Education
About Us
Working with TipRanks
Follow Us
Teva Pharmaceutical (TEVA)
NYSE:TEVA
Top Page
Teva Pharmaceutical
(NYSE:TEVA)50Neutral
Positive Factors
Drug Development
The drug's potential value proposition is solidified mainly as a drug with a novel mechanism of action, top-tier biologic level efficacy, and pristine safety.
Negative Factors
Competitive Position
TEVA will be 6-12 months behind the next closest TL1a competitor with a planned Phase 3 program start.
Pricing Dynamics
Uncertain competitive dynamics flagged as a net pricing variable for g-Revlimid could affect the generics market.
Teva Pharmaceutical (TEVA) vs. S&P 500 (SPY)
Market Cap
$17.76B
Dividend YieldN/A
Average Volume (3M)13.87M
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth4.34%
EPS Growth-206.85%
CountryUS
Employees35,686
SectorHealthcare
Sector Strength74
IndustryPharmaceuticals
Share Statistics
EPS (TTM)-1.45
Shares Outstanding1,145,838,700
10 Day Avg. Volume11,394,735
30 Day Avg. Volume13,867,996
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.10
Price to Cash Flow (P/CF)7.90
P/FCF Ratio1.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.50Price Target Upside56.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Teva Pharmaceutical Business Overview & Revenue Model
Company DescriptionTeva Pharmaceutical Industries Ltd. engages in the development and production of medicines. Its products include medicines for cardiovascular diseases, pain relievers, obesity, cancer and supportive care, infectious diseases and human immunodeficiency viruses, and colds and coughs. The company was founded in 1901 and is headquartered in Petah Tikva, Israel.
How the Company Makes MoneyTeva Pharmaceutical generates revenue primarily through the sale of generic and specialty medicines. The company's generic drugs, which account for a significant portion of its revenue, offer more affordable alternatives to branded drugs and are sold across various markets globally. In addition to generics, Teva's specialty medicines, which include proprietary pharmaceuticals for treating conditions like multiple sclerosis and movement disorders, contribute to its income. The company also earns revenue from its active pharmaceutical ingredients (API) division, supplying APIs to third-party manufacturers. Moreover, strategic partnerships and collaborations with other pharmaceutical firms enhance its research capabilities and expand its market reach, thereby strengthening its revenue streams.
Teva Pharmaceutical Financial Statement Overview
Summary
Teva Pharmaceutical faces challenges in achieving consistent profitability and managing high debt levels. While cash flow generation remains a strength, the volatility in income statement metrics and a leveraged balance sheet pose risks. The company needs to focus on improving operational efficiency and reducing leverage to enhance financial stability.Income Statement
Teva Pharmaceutical has experienced fluctuating revenues over the years. While the gross profit margin has remained relatively stable, the company has struggled with consistent profitability, as evidenced by negative net income in recent years. The EBIT and EBITDA margins have also shown volatility, indicating challenges in operational efficiency.55
Neutral
Balance Sheet
The balance sheet shows a high level of debt relative to equity, with a debt-to-equity ratio that suggests significant leverage. The return on equity is negative due to consistent net losses, and the equity ratio has been declining, indicating a shrinking equity base compared to total assets.40
Negative
Cash Flow
Operating cash flow has remained positive, which is a positive sign for liquidity. However, free cash flow has been inconsistent, and the free cash flow growth rate has been negative in recent periods. The operating cash flow to net income ratio is strong, indicating that cash generation is relatively better than reported earnings.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 16.54B | 15.85B | 14.93B | 15.88B | 16.66B | Gross Profit |
| 8.06B | 7.65B | 6.97B | 7.59B | 7.72B | EBIT |
| -303.00M | 433.00M | 2.80B | 3.20B | 3.05B | EBITDA |
| -303.00M | 1.57B | -874.00M | 4.41B | -2.09B | Net Income Common Stockholders |
| -1.64B | -559.00M | -2.35B | 417.00M | -3.99B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.30B | 3.23B | 2.80B | 2.17B | 2.18B | Total Assets |
| 39.33B | 43.48B | 44.01B | 47.67B | 50.64B | Total Debt |
| 18.08B | 20.15B | 21.56B | 23.46B | 26.40B | Net Debt |
| 14.78B | 16.93B | 18.76B | 21.29B | 24.22B | Total Liabilities |
| 33.61B | 35.35B | 35.31B | 36.42B | 39.58B | Stockholders Equity |
| 5.38B | 7.51B | 7.90B | 10.28B | 10.03B |
| Cash Flow | Free Cash Flow | |||
| 749.00M | 842.00M | 1.04B | 236.00M | 638.00M | Operating Cash Flow |
| 1.25B | 1.37B | 1.59B | 798.00M | 1.22B | Investing Cash Flow |
| 792.00M | 968.00M | 656.00M | 1.52B | 863.00M | Financing Cash Flow |
| -1.79B | -1.91B | -1.49B | -2.17B | -1.89B |
Teva Pharmaceutical Technical Analysis
Negative
15.69
Price Trends
19.38
Negative
18.47
Negative
17.87
Negative
Market Momentum
-0.81
Negative
29.85
Positive
17.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEVA, the sentiment is Negative. The current price of 15.69 is below the 20-day moving average (MA) of 16.66, below the 50-day MA of 19.38, and below the 200-day MA of 17.87, indicating a bearish trend. The MACD of -0.81 indicates Negative momentum. The RSI at 29.85 is Positive, neither overbought nor oversold. The STOCH value of 17.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TEVA.
Teva Pharmaceutical Risk Analysis
Teva Pharmaceutical disclosed 42 risk factors in its most recent earnings report. Teva Pharmaceutical reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Teva Pharmaceutical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $220.95B | 18.83 | 27.11% | 2.89% | 1.08% | -17.73% | |
79 Outperform | $145.56B | 24.01 | 7.17% | 2.62% | -4.57% | 2.96% | |
69 Neutral | $78.61B | 23.81 | 18.84% | 4.02% | 6.28% | -47.11% | |
69 Neutral | $145.93B | 18.28 | 8.68% | 6.44% | 8.77% | 272.80% | |
50 Neutral | $17.76B | ― | -30.46% | ― | 4.34% | -206.85% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
TEVA
Teva Pharmaceutical
15.69
2.16
15.96%
GSK
GlaxoSmithKline
38.43
-2.57
-6.27%
NVS
Novartis
111.42
11.24
11.22%
PFE
Pfizer
25.75
0.16
0.63%
SNY
Sanofi
57.70
11.43
24.70%
BHC
Bausch Health Companies
7.01
-2.22
-24.05%
Teva Pharmaceutical Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -27.12% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance in key products and business segments, alongside improvements in credit ratings, but also highlighted challenges such as the impact of macroeconomic factors and the future decline in Revlimid revenue. Despite these challenges, Teva remains optimistic about its growth strategy and product pipeline.Highlights
Strong Performance of Key Products
AUSTEDO revenue grew by 34%, UZEDY exceeded its target with $117 million, and AJOVY grew by 18% and reached $0.5 billion in revenue.
Generics Business Growth
The generics business grew by 11%, marking the second consecutive year of growth across all regions.
Improved Credit Ratings
Teva's credit ratings outlook improved with all major rating agencies, reflecting better growth prospects and a stronger balance sheet.
Record Revenue and Earnings Increase
Teva reported $16.5 billion in revenue, a 9% increase, with an adjusted EBITDA of $4.8 billion, also up 9%.
Lowlights
Impact of IRA and FX Headwinds
The Inflation Reduction Act and foreign exchange headwinds impacted revenue and operating profit, contributing to a forecasted free cash flow decline in 2025.
Potential Revlimid Revenue Decline
Concerns were raised about the future revenue drop from Revlimid and how Teva plans to offset this with new product launches.
GAAP Operating Loss
Teva reported a GAAP operating loss of $29 million in Q4 2024, driven by a goodwill impairment charge related to the API business.
Company Guidance
During the call, Teva Pharmaceutical Industries provided detailed guidance for 2025. The company anticipates revenue growth of 2% to 5%, projecting revenues between $16.8 billion and $17.4 billion, driven by continued momentum in its innovative portfolio, including AUSTEDO, AJOVY, and UZEDY, as well as a growing generics business. The adjusted EBITDA is expected to be in the range of $4.5 billion to $5 billion, consistent with 2024 levels. Teva also forecasts a non-GAAP EPS between $2.35 and $2.65. The company plans to maintain a stable gross margin of approximately 53% to 54% and intends to invest about 27% to 28% of revenue into operating expenses to sustain its growth trajectory. Additionally, free cash flow is expected to be between $1.6 billion and $1.9 billion, accounting for higher legal settlement outflows and adjustments in the accounts receivable securitization program.Teva Pharmaceutical Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Teva Pharmaceutical Strengthens Board with New Appointment
Positive
Nov 12, 2024
Teva Pharmaceutical Industries has appointed Chen Lichtenstein as a new independent Board member, effective December 1, 2024. With a robust background in financial leadership and strategic roles at Syngenta Group and Goldman Sachs, Lichtenstein brings a wealth of expertise to Teva. His appointment reflects Teva’s strategic focus on enhancing its leadership with seasoned professionals in the financial and agricultural sectors.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.