NYSE:TEVA

Stock Analysis Report

Executive Summary

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines worldwide.

Rewards

Trading at 62.2% below its fair value

Earnings are forecast to grow 105.83% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Teva Pharmaceutical Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TEVA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.5%

TEVA

2.2%

US Pharmaceuticals

1.1%

US Market


1 Year Return

-48.7%

TEVA

0.5%

US Pharmaceuticals

17.8%

US Market

Return vs Industry: TEVA underperformed the US Pharmaceuticals industry which returned 0.5% over the past year.

Return vs Market: TEVA underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

TEVAIndustryMarket
7 Day-7.5%2.2%1.1%
30 Day2.0%4.8%1.4%
90 Day14.1%6.5%3.9%
1 Year-48.7%-48.7%3.0%0.5%20.3%17.8%
3 Year-74.1%-74.8%29.7%20.4%44.8%35.4%
5 Year-81.5%-82.8%27.7%14.3%71.3%52.4%

Price Volatility Vs. Market

How volatile is Teva Pharmaceutical Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Teva Pharmaceutical Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TEVA ($9.49) is trading below our estimate of fair value ($25.08)

Significantly Below Fair Value: TEVA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TEVA is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: TEVA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TEVA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TEVA is good value based on its PB Ratio (0.8x) compared to the US Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Teva Pharmaceutical Industries forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

105.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEVA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: TEVA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TEVA's is expected to become profitable in the next 3 years.

Revenue vs Market: TEVA's revenue (0.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: TEVA's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TEVA's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has Teva Pharmaceutical Industries performed over the past 5 years?

-54.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEVA is currently unprofitable.

Growing Profit Margin: TEVA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TEVA is unprofitable, and losses have increased over the past 5 years at a rate of -54.8% per year.

Accelerating Growth: Unable to compare TEVA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TEVA is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (21.3%).


Return on Equity

High ROE: TEVA has a negative Return on Equity (-28.93%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Teva Pharmaceutical Industries's financial position?


Financial Position Analysis

Short Term Liabilities: TEVA's short term assets ($12.5B) do not cover its short term liabilities ($14.1B).

Long Term Liabilities: TEVA's short term assets ($12.5B) do not cover its long term liabilities ($28.2B).


Debt to Equity History and Analysis

Debt Level: TEVA's debt to equity ratio (180.5%) is considered high.

Reducing Debt: TEVA's debt to equity ratio has increased from 45% to 180.5% over the past 5 years.


Balance Sheet

Inventory Level: TEVA has a low level of unsold assets or inventory.

Debt Coverage by Assets: TEVA's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TEVA has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if TEVA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Teva Pharmaceutical Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TEVA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TEVA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TEVA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TEVA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TEVA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TEVA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Teva Pharmaceutical Industries's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Kåre Schultz (58yo)

2.1yrs

Tenure

US$32,469,875

Compensation

Mr. Kåre Schultz has been the Chief Executive Officer, President and Director of Teva Pharmaceutical Industries Limited since November 1, 2017. Mr. Schultz is a seasoned veteran in the healthcare industry  ...


CEO Compensation Analysis

Compensation vs Market: Kåre's total compensation ($USD32.47M) is above average for companies of similar size in the US market ($USD10.90M).

Compensation vs Earnings: Kåre's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: TEVA's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

63yo

Average Age

Experienced Board: TEVA's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.


Management Team

  • Kåre Schultz (58yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$32.47m
  • Eric Drapé (57yo)

    Executive Vice President of Global Operations

    • Tenure: 0.2yrs
  • Kevin Mannix

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Sven Dethlefs (50yo)

    Executive Vice President of Global Marketing & Portfolio

    • Tenure: 2.1yrs
  • Hafrun Fridriksdottir (57yo)

    Executive Vice President of Global R&D

    • Tenure: 2.8yrs
    • Compensation: US$5.98m
  • Mark Sabag (48yo)

    Executive VP

    • Tenure: 0.9yrs
    • Compensation: US$5.25m
  • Nir Baron

    Senior VP & Chief Internal Auditor

    • Tenure: 5.6yrs
  • David Stark (50yo)

    Executive VP & Chief Legal Officer

    • Tenure: 3.1yrs
  • Deborah Griffin

    Senior VP & Chief Accounting Officer

    • Tenure: 0yrs
  • Lori Queisser

    Senior VP & Global Compliance Officer

    • Tenure: 4.5yrs

Board Members

  • Chemi Peres (60yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$235.53k
  • Murray Goldberg (74yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$245.71k
  • Sol Barer (72yo)

    Independent Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$378.00k
  • Amir Elstein (63yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$246.32k
  • Kåre Schultz (58yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$32.47m
  • Jerry Lieberman (72yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$250.72k
  • Roberto Mignone (47yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$241.43k
  • Jean-Michel Halfon (67yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$232.68k
  • Rose Crane (59yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$235.00k
  • Perry Nisen (63yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$211.71k

Company Information

Teva Pharmaceutical Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teva Pharmaceutical Industries Limited
  • Ticker: TEVA
  • Exchange: NYSE
  • Founded: 1901
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$10.724b
  • Shares outstanding: 1.09b
  • Website: https://www.tevapharm.com

Number of Employees


Location

  • Teva Pharmaceutical Industries Limited
  • 5 Basel Street
  • Petach Tikva
  • 4951033
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEVANYSE (New York Stock Exchange)YesADR(CNV 1 ORD ILS0.10)USUSDFeb 1982
TEVDB (Deutsche Boerse AG)YesADR(CNV 1 ORD ILS0.10)DEEURFeb 1982
TEVA NBMV (Bolsa Mexicana de Valores)YesADR(CNV 1 ORD ILS0.10)MXMXNFeb 1982
TEVASWX (SIX Swiss Exchange)YesADR(CNV 1 ORD ILS0.10)CHCHFFeb 1982
0LERLSE (London Stock Exchange)YesADR(CNV 1 ORD ILS0.10)GBUSDFeb 1982
TEVAWBAG (Wiener Boerse AG)YesADR(CNV 1 ORD ILS0.10)ATEURFeb 1982
TEVJ.FOTCPK (Pink Sheets LLC)Ordinary SharesUSUSDJun 1994
TEVATASE (The Tel-Aviv Stock Exchange)Ordinary SharesILILSJun 1994

Biography

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines worldwide. It operates through tw ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:44
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.