TAKTakeda Pharmaceutical Company Limited
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (5.0×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 2% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TAK?
Takeda Pharmaceutical Company Limited earns 2.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 6.6 points below what the capital costs: growth destroys value
- Operating margin
- 7.5%
Operating margin · Drug Manufacturers - Specialty & Generic median 11% · fiscal year to FY2025
- Cash conversion
- 5.00×
Cash conversion · 4.24× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.6%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 3.0% |
| FY2021 | 16% |
| FY2022 | 13% |
| FY2023 | 12% |
| FY2024 | 5.0% |
| FY2025 | 7.5% |
Details›
- Gross marginfiscal year to FY2025
- 66%
- Operating marginfiscal year to FY2025
- 7.5%
- Net marginfiscal year to FY2025
- 2.4%
- Free cash flow margin
- 19%
- R&D as % of revenue
- 16%
- Revenue, trailing twelve months
- $4.58T
- Free cash flow, trailing twelve months
- $856.4B
- Net income, trailing twelve months
- $107.9B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 2.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Drug Manufacturers, Specialty & Generic
Ranks #14 of 40 by RyuScore