Taro Pharma Stock Analysis, Valuation (NYSE:TARO)

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$99.03 $0.3 (0.3%) TARO stock closing price Sep 19, 2018 (Closing)

Take a look at Amigobulls Taro Pharma stock analysis video. This is our analyst opinion covering the buy and sell arguments for TARO stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Taro Pharmaceutical Industries Ltd. Stock Rating 4.2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for TARO stock analysis. Taro Pharma valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Taro Pharma stock rating which is indicative of the company's financial performance.

Should you buy TARO stock?

  • The TTM operating margin was good at 45.78 for Taro Pharma.
  • Net margins stood at a healthy 31.9% (average) for Taro Pharma in the Trailing Twelve Months.
  • The Taro Pharma stock currently trades at a price to earnings ratio of 16.4, compared to the sector average of 24.5. We rate this as a positive.
  • Taro Pharma's return on invested capital of 28.7 is good.
  • The LTM ROE of 9.7 for Taro Pharma is attractive.
  • The company has a healthy free cash flow margin of 51.3.

Should you sell TARO stock?

  • Taro Pharma sales declined by -10.8% year on year in 2018-03.
  • Revenue declined at a CAGR of -0.3 over the last 5 years.

Comments on this video and Taro Pharma stock

Investors can use Amigobulls Taro Pharma stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, Taro Pharma revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about TARO stock.