As part of a new series here at The Acquirer’s Multiple, we’re providing a new feature called ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Taro Pharmaceutical Industries Ltd. (NYSE: TARO).
Taro Pharmaceutical Industries Ltd produces, researches, develops and markets pharmaceutical products. Its primary focus includes semi-solids formulations, such as creams and ointments and other dosage forms such as liquids, capsules, and tablets. The company is engaged in the dermatological and topical, cardiovascular, neuropsychiatric and anti-inflammatory therapeutic categories. Geographically, it derives a majority of revenue from the United States and also has a presence in Canada, Israel, and Other Countries.
A quick look at Taro Pharmaceutical’s share price history (below) over the past twelve months shows that the price is down 25%. Here’s why the company is undervalued.
Market Cap: $2.62 Billion
Enterprise Value: $1.51 Billion
Operating Earnings: $247 Million
Acquirer’s Multiple: 6.14
Free Cash Flow (TTM)
Free Cash Flow: $243 Million
FCF/EV Yield: 16%
Piotroski F-Score: 7
Altman Z-Score: 8.16
Beneish M-Score: -2.46
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