Teva (TEVA) AI Stock Analysis

• Market Cap: 71.96B
• Dividend Yield: N/A
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -0.54%
• EPS Growth: 58.34%
• Country: IL
• Employees: 37,000
• Sector: Healthcare
• Sector Strength: 52
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 222.80
• Shares Outstanding: 1,146,838,700
• 10 Day Avg. Volume: 1,438,745
• 30 Day Avg. Volume: 2,459,736
• 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: 9,300.00
• Price Target Upside: 47.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: 6,600.00 ▲(4.43% Upside)

Teva's overall stock score is driven by strong technical indicators and a positive earnings call, highlighting growth in its innovative portfolio and R&D progress. However, financial performance remains a concern due to ongoing profitability issues and high leverage. Valuation is also a challenge, with a negative P/E ratio and no dividend yield.

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 makes money primarily through the sale of its generic and specialty pharmaceutical products. The company's revenue streams are primarily divided into two segments: Generic Medicines and Specialty Medicines. The Generic Medicines segment generates revenue by selling a large portfolio of generic drugs, which are typically lower-cost alternatives to branded medications. The Specialty Medicines segment focuses on the development and sale of branded pharmaceuticals, with a significant focus on treatments for central nervous system disorders, respiratory conditions, and oncology. Teva's revenue is further supported by its over-the-counter (OTC) products and partnerships with various healthcare providers and distributors to reach a broad customer base. Additionally, Teva's revenue model benefits from its investment in research and development, strategic acquisitions, and collaborations that enhance its product offerings and market reach.

Teva Financial Statement Overview

Summary

Teva faces significant financial challenges with ongoing profitability issues and high leverage. Despite negative net income and margins, there is some improvement in debt reduction and resilience in cash flow generation, providing a buffer against operational difficulties.

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	16.63B	16.54B	15.85B	14.93B	15.88B	16.66B
Gross Profit	8.25B	8.06B	7.65B	6.97B	7.59B	7.72B
EBITDA	1.89B	777.00M	1.56B	-925.00M	4.41B	-1.95B
Net Income	-158.00M	-1.64B	-559.00M	-2.35B	417.00M	-3.99B
Balance Sheet
Total Assets	40.13B	39.33B	43.48B	44.01B	47.67B	50.64B
Cash, Cash Equivalents and Short-Term Investments	2.16B	3.30B	3.23B	2.80B	2.17B	2.18B
Total Debt	17.52B	18.08B	20.15B	21.56B	23.46B	26.40B
Total Liabilities	33.30B	33.61B	35.35B	35.31B	36.42B	39.58B
Stockholders Equity	6.83B	5.37B	7.51B	7.90B	10.28B	10.03B
Cash Flow
Free Cash Flow	890.00M	749.00M	842.00M	1.04B	236.00M	638.00M
Operating Cash Flow	1.39B	1.25B	1.37B	1.59B	798.00M	1.22B
Investing Cash Flow	907.00M	792.00M	968.00M	656.00M	1.52B	863.00M
Financing Cash Flow	-2.41B	-1.79B	-1.91B	-1.49B	-2.17B	-1.89B

Teva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6320.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 6320 is above the 20-day moving average (MA) of 6117.35, above the 50-day MA of 5791.86, and above the 200-day MA of 6178.60, indicating a bullish trend. The MACD of 152.61 indicates Negative momentum. The RSI at 62.37 is Neutral, neither overbought nor oversold. The STOCH value of 80.25 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
TEVA	61 Neutral	71.96B	―		―	-0.54%	58.34%
Sector *	51 Neutral	$7.95B	-0.38	-43.43%	2.22%	22.30%	-1.83%
KMDA	―	$406.13M	21.84	7.44%	―	―	―
BRSYF	―	$298.61M	38.13	9.62%	―	―	―
ILX	―	672.63M	14.75		2.03%	―	―
NVLG	64 Neutral	776.53M	38.68		2.58%	25.00%	―
SOFW	54 Neutral	979.31M	―		―	22.30%	59.78%

Teva Corporate Events

Teva Announces Significant Holdings Disclosure

Teva has announced a notice of significant holdings, detailing the number of shares held as of December 31, 2024. This disclosure, made in compliance with regulatory requirements, includes 62,740,762 ordinary shares and 19,242,467 preferred shares, with a total of 81,983,229 shares. The announcement underscores the company’s transparency and adherence to regulations, potentially impacting investor confidence and market perception.