TEVA PHARMACEUTICAL-SP ADR (TEVA) Stock Fundamental Analysis
NYSE:TEVA - New York Stock Exchange, Inc. - US8816242098 - ADR - Currency: USD
Overall TEVA gets a fundamental rating of 4 out of 10. We evaluated TEVA against 195 industry peers in the Pharmaceuticals industry. TEVA has a medium profitability rating, but doesn't score so well on its financial health evaluation. TEVA has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
TEVA had positive earnings in the past year.
TEVA had a positive operating cash flow in the past year.
TEVA had negative earnings in 4 of the past 5 years.
In the past 5 years TEVA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.35%, TEVA is in the better half of the industry, outperforming 77.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of -20.54%, TEVA is in the better half of the industry, outperforming 70.26% of the companies in the same industry.
TEVA's Return On Invested Capital of 10.69% is amongst the best of the industry. TEVA outperforms 88.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TEVA is significantly below the industry average of 14.87%.
The last Return On Invested Capital (10.69%) for TEVA is above the 3 year average (9.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.35% | ||
| ROE | -20.54% | ||
| ROIC | 10.69% |
ROA(3y)-3.67%
ROA(5y)-3.6%
ROE(3y)-23.1%
ROE(5y)-21.01%
ROIC(3y)9.12%
ROIC(5y)8.26%
1.3 Margins
TEVA has a Operating Margin of 22.19%. This is amongst the best in the industry. TEVA outperforms 89.23% of its industry peers.
In the last couple of years the Operating Margin of TEVA has grown nicely.
TEVA's Gross Margin of 50.49% is fine compared to the rest of the industry. TEVA outperforms 63.59% of its industry peers.
In the last couple of years the Gross Margin of TEVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.19% | ||
| PM (TTM) | N/A | ||
| GM | 50.49% |
OM growth 3Y0.25%
OM growth 5Y5.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.4%
GM growth 5Y2.35%
2. Health
2.1 Basic Checks
TEVA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TEVA has been increased compared to 1 year ago.
The number of shares outstanding for TEVA has been increased compared to 5 years ago.
The debt/assets ratio for TEVA has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TEVA is 21.74, which is on the high side as it means it would take TEVA, 21.74 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 21.74, TEVA is doing good in the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 2.59 is on the high side and indicates that TEVA has dependencies on debt financing.
TEVA has a worse Debt to Equity ratio (2.59) than 79.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 21.74 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC7.52%
2.3 Liquidity
A Current Ratio of 1.03 indicates that TEVA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.03, TEVA is not doing good in the industry: 81.54% of the companies in the same industry are doing better.
A Quick Ratio of 0.74 indicates that TEVA may have some problems paying its short term obligations.
The Quick ratio of TEVA (0.74) is worse than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for TEVA have decreased by -4.17% in the last year.
Measured over the past years, TEVA shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.18% on average per year.
Looking at the last year, TEVA shows a small growth in Revenue. The Revenue has grown by 3.82% in the last year.
TEVA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.41% yearly.
EPS 1Y (TTM)-4.17%
EPS 3Y-1.18%
EPS 5YN/A
EPS Q2Q%8.33%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y1.38%
Revenue growth 5Y-0.41%
Sales Q2Q%1.89%
3.2 Future
The Earnings Per Share is expected to grow by 6.08% on average over the next years.
TEVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.12% yearly.
EPS Next Y4.61%
EPS Next 2Y3.56%
EPS Next 3Y6.08%
EPS Next 5YN/A
Revenue Next Year4.36%
Revenue Next 2Y2.16%
Revenue Next 3Y2.12%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TEVA is valuated cheaply with a Price/Earnings ratio of 6.80.
TEVA's Price/Earnings ratio is rather cheap when compared to the industry. TEVA is cheaper than 94.87% of the companies in the same industry.
When comparing the Price/Earnings ratio of TEVA to the average of the S&P500 Index (26.34), we can say TEVA is valued rather cheaply.
A Price/Forward Earnings ratio of 6.44 indicates a rather cheap valuation of TEVA.
Based on the Price/Forward Earnings ratio, TEVA is valued cheaply inside the industry as 92.82% of the companies are valued more expensively.
TEVA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.8 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEVA indicates a rather cheap valuation: TEVA is cheaper than 89.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TEVA is valued cheaper than 81.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.54 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
TEVA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TEVA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.47
PEG (5Y)N/A
EPS Next 2Y3.56%
EPS Next 3Y6.08%
5. Dividend
5.1 Amount
TEVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.06
+0.17 (+1.01%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners6.95%
Inst Owner Change7.93%
Ins Owners0.43%
Ins Owner Change5.68%
Market Cap19.57B
Analysts42.22
Price Target0.05 (-99.71%)
Short Float %3.12%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.93%
Min EPS beat(2)2.01%
Max EPS beat(2)5.84%
EPS beat(4)4
Avg EPS beat(4)3.95%
Min EPS beat(4)2.01%
Max EPS beat(4)5.84%
EPS beat(8)6
Avg EPS beat(8)4.67%
EPS beat(12)7
Avg EPS beat(12)0.17%
EPS beat(16)8
Avg EPS beat(16)-1.4%
Revenue beat(2)1
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-4.68%
Max Revenue beat(2)0.62%
Revenue beat(4)3
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-4.68%
Max Revenue beat(4)2.63%
Revenue beat(8)6
Avg Revenue beat(8)1.6%
Revenue beat(12)6
Avg Revenue beat(12)-0.3%
Revenue beat(16)6
Avg Revenue beat(16)-1.79%
PT rev (1m)-4.13%
PT rev (3m)-2.01%
EPS NQ rev (1m)-3.68%
EPS NQ rev (3m)-2.72%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.8 | ||
| Fwd PE | 6.44 | ||
| P/S | 1.18 | ||
| P/FCF | 25.54 | ||
| P/OCF | 15.44 | ||
| P/B | 3.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.32 |
EPS(TTM)2.51
EY14.71%
EPS(NY)2.65
Fwd EY15.53%
FCF(TTM)0.67
FCFY3.92%
OCF(TTM)1.1
OCFY6.48%
SpS14.49
BVpS5.46
TBVpS-11.69
PEG (NY)1.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.35% | ||
| ROE | -20.54% | ||
| ROCE | 13.53% | ||
| ROIC | 10.69% | ||
| ROICexc | 11.4% | ||
| ROICexgc | 49.41% | ||
| OM | 22.19% | ||
| PM (TTM) | N/A | ||
| GM | 50.49% | ||
| FCFM | 4.61% |
ROA(3y)-3.67%
ROA(5y)-3.6%
ROE(3y)-23.1%
ROE(5y)-21.01%
ROIC(3y)9.12%
ROIC(5y)8.26%
ROICexc(3y)10.21%
ROICexc(5y)9.09%
ROICexgc(3y)56.98%
ROICexgc(5y)49.9%
ROCE(3y)11.55%
ROCE(5y)10.49%
ROICexcg growth 3Y25.78%
ROICexcg growth 5Y17.24%
ROICexc growth 3Y15.91%
ROICexc growth 5Y18.91%
OM growth 3Y0.25%
OM growth 5Y5.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.4%
GM growth 5Y2.35%
F-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 21.74 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 48.59% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 26.85% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | N/A |
F-Score4
WACC7.52%
ROIC/WACC1.42
Cap/Depr(3y)44.85%
Cap/Depr(5y)42.78%
Cap/Sales(3y)3.33%
Cap/Sales(5y)3.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.17%
EPS 3Y-1.18%
EPS 5YN/A
EPS Q2Q%8.33%
EPS Next Y4.61%
EPS Next 2Y3.56%
EPS Next 3Y6.08%
EPS Next 5YN/A
Revenue 1Y (TTM)3.82%
Revenue growth 3Y1.38%
Revenue growth 5Y-0.41%
Sales Q2Q%1.89%
Revenue Next Year4.36%
Revenue Next 2Y2.16%
Revenue Next 3Y2.12%
Revenue Next 5YN/A
EBIT growth 1Y1.35%
EBIT growth 3Y1.63%
EBIT growth 5Y5.48%
EBIT Next Year16.85%
EBIT Next 3Y9.19%
EBIT Next 5YN/A
FCF growth 1Y-20.54%
FCF growth 3Y46.96%
FCF growth 5Y27.42%
OCF growth 1Y-15.19%
OCF growth 3Y16.04%
OCF growth 5Y10.76%