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Teva Pharmaceutical Industries Limited (IL:TEVA)
:TEVA
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Teva
(TEVA)
Rating:56Neutral
Price Target:
6,469.00
▲(6.07%Upside)
Teva (TEVA) vs. iShares MSCI Israel ETF (EIS)
Market Cap
69.33B
Dividend YieldN/A
Average Volume (3M)1.68M
Price to Earnings (P/E)―
Beta (1Y)0.60
Revenue Growth2.44%
EPS Growth-197.12%
CountryIL
Employees33,892
SectorHealthcare
Sector Strength46
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)186.50
Shares Outstanding1,146,838,700
10 Day Avg. Volume1,193,635
30 Day Avg. Volume1,677,958
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.27
Price to Sales (P/S)0.00
P/FCF Ratio9.62
Enterprise Value/Market Cap0.42
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit3.52
Enterprise Value/Ebitda4.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Teva Business Overview & Revenue Model
Company DescriptionTeva Pharmaceutical Industries Ltd. (TEVA) is a global pharmaceutical company headquartered in Israel. It specializes in the development, production, and marketing of generic and specialty medicines. The company operates across various sectors, including generic drugs, specialty pharmaceuticals, over-the-counter (OTC) products, and active pharmaceutical ingredients (APIs). Teva's core offerings include a wide range of generic medications, specialty treatments for disorders such as multiple sclerosis and migraines, as well as OTC products.
How the Company Makes MoneyTeva makes money primarily through the sale of generic pharmaceuticals, which constitute a significant portion of its revenue. The company benefits from a diverse product portfolio that spans various therapeutic areas, allowing it to capture a broad market segment. Additionally, Teva generates revenue from its specialty medicines, which include innovative treatments for central nervous system disorders, respiratory diseases, and other chronic conditions. The company also earns income from its active pharmaceutical ingredients (APIs), which are sold to other pharmaceutical companies. Strategic partnerships and collaborations further enhance Teva's earnings potential by expanding its market reach and product offerings. Key factors contributing to its revenue include its extensive global distribution network and its commitment to research and development, which supports the introduction of new and improved medicines.
Teva Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong growth in innovative brands, successful biosimilar launches, and effective financial management, despite some slower growth in generics and potential risks from U.S. tariffs.Q1-2025 Updates
Positive Updates
Ninth Consecutive Quarter of Growth
Teva reported its ninth consecutive quarter of growth, with revenue up 5% to $3.9 billion and adjusted EBITDA up 3%. Non-GAAP EPS increased by 8% to $0.52.
Innovative Brands Performance
Sales from innovative brands reached $589 million, up 45% over last year, driven by Austedo growing 39% globally, Ajovy up 26% globally, and Uzedy doubling to $39 million.
U.S. Generics and Biosimilars Launch
Teva launched biosimilar versions of Humira and Soliris in the U.S. and plans to launch five more products from 2025 to 2027, emphasizing a strong portfolio strategy.
Strong Financial Management
Teva reduced its gross debt to $16.7 billion from $17.8 billion at the end of the previous year, and maintained a net debt-to-EBITDA ratio just over three times.
Pipeline Progress
Teva is on track to submit olanzapine LAI for approval in the second half of the year and start Phase 3 trials for duvakitug with Sanofi.
Negative Updates
Generic Business Slower Growth
Teva's generic business grew by 3%, which is slower than previous years due to fewer launches and tenders in the current quarter.
Impact of U.S. Tariffs
While Teva absorbed the impact of U.S. tariffs in its 2025 guidance, the dynamic situation regarding potential tariff increases poses a future risk.
Japan Business Divestiture Impact
Teva's guidance revision reflects a $200 million reduction in revenue due to the divestiture of its Japan business venture.
Company Guidance
During the Q1 2025 earnings call for Teva Pharmaceutical Industries Limited, the company provided robust guidance for the fiscal year and beyond. Revenue for the quarter grew by 5% in local currency terms, reaching $3.9 billion, with adjusted EBITDA up by 3% and non-GAAP EPS rising 8% to $0.52. This marks the ninth consecutive quarter of growth, driven by strong performances from innovative brands like Austedo, Ajovy, and Uzedy, which saw sales increases of 39%, 26%, and 100% respectively. The company raised its revenue guidance for Austedo by $50 million to $1.950 billion for the year. Teva's generic business also grew 3%, and the company is optimistic about future growth from upcoming biosimilar launches. Looking ahead to 2027, Teva aims to achieve a 30% operating margin, supported by projected $700 million in net savings and continued growth in innovative portfolios, while managing OPEX and capital allocation efficiently.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.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.45
Neutral
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.50
Neutral
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.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 16.61B | 16.54B | 15.85B | 14.93B | 15.88B | 16.66B | Gross Profit |
| 8.17B | 8.06B | 7.65B | 6.97B | 7.59B | 7.72B | EBIT |
| 434.00M | -303.00M | 433.00M | -2.10B | 1.72B | -3.57B | EBITDA |
| 1.49B | 777.00M | 1.56B | -925.00M | 4.41B | -1.95B | Net Income Common Stockholders |
| -1.29B | -1.64B | -559.00M | -2.35B | 417.00M | -3.99B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.70B | 3.30B | 3.23B | 2.80B | 2.17B | 2.18B | Total Assets |
| 38.41B | 39.33B | 43.48B | 44.01B | 47.67B | 50.64B | Total Debt |
| 16.94B | 18.08B | 20.15B | 21.56B | 23.46B | 26.40B | Net Debt |
| 15.24B | 14.78B | 16.93B | 18.76B | 21.29B | 24.22B | Total Liabilities |
| 32.15B | 33.61B | 35.35B | 35.31B | 36.42B | 39.58B | Stockholders Equity |
| 6.26B | 5.37B | 7.51B | 7.90B | 10.28B | 10.03B |
| Cash Flow | Free Cash Flow | ||||
| 765.00M | 749.00M | 842.00M | 1.04B | 236.00M | 638.00M | Operating Cash Flow |
| 1.27B | 1.25B | 1.37B | 1.59B | 798.00M | 1.22B | Investing Cash Flow |
| 849.00M | 792.00M | 968.00M | 656.00M | 1.52B | 863.00M | Financing Cash Flow |
| -3.38B | -1.79B | -1.91B | -1.49B | -2.17B | -1.89B |
Teva Technical Analysis
Negative
6099.00
Price Trends
5814.06
Positive
5925.40
Positive
6417.35
Negative
Market Momentum
36.91
Positive
48.76
Neutral
18.50
Positive
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 6099 is below the 20-day moving average (MA) of 6148.95, above the 50-day MA of 5814.06, and below the 200-day MA of 6417.35, indicating a neutral trend. The MACD of 36.91 indicates Positive momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 18.50 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Performance Comparison
IL:TEVA
Teva
6,045.00
-238.00
-3.79%
IL:MTRN
Maytronics
459.40
-927.71
-66.88%
Teva Corporate Events
Teva Announces Significant Holdings Disclosure
Feb 16, 2025
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.
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.