Daily Stock Analysis: Takeda Pharmaceutical (TAK)

Takeda Pharmaceutical Co Ltd has the ticker symbol TAK and is a member of the Healthcare sector as a specialty and generic drug manufacturer. This is my first report on Takeda for this Vista portfolio.  

Takeda Pharmaceutical is Japan’s largest pharmaceutical company, with revenue of JPY 3.3 trillion in 2019. 

The company’s five core therapeutic areas are oncology, gastroenterology, neuroscience, rare diseases, and plasma-derived therapies, which account for more than 70% of revenue. 

Laboratory Test Tubes

Image Source: Unsplash

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

The company has numerous licensing, collaboration, and research agreements with numerous bioscience and research organizations.

Takeda Pharmaceutical Company Limited was founded in 1781 and is headquartered in Tokyo, Japan.

Three key data points gauge dividend equities or funds like Takeda Pharmaceutical Co Ltd. (TAK):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

TAK Price

Takeda Pharmaceutical Co Ltd's price per share closed at $17.06 yesterday. One year ago its price was $16.05. Price per share has increased about 6.3% from the midst of the COVID market slump. 

Should Takeda's stock trade in the range of $15.00 to $25.00 this year, its recent $17.06 price might rise by $2.94 to reach $20.00 by April 9, 2022. My estimate is however $ 2.89 lower than the median of three estimates from analysts tracking the stock.

TAK Dividends

Takeda's most recently declared a semi-annual dividend paid December 20th was $0.4305, which equates to $0.86 annually and yields 5.05% at yesterday's $17.06 closing price. TAK has paid semi-annual variable dividends for 13 years.

TAK Returns

Adding the $0.86 annual TAK anticipated dividend to my $2.94 price upside estimate shows a $3.80  potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in TAK at $17.06 per share and we'd buy 59 shares of TAK stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.17 per share.

Subtract that maybe $0.17 brokerage cost from my estimated $3.80 gross gain per share results in a net gain of $3.63 X 59 shares = $214.17 for a 21.4% net gain on a $1,006.54 investment.

Takeda Pharmaceutical Co Ltd. (TAK) shows a possible 21.4% net gain including a 5.06% dividend yield. 

Over the next year at this time, a $1000 investment in NVS could generate $50.60 in cash dividends. And a single share bought at yesterday's closing price was about $17.00! So, if TAK is your kind of healthcare investment, their single share price is nearly one-third the annual dividend income from $1,000 invested. This suggests that now may be a good time to invest in Takeda.

All of the estimates above are speculation based on the past history of Takeda Pharmaceutical Co Ltd. (TAK). Only time and money invested in this stock will determine its worth.

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 solicitation, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with
Anne Davis 3 years ago Member's comment

Good find!