Teva Pharmaceutical Industries Limited Fundamental Analysis (NYSE: TEVA)
Teva Pharmaceutical Industries Limited Fundamental Analysis (NYSE: TEVA)
Teva Pharmaceutical Industries Limited (NYSE: TEVA) shows weak financial fundamentals with a PE ratio of 58.44, profit margin of 4.08%, and ROE of 9.07%. The company generates $17.3B in annual revenue with strong year-over-year growth of 12.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.2/100 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
ModerateTEVA shows steady but slowing expansion.
Financial Health Score
WeakTEVA carries high financial risk with limited liquidity.
Profitability Score
WeakTEVA struggles to sustain strong margins.
Key Financial Metrics
Is TEVA Expensive or Cheap?
P/E Ratio
TEVA trades at 58.44 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TEVA's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Teva Pharmaceutical Industries Limited at 5.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.44 times EBITDA. This signals the market has high growth expectations.
How Well Does TEVA Make Money?
Net Profit Margin
For every $100 in sales, Teva Pharmaceutical Industries Limited keeps $4.08 as profit after all expenses.
Operating Margin
Core operations generate 11.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.07 in profit for every $100 of shareholder equity.
ROA
Teva Pharmaceutical Industries Limited generates $1.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Teva Pharmaceutical Industries Limited produces operating cash flow of $1.90B, showing steady but balanced cash generation.
Free Cash Flow
Teva Pharmaceutical Industries Limited produces free cash flow of $1.35B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.16 in free cash annually.
FCF Yield
TEVA converts 3.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
58.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.02
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 | 58.44 | 31.56 | Worse (Expensive) |
| ROE | 9.07% | 441.00% | Weak |
| Net Margin | 4.08% | 18300.00% | Weak |
| Debt/Equity | 2.18 | 0.73 | Weak (High Leverage) |
| Current Ratio | 0.88 | 5.63 | Weak Liquidity |
| ROA | 1.77% | 1512.00% | Weak |
TEVA outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
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
7.25%
Industry Style: Defensive, Growth, Innovation
GrowingEPS CAGR
136.61%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
143.73%
Industry Style: Defensive, Growth, Innovation
High Growth