Teva Pharmaceutical (TEVA) AI Stock Analysis

• Market Cap: $18.79B
• Dividend Yield: N/A
• Average Volume (3M): 11.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 2.43%
• EPS Growth: 64.37%
• Country: US
• Employees: 37,000
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.66
• Shares Outstanding: 1,146,838,700
• 10 Day Avg. Volume: 14,774,106
• 30 Day Avg. Volume: 11,274,365
• 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: 1.85
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 4.22
• Enterprise Value/Ebitda: 20.62
• 1Y Price Target: $24.20
• Price Target Upside: 54.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 51 Neutral
• Price Target: $15.50 ▼(-1.21% Downside)

Teva Pharmaceutical's overall stock score is primarily impacted by financial challenges and bearish technical indicators. However, positive sentiment from earnings calls and strategic debt management contribute to a slightly higher score. The company's ongoing transformation initiatives and innovative product growth also provide a potential upside.

Positive Factors

Cost Management

TEVA's $700 million cost-cutting program should enable healthy margin expansion despite upcoming challenges.

Earnings and Financial Guidance

The company reaffirmed FY25 guidance and raised product-level guide for key growth brands.

Market Access and Growth Potential

Austedo is expected to have a dollar share of 44% versus 40-42% in 2023-24, indicating future market share growth.

Negative Factors

Regulatory and Pricing Challenges

Pending Austedo IRA pricing outcome has been a major stock overhang.

US Generics Performance

US generics missed forecast, mainly due to lower g-Revlimid contribution.

Teva Pharmaceutical Business Overview & Revenue Model

Company Description

Teva Pharmaceutical Industries Ltd. (TEVA) is a global pharmaceutical company that develops, produces, and markets generic and specialty medicines. The company operates in various sectors of the pharmaceutical industry, including generic drugs, specialty medicines, and over-the-counter products. Teva's core products include a wide range of generic medications across multiple therapeutic areas, as well as specialty pharmaceuticals, such as treatments for central nervous system disorders, pain management, and respiratory conditions.

How the Company Makes Money

Teva Pharmaceutical makes money primarily through the sale of generic and specialty medicines. The company's revenue model is based on manufacturing and distributing a broad portfolio of generic drugs, which are often more affordable alternatives to branded medications. These generic products provide a significant portion of Teva's revenue. Additionally, Teva generates income from its specialty medicines segment, which includes branded pharmaceuticals for conditions like multiple sclerosis and respiratory illnesses. The company also engages in collaborations and partnerships with other pharmaceutical firms to enhance its product offerings and expand market reach. Moreover, Teva's over-the-counter products contribute to its earnings, providing consumer healthcare solutions directly to the retail market. Key revenue streams include sales from its diverse product lines and strategic partnerships that facilitate market access and distribution.

Teva Pharmaceutical Financial Statement Overview

Summary

Teva Pharmaceutical faces challenges in achieving consistent profitability and managing high debt levels. While cash flow generation remains a strength, the volatility in income statement metrics and a leveraged balance sheet pose risks.

Income Statement

Teva Pharmaceutical has experienced fluctuating revenues over the years. While the gross profit margin has remained relatively stable, the company has struggled with consistent profitability, as evidenced by negative net income in recent years. The EBIT and EBITDA margins have also shown volatility, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet shows a high level of debt relative to equity, with a debt-to-equity ratio that suggests significant leverage. The return on equity is negative due to consistent net losses, and the equity ratio has been declining, indicating a shrinking equity base compared to total assets.

Cash Flow

Operating cash flow has remained positive, which is a positive sign for liquidity. However, free cash flow has been inconsistent, and the free cash flow growth rate has been negative in recent periods. The operating cash flow to net income ratio is strong, indicating that cash generation is relatively better than reported earnings.

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	1.69B	777.00M	1.57B	-874.00M	4.41B	-2.09B
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	21.44B	33.61B	35.35B	35.31B	36.42B	39.58B
Stockholders Equity	6.83B	5.38B	7.51B	7.90B	10.28B	10.03B
Cash Flow
Free Cash Flow	986.00M	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	671.00M	792.00M	968.00M	656.00M	1.52B	863.00M
Financing Cash Flow	-2.42B	-1.79B	-1.91B	-1.49B	-2.17B	-1.89B

Teva Pharmaceutical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEVA, the sentiment is Negative. The current price of 15.69 is below the 20-day moving average (MA) of 16.23, below the 50-day MA of 16.80, and below the 200-day MA of 17.26, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 26.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TEVA.

Teva Pharmaceutical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBIX	76 Outperform	$12.79B	38.05	13.39%	―	18.42%	1.47%
ELAN	71 Outperform	$6.85B	18.40	6.01%	―	1.42%	―
RDY	67 Neutral	$11.67B	17.43	18.36%	0.51%	13.03%	-0.49%
PRGO	60 Neutral	$3.66B	―	-3.64%	4.25%	-4.85%	-4290.31%
VTRS	54 Neutral	$10.34B	―	-21.25%	5.45%	-6.88%	-6809.78%
Sector *	51 Neutral	$7.38B	0.36	-65.68%	2.37%	16.55%	0.39%
TEVA	51 Neutral	$18.79B	―	-2.31%	―	2.43%	64.37%

Teva Pharmaceutical Corporate Events

Teva Pharmaceutical Elects New Board Members at Annual Meeting

On June 5, 2025, Teva Pharmaceutical Industries Limited held its Annual Meeting where shareholders voted on several key matters. New board members were elected, including Chen Lichtenstein, Amir Elstein, Roberto A. Mignone, Dr. Perry D. Nisen, and Dr. Tal Zaks, with terms extending to 2027 and 2028. Additionally, shareholders approved various amendments related to executive compensation, including the compensation policy for executive officers and directors, the terms of office for the CEO, and compensation for non-employee directors and the non-executive Chairman of the Board. Kesselman & Kesselman was also appointed as the independent registered public accounting firm until the 2026 annual meeting. These decisions reflect a strategic alignment in Teva’s leadership and compensation structures, potentially impacting its governance and operational strategies.

The most recent analyst rating on (TEVA) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Teva Pharmaceutical stock, see the TEVA Stock Forecast page.

Teva Pharmaceutical Issues Senior Notes for Debt Management

On May 28, 2025, Teva Pharmaceutical‘s subsidiaries issued senior notes totaling €1 billion and $1.2 billion to fund a tender offer and repay debt. This strategic financial move aims to strengthen Teva’s financial position by managing its debt obligations and potentially improving its market standing.

The most recent analyst rating on (TEVA) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Teva Pharmaceutical stock, see the TEVA Stock Forecast page.

Teva Pharmaceutical Upsizes Senior Notes Offering

On May 20, 2025, Teva Pharmaceutical announced the successful pricing and upsizing of its senior notes offering to approximately $2.3 billion, an increase from the initially planned $2 billion. The proceeds will be used to fund tender offers for existing notes and repay outstanding debt, with the settlement expected around May 28, 2025. This strategic financial move aims to optimize Teva’s debt structure and potentially improve its market positioning.

The most recent analyst rating on (TEVA) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Teva Pharmaceutical stock, see the TEVA Stock Forecast page.