO	US Pharmaceuticals	US Market
7D	1.2%	1.2%	-2.7%
1Y	-47.2%	10.8%	-12.9%

Return vs Industry: TARO underperformed the US Pharmaceuticals industry which returned 10.8% over the past year.

Return vs Market: TARO underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is TARO's price volatile compared to industry and market?
TARO volatility
TARO Average Weekly Movement	3.9%
Pharmaceuticals Industry Average Movement	11.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: TARO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TARO's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1950	1,417	Uday Baldota	https://www.taro.com

Taro Pharmaceutical Industries Ltd., a science-based pharmaceutical company, develops, manufactures, and markets prescription and over-the-counter pharmaceutical products in the United States, Canada, Israel, and internationally. The company also develops and manufactures active pharmaceutical ingredients primarily for use in its finished dosage form products. It offers its products for various therapeutic categories comprises allergy, analgesic, antibacterial, antibiotic, anticonvulsant, antiemetic, antifungal, anti-inflammatory, anti-cancer, antiplatelet agent, antipyretic, cardiovascular, CNS, corticosteroid, cosmetic, cough and cold, dermatology, diuretic, endocrine, gastrointestinal, laxative, narcotics, neuropathic pain, neuropsychiatric, sedative/hypnotic, and topical anti-neoplastic.

Taro Pharmaceutical Industries Fundamentals Summary

How do Taro Pharmaceutical Industries's earnings and revenue compare to its market cap?
TARO fundamental statistics
Market Cap	US$1.41b
Earnings (TTM)	US$1.08m
Revenue (TTM)	US$566.43m

1,314x

P/E Ratio

2.5x

P/S Ratio

Is TARO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TARO income statement (TTM)
Revenue	US$566.43m
Cost of Revenue	US$273.71m
Gross Profit	US$292.72m
Other Expenses	US$291.65m
Earnings	US$1.08m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 26, 2022

Earnings per share (EPS)	0.029
Gross Margin	51.68%
Net Profit Margin	0.19%
Debt/Equity Ratio	0.0%

How did TARO perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

1313.77x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TARO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate TARO's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: TARO is poor value based on its PE Ratio (1313.8x) compared to the US Pharmaceuticals industry average (20.1x).

PE vs Market: TARO is poor value based on its PE Ratio (1313.8x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: TARO is poor value based on its PEG Ratio (8.3x)

Price to Book Ratio

PB vs Industry: TARO is good value based on its PB Ratio (0.8x) compared to the US Pharmaceuticals industry average (1.8x).

Future Growth

How is Taro Pharmaceutical Industries forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

158.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TARO's forecast earnings growth (158.7% per year) is above the savings rate (1.9%).

Earnings vs Market: TARO's earnings (158.7% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TARO's revenue (10.8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: TARO's revenue (10.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if TARO's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Taro Pharmaceutical Industries performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-48.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TARO has a high level of non-cash earnings.

Growing Profit Margin: TARO became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: TARO's earnings have declined by 48.9% per year over the past 5 years.

Accelerating Growth: TARO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TARO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (16.9%).

Return on Equity

High ROE: TARO's Return on Equity (0.1%) is considered low.

Financial Health

How is Taro Pharmaceutical Industries's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TARO's short term assets ($1.2B) exceed its short term liabilities ($394.8M).

Long Term Liabilities: TARO's short term assets ($1.2B) exceed its long term liabilities ($31.7M).

Debt to Equity History and Analysis

Debt Level: TARO is debt free.

Reducing Debt: TARO had no debt 5 years ago.

Debt Coverage: TARO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TARO has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate TARO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TARO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TARO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TARO's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TARO has not reported any payouts.

Discover strong dividend paying companies

Management

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

6.7yrs

Average management tenure

CEO

Uday Baldota (51 yo)

4.75yrs

Tenure

Mr. Uday V. Baldota has been Director at Association for Accessible Medicines. He has been the Chief Executive Officer of Taro Pharmaceutical Industries Ltd. since August 28, 2017 and served as its Co-Chie...

Leadership Team

Experienced Management: TARO's management team is seasoned and experienced (6.7 years average tenure).

Board Members

Experienced Board: TARO's board of directors are considered experienced (7.1 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31