Teva Pharmaceutical (TEVA) AI Stock Analysis

• Market Cap: $29.98B
• Dividend Yield: N/A
• Average Volume (3M): 11.89M
• Price to Earnings (P/E): 41.5
• Beta (1Y): 0.50
• Revenue Growth: -0.25%
• EPS Growth: N/A
• Country: US
• Employees: 37,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.78
• Shares Outstanding: 1,146,838,700
• 10 Day Avg. Volume: 18,345,513
• 30 Day Avg. Volume: 11,887,159
• PEG Ratio: -0.08
• Price to Book (P/B): 4.63
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 33.28
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 4.57
• Enterprise Value/Ebitda: 10.41
• 1Y Price Target: $29.20
• Price Target Upside: 14.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.64
• Revenue Forecast (FY): $16.88B

• Rating: 63 Neutral
• Price Target: $26.00 ▲(2.32% Upside)

Teva's overall stock score reflects a company in transition. Strong technical momentum and positive earnings call insights are offset by financial challenges and valuation concerns. Continued focus on debt reduction and profitability improvement is crucial for future stability.

Positive Factors

Innovative Portfolio Growth

The strong growth in Teva's innovative product portfolio indicates successful R&D efforts and potential for higher margins, enhancing long-term profitability.

Debt Reduction

Significant debt reduction improves financial stability and flexibility, allowing Teva to invest in growth opportunities and withstand economic fluctuations.

Generics and Biosimilars Performance

Growth in generics and biosimilars, especially in the U.S., underscores Teva's strong market position and ability to capitalize on high-demand therapeutic areas.

Negative Factors

High Leverage

High leverage remains a concern, potentially limiting financial flexibility and increasing vulnerability to interest rate hikes and economic downturns.

Decline in Free Cash Flow

Declining free cash flow can strain liquidity, affecting Teva's ability to fund operations and invest in growth, posing a risk to long-term financial health.

Challenges in European Generics Market

Challenges in the European generics market highlight competitive pressures and regulatory hurdles, potentially impacting revenue growth and market share.

Teva Pharmaceutical 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 sales of its generic and specialty pharmaceuticals. The company's revenue model is predominantly based on the volume of medications sold, particularly in the generic segment, where it benefits from significant market share and cost advantages. Key revenue streams include the sale of generic drugs, which are often sold at lower prices than their branded counterparts, as well as specialty pharmaceuticals, which can command higher prices due to their unique therapeutic benefits. Teva also engages in partnerships and collaborations with other pharmaceutical companies, research institutions, and healthcare providers, which enhance its product offerings and market reach. Additionally, the company may earn revenue through licensing agreements and the development of generic versions of patented drugs once they come off patent. Factors contributing to Teva's earnings include its large manufacturing scale, diverse product portfolio, and the increasing global demand for affordable medications.

Teva Pharmaceutical Financial Statement Overview

Summary

Teva Pharmaceutical's financial performance is mixed. While there are signs of operational improvement and revenue growth, profitability remains a challenge due to negative net profit margins and high leverage. Cash flow management is sound, but high debt levels pose financial risks.

Income Statement

Teva Pharmaceutical's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 0.89%, indicating a slight recovery. However, the net profit margin remains negative, reflecting ongoing profitability challenges. The gross profit margin is stable at around 49.6%, suggesting efficient cost management. EBIT and EBITDA margins have improved in the TTM, indicating operational improvements, but past volatility in EBIT margins highlights potential risks.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 2.57 in the TTM, though it has improved from previous years. Return on equity remains negative, indicating challenges in generating returns for shareholders. The equity ratio is relatively low, suggesting a reliance on debt financing. While there are signs of improvement, the high debt levels pose a risk to financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a significant drop of 35.06% in the TTM. The operating cash flow to net income ratio is positive, indicating that operating activities are generating cash despite net losses. The free cash flow to net income ratio is healthy, suggesting that the company is managing its cash flow effectively relative to its net income.

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	7.64B	6.97B	7.59B	7.73B
EBITDA	3.69B	4.43B	1.56B	-925.00M	4.41B	4.61B
Net Income	712.00M	-1.64B	-559.00M	-2.45B	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	35.41B	36.42B	39.58B
Stockholders Equity	7.25B	5.37B	7.51B	7.80B	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 Pharmaceutical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.41
• 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 TEVA, the sentiment is Positive. The current price of 25.41 is above the 20-day moving average (MA) of 21.78, above the 50-day MA of 20.39, and above the 200-day MA of 17.45, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 77.41 is Negative, neither overbought nor oversold. The STOCH value of 90.10 is Negative, 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
NBIX	79 Outperform	$14.44B	34.60	14.96%	―	19.61%	11.36%
RDY	73 Outperform	$11.71B	17.06	17.72%	0.66%	10.63%	6.35%
TEVA	63 Neutral	$29.98B	41.50	10.77%	―	-0.25%	―
AMRX	63 Neutral	$3.56B	788.19	―	―	9.50%	―
VTRS	60 Neutral	$12.68B	―	-21.09%	4.58%	-6.40%	-320.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRGO	48 Neutral	$2.78B	―	-0.65%	5.55%	-2.55%	66.00%

Teva Pharmaceutical Corporate Events

Teva Pharmaceutical Reports Robust Q3 2025 Growth

Teva Pharmaceutical Industries Ltd. is a leading biopharmaceutical company known for its innovative medicines and robust generics business, operating globally to address diverse patient needs. In its third quarter of 2025, Teva reported a revenue of $4.5 billion, marking a 3% increase year-over-year, driven by the strong performance of its innovative brands like AUSTEDO and AJOVY. The company’s non-GAAP operating income margin rose to 28.9%, with a notable increase in revenues from its key innovative products, which grew by 33% in local currency. Teva’s strategic focus on innovation and transformation is evident in its continued investment in its pipeline, including the launch of new generics and biosimilars, and the advancement of clinical trials for new treatments. Looking ahead, Teva remains optimistic about its growth trajectory, aiming for a 30% non-GAAP operating profit margin by 2027, supported by its innovative product pipeline and cost-saving initiatives.

Teva’s Earnings Call Highlights Growth Amid Challenges

Teva Pharmaceutical Industries Limited’s recent earnings call painted a picture of robust growth and strategic financial management, despite facing some challenges. The sentiment was largely positive, driven by strong growth in the company’s innovative portfolio and significant debt reduction. However, concerns were raised regarding the TAPI segment, European generics, and a decline in free cash flow, which tempered some of the optimism.