Takeda Pharmaceutical Company Limited American Depositary Shares (each representing 1/2 of a share of Common Stock) (TAK)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business whose earnings power is durable and whose price leaves a margin of safety. Takeda is a large specialty and generic drug maker with franchises in gastroenterology, rare diseases, plasma-derived therapies, oncology, vaccines, and neuroscience. Revenue growth of 10.23% is a point in its favor, but profit growth of -8.89% and EPS of -$0.33 mean reported earnings are not yet a reliable anchor. At the 2026-10-26 close of $20.43, FairStock’s calculations show a negative P/E of -61.91, P/B of 1.31, EV/EBITDA of 7.02, ROE of -2.26%, ROCE of 2.69%, and D/E of 0.73. The low beta of 0.10 and 3.26% dividend yield suggest defensiveness, while the $486.5B trailing free cash flow and 929.4% FCF yield are so far above normal that, as a Graham-style skeptic, I would verify their quality before treating them as recurring. The latest filed quarter, fiscal Q2 2026, showed revenue of $1.2T, net income of $113.2B, and a 9.28% margin. That is sizable absolute profit, but the negative EPS and weak returns on capital leave the quality question open. Piotroski at 6/9 is middling, Altman Z at 0.21 signals caution, and FairStock’s 54/100 score is not a screaming bargain. No Lynch category applies because the provided history has zero filed years versus the three required. My conclusion: the valuation is not demanding on book value and EBITDA, but the margin of safety is unclear until profitability, returns, and leverage improve.

In plain English: Takeda makes prescription medicines in areas such as digestive health, rare diseases, plasma therapies, cancer and neuroscience. The business looks mixed: sales are growing and the latest reported quarter was profitable, but per-share earnings are negative and returns are weak. At $20.43, the price looks fair rather than clearly cheap compared with its accounting value, and not obviously cheap given weak profits.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer