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Teva Pharmaceutical (TEVA)
NYSE:TEVA
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Teva Pharmaceutical
(NYSE:TEVA)
59Neutral
Positive Factors
Branded Portfolio Growth
Teva's branded portfolio, including Austedo, Olanzapine LAI, and Duvakitug, is well-positioned for significant growth.
Cost-Cutting Program
Teva's recently announced cost-cutting program provides much-needed clarity on the drivers of the company's margin expansion.
New Product Cycle
Teva's new product cycle, including olanzapine-LAI and other clinically de-risked products, is seen as attractive and a driver for future growth.
Negative Factors
Medicare IRA Updates
Upcoming Medicare IRA updates are seen as a major clearing event for the stock.
Revenue Challenges
Within the Gx business, biosimilars and ex-US growth should largely offset the gRevlimid headwind, but Teva's revenues are expected to remain roughly flat.
Revenue Headwind
Teva will be absorbing a ~$1 billion revenue headwind from gRevlimid.
Teva Pharmaceutical (TEVA) vs. S&P 500 (SPY)
Market Cap
$19.55B
Dividend YieldN/A
Average Volume (3M)13.95M
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth3.38%
EPS Growth-175.90%
CountryUS
Employees37,000
SectorHealthcare
Sector Strength41
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.52
Shares Outstanding1,146,838,700
10 Day Avg. Volume16,859,656
30 Day Avg. Volume13,945,190
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)3.57
Price to Sales (P/S)0.00
P/FCF Ratio14.25
Enterprise Value/Market Cap1.75
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit4.23
Enterprise Value/Ebitda4.34
Forecast
1Y Price Target
$24.00Price Target Upside41.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
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 |
| 716.00M | 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
Positive
17.02
Price Trends
15.48
Positive
17.25
Negative
17.54
Negative
Market Momentum
0.61
Negative
58.03
Neutral
33.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEVA, the sentiment is Positive. The current price of 17.02 is above the 20-day moving average (MA) of 16.20, above the 50-day MA of 15.48, and below the 200-day MA of 17.54, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 33.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.00B | 17.98 | 18.36% | 0.56% | 13.26% | 1.33% | |
75 Outperform | $6.57B | 17.64 | 6.01% | ― | 1.42% | ― | |
74 Outperform | $11.98B | 41.04 | 12.43% | ― | 21.73% | -19.24% | |
63 Neutral | $3.72B | ― | -3.64% | 4.13% | -4.85% | -4290.31% | |
59 Neutral | $19.55B | ― | -18.98% | ― | 3.38% | -175.90% | |
52 Neutral | $5.19B | 3.04 | -44.64% | 2.82% | 16.45% | -0.53% | |
51 Neutral | $10.38B | ― | -21.25% | 5.43% | -6.88% | -6809.78% |
* Healthcare Sector Average
Performance Comparison
TEVA
Teva Pharmaceutical
17.02
0.21
1.25%
RDY
Dr Reddy's Laboratories
14.46
0.79
5.78%
VTRS
Viatris
8.76
-1.84
-17.36%
NBIX
Neurocrine
122.82
-18.83
-13.29%
PRGO
Perrigo Company
27.20
-1.20
-4.23%
ELAN
Elanco Animal Health
13.22
-3.78
-22.24%
Teva Pharmaceutical Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 5.58%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive trajectory for Teva Pharmaceuticals, highlighted by continued growth in its innovative brands and a strategic focus on biosimilar launches and cost savings to drive future growth. Despite challenges in the generic segment and uncertainties related to tariffs and specific product headwinds, Teva remains confident in achieving its financial targets through focused capital allocation and operational efficiencies.Q1-2025 Updates
Positive Updates
Ninth Consecutive Quarter of Growth
Teva Pharmaceutical Industries has achieved its ninth consecutive quarter of growth, with revenue up 5% to $3.9 billion.
Strong Performance of Innovative Brands
Innovative brands reached $589 million in sales, a 45% increase over last year. Austedo grew 39%, Ajovy increased by 26%, and Uzedy's sales doubled.
Positive Outlook and Biosimilar Launches
Teva plans to launch five new biosimilar products from 2025 to 2027, with potential for some to launch in 2025, further supporting growth.
Improved Financial Metrics
Non-GAAP EPS increased by 8% to $0.52, and the adjusted EBITDA grew by 3%. Gross margin improved by 140 basis points year-over-year to 52.8%.
Debt Reduction and Strong Cash Flow
Net debt reduced to $15 billion, with a net debt-to-EBITDA ratio just over three times. Free cash flow is strong, aligning with long-term goals.
Cost Savings and Margin Expansion Plan
Teva plans to achieve $700 million in net savings by 2027, improving operating margins to 30% by 2027.
Negative Updates
Slower Growth in Generic Business
Generic business growth slowed to 3%, with U.S. growth at 5%, Europe at 1%, and international markets at 2%, due to fewer launches and tenders.
Impact of U.S. Tariffs and Trade Dynamics
Teva absorbed the impact of U.S. tariffs on China within its 2025 guidance, with ongoing uncertainties in trade and tariff dynamics.
Revlimid and Medicare Part D Headwinds
Expectations of revenue and profit headwinds from generic Revlimid in 2026 and Medicare Part D negotiations for Austedo in 2027.
Limited Sales of Austedo Outside the U.S.
Austedo has very limited sales outside the U.S., potentially impacting pricing strategies under most favored nations.
Company Guidance
In the Q1 2025 earnings call for Teva Pharmaceutical Industries Limited, leadership highlighted several key metrics that emphasize the company's growth trajectory and strategic focus. Revenue increased by 5% to $3.9 billion, marking the ninth consecutive quarter of growth. Adjusted EBITDA rose by 3%, while non-GAAP EPS reached $0.52, an 8% increase. The company's innovative brands, Austedo, Ajovy, and Uzedy, were strong contributors, with Austedo's sales growing 39% globally, Ajovy up 26%, and Uzedy sales doubling to $39 million. Additionally, Teva's generic business saw a 3% growth, and biosimilar launches are expected to further support revenue. The company is focused on achieving a 30% operating margin by 2027, with planned savings of $700 million from operational efficiencies, and aims for sustainable growth driven by its innovative portfolio and disciplined capital allocation.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.