Teva Pharmaceutical Industries Limited (IL:TEVA)
TASE:TEVA
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Teva
(TASE:TEVA)
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Rating:63Neutral
Price Target:
12,088.00
▲(24.98% Upside)
Action:ReiteratedDate:01/30/26
The score reflects improving fundamentals (notably the 2025 profitability and cash-flow rebound) and supportive technical momentum, partially offset by high leverage and earnings volatility. Valuation is not especially cheap at a 24.65 P/E without a stated dividend yield, and the earnings call points to near-term headwinds (Revlimid, Q1 softness) despite solid innovation-driven growth and longer-term deleveraging targets.
Positive Factors
Improved free cash flow generation
A material FCF rebound in 2025 provides durable funding for debt reduction, R&D and launch investments, and the transformation program. If sustained, stronger cash conversion reduces refinancing risk and supports management's multi-year deleveraging and margin targets.
Negative Factors
Elevated leverage and large absolute debt
High absolute debt and past multi-year leverage weaken financial flexibility and increase sensitivity to cash-flow shocks. Although debt has trended down, sizeable outstanding obligations constrain capital allocation and mean deleveraging remains critical to lowering refinancing and covenant risks.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved free cash flow generation
A material FCF rebound in 2025 provides durable funding for debt reduction, R&D and launch investments, and the transformation program. If sustained, stronger cash conversion reduces refinancing risk and supports management's multi-year deleveraging and margin targets.
Read all positive factors
Teva (TEVA) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪110.05B
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)23.7
Beta (1Y)0.56
Revenue Growth-5.10%
EPS GrowthN/A
CountryIL
Employees37,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)297.30
Shares Outstanding1,164,638,700
10 Day Avg. Volume1,312,069
30 Day Avg. Volume1,917,294
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)4.58
Price to Sales (P/S)1.94
P/FCF Ratio14.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8.36
Revenue Forecast (FY)₪51.40B
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 of...
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 an...
Teva Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented a strong shift toward higher-margin innovation with meaningful product-level growth (AUSTEDO, UZEDY, AJOVY), improved margins, pipeline momentum and disciplined transformation work — all supporting long-term targets. However, several near-term caveats temper enthusiasm: a sizeable Sanofi milestone boosted headline results, the generics business remains flat with regional softness, one-time inventory/gross-to-net dynamics could reverse, and clinical and reimbursement risks remain for some products. Management provided constructive 2026 guidance while acknowledging a Revlimid-related headwind and continued investment, and remains on track for its 2027 operating margin and deleveraging goals.Positive Updates
Solid Full-Year Financial Performance
Revenue of $17.3B, up 5% year-over-year; EBITDA of $5.3B, up 12%; EPS up 19% to $2.93; free cash flow up 16% to $2.4B. Net debt/EBITDA improved to 2.5x (target 2.0x by 2027).
Negative Updates
Results Boosted by One-Time Milestone
Q4/2025 included a $500M development milestone from Sanofi that added ~$500M to revenue and ~$410M to adjusted EBITDA; management notes that excluding milestones Q4 revenue was slightly down (~1%), highlighting reliance on one-time items for headline growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Solid Full-Year Financial Performance
Revenue of $17.3B, up 5% year-over-year; EBITDA of $5.3B, up 12%; EPS up 19% to $2.93; free cash flow up 16% to $2.4B. Net debt/EBITDA improved to 2.5x (target 2.0x by 2027).
Read all positive updates
Company Guidance
Teva guided 2026 full‑year revenue of $16.4–$16.8 billion (approximately +1% to −2% vs. 2025 on a normal base, excluding the $500M duvakitug milestone and $75M Japan contribution), with non‑GAAP gross margin of 54.5%–55.5%, OpEx about 27%–28% of revenue, finance expenses of roughly $800M, a non‑GAAP tax rate of 16%–19%, non‑GAAP EPS of $2.57–$2.77 and free cash flow of $2.0–$2.4 billion; management flagged a ~ $1.1B 2026 headwind from generic Revlimid (about $300M of that affected Q1), expects Q1 to be light with second‑half revenue higher, and reiterated product guidance including AUSTEDO $2.4–$2.55B, UZEDY $250–$280M and AJOVY $750–$790M, while pursuing $700M of net transformation savings by 2027 (>$70M realized in 2025 and ~2/3 expected by end‑2026), targeting a 30% operating margin and net debt/EBITDA of 2x by 2027 (net debt ≈ $13B, current 2.5x) and a longer‑term free cash flow path to >$3.5B by 2030.Teva Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
46
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.68B | 16.54B | 15.85B | 14.93B | 15.88B |
| Gross Profit | 9.63B | 8.06B | 7.65B | 6.97B | 7.59B |
| EBITDA | 3.42B | 777.00M | 1.56B | -925.00M | 2.88B |
| Net Income | 1.53B | -1.64B | -559.00M | -2.35B | 417.00M |
Balance Sheet | |||||
| Total Assets | 40.76B | 39.33B | 43.48B | 44.01B | 47.67B |
| Cash, Cash Equivalents and Short-Term Investments | 3.56B | 3.30B | 3.23B | 2.80B | 2.17B |
| Total Debt | 17.39B | 18.08B | 20.15B | 21.56B | 23.46B |
| Total Liabilities | 32.84B | 33.61B | 35.35B | 35.31B | 36.42B |
| Stockholders Equity | 7.91B | 5.37B | 7.51B | 7.90B | 10.28B |
Cash Flow | |||||
| Free Cash Flow | 2.56B | 749.00M | 842.00M | 1.04B | 236.00M |
| Operating Cash Flow | 3.10B | 1.25B | 1.37B | 1.59B | 798.00M |
| Investing Cash Flow | -557.47M | 792.00M | 968.00M | 656.00M | 1.52B |
| Financing Cash Flow | -2.29B | -1.79B | -1.91B | -1.49B | -2.17B |
Teva Technical Analysis
Negative
9672.00
Price Trends
9927.04
Negative
9786.35
Negative
8033.44
Positive
Market Momentum
-89.98
Negative
46.59
Neutral
55.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TEVA, the sentiment is Negative. The current price of 9672 is above the 20-day moving average (MA) of 9297.10, below the 50-day MA of 9927.04, and above the 200-day MA of 8033.44, indicating a neutral trend. The MACD of -89.98 indicates Negative momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 55.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:TEVA.
Teva Risk Analysis
Teva disclosed 41 risk factors in its most recent earnings report. Teva reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Teva Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₪1.87B | 65.86 | 10.95% | ― | 21.13% | 251.25% | |
73 Outperform | ₪1.44B | 20.65 | 7.75% | ― | 5.22% | 23.27% | |
69 Neutral | ₪1.51B | 51.44 | ― | ― | 29.55% | ― | |
63 Neutral | ₪110.05B | 23.74 | ― | ― | -5.10% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
44 Neutral | ₪557.36M | 155.92 | ― | 3.05% | 22.79% | ― |
* Healthcare Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.