Teva Pharmaceutical (TEVA) AI Stock Analysis

• Market Cap: $19.17B
• Dividend Yield: N/A
• Average Volume (3M): 12.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 3.38%
• EPS Growth: -175.90%
• Country: US
• Employees: 37,000
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.52
• Shares Outstanding: 1,146,838,700
• 10 Day Avg. Volume: 10,589,449
• 30 Day Avg. Volume: 12,087,500
• PEG Ratio: 0.17
• Price to Book (P/B): 3.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.25
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 4.23
• Enterprise Value/Ebitda: 4.34
• 1Y Price Target: $24.00
• Price Target Upside: 35.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: $17.50 ▼(-1.19%Downside)

Teva's overall score is driven by its strong earnings call and corporate event strategies, which show promising growth potential. However, challenges in financial performance and valuation metrics, particularly debt management and profitability, weigh down the score. The technical analysis offers a moderate outlook, adding a balanced perspective to the stock's evaluation.

Positive Factors

Financial Performance

Teva aims to achieve $700m net cost savings, with larger savings expected from COGS compared to OpEx.

Partnerships and Collaborations

Medincell has secured $2.2B in potential milestones from major partnerships, including Teva and AbbVie, validating it as a key player in the next-gen drug delivery space.

Product Approvals and Pipeline

Uzedy received FDA approval for schizophrenia, with potential additional royalties if approved for bipolar-1 disorder, presenting a strong opportunity for Medincell.

Negative Factors

Competition and Market Risks

Risks to the rating and price target include competition from big pharma, pipeline and partners' commercial execution, and milestone payment achievement.

Revenue Challenges

Teva will be absorbing a ~$1 billion revenue headwind from gRevlimid in 2026/2027.

Teva Pharmaceutical Business Overview & Revenue Model

Company Description

Teva Pharmaceutical Industries Ltd. (TEVA) is a global pharmaceutical company that develops, produces, and markets generic and specialty medicines. The company operates in various sectors of the pharmaceutical industry, including generic drugs, specialty medicines, and over-the-counter products. Teva's core products include a wide range of generic medications across multiple therapeutic areas, as well as specialty pharmaceuticals, such as treatments for central nervous system disorders, pain management, and respiratory conditions.

How the Company Makes Money

Teva Pharmaceutical makes money primarily through the sale of generic and specialty medicines. The company's revenue model is based on manufacturing and distributing a broad portfolio of generic drugs, which are often more affordable alternatives to branded medications. These generic products provide a significant portion of Teva's revenue. Additionally, Teva generates income from its specialty medicines segment, which includes branded pharmaceuticals for conditions like multiple sclerosis and respiratory illnesses. The company also engages in collaborations and partnerships with other pharmaceutical firms to enhance its product offerings and expand market reach. Moreover, Teva's over-the-counter products contribute to its earnings, providing consumer healthcare solutions directly to the retail market. Key revenue streams include sales from its diverse product lines and strategic partnerships that facilitate market access and distribution.

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
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

• Technical Analysis Sentiment: Positive
• Last Price: 17.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 17.71 is above the 20-day moving average (MA) of 16.81, above the 50-day MA of 15.58, and above the 200-day MA of 17.54, indicating a bullish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 62.63 is Neutral, neither overbought nor oversold. The STOCH value of 50.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$12.06B	17.91	18.36%	0.56%	13.26%	1.33%
ELAN	75 Outperform	$6.55B	17.59	6.01%	―	1.42%	―
NBIX	74 Outperform	$11.89B	40.75	12.43%	―	21.73%	-19.24%
PRGO	63 Neutral	$3.65B	―	-3.64%	4.21%	-4.85%	-4290.31%
TEVA	58 Neutral	$19.17B	―	-18.98%	―	3.38%	-175.90%
VTRS	55 Neutral	$9.73B	―	-21.25%	5.79%	-6.88%	-6809.78%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%

Teva Pharmaceutical Corporate Events

Teva Pharmaceutical Upsizes Senior Notes Offering

On May 20, 2025, Teva Pharmaceutical announced the successful pricing and upsizing of its senior notes offering to approximately $2.3 billion, an increase from the initially planned $2 billion. The proceeds will be used to fund tender offers for existing notes and repay outstanding debt, with the settlement expected around May 28, 2025. This strategic financial move aims to optimize Teva’s debt structure and potentially improve its market positioning.

The most recent analyst rating on (TEVA) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Teva Pharmaceutical stock, see the TEVA Stock Forecast page.