Loading...

Teva Pharmaceutical Industries

NYSE:TEVA
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TEVA
NYSE
$16B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines worldwide. The last earnings update was 59 days ago. More info.


Add to Portfolio Compare Print
  • Teva Pharmaceutical Industries has significant price volatility in the past 3 months.
TEVA Share Price and Events
7 Day Returns
-0.1%
NYSE:TEVA
-3.7%
US Pharmaceuticals
0.2%
US Market
1 Year Returns
-19.4%
NYSE:TEVA
6.8%
US Pharmaceuticals
6.3%
US Market
TEVA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Teva Pharmaceutical Industries (TEVA) -0.1% -14.8% -23.7% -19.4% -74.8% -70.5%
US Pharmaceuticals -3.7% -6.1% -2% 6.8% 5.3% 14.1%
US Market 0.2% 2.1% 8.5% 6.3% 37.9% 45.7%
1 Year Return vs Industry and Market
  • TEVA underperformed the Pharmaceuticals industry which returned 6.8% over the past year.
  • TEVA underperformed the Market in United States of America which returned 6.3% over the past year.
Price Volatility
TEVA
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Teva Pharmaceutical Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Teva Pharmaceutical Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Teva Pharmaceutical Industries.

NYSE:TEVA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TEVA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.674 (1 + (1- 23%) (184.47%))
1.423
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.42
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.423 * 5.96%)
11.21%

Discounted Cash Flow Calculation for NYSE:TEVA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Teva Pharmaceutical Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:TEVA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.21%)
2019 2,426.18 Analyst x4 2,181.56
2020 3,506.01 Analyst x7 2,834.67
2021 3,735.58 Analyst x6 2,715.76
2022 3,777.52 Analyst x5 2,469.36
2023 3,859.20 Analyst x5 2,268.40
2024 3,948.63 Est @ 2.32% 2,086.96
2025 4,045.03 Est @ 2.44% 1,922.35
2026 4,147.28 Est @ 2.53% 1,772.23
2027 4,254.63 Est @ 2.59% 1,634.79
2028 4,366.56 Est @ 2.63% 1,508.64
Present value of next 10 years cash flows $21,394.73
NYSE:TEVA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $4,366.56 × (1 + 2.73%) ÷ (11.21% – 2.73%)
$52,879.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $52,879.73 ÷ (1 + 11.21%)10
$18,269.84
NYSE:TEVA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $21,394.73 + $18,269.84
$39,664.57
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $39,664.57 / 1,091.60
$36.34
NYSE:TEVA Discount to Share Price
Calculation Result
Value per share (USD) From above. $36.34
Current discount Discount to share price of $14.36
= -1 x ($14.36 - $36.34) / $36.34
60.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Teva Pharmaceutical Industries is available for.
Intrinsic value
>50%
Share price is $14.36 vs Future cash flow value of $36.34
Current Discount Checks
For Teva Pharmaceutical Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Teva Pharmaceutical Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Teva Pharmaceutical Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Teva Pharmaceutical Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Teva Pharmaceutical Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TEVA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-2.35
NYSE:TEVA Share Price ** NYSE (2019-04-18) in USD $14.36
United States of America Pharmaceuticals Industry PE Ratio Median Figure of 29 Publicly-Listed Pharmaceuticals Companies 18.42x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Teva Pharmaceutical Industries.

NYSE:TEVA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TEVA Share Price ÷ EPS (both in USD)

= 14.36 ÷ -2.35

-6.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Teva Pharmaceutical Industries is loss making, we can't compare its value to the US Pharmaceuticals industry average.
  • Teva Pharmaceutical Industries is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Teva Pharmaceutical Industries's expected growth come at a high price?
Raw Data
NYSE:TEVA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -6.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts
46.2%per year
United States of America Pharmaceuticals Industry PEG Ratio Median Figure of 23 Publicly-Listed Pharmaceuticals Companies 1.5x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Teva Pharmaceutical Industries, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Teva Pharmaceutical Industries's assets?
Raw Data
NYSE:TEVA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $13.50
NYSE:TEVA Share Price * NYSE (2019-04-18) in USD $14.36
United States of America Pharmaceuticals Industry PB Ratio Median Figure of 181 Publicly-Listed Pharmaceuticals Companies 3.44x
United States of America Market PB Ratio Median Figure of 5,178 Publicly-Listed Companies 1.91x
NYSE:TEVA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TEVA Share Price ÷ Book Value per Share (both in USD)

= 14.36 ÷ 13.50

1.06x

* Primary Listing of Teva Pharmaceutical Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Teva Pharmaceutical Industries is good value based on assets compared to the US Pharmaceuticals industry average.
X
Value checks
We assess Teva Pharmaceutical Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Teva Pharmaceutical Industries has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Teva Pharmaceutical Industries expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
46.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Teva Pharmaceutical Industries expected to grow at an attractive rate?
  • Teva Pharmaceutical Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Teva Pharmaceutical Industries's earnings growth is expected to exceed the United States of America market average.
  • Teva Pharmaceutical Industries's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TEVA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TEVA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 46.2%
NYSE:TEVA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts -0.4%
United States of America Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TEVA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TEVA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 18,188 3,808 2,785 12
2022-12-31 17,953 3,689 2,605 12
2021-12-31 17,595 3,545 2,134 18
2020-12-31 17,336 3,343 1,789 23
2019-12-31 17,312 2,827 1,514 23
NYSE:TEVA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 18,854 2,446 -2,399
2018-09-30 19,693 4,220 -11,059
2018-06-30 20,781 4,594 -10,256
2018-03-31 21,800 4,867 -16,050
2017-12-31 22,385 2,225 -16,525
2017-09-30 23,479 2,791 -5,963
2017-06-30 23,425 3,457 -6,145
2017-03-31 22,743 3,985 78
2016-12-31 21,903 3,890 68
2016-09-30 20,292 5,415 1,591
2016-06-30 19,552 5,047 1,346
2016-03-31 19,480 5,564 1,697

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Teva Pharmaceutical Industries's earnings are expected to grow significantly at over 20% yearly.
  • Teva Pharmaceutical Industries's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TEVA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below

All data from Teva Pharmaceutical Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TEVA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.60 3.36 1.84 2.00
2022-12-31 2.51 3.14 1.88 2.00
2021-12-31 2.05 2.47 1.87 4.00
2020-12-31 1.62 2.09 0.82 7.00
2019-12-31 1.42 1.84 1.22 6.00
NYSE:TEVA Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -2.35
2018-09-30 -10.87
2018-06-30 -10.08
2018-03-31 -15.79
2017-12-31 -16.26
2017-09-30 -5.87
2017-06-30 -6.11
2017-03-31 0.08
2016-12-31 0.07
2016-09-30 1.73
2016-06-30 1.52
2016-03-31 1.95

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Teva Pharmaceutical Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Teva Pharmaceutical Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Teva Pharmaceutical Industries has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Teva Pharmaceutical Industries's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Teva Pharmaceutical Industries does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Teva Pharmaceutical Industries's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Teva Pharmaceutical Industries's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.
Earnings and Revenue History
Teva Pharmaceutical Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Teva Pharmaceutical Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TEVA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 18,854.00 -2,399.00 4,214.00 1,213.00
2018-09-30 19,693.00 -11,059.00 4,318.00 1,334.00
2018-06-30 20,781.00 -10,256.00 4,481.00 1,554.00
2018-03-31 21,800.00 -16,050.00 4,762.00 1,733.00
2017-12-31 22,385.00 -16,525.00 4,846.00 1,778.00
2017-09-30 23,479.00 -5,963.00 5,335.00 2,116.00
2017-06-30 23,425.00 -6,145.00 5,370.00 2,248.00
2017-03-31 22,743.00 78.00 5,326.00 2,154.00
2016-12-31 21,903.00 68.00 4,973.00 2,077.00
2016-09-30 20,292.00 1,591.00 4,863.00 1,873.00
2016-06-30 19,552.00 1,346.00 4,709.00 1,571.00
2016-03-31 19,480.00 1,697.00 4,631.00 1,582.00
2015-12-31 19,652.00 1,573.00 4,838.00 1,525.00
2015-09-30 19,939.00 1,775.00 4,836.00 1,458.00
2015-06-30 20,174.00 2,548.00 4,983.00 1,509.00
2015-03-31 20,253.00 2,757.00 5,021.00 1,467.00
2014-12-31 20,272.00 3,055.00 5,078.00 1,488.00
2014-09-30 20,534.00 2,748.00 5,200.00 1,520.00
2014-06-30 20,535.00 2,583.00 5,225.00 1,456.00
2014-03-31 20,414.00 1,383.00 5,303.00 1,451.00
2013-12-31 20,314.00 1,269.00 5,319.00 1,427.00
2013-09-30 20,133.00 1,209.00 5,245.00 1,458.00
2013-06-30 20,046.00 419.00 5,183.00 1,434.00
2013-03-31 20,116.00 1,734.00 5,179.00 1,393.00
2012-12-31 20,317.00 1,963.00 5,117.00 1,356.00
2012-09-30 20,744.00 2,149.00 5,094.00 1,285.00
2012-06-30 20,116.00 3,144.00 4,806.00 1,203.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Teva Pharmaceutical Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Teva Pharmaceutical Industries has efficiently used its assets last year compared to the US Pharmaceuticals industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Teva Pharmaceutical Industries improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Teva Pharmaceutical Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Teva Pharmaceutical Industries has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Teva Pharmaceutical Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Teva Pharmaceutical Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Teva Pharmaceutical Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Teva Pharmaceutical Industries's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Teva Pharmaceutical Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Teva Pharmaceutical Industries Company Filings, last reported 3 months ago.

NYSE:TEVA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 15,794.00 28,916.00 1,784.00
2018-09-30 19,134.00 29,489.00 1,875.00
2018-06-30 19,368.00 30,237.00 1,861.00
2018-03-31 20,102.00 30,752.00 1,418.00
2017-12-31 18,745.00 32,475.00 977.00
2017-09-30 30,295.00 34,702.00 680.00
2017-06-30 29,608.00 35,052.00 599.00
2017-03-31 35,745.00 34,636.00 900.00
2016-12-31 34,993.00 35,800.00 1,667.00
2016-09-30 37,028.00 36,855.00 1,557.00
2016-06-30 32,023.00 11,025.00 6,984.00
2016-03-31 30,591.00 10,211.00 5,969.00
2015-12-31 29,927.00 9,953.00 6,983.00
2015-09-30 22,900.00 11,664.00 928.00
2015-06-30 23,085.00 12,518.00 1,068.00
2015-03-31 22,677.00 11,017.00 3,396.00
2014-12-31 23,355.00 10,327.00 2,299.00
2014-09-30 23,670.00 10,650.00 1,473.00
2014-06-30 23,589.00 11,170.00 949.00
2014-03-31 23,030.00 11,796.00 901.00
2013-12-31 22,636.00 12,191.00 1,068.00
2013-09-30 22,388.00 12,598.00 1,149.00
2013-06-30 21,610.00 12,461.00 1,248.00
2013-03-31 22,814.00 12,658.00 1,394.00
2012-12-31 22,867.00 14,722.00 2,883.00
2012-09-30 23,072.00 13,790.00 1,432.00
2012-06-30 22,893.00 14,045.00 1,188.00
  • Teva Pharmaceutical Industries's level of debt (183.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53.8% vs 183.1% today).
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.

  • Whilst loss making Teva Pharmaceutical Industries has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Teva Pharmaceutical Industries has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21.3% per year.
X
Financial health checks
We assess Teva Pharmaceutical Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Teva Pharmaceutical Industries has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Teva Pharmaceutical Industries dividends. Estimated to be 0% next year.
If you bought $2,000 of Teva Pharmaceutical Industries shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Teva Pharmaceutical Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Teva Pharmaceutical Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TEVA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
United States of America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TEVA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 5.00
2020-12-31 0.00 6.00
2019-12-31 0.00 6.00
NYSE:TEVA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-19 0.000 0.000
2019-02-13 0.000 0.000
2018-11-01 0.000 0.000
2018-08-02 0.000 0.000
2018-05-03 0.000 0.000
2018-02-12 0.000 0.000
2018-02-08 0.000 0.000
2017-11-02 0.340 2.063
2017-08-03 0.340 2.096
2017-05-11 1.700 5.502
2017-02-13 1.360 4.138
2016-11-15 1.700 4.778
2016-08-04 1.700 3.600
2016-02-11 1.700 3.153
2015-02-09 1.700 2.747
2015-02-05 1.700 2.975
2014-07-31 1.208 2.357
2014-05-02 1.388 2.657
2014-05-01 1.388 2.753
2014-02-10 1.311 2.662
2014-02-06 1.311 2.951
2013-02-12 1.081 2.739
2013-02-07 1.081 2.806
2012-08-02 1.000 2.525
2012-02-15 1.072 2.555
2011-11-02 0.876 2.078
2011-07-27 0.940 2.400
2011-05-11 0.928 1.905
2011-02-08 0.872 1.771
2010-11-02 0.772 1.480
2010-07-27 0.724 1.392
2010-05-04 0.752 1.389
2010-02-16 0.748 1.219
2009-11-03 0.636 1.155
2009-07-28 0.628 1.223
2009-05-05 0.576 1.213
2009-04-20 0.588 1.332

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Teva Pharmaceutical Industries has not reported any payouts.
  • Unable to verify if Teva Pharmaceutical Industries's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Teva Pharmaceutical Industries's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Teva Pharmaceutical Industries has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Teva Pharmaceutical Industries's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Teva Pharmaceutical Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Teva Pharmaceutical Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Teva Pharmaceutical Industries has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kåre Schultz
COMPENSATION $17,027,741
AGE 57
TENURE AS CEO 1.4 years
CEO Bio

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 with a distinguished, nearly thirty year career in global pharmaceutical and healthcare companies. Mr. Schultz served as the Chief Executive Officer and President of H. Lundbeck A/S since May 20, 2015 until October 31, 2017. Prior to joining Lundbeck, Mr. Schultz worked for nearly three decades at Novo Nordisk, where he served in a number of leadership roles, including Vice President in Product Supply and Director of Product Planning and Customer Services in the Diabetes Care Division. Mr. Schultz served as the President and Chief Operating Officer of Novo Nordisk A/S since January 30, 2014 until April 2015 and since March 2002 until April 2015 respectively. Mr. Schultz served as Member of Executive Management and Member of the Senior Management Board at Novo Nordisk A/S. Mr. Schultz served as an Executive Vice President of Novo Nordisk A/S from November 2011 to January 2014. He joined Novo Nordisk A/S in 1989 as an Economist in Health Care, Economy and Planning and since November 2000, he served as its Chief of Staff. He joined Danish drug maker Novo Nordisk (CPH:NOVO-B) in 1989. In addition to his time at Novo Nordisk, Mr. Schultz has held positions at McKinsey and Anderson Consulting. In these roles, he developed a unique global perspective on the healthcare and pharmaceutical industries, expanded his deep financial acumen, demonstrated a commitment to strong compliance principles and enforcement and oversaw business operations and teams across Europe and North America and the Middle East. He served as the Chairman of Royal Unibrew A/S until January 1, 2018 and served as its Independent Director from 2010 to January 1, 2018. He served as the Chairman of Supervisory Board at Royal Unibrew A/S since October 11, 2010. Mr. Schultz has been a Director at LEGO A/S since 2007. He serves as a Director of Bitten og Mads Clausens Fond, the holding vehicle for Danfoss A/S. He holds an Master's degree in Economy from the University of Copenhagen in 1987.

CEO Compensation
  • Insufficient data for Kåre to compare compensation growth.
  • Kåre's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Teva Pharmaceutical Industries management team in years:

2.4
Average Tenure
50.5
Average Age
  • The tenure for the Teva Pharmaceutical Industries management team is about average.
Management Team

Kåre Schultz

TITLE
President
COMPENSATION
$17M
AGE
57
TENURE
1.4 yrs

Mike McClellan

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
47
TENURE
1.8 yrs

Mark Sabag

TITLE
Executive Vice President of Global Human Resources
COMPENSATION
$3M
AGE
47
TENURE
5.7 yrs

Carlo de Notaristefani

TITLE
Executive Vice President of Global Operations
COMPENSATION
$4M
AGE
60
TENURE
6.7 yrs

Hafrun Fridriksdottir

TITLE
Executive Vice President of Global R&D
COMPENSATION
$4M
AGE
56
TENURE
2.2 yrs

Deborah Griffin

TITLE
Senior VP & Chief Accounting Officer

David Stark

TITLE
Executive VP & Chief Legal Officer
AGE
49
TENURE
2.4 yrs

Lori Queisser

TITLE
Senior VP & Global Compliance Officer
TENURE
3.8 yrs

Iris Beck-Codner

TITLE
Executive Vice President of Global Brand & Communications
AGE
52
TENURE
4.8 yrs

Sven Dethlefs

TITLE
Executive Vice President of Global Marketing & Portfolio
AGE
49
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Teva Pharmaceutical Industries board of directors in years:

2
Average Tenure
62
Average Age
  • The average tenure for the Teva Pharmaceutical Industries board of directors is less than 3 years, this suggests a new board.
Board of Directors

Sol Barer

TITLE
Chairman of the Board
COMPENSATION
$698K
AGE
71
TENURE
2.2 yrs

Kåre Schultz

TITLE
President
COMPENSATION
$17M
AGE
57
TENURE
1.4 yrs

Amir Elstein

TITLE
Independent Director
COMPENSATION
$321K
AGE
62
TENURE
10.3 yrs

Jean-Michel Halfon

TITLE
Independent Director
COMPENSATION
$328K
AGE
66
TENURE
4.8 yrs

Rose Crane

TITLE
Independent Director
COMPENSATION
$332K
AGE
58
TENURE
3.6 yrs

Jerry Lieberman

TITLE
Director
COMPENSATION
$338K
AGE
71
TENURE
3.6 yrs

Roberto Mignone

TITLE
Independent Director
COMPENSATION
$212K
AGE
46
TENURE
1.8 yrs

Perry Nisen

TITLE
Independent Director
COMPENSATION
$212K
AGE
62
TENURE
1.8 yrs

Murray Goldberg

TITLE
Independent Director
COMPENSATION
$216K
AGE
73
TENURE
1.8 yrs

Chemi Peres

TITLE
Independent Director
COMPENSATION
$214K
AGE
59
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Teva Pharmaceutical Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Teva Pharmaceutical Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Those Who Purchased Teva Pharmaceutical Industries (NYSE:TEVA) Shares Three Years Ago Have A 71% Loss To Show For It

Long term Teva Pharmaceutical Industries Limited (NYSE:TEVA) shareholders know that all too well, since the share price is down considerably over three years. … Sadly for them, the share price is down 71% in that time. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Simply Wall St -

Investors Are Undervaluing Teva Pharmaceutical Industries Limited (NYSE:TEVA) By 40.71%

How far off is Teva Pharmaceutical Industries Limited (NYSE:TEVA) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Who Owns Most Of Teva Pharmaceutical Industries Limited (NYSE:TEVA)?

In this article, I will take a quick look at Teva Pharmaceutical Industries Limited’s (NYSE:TEVA) recent ownership structure – an unconventional investing subject, but an important one. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

Does Teva Pharmaceutical Industries Limited's (NYSE:TEVA) Debt Level Pose A Problem?

The size of Teva Pharmaceutical Industries Limited (NYSE:TEVA), a US$24.06b large-cap, often attracts investors seeking a reliable investment in the stock market. … I will provide an overview of Teva Pharmaceutical Industries’s financial liquidity and leverage to give you an idea of Teva Pharmaceutical Industries’s position to take advantage of potential acquisitions or comfortably endure future downturns … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Investors Are Undervaluing Teva Pharmaceutical Industries Limited (NYSE:TEVA) By 42.61%

Today, I will calculate the stock's intrinsic value. … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

What Does Teva Pharmaceutical Industries Limited's (NYSE:TEVA) Share Price Indicate?

Let’s take a look at Teva Pharmaceutical Industries’s outlook and value based on the most recent financial data to see if the opportunity still exists. … What does the future of Teva Pharmaceutical Industries look like? … If you are no longer interested in Teva Pharmaceutical Industries, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

An Intrinsic Calculation For Teva Pharmaceutical Industries Limited (NYSE:TEVA) Shows It's 42% Undervalued

5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $2,787.20 $3,117.04 $3,114.45 $3,534.00 $3,587.10 Source Analyst x2 Analyst x5 Analyst x2 Analyst x1 Analyst x1 Present Value Discounted @ 12.68% $2,473.57 $2,455.02 $2,176.96 $2,192.26 $1,974.81 Present Value of 5-year Cash Flow (PVCF)= $11,273 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $3,587 × (1 + 2.5%) ÷ (12.7% – 2.5%) = $36,004 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $36,004 / ( 1 + 12.7%)5 = $19,821 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $31,094. … NYSE:TEVA Intrinsic Value Apr 27th 18 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

What Kind Of Risk Should You Expect For Teva Pharmaceutical Industries Limited (NYSE:TEVA)?

View our latest analysis for Teva Pharmaceutical Industries What does TEVA's beta value mean? … With a five-year beta of 0.65, Teva Pharmaceutical Industries appears to be a less volatile company compared to the rest of the market. … TEVA’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio.

Simply Wall St -

Who Owns Teva Pharmaceutical Industries Limited (NYSE:TEVA)?

In this article, I will take a quick look at Teva Pharmaceutical Industries Limited’s (NYSE:TEVA) recent ownership structure – an unconventional investing subject, but an important one. … See our latest analysis for Teva Pharmaceutical Industries NYSE:TEVA Ownership_summary Mar 17th 18 Institutional Ownership In TEVA's case, institutional ownership stands at 62.52%, significant enough to cause considerable price moves in the case of large institutional transactions, especially when there is a low level of public shares available on the market to trade. … Private Company Ownership Another group of owners that a potential investor in TEVA should consider are private companies, with a stake of 0.33%.

Simply Wall St -

Teva Pharmaceutical Industries Limited (NYSE:TEVA): When Will It Breakeven?

Teva Pharmaceutical Industries Limited's (NYSE:TEVA): Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines worldwide. … Check out our latest analysis for Teva Pharmaceutical Industries According to the industry analysts covering TEVA, breakeven is near. … NYSE:TEVA Past Future Earnings Mar 8th 18 Underlying developments driving TEVA’s growth isn’t the focus of this broad overview, but, keep in mind that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in.

Simply Wall St -

Company Info

Description

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines worldwide. It operates through two segments, Generic Medicines and Specialty Medicines. The Generic Medicines segment offers sterile products, hormones, narcotics, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments, and creams. This segment also develops, manufactures, and sells active pharmaceutical ingredients. The Specialty Medicines segment provides specialty medicines for use in central nervous system and respiratory indications. Its products in the central nervous system area comprise Copaxone for the treatment of relapsing forms of MS; and AUSTEDO for the treatment of tardive dyskinesia and chorea associated with Huntington disease. This segment’s products in the respiratory market include ProAir, ProAir Respiclick, QVAR, Duoresp Spiromax, Qnasl, Braltus, Cinqair/Cinqaero, and Aerivio Spiromax for the treatment of asthma and chronic obstructive pulmonary disease, as well as Bendeka, Treanda, Granix, Trisenox, Lonquex, and Tevagrastim/Ratiograstim products in the oncology market. The company has collaboration arrangements with Otsuka Pharmaceutical Co. Ltd. and Regeneron Pharmaceuticals, Inc. Teva Pharmaceutical Industries Limited was founded in 1901 and is headquartered in Petach Tikva, Israel.

Details
Name: Teva Pharmaceutical Industries Limited
TEVA
Exchange: NYSE
Founded: 1901
$15,675,347,323
1,091,598,003
Website: http://www.tevapharm.com
Address: Teva Pharmaceutical Industries Limited
5 Basel Street,
Petach Tikva,
4951033,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TEVA SPONSORED ADS New York Stock Exchange US USD 16. Feb 1982
DB TEV SPONSORED ADS Deutsche Boerse AG DE EUR 16. Feb 1982
LSE 0LER SPONSORED ADS London Stock Exchange GB USD 16. Feb 1982
SWX TEVA SPONSORED ADS SIX Swiss Exchange CH CHF 16. Feb 1982
WBAG TEVA SPONSORED ADS Wiener Boerse AG AT EUR 16. Feb 1982
BMV TEVA N SPONSORED ADS Bolsa Mexicana de Valores MX MXN 16. Feb 1982
TASE TEVA Ordinary Shares The Tel-Aviv Stock Exchange IL ILS 06. Jun 1994
OTCPK TEVJ.F Ordinary Shares Pink Sheets LLC US USD 06. Jun 1994
Number of employees
Current staff
Staff numbers
42,535
Teva Pharmaceutical Industries employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 23:42
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.