Teva Pharmaceutical (TEVA) AI Stock Analysis

• Market Cap: $21.22B
• Dividend Yield: N/A
• Average Volume (3M): 12.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 2.43%
• EPS Growth: 64.37%
• Country: US
• Employees: 37,000
• Sector: Healthcare
• Sector Strength: 49
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.66
• Shares Outstanding: 1,146,838,700
• 10 Day Avg. Volume: 11,350,630
• 30 Day Avg. Volume: 12,481,913
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 4.22
• Enterprise Value/Ebitda: 18.35
• 1Y Price Target: $24.20
• Price Target Upside: 33.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: $19.00 ▲(4.68% Upside)

Teva Pharmaceutical's overall stock score is primarily influenced by its financial performance challenges, particularly high debt levels and inconsistent profitability. Positive momentum in technical analysis and strategic financial moves provide some support, but valuation concerns due to negative earnings and lack of dividend yield weigh heavily. The positive sentiment from the earnings call highlights growth in the innovative portfolio, offering a potential upside.

Positive Factors

Financial Performance

Good execution on margin-side, notably GM and EBITDA margins increased significantly.

Market Position

TEVA is well-positioned for upside with shares trading at less than 7 times the 2025 estimated earnings per share and increasing capital allocation flexibility.

Product Growth

Key US brands Uzedy, Austedo, and Ajovy saw FY25 guidance raise of ~$100m, indicating strong growth potential.

Negative Factors

Competitive Pressure

Spyre's TL1A antibodies have the potential to offer less frequent dosing compared to first-generation TL1As.

Earnings

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

Regulatory Uncertainty

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

Teva Pharmaceutical Business Overview & Revenue Model

Company Description

Teva Pharmaceutical Industries Ltd. is a global leader in generic and specialty pharmaceuticals, headquartered in Petah Tikva, Israel. The company primarily operates in two segments: Generics, which includes a broad portfolio of generic medicines across various therapeutic areas, and Specialty, which focuses on complex and innovative medications, including branded drugs for neurological and respiratory conditions. Teva's extensive product range includes active pharmaceutical ingredients (APIs) and over-the-counter (OTC) products, positioning it as a vital player in the global healthcare landscape.

How the Company Makes Money

Teva generates revenue through multiple channels, primarily from the sale of generic pharmaceuticals, which account for a significant portion of its sales. The company leverages its extensive research and development capabilities to create a diverse portfolio of generic drugs that offer cost-effective alternatives to branded medications. In addition to generics, Teva also earns revenue from its specialty pharmaceuticals, particularly in the fields of neurology and respiratory treatments, where it offers patented products with higher profit margins. Another key revenue stream comes from the sale of active pharmaceutical ingredients (APIs) to other companies. Teva has established significant partnerships and collaborations with healthcare providers and other pharmaceutical companies, enhancing its market reach and contributing to its earnings. The company's robust global distribution network and strategic focus on high-demand therapeutic areas further bolster its revenue generation capabilities.

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. The company needs to focus on improving operational efficiency and reducing leverage to enhance financial stability.

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	1.90B	777.00M	1.57B	-874.00M	2.99B	-2.09B
Net Income	-158.00M	-1.64B	-559.00M	-2.45B	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	5.38B	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	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 Pharmaceutical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 18.15 is above the 20-day moving average (MA) of 17.07, above the 50-day MA of 16.80, and above the 200-day MA of 17.20, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 60.26 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 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
NBIX	78 Outperform	$13.29B	39.55	13.39%	―	18.42%	1.47%
RDY	75 Outperform	$12.02B	18.08	17.48%	0.64%	13.13%	-0.47%
AMRX	66 Neutral	$2.95B	1,465.63	106.97%	―	9.81%	―
VTRS	59 Neutral	$12.30B	―	-19.77%	4.61%	-7.47%	-438.39%
TEVA	58 Neutral	$21.22B	―	-2.31%	―	2.43%	64.37%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%
PRGO	51 Neutral	$3.26B	―	-1.32%	4.76%	-2.32%	35.46%

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.

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.

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.