Teva Pharmaceutical (TEVA) AI Stock Analysis

• Market Cap: $16.53B
• Dividend Yield: N/A
• Average Volume (3M): 11.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 4.34%
• EPS Growth: -206.85%
• Country: US
• Employees: 33,892
• Sector: Healthcare
• Sector Strength: 69
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.45
• Shares Outstanding: 1,145,838,700
• 10 Day Avg. Volume: 10,954,834
• 30 Day Avg. Volume: 11,373,884
• PEG Ratio: N/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 Ratio: 1.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $24.33
• Price Target Upside: 63.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Teva Pharmaceutical's overall stock score reflects its financial challenges, including high debt levels and inconsistent profitability, which are offset by strong cash flow generation. The bearish technical indicators and unattractive valuation weigh on the stock. However, the positive earnings call, with promising guidance and product performance, provides some optimism for future growth.

Positive Factors

Growth Potential

TEVA has ‘teed up’ an attractive new product cycle starting, indicating potential for longer-term growth.

Revenue Drivers

US brands, mostly Austedo and Uzedy, are seen as TEVA’s biggest revenue growth drivers.

Valuation

The valuation does not fully reflect the growth potential in key products, biosimilars, and the innovative pipeline, suggesting room for further valuation expansion.

Negative Factors

Growth Concerns

There is a slower rate of EBITDA growth expected, leading to a trimmed valuation multiple.

Margin Pressure

Implied segment gross margins on core generics, the largest revenue segment, appear to have compressed over the past few years.

Revenue Challenges

Significant headwinds are expected due to declines in lenalidomide revenue.

Teva Pharmaceutical Business Overview & Revenue Model

Company Description

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, and internationally. The company offers sterile products, hormones, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams. It also develops, manufactures, and sells active pharmaceutical ingredients. In addition, it focuses on the central nervous system, pain, respiratory, and oncology areas. Its products in the central nervous system include Copaxone for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine; and AUSTEDO for the treatment of tardive dyskinesia and chorea associated with Huntington disease. The company's products in the respiratory market comprise ProAir, QVAR, ProAir Digihaler, AirDuo Digihaler, and ArmonAir Digihaler, BRALTUS, CINQAIR/CINQAERO, DuoResp Spiromax, and AirDuo RespiClick/ArmonAir RespiClick for the treatment of asthma and chronic obstructive pulmonary disease. Its products in the oncology market include Bendeka, Treanda, Granix, Trisenox, Lonquex, and Tevagrastim/Ratiograstim. Teva Pharmaceutical Industries Limited has a collaboration MedinCell for the development and commercialization of multiple long-acting injectable products, a risperidone suspension for the treatment of patients with schizophrenia. The company was founded in 1901 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Teva 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 14.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEVA, the sentiment is Neutral. The current price of 14.87 is above the 20-day moving average (MA) of 14.16, below the 50-day MA of 15.39, and below the 200-day MA of 17.55, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 52.92 is Neutral, neither overbought nor oversold. The STOCH value of 93.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TEVA.

Teva Pharmaceutical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDY	77 Outperform	$11.46B	18.19	18.51%	0.59%	13.26%	1.33%
NBIX	75 Outperform	$10.56B	32.43	14.16%	―	24.81%	33.67%
ELAN	65 Neutral	$4.70B	13.94	5.49%	―	0.50%	―
PRGO	53 Neutral	$3.44B	―	-3.53%	4.43%	-6.05%	-1677.05%
VTRS	52 Neutral	$9.70B	―	-3.24%	5.90%	-4.58%	-1269.23%
Sector *	51 Neutral	$5.32B	3.39	-40.26%	2.89%	17.93%	2.48%
TEVA	50 Neutral	$16.53B	―	-25.44%	―	4.34%	-206.85%

Teva Pharmaceutical Corporate Events

Teva Pharmaceutical Strengthens Board with New Appointment

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.