Current Analysis: Takeda Pharmaceuticals (TKPHF)

Takeda Pharmaceuticals (TKPHF) is Japan’s largest pharmaceutical company, with revenue of JPY 3.6 trillion in fiscal 2021. The company was founded in 1781 and is headquartered in Tokyo, Japan. 

The company’s five core therapeutic areas are oncology, gastroenterology, neuroscience, rare diseases, and plasma-derived therapies, which account for more than 80% of revenue.

Its geographic footprint is well diversified, with 50% derived from the U.S., 20% from Japan, 20% from Europe and Canada.

 

Three key data points gauge Takeda or any dividend-paying firm.

The key three are: (1) Price (2) Dividends (3) Returns.Those three basic keys best tell whether any company has made, is making, and will make money.

TKPHF Price

Over the past year, Takeda’s share price rose 2.5% from $27.00, to $27.69 as of Friday’s market close.

If Takeda’s stock trades in the range of $25.00 to $35.00 this next year, its recent $27.69 share price might rise to $30.00 by next year. Of course, TKPHF’s price could drop about the same $2.31 estimated amount, or more.

My upside estimate of $2.31, however, is a few cents less than the average annual price gain by Takeda over the past thirteen months.

TKPHF Dividend

Takeda has paid variable Semi-annual dividends since December 1, 2009.  Takeda’s most recent  SA dividend, of $0.63 is payable December 1 to shareholders of record September 28. The next dividend has been declared for shareholders of record as of March 28 2024 but no payday is yet set.. The forward looking $1.26 annual dividend yields 4.55% at Friday’s share price,

TKPHF Returns

Putting it all together, we add the estimated forward looking annual dividend of  $1.26 to my estimated price upside of $2.31 and find a $3.57 gross gain.

At Friday’s $27.69 closing price, a little over $1000 would buy 36 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.28 per share.

Subtracting that likely $0.28 brokerage cost from the $3.57 estimated gross gain per share makes a net gain of $3.29 X 36 shares = $118.44 or about a 11.9% net gain.

You might choose to pounce on Takeda Pharmaceutical Co Ltd shares. TKPHF is the largest Japanese drug company. Furthermore the estimated $45.50 dividend income from $1k invested is about 1.64 times greater than Friday’s price of a single share

The fate of Takeda’s ongoing future price and dividend is yet to be determined.

Remember, the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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