New CEO takes helm as 3 drugs to launch

Research evidence excerpt

New CEO takes helm as 3 drugs to launch

Macquarie Equity Research Takeda Pharmaceutical

Alpha Model Decomposition Key Quant Findings

The quant model currently holds a neutral view on The Macquarie Alpha is decomposed into its sector and

Takeda Pharmaceutical. The strongest style exposure is market relative factor & styles exposures (a higher/better

Valuations, indicating this stock is under-priced in the percentile is coded in green, whilst lower in red).

market relative to its peers. The weakest style exposure

is Profitability, indicating this stock is not efficiently relativePercentileto

converting investments to earnings; proxied by ratios like

sectors market

ROE or ROA. Factors / Styles (/1210) (/1682) Core factors in definition

ALPHA 66% 45% Built from the styles below

Macquarie Alpha Model: Key rankings VALUE 90% 46% Book, CF, Yield, Earnings Multiples

ANALYST 75% 79% Revisions (Earnings, Recommendations)

The Macquarie Quant’s flagship Alpha model is a dynamic MOMENTUM 50% 37% Price Momentum

multi-factor model based on a staple of quant factors such

as value, momentum, revisions, quality, and risk. GROWTH 25% 28% EPS, Sales (Forecast, Historic)

PROFITABILITY 44% 9% ROE, Margin, Asset Turnover

Global Market (Country) Sector

Pharma, Biotech QUALITY 69% 48% Accruals, Earn Stability, Cash Conversion Whole Universe Japan & Life Sciences

CAPITAL 90% 77% Investment/Capex, Net share issuance

Macquarie Alpha

9754/17982 928/1682 410/1210 LIQUIDITY 98% 93% Size, Turnover, Analyst Coverage Model

Fundamental LOW RISK 90% 56% Beta, Volatility, Earn.Cert, Leverage 6283/17982 342/1682 553/1210 (Consensus) *

TECHNICAL 83% 89% MACD, RSI, Bollinger, Williams R, etc

* based on Total Shareholder Return = Consensus Price target / Current Price

Factors driving the Alpha Model vs peers