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Teva Pharmaceutical (TEVA)
NYSE:TEVA
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Teva Pharmaceutical
(NYSE:TEVA)
50Neutral
Positive Factors
Product Launch and Growth
Teva can re-accelerate bottom line growth driven by three high value brands poised to launch with competitive profiles.
Transparency and Guidance
Increased transparency on future guidance is appreciated by investors and could lead to positive surprises for the stock.
Negative Factors
Revenue Decline
Significant headwinds are expected in 2026 due to declines in lenalidomide revenue.
Seasonality and Financial Performance
Revenue, gross margin, and adjusted EBITDA are expected to be the lowest for the year due to seasonality factors.
Teva Pharmaceutical (TEVA) vs. S&P 500 (SPY)
Market Cap
$17.11B
Dividend YieldN/A
Average Volume (3M)11.15M
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth4.34%
EPS Growth-206.85%
CountryUS
Employees33,892
SectorHealthcare
Sector Strength76
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-1.45
Shares Outstanding1,145,838,700
10 Day Avg. Volume9,706,414
30 Day Avg. Volume11,150,239
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
$23.86Price Target Upside72.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Teva Pharmaceutical Business Overview & Revenue Model
Company DescriptionTeva 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 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
13.80
Price Trends
16.62
Negative
17.93
Negative
17.74
Negative
Market Momentum
-0.42
Positive
37.86
Neutral
26.40
Neutral
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 13.8 is below the 20-day moving average (MA) of 15.73, below the 50-day MA of 16.62, and below the 200-day MA of 17.74, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 37.86 is Neutral, neither overbought nor oversold. The STOCH value of 26.40 is Neutral, 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 (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $11.25B | 17.20 | 18.51% | 0.65% | 13.26% | 1.33% | |
68 Neutral | $10.26B | 29.06 | 14.16% | ― | 24.81% | 33.67% | |
65 Neutral | $4.53B | 13.49 | 5.49% | ― | 0.50% | ― | |
62 Neutral | $3.59B | ― | -3.53% | 4.25% | -6.05% | -1677.05% | |
54 Neutral | $9.10B | ― | -3.24% | 6.30% | -4.58% | -1269.23% | |
50 Neutral | $17.11B | ― | -25.44% | ― | 4.34% | -206.85% | |
48 Neutral | $6.36B | 1.09 | -49.92% | 2.63% | 17.17% | 0.95% |
* Healthcare Sector Average
Performance Comparison
TEVA
Teva Pharmaceutical
13.80
-0.40
-2.82%
RDY
Dr Reddy's Laboratories
12.36
-2.31
-15.75%
VTRS
Viatris
7.62
-3.64
-32.33%
NBIX
Neurocrine
95.65
-43.79
-31.40%
PRGO
Perrigo Company
26.31
-4.21
-13.79%
ELAN
Elanco Animal Health
9.15
-6.33
-40.89%
Teva Pharmaceutical Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -35.90% | 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.