Takeda Pharmaceutical Company Limited (4502.T) stock analysis

In our weekly check, Takeda Pharmaceutical Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 6.

About Takeda Pharmaceutical Company Limited

Takeda Pharmaceutical Company Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in Japan, listed on JPX as 4502.T.

What our checks show for 4502.T

Red flags

• Operating profit covers interest only 1.5 times: a weak year could make the payments hard.
• The net margin fell by 2.5 points over 5 years, to 3.9%: the company keeps less of each sale as profit.
• The net margin is only 3.9%: little room if costs rise.
• The dividend takes 175% of profit: little cushion if profit falls.
• The stock has fallen as much as 65% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.8%.

Warning signs

• Net debt is 3.5x a year of EBITDA (debt/equity 0.65). That limits room in a downturn and raises refinancing risk.
• Analysts expect only about 2.5% a year of growth in revenue.
• Revenue grew only 4.7% a year over the last 3 years.
• Earnings per share fell 17.6% a year over the last 3 years.
• Net profit fell 17.1% a year over the last 3 years.
• The price is 55.9 times earnings (P/E): the market already pays for a lot of future growth.
• The stock is still below its previous peak.

Strengths

• The gross margin is 62.1% and has risen by 4.9 points: pricing power is holding.
• Operating cash flow is 4.95x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 31.8% a year over the next years.
• Analysts expect the net margin to improve by 3.2 points from today's 3.9%.
• Free cash flow is 15.2% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $64.8 billion.

Next earnings report: 2026-10-29

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Questions

What grade does Takeda Pharmaceutical Company Limited (4502.T) have?

In our weekly check, Takeda Pharmaceutical Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 7, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 4502.T stock?

This week's biggest flags for Takeda Pharmaceutical Company Limited: Weak interest cover, Margins falling, Thin margins. In total 13 of 25 checks show a warning or a red flag.

What does Takeda Pharmaceutical Company Limited do?

Takeda Pharmaceutical Company Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in Japan, listed on JPX as 4502.T.

When does Takeda Pharmaceutical Company Limited report earnings next?

The next earnings report is expected on 2026-10-29. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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