By The Numbers: Mitsubishi Tanabe Pharma

This week my Safari portfolio is looking to add a company from the Healthcare sector.

The Healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. The healthcare industries are: biotechnology; diagnostics & research; drug manufacturers (major and  specialty & generic); healthcare plans; long-term care facilities; medical care; medical devices, medical distribution; medical supplies.

Today I'm reviewing a Japanese drug manufacturer - specialty & generic. It's a large-cap stock, Mitsubishi Tanabe Pharma Corporation. Its trading ticker symbol is MTZXF (ADR, which is more actively traded, is MTZPY).

Mitsubishi Tanabe Pharma researches and develops, manufactures, procures, and sells pharmaceuticals in Japan, Europe, North America, other Asian countries, and internationally. The company offers drugs and vaccines for autoimmune, diabetes, kidney, central nervous system, and other disease treatment, as well as sells generic drugs and over-the-counter (OTC) products.

The company was founded in 1678 and is headquartered in Osaka, Japan.  Mitsubishi Tanabe Pharma Corporation is a subsidiary of Mitsubishi Chemical Holdings Corporation.

Three key data points measure dividend equities like Mitsubishi Tanabe Pharma: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will unlock an equity or fund in which to invest. Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

MTZXF Price

Mitsubishi Tanabe's price at yesterday's market close was $20.45 per share.  A year ago its price was $20.15. That is a gain of $0.30 per share in the past year.  Assuming Mitsubishi Tanabe's price gains at the same pace this year, its price would grow from $20.45 to $20.75 by March 2019.

MTZXF Dividends

Mitsubishi Tanabe's most recent annual dividend was $0.25 declared in November, and paid in June, 2017. The Mitsubishi Tanabe estimated annual dividend for 2018 is estimated at $0.25 to be paid  in June.

The yield from that $0.25 annual dividend was 1.2% at yesterday's $20.45 share price.

Gains For MTZXF?

Adding the $0.25 annual dividend to the $0.30 estimated price gain makes a $0.55 projected gross annual gain, to cover any cost to trade those shares. 

Say $1,000.00 was invested at yesterday's $20.45 price. That trade bought 49 shares. A $10 broker fee paid as $5 at purchase and $5 at sale of the shares equals about $0.20 in cost per share. Subtracting that $0.20 brokerage cost from the estimated $0.55 gross gain leaves a net gain to next year of $0.35 X 49 shares = $17.15, or a 1.7% net gain on a $1,002.05 investment.

Therefore, Mitsubishi Tanabe Pharma now shows a possible 1.7% net gain including a 1.2% dividend yield.

NO analysts cover this stock. However its past 5-year price history shows a steady rise from a $12.65 price with a peak at $24 in 2017.

These forward looking numbers are conjecture based on past year performance. The actual results remain to be seen.  They could turn out to be far higher or lower. More study is required for you to determine if Mitsubishi Tanabe Pharma Corporation (MTZXF) is worth your time and money.