Teva Pharmaceutical (TEVA) AI Stock Analysis

• Market Cap: $19.74B
• Dividend Yield: N/A
• Average Volume (3M): 12.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 3.38%
• EPS Growth: -175.90%
• Country: US
• Employees: 37,000
• Sector: Healthcare
• Sector Strength: 58
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.52
• Shares Outstanding: 1,146,838,700
• 10 Day Avg. Volume: 10,873,903
• 30 Day Avg. Volume: 12,612,135
• PEG Ratio: <0.01
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.72
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 4.18
• 1Y Price Target: $23.11
• Price Target Upside: 32.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 57 Neutral
• Price Target: $18.00 ▲(2.86%Upside)

Teva's overall score reflects its strong technical indicators and strategic financial management, which are offset by challenges in profitability and high leverage. The positive momentum in innovative brands and strategic focus on biosimilars provide growth potential, but valuation concerns persist due to negative profitability metrics.

Positive Factors

Financial Performance

Ongoing initiatives are expected to transform the free cash flow profile significantly by improving operational cost savings, brand growth, and reducing net interest expenses.

Product Development

Teva's innovative pipeline, including the Olanzapine LAI opportunity, could address a large unmet need driving significant potential global sales.

Negative Factors

Event Impact

There was a lack of major new information at the strategy event, which may have contributed to the muted stock reaction.

Market Competition

Risks to the rating and price target include competition from big pharma, pipeline and partners' commercial execution, and milestone payment achievement.

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 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 with consistent profitability and high debt levels. The income statement shows fluctuating revenues and volatile margins, while the balance sheet is heavily leveraged. However, the positive operating cash flow provides some liquidity strength.

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
16.61B	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
1.25B	-303.00M	433.00M	2.80B	3.20B	3.05B
	EBITDA
1.37B	716.00M	1.57B	-874.00M	4.41B	-2.09B
	Net Income Common Stockholders
-1.28B	-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	5.38B	7.51B	7.90B	10.28B	10.03B
Cash Flow		Free Cash Flow
1.08B	749.00M	842.00M	1.04B	236.00M	638.00M
	Operating Cash Flow
1.58B	1.25B	1.37B	1.59B	798.00M	1.22B
	Investing Cash Flow
532.00M	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 Pharmaceutical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 17.5 is above the 20-day moving average (MA) of 17.33, above the 50-day MA of 16.06, and above the 200-day MA of 17.50, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 53.65 is Neutral, neither overbought nor oversold. The STOCH value of 39.11 is Neutral, 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
RDY	77 Outperform	$13.18B	19.68	18.36%	0.61%	13.26%	1.33%
ELAN	75 Outperform	$6.95B	18.67	6.01%	―	1.42%	―
NBIX	74 Outperform	$12.31B	42.18	12.43%	―	21.73%	-19.24%
PRGO	63 Neutral	$3.66B	―	-3.64%	4.35%	-4.85%	-4290.31%
TEVA	57 Neutral	$19.74B	―	-18.98%	―	3.38%	-175.90%
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%
VTRS	53 Neutral	$10.47B	―	-21.25%	5.38%	-6.88%	-6809.78%

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.