Taro Stock Price and Research (NYSE: TARO)
Taro (NYSE: TARO) is a mid cap company that operates within the pharmaceuticals industry. Its market cap is $5 billion today and the total one-year return is -3.01% for shareholders.
Taro stock is underperforming the market. It's beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✗ Earnings-per-Share (EPS) Growth: Taro reported a recent EPS growth rate of -86.85%. That's below the pharmaceuticals industry average of 2.2%. That's not a good sign. We like to see companies that have higher earnings growth.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the pharmaceuticals industry is 44.96. And Taro's ratio comes in at 18.24. It's trading at a better value than many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for Taro stock is 0%. That's below the pharmaceuticals industry average of 32%. The company is less leveraged.
✓ Free Cash Flow per Share Growth : Taro has increased its FCF per share over the last year, relative to its competitors. That's good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✓ Profit Margins : The profit margin of Taro comes in at 11.56% today. And generally, the higher, the better. We also like to see this ratio above competitors. Taro's profit margin is above the pharmaceuticals average of -13.63%. So that's a positive indicator for investors.
✗ Return on Equity : Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for Taro is 9.91% and that's below its industry average ROE of 13.15%.
Taro stock passes four of our six key metrics today. That's why our Investment U Stock Grader gives it a Buy with Caution.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
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