Taro Pharma

Ticker
$TARO
Industry
Pharma
Type
Beaten Up
Rating
Covered
Category
General
Target Price
$53.00

Price performance has been terrible with virtually no returns for a decade+

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Notes

  • Controlled (78.5% ownership) by Sun Pharma — an India-based drug company; attempted several takeovers at low prices in years’ past
  • US generics company (mostly dermatology products) with huge net cash position
  • 2018 sales fell off from generic competition and patent losses
2020-2021 hit particularly hard from COVID and generic competition
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EV/FCF is outrageously cheap... depending on the normalization of recent legal settlements, could be 1-2x FCF — cheap stocks can (and will) get cheaper!
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Resources

March 2014 — VIC write-up: long at $109/share
November 2021 — Investor presentation (pdf)
August 2022 — VDL: Taro too cheap with cash flow turning corner