Teva Pharmaceutical Industries Limited
Teva Pharmaceutical Industries Limited Fundamental Analysis
Teva Pharmaceutical Industries Limited (TEVA) shows moderate financial fundamentals with a PE ratio of 27.76, profit margin of 8.16%, and ROE of 19.95%. The company generates $17.2B in annual revenue with moderate year-over-year growth of 4.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TEVA's fundamental strength across five key dimensions:
Efficiency Score
WeakTEVA struggles to generate sufficient returns from assets.
Valuation Score
ModerateTEVA shows balanced valuation metrics.
Growth Score
WeakTEVA faces weak or negative growth trends.
Financial Health Score
ModerateTEVA shows balanced financial health with some risks.
Profitability Score
ModerateTEVA maintains healthy but balanced margins.
Key Financial Metrics
Is TEVA Expensive or Cheap?
P/E Ratio
TEVA trades at 27.76 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TEVA's PEG of 0.29 indicates potential undervaluation.
Price to Book
The market values Teva Pharmaceutical Industries Limited at 4.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.99 times EBITDA. This is generally considered low.
How Well Does TEVA Make Money?
Net Profit Margin
For every $100 in sales, Teva Pharmaceutical Industries Limited keeps $8.16 as profit after all expenses.
Operating Margin
Core operations generate 12.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.95 in profit for every $100 of shareholder equity.
ROA
Teva Pharmaceutical Industries Limited generates $3.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Teva Pharmaceutical Industries Limited generates limited operating cash flow of $1.65B, signaling weaker underlying cash strength.
Free Cash Flow
Teva Pharmaceutical Industries Limited produces free cash flow of $1.15B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.00 in free cash annually.
FCF Yield
TEVA converts 2.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How TEVA Stacks Against Its Sector Peers
| Metric | TEVA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.76 | 29.43 | Neutral |
| ROE | 19.95% | 800.00% | Weak |
| Net Margin | 8.16% | -20145.00% (disorted) | Weak |
| Debt/Equity | 2.20 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.04 | 4.64 | Neutral |
| ROA | 3.46% | -17936.00% (disorted) | Weak |
TEVA outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Teva Pharmaceutical Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-5.50%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-58.26%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
123.59%
Industry Style: Defensive, Growth, Innovation
High Growth