Teva (TEVA) AI Stock Analysis

• Market Cap: 94.48B
• Dividend Yield: N/A
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 41.1
• Beta (1Y): 0.63
• Revenue Growth: -5.10%
• EPS Growth: N/A
• Country: IL
• Employees: 37,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 254.10
• Shares Outstanding: 1,146,838,700
• 10 Day Avg. Volume: 1,312,069
• 30 Day Avg. Volume: 1,917,294
• PEG Ratio: -0.08
• Price to Book (P/B): 4.70
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 33.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: 9,059.00 ▲(6.11% Upside)

Teva's overall stock score reflects strong technical momentum and positive earnings call insights, tempered by financial performance challenges and valuation concerns. The company's ability to sustain growth in innovative products and reduce debt are key positives, while high leverage and profitability issues remain significant risks.

Positive Factors

Innovative Product Growth

The strong growth in innovative products like AUSTEDO, UZEDY, and AJOVY indicates a successful focus on high-margin segments, supporting long-term revenue expansion and market differentiation.

Debt Reduction

Significant debt reduction enhances financial stability and flexibility, allowing Teva to invest in growth opportunities and reduce interest expenses over time.

Revenue Growth

Consistent revenue growth over multiple quarters demonstrates robust market demand and effective execution of strategic initiatives, supporting long-term business sustainability.

Negative Factors

Profitability Challenges

Persistent negative profitability highlights ongoing cost pressures and pricing challenges, which could hinder reinvestment and long-term financial health if not addressed.

High Leverage

High leverage poses risks to financial stability, particularly if profitability does not improve, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

Free Cash Flow Decrease

A significant decrease in free cash flow can strain liquidity and limit the company's ability to fund operations and growth initiatives, impacting long-term financial resilience.

Teva 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 generates revenue primarily through the sale of generic pharmaceuticals, which are lower-cost alternatives to brand-name drugs. This segment constitutes a significant portion of its earnings, driven by a robust pipeline of generic products and a strong market presence in various regions. Additionally, Teva's specialty pharmaceuticals division contributes to its revenue through the sale of branded drugs and complex generics, which typically command higher prices. The company also collaborates with other pharmaceutical firms through strategic partnerships and licensing agreements, enhancing its product offerings and expanding its market reach. Factors such as patent expirations of branded drugs, regulatory approvals, and market demand for cost-effective medications significantly impact Teva's earnings.

Teva Financial Statement Overview

Summary

Teva faces significant financial challenges, with ongoing profitability issues reflected in negative net income and margins over several years. The balance sheet shows high leverage, though there is some improvement in reducing debt. Cash flow generation remains a relative strength, providing a buffer against operational difficulties. The company needs to address profitability and leverage to improve its financial health sustainably.

Income Statement

Teva's revenue has shown some volatility over the years, with a recent increase from 2023 to 2024. However, the net profit margin has been negative for the past few years, reflecting ongoing profitability challenges. The gross profit margin is stable but has not supported positive net margins, indicating cost pressures or pricing issues. The EBIT and EBITDA margins have also been inconsistent, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, signaling significant leverage, though there has been some reduction in total debt over the recent year. The return on equity is negative due to persistent net losses, which is a major concern. The equity ratio is relatively low, indicating a reliance on debt financing, which could pose risks if profitability does not improve.

Cash Flow

Teva's cash flow position shows some positive aspects, with a consistent operating cash flow and an improvement in free cash flow in 2024. However, the free cash flow growth has been inconsistent year-over-year. The operating cash flow to net income ratio is strong due to higher cash flows despite negative net income, indicating some resilience in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.78B	16.54B	15.85B	14.93B	15.88B	16.66B
Gross Profit	8.40B	8.06B	7.65B	6.97B	7.59B	7.72B
EBITDA	2.79B	777.00M	1.56B	-925.00M	2.88B	-1.95B
Net Income	712.00M	-1.64B	-559.00M	-2.35B	417.00M	-3.99B
Balance Sheet
Total Assets	39.86B	39.33B	43.48B	44.01B	47.67B	50.64B
Cash, Cash Equivalents and Short-Term Investments	2.20B	3.30B	3.23B	2.80B	2.17B	2.18B
Total Debt	17.09B	18.08B	20.15B	21.56B	23.46B	26.40B
Total Liabilities	32.60B	33.61B	35.35B	35.31B	36.42B	39.58B
Stockholders Equity	7.25B	5.37B	7.51B	7.90B	10.28B	10.03B
Cash Flow
Free Cash Flow	578.00M	749.00M	842.00M	1.04B	236.00M	638.00M
Operating Cash Flow	1.07B	1.25B	1.37B	1.59B	798.00M	1.22B
Investing Cash Flow	774.00M	792.00M	968.00M	656.00M	1.52B	863.00M
Financing Cash Flow	-2.87B	-1.79B	-1.91B	-1.49B	-2.17B	-1.89B

Teva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8537.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TEVA, the sentiment is Positive. The current price of 8537 is above the 20-day moving average (MA) of 8016.85, above the 50-day MA of 7071.96, and above the 200-day MA of 6137.63, indicating a bullish trend. The MACD of 440.55 indicates Negative momentum. The RSI at 74.18 is Negative, neither overbought nor oversold. The STOCH value of 94.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:TEVA.

Teva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMDA	73 Outperform	$1.27B	17.48	7.86%	―	5.22%	23.27%
BWAY	72 Outperform	1.02B	47.94	10.95%	―	21.13%	251.25%
TEVA	61 Neutral	94.48B	41.15	―	―	-5.10%	―
NVLG	56 Neutral	655.96M	32.67	―	2.96%	22.79%	―
SOFW	55 Neutral	1.11B	534.00	―	―	29.55%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%