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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#58
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$25.1B
Christophe Weber
Takeda Pharmaceutical Company Limited engages in the research, development, manufacturing, marketing, and out-licensing of pharmaceutical products. It offers pharmaceutical products in gastroenterology; oncology; neuroscience; and rare diseases. The company provides its products under the Entyvio, Gattex/Revestive, Alofisel, Natpara, Adynovate/Adynovi, Takhzyro, Elaprase, Vpriv, Gammagard Liquid/Kiovig.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = TAK ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$TAK TAKEDA PHARMACEUTICAL CO LTD | 72 | 71 | 91 | 62 | 41.2x | 3.0x | 6.2% | 3.0% | 65.5% | 7.5% | 2.4% | 8.4% | 0.0% | 65.0x | $25.1B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
TAKEDA PHARMACEUTICAL CO LTD (TAK) receives a "Buy" rating with a composite score of 71.9/100. It ranks #58 out of 7,333 stocks in our coverage universe and carries a 4-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Christophe Weber
Chief Executive Officer
Labor Force
47,300
71
69
97
Audit Verdict: High quality, disciplined capital allocation, and low volatility suggest strong governance.
No recent insider transactions available for TAK
Headcount
47.3K
HQ Base
Pending Verification
Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Conservative, efficient capex — capital discipline signals management quality
Top-rated overall — multiple factors aligned for strong entry
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for TAK.
View All RatingsConservative accounting — High cash conversion efficiency
Material decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 71 | 78 | -7DRAG |
| MOMENTUM | 62 | 57 | +5NEUTRAL |
| VALUATION | 91 | 94 | -3NEUTRAL |
| INVESTMENT | 69 | 99 | -30DRAG |
| STABILITY | 97 | 100 | -3NEUTRAL |
| SHORT INT | 80 | 90 | -10DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 4.1% vs WACC 7.2% (spread -3.1%)
GM 66% vs sector 43%, OM 7% vs sector 1%
Capital turnover 1.11x, R&D intensity 15.9%
Rev growth 8%, 7yr history
Interest coverage 1.6x, Net debt/EBITDA 3.8x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
TAKEDA PHARMACEUTICAL CO LTD receives a Buy rating with a composite score of 71.9/100 and 4 out of 5 stars, ranking #58 of 7,333 stocks in our universe. TAK displays a favorable combination of factors that positions it above the majority of the market. While not without risk, the quantitative profile supports a constructive outlook.
TAK earns a quality score of 71/100, indicating above-average business quality. The company reports a return on equity of 6.2% (sector avg: -2.5%), gross margins of 65.5% (sector avg: 42.5%), net margins of 2.4% (sector avg: -0.2%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
From a valuation perspective, TAK scores an exceptional 91/100, indicating the stock trades at a deep discount relative to its fundamentals. Key valuation metrics include a P/E ratio of 41.23x, an EV/EBITDA of 2.95x, a P/B ratio of 1.27x. A value score this high suggests the market may be significantly underpricing the company's earnings power, assets, or cash flow generation.
TAK shows a solid investment score of 69/100, reflecting measured but productive capital allocation. Key growth metrics include revenue growth of 8.4% vs. a sector average of 5.9% and a return on assets of 3.0% (sector: -0.1%). This suggests the company is investing at an appropriate level to sustain growth without overextending its balance sheet.
TAK demonstrates moderate momentum with a score of 62/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 8.4% year-over-year, while a beta of 0.20 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
TAKEDA PHARMACEUTICAL CO LTD earns an excellent stability score of 97/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.20 and a debt-to-equity ratio of 65.00x (sector avg: 0.2x). Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
TAK's short interest factor score of 80/100 indicates very low short selling activity relative to peers — a positive signal suggesting institutional investors see limited near-term downside. Specific risk factors include elevated leverage (D/E: 65.00x). As a large-cap company with a market capitalization of $25.1B, TAKEDA PHARMACEUTICAL CO LTD benefits from the generally lower volatility and deeper liquidity associated with its size class.
TAKEDA PHARMACEUTICAL CO LTD is a large-cap company in the Manufacturing sector, ranked #29 of 50 in its sector (42nd percentile) and #58 of 7,333 overall (99th percentile). Key comparisons include ROE of 6.2% exceeding the -2.5% sector median and operating margins of 7.5% above the 1.3% sector average. This below-median ranking suggests TAK faces competitive challenges relative to stronger Manufacturing peers.
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Momentum (62) is the limiting factor — improvement here would lift the composite score most.
RANK #29 OF 50 IN INDUSTRIALS
EV/EBITDA 74% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 352% BELOW SECTOR MEDIAN
Gross Margin 54% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF MAR 31, 2025 (Q4 FY2024)
We rate TAKEDA PHARMACEUTICAL CO LTD (TAK) as a Buy with a composite score of 71.9/100 at a current price of $18.62. The stock scores above average across the majority of our six quantitative factors and ranks #58 out of 7,333 stocks in our universe, reflecting a favorable risk-reward profile.
The rating is primarily driven by strength in stability (97th percentile) and value (91th percentile), which together account for the majority of the composite score. All factors score above the 40th percentile, indicating no material weakness in the quantitative profile. We assign a Narrow Moat rating (46/100), Low uncertainty, and Poor capital allocation.
Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
TAKEDA PHARMACEUTICAL CO LTD holds a mid-tier position (#29 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 71.9/100 places it at rank #58 in our full 7,333-stock universe. With a $25.1B market capitalization, TAKEDA PHARMACEUTICAL CO LTD operates at meaningful scale within the Manufacturing sector, providing competitive advantages in distribution, procurement, and customer reach.
The outlook is moderately positive, with revenue expanding at 8% and favorable momentum (62th percentile) reflecting constructive market sentiment. The business shows steady execution, though the growth rate is below the levels typically associated with high-conviction growth stories. Momentum confirmation provides support for the current price level.
The margin cascade tells an important story: gross margins of 66% (+23.0pp vs sector) narrow to operating margins of 7% (+6.2pp vs sector) and net margins of 2.4%, yielding a gross-to-net conversion rate of 4%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $18.62, TAKEDA PHARMACEUTICAL CO LTD appears undervalued relative to its fundamentals. Our value factor score of 91/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.
The stock currently trades at a P/E of 41.2x (a 85% premium to the sector median of 22.3x), EV/EBITDA of 3.0x (discounted to peers), P/B of 1.3x, P/S of 0.5x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.
The stock's Buy rating (composite score 71.9/100) reflects broad-based quantitative strength, placing it in the top 20% of our 7,333-stock universe.
Gross margins of 66% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
A value factor score of 91/100 suggests the market is underpricing these fundamentals, creating a potential margin of safety for new investors.
A P/E of 41.2x leaves little room for execution misses — any earnings disappointment could trigger a sharp multiple compression.
Thin net margins of 2.4% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
We assign a Low uncertainty rating to TAKEDA PHARMACEUTICAL CO LTD. The company exhibits strong financial stability with a beta of 0.20, and a stability factor in the 97th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.
Specific risk factors that inform our assessment include: low beta of 0.20 — while defensive, this may indicate limited upside participation in bull markets; elevated valuation multiple (P/E 41.2x) that leaves limited margin for error; the combination of leverage (65% D/E) and thin margins (2.4% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 97th percentile and quality factor at the 71th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 66% provide a buffer against cost pressures; above-average stability (97th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate TAKEDA PHARMACEUTICAL CO LTD's capital allocation as Poor. Key concerns include suboptimal returns on capital. Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — TAKEDA PHARMACEUTICAL CO LTD significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, TAKEDA PHARMACEUTICAL CO LTD receives a Buy rating with a composite score of 71.9/100 (rank #58 of 7,333). Our quantitative framework assigns a Narrow Moat (46/100, trend: stable), Low uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 78/100.
Our analysis supports a constructive view on TAKEDA PHARMACEUTICAL CO LTD. The combination of identifiable competitive advantages, low uncertainty, and poor capital allocation creates a risk-reward profile that favors accumulation at current levels. We recommend investors consider adding this name to portfolios aligned with the stock's risk profile.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign TAKEDA PHARMACEUTICAL CO LTD a Narrow Moat rating with a composite moat score of 46/100. The ROIC-WACC spread of -3.1% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that TAKEDA PHARMACEUTICAL CO LTD can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being margin superiority at 16.8/20.
The strongest moat sources are margin superiority (16.8/20) and growth durability (9.7/20). GM 66% vs sector 43%, OM 7% vs sector 1%. Rev growth 8%, 7yr history. These pillars form the core of TAKEDA PHARMACEUTICAL CO LTD's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include economic value creation (3.5/20) and financial resilience (6.1/20). ROIC 4.1% vs WACC 7.2% (spread -3.1%). Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect TAKEDA PHARMACEUTICAL CO LTD's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 66% providing a solid profitability foundation, moderate revenue growth of 8%. The margin cascade from 66% gross to 7% operating to 2.4% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 71th percentile.
The margin profile shows gross margins of 66%, operating margins of 7%, net margins of 2.4%. Return metrics include ROE of 6.2% and ROA of 3.0%. Relative to the Manufacturing sector, gross margins are 23.0 percentage points above the sector median of 43%, and ROE of 6.2% compares to a sector median of -2.5%.
The balance sheet reflects moderate leverage with D/E of 65%, revenue growth of 8%. The sector median D/E is 0%, putting TAKEDA PHARMACEUTICAL CO LTD at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Elevated short interest (80th percentile) indicates that sophisticated market participants are betting against the stock.
Above 50MA
37.18%
Net New Highs
+51081
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Boston Scientific Corporation (NYSE: BSX) announced today the election of Cathy Smith and Christophe Weber to its Board of Directors, effective February 18, 2026.