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Takeda Pharmaceutical Company Limited

TAK
47
Drug Manufacturers - Specialty & Generic · Healthcare
Exchange
New York Stock Exchange
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Good
Cash Flow
Exceptional
Stability
Mixed
Valuation
Good
Dividends
Mixed

Winston Score History

The full picture

Takeda Pharmaceutical is a large Japanese drug company that discovers, makes, and sells prescription medicines to patients around the world. Its main focus areas include rare diseases, cancer, digestive disorders, and neuroscience, with key drugs like Entyvio (for bowel disease) and a growing rare disease portfolio. Takeda is one of the largest pharmaceutical companies in Asia and ranks among the top 15 globally by revenue.

The company earns money by selling branded prescription drugs to hospitals, clinics, and pharmacies, primarily in the United States, Europe, and Japan. Takeda's competitive position rests on its specialized drug portfolio and a significant research pipeline, though it carries a heavy debt load from its $62 billion acquisition of Shire in 2019. The biggest risk facing Takeda is patent expiration on Entyvio, its top-selling drug, which faces biosimilar competition in the coming years and currently accounts for a large share of revenue.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+5.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+75.7% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

0.8%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.0T cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Takeda Pharmaceutical Company Limited is growing revenue at 6% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
66.7%
Premium pricing power — 66.7% gross margin
Profit after running costs
Operating Margin
16.5%
Healthy — 16.5% operating margin
Return on the money invested
ROCE
4.1%
Weak — 4.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+4.0%
Slow sales growth (+4.0% YoY)
Profit growth
EPS YoY
+31.9%
Earnings growing fast (+31.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
542%
Turns 542% of profit into real cash
Spare cash per sale
FCF Margin
12.7%
Converts sales into free cash efficiently (12.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.65
Moderate — manageable debt (0.65)
Covers its interest
Interest Cover
1.61x
Dangerous — barely covers interest (1.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
50.5x
no trend
Expensive — P/E 50.5

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+28.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (50.5 → 22.3)

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Dividends

Dividend
Dividend Yield
3.63%
no trend
Moderate income — 3.63% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
-1.5%
no trend
Dividend cut (-1.5% YoY) — warning sign

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