Taro Pharmaceutical Industries is in the drug manufacturers industry and is part of the healthcare sector. The company CEO is Uday Baldota. Taro Pharmaceutical Industries is a science-based pharmaceutical company. It develops, manufacture and market Rx and OTC over-the-counter pharmaceutical products primarily in the United States, Canada and Israel.



Previous Intraday Performance:

The TARO shares had a previous change of -0.92% which opened at 94.78 and closed at 94.65. It moved to an intraday high of 97.03 and a low of 93.53.

SeekingAlpha:  Taro Pharmaceutical Industries Ltd. (TARO) CEO Uday Baldota on Q4 2019 Results – Earnings Call Transcript

Historical Performance:

Over the last five trading days, TARO shares returned -5.86% and in the past 30 trading days it returned -10.02%. Over three months, it changed -6.11%. In one year it has changed -5.87% and within that year its 52 week high was 121.23 and its 52 week low was 76.93. TARO stock is 23.03% above its 52 week low.

Our calculations result in a 200 day moving average of 95.06 and a 50 day moving average of 105.53. Right now, TARO stock is trading -0.43% below its 200 day moving average and may be a great opportunity to buy, but should check other technical indicators to confirm a buy signal.

SeekingAlpha:  Taro Pharmaceutical misses by $0.74, misses on revenue

Liquidity:

The company has a market cap of $3.7b with 39.0m shares outstanding and a float of 39.0m shares. Trading volume was 52,491 shares and has experienced an average volume of 77,848 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Taro Pharmaceutical Industries was 5.26 which ended on 31st of March 2018, which according to the previous close, that is a PE of 17.83. Based on 1 analyst estimate, the estimated EPS for the next quarter is 2.33.

4thQtr 2018 2.403rdQtr 2018 1.602ndQtr 2018 1.711stQtr 2018 2.174thQtr 2017 0.45

Base on our calculations, the intrinsic value per share is 153.56, which means it might be undervalued and has a margin of safety of 38.36%.

The growth of the EPS is critical in understanding the current valuation of Taro Pharmaceutical Industries; it is usually expressed as a percentage and is then referred to as the EPS growth rate, which at this time is hard to estimate, but revenue growth has been 0.10% over the last twelve months.

Indicators Also to Watch:

Based on the latest filings, there is 14.50% of institutional ownership. Short-interest was 250,072, which was 0.64% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.21. This stock has some short interest, but it might be normal and no need to worry if long the position.



The beta was calculated to be 0.61.

SeekingAlpha:  Taro Pharmaceutical misses by $0.74, misses on revenue

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 15.70%, return on assets is 14.11%, profit margin is 45.64%, price-to-sales is 8.12 and price-to-book is 2.16.

Company Score Card:

Results are out of six:
 0  : Growth Expectations Result
 6  : Financial Safety Result
 2  : Past Performance Result
 4  : Valuation Result
 0  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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