Teva Pharmaceutical Industries Ltd (NYSE: TEVA)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0000818686
Market Cap 39.77 Bn
P/B 5.03
P/E 28.20
P/S 2.30
ROIC (Qtr) 47.05
Div Yield % 0.00
Rev 1y % (Qtr) 11.40
Total Debt (Qtr) 17.09 Bn
Debt/Equity (Qtr) 2.16

About

Teva Pharmaceutical Industries Ltd., or TEVA, is a global pharmaceutical company that specializes in the generic, innovative, and biopharmaceutical markets. Established in Israel in 1944, TEVA has grown to become a prominent player in the pharmaceutical industry with a mission to provide affordable medicines and innovative health solutions to patients worldwide. The company is organized into three segments: North America, Europe, and International Markets. The North America segment includes the United States and Canada, while the Europe segment...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 1.65B provides strong 10.50x coverage of stock compensation 157M, indicating sustainable incentive practices.
  • Operating cash flow of 1.65B provides exceptional 235.57x coverage of minority interest expenses 7M, showing strong core operations.
  • Robust free cash flow of 1.15B exceeds capital expenditure of 501M by 2.29x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 20.97B provides 42.79x coverage of working capital 490M, indicating strong operational backing.
  • Cash reserves of 3.56B provide ample 104.59x coverage of acquisition spending 34M, enabling strategic growth opportunities.

Bear case

  • Investment activities of 737M provide weak support for R&D spending of 1.01B, which is 0.73x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 1.65B provides minimal -9.16x coverage of tax expenses of (180M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 1.15B represents just -0.63x of debt issuance (1.81B), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 2.16B show weak coverage of depreciation charges of 1B, with a 2.16 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 1.65B barely covers operating expenses of 1.78B with a 0.93 ratio, suggesting thin operational efficiency margins and limited flexibility.

Geographical Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 60.50 Bn 29.70 7.78 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 56.17 Bn 77.42 1.96 36.56 Bn
3 HLN Haleon plc 50.10 Bn 27.80 3.57 -
4 TEVA Teva Pharmaceutical Industries Ltd 39.77 Bn 28.20 2.30 17.09 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.67 Bn 17.04 6.93 0.00 Bn
6 VTRS Viatris Inc 17.75 Bn 22.09 1.06 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.02 Bn 32.76 5.23 0.43 Bn
8 RGC Regencell Bioscience Holdings Ltd 13.94 Bn -3,890.00 0.00 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.34 32.39
EV to Cash from Ops. EV/CFO 33.13 -110.47
EV to Debt EV to Debt 3.20 345.43
EV to EBIT EV/EBIT 25.25 -42.53
EV to EBITDA EV/EBITDA 17.19 -44.40
EV to Free Cash Flow [EV/FCF] EV/FCF 47.59 -54.30
EV to Market Cap EV to Market Cap 1.37 -3.42
EV to Revenue EV/Rev 3.17 -1,175.08
Price to Book Value [P/B] P/B 5.03 36.75
Price to Earnings [P/E] P/E 28.20 -135.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.49
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 3.93
Interest Coverage Int. cover (Qtr) 2.32 -38.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.60 -148.82
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 7.76 45,342.22
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 2.85
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 7,997.41 27.06
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 328.30 19.86
EBIT Growth (1y) % EBIT 1y % (Qtr) 11,922.22 86.71
EBT Growth (1y) % EBT 1y % (Qtr) 227.73 84.03
EPS Growth (1y) % EPS 1y % (Qtr) 184.83 -17.49
FCF Growth (1y) % FCF 1y % (Qtr) 53.27 -53.73
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.85 26.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.42 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.26 2.11
Current Ratio Curr Ratio (Qtr) 1.04 3.95
Debt to Equity Ratio Debt/Equity (Qtr) 2.16 -1.12
Interest Cover Ratio Int Coverage (Qtr) 2.32 -38.53
Times Interest Earned Times Interest Earned (Qtr) 2.32 -38.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.30 -63,232.43
EBIT Margin % EBIT Margin % (Qtr) 12.54 -64,062.36
EBT Margin % EBT Margin % (Qtr) 7.13 -67,582.30
Gross Margin % Gross Margin % (Qtr) 51.80 8,439.27
Net Profit Margin % Net Margin % (Qtr) 8.20 -67,583.72