Teva Pharmaceutical Industries Ltd (TEVA) stock analysis
Close on Nov 10, 2026Market cap $49.41BP/E 70.7Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak7 of 30 checks passed
Teva Pharmaceutical Industries passes 7 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 2/6
- Past performance
- 4/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 23.0%, above the 10% that usually covers the cost of capital.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 42.2% of total debt.
Guidance raised
Teva Pharmaceutical Industries raised its 2026 Revenues outlook on Jul 29, 2026.
Gross margin improving
Gross margin was 64.4% over the last twelve months, against 49.6% a year earlier.
What to watch
Margin of safety under 20%
The price is 113% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $42.40 is above our fair value estimate of $19.87.
Return on equity under 15%
Return on equity was 9.7% over the last twelve months and averaged -6.9% over five years; we look for 15% on both.
High debt
Debt is 58.0% of shareholders' equity, above the 40% we consider low.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E above the industry
Teva Pharmaceutical Industries's P/E of 70.7 is above the Drugs median of 25.1.
EV/EBITDA above its 5-year median
Teva Pharmaceutical Industries's EV/EBITDA of 19.4 is above its 5-year median of 12.0.
P/B above the industry
Teva Pharmaceutical Industries's price-to-book of 6.37 is above the Drugs median of 2.29.
Trading above fair value
The share price of $42.40 is above our fair value estimate of $19.87.
Margin of safety under 20%
The price is 113% above fair value, so there is no margin of safety.
Growth2/6
Revenue growing under 10% a year
Revenue grew 5.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -15.2% over the last twelve months; the Drugs median is 8.0%.
Guidance raised
Teva Pharmaceutical Industries raised its 2026 Revenues outlook on Jul 29, 2026.
Gross margin improving
Gross margin was 64.4% over the last twelve months, against 49.6% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 9.7% over the last twelve months and averaged -6.9% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 23.0%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Teva Pharmaceutical Industries's return on equity of 9.7% is above the Drugs median of -58.9%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 5.0% over the last twelve months, against a 5-year average of -3.8%.
Net margin above the industry
Teva Pharmaceutical Industries's net margin of 5.0% is above the Drugs median of -53.0%.
Financial health1/6
High debt
Debt is 58.0% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 31.8% five years ago to 58.0%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 42.2% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets don't cover short-term debts
Current assets are 0.88 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 0.86; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Teva Pharmaceutical Industries has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$19.87
The share price is 113% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 25.1× | – | 25.1× | $15.05 | 40% |
| EV/EBITDA | 14.5× | 12.0× | 17.1× | $31.62 | 35% |
| P/B | 2.4× | 2.5× | 2.3× | $15.82 | 10% |
| Earnings power | 9.8% cost of equity | – | – | $8.02 | 15% |
| Fair value | $19.87 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Drugs median 25.1
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $279.65M
- Value traded per 1% price move
- $145.05M
Downside
Low risk
- Typical loss in a bad month
- 14.6%
- Volatility (annualized)
- 34%
- Sharpe ratio, 1 year
- 2.14
- Beta to the S&P 500 (5Y)
- 0.98
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +4.3% | +5.0% | +0.7% | -1.3% | |
| Gross profit | +10.8% | +8.6% | +3.0% | -2.4% | |
| Operating income | – | – | – | -4.3% | |
| Net income | – | – | – | -1.2% | |
| EPS, diluted | – | – | – | -4.0% | |
| Free cash flow | +53.3% | +3.3% | +12.5% | -13.3% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 1.0% | -33.3% | 21.2% | |
| Return on assets | 0.4% | -7.4% | 3.5% | |
| Current ratio | 0.93 | 0.99 | 1.04 | |
| Interest coverage | 3.9× | -4.0× | 2.4× | |
| Inventory turnover | 2.3× | 2.0× | 2.7× | |
| Capex to revenue | 4.1% | 3.5% | 2.9% | |
| Diluted shares | 0M | 1.09B | 1.16B |
Where the cash went
Fiscal 2021 to 2025, five years combined
Teva Pharmaceutical Industries generated $6.65B from operations and spent $2.64B on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 8.2% | 0.43× | 6.03× | 21.2% |
| FY2024 | -9.9% | 0.40× | 6.43× | -25.5% |
| FY2023 | -3.5% | 0.36× | 5.71× | -7.3% |
| FY2022 | -16.4% | 0.33× | 5.07× | -27.1% |
| FY2021 | 2.6% | 0.32× | 4.84× | 4.1% |
| FY2020 | -24.0% | 0.31× | 4.50× | -33.3% |
| FY2019 | -5.9% | 0.29× | 4.12× | -7.0% |
| FY2018 | -11.8% | 0.28× | 4.09× | -13.4% |
| FY2017 | -74.4% | 0.27× | 3.23× | -64.2% |
| FY2016 | 1.5% | 0.30× | 2.33× | 1.0% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$1.41B
- Cash generatingOperating cash flow above zero$1.65B
- Return on assets improvedROA up on the prior year-3.8% → 3.6%
- Earnings backed by cashOperating cash flow above net income$1.65B vs $1.41B
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose0.98 → 1.04
- No dilutionShare count did not rise1.13B → 1.16B
- Gross margin improvedGross margin up on the prior year48.74% → 51.79%
- More efficientAsset turnover rose0.38 → 0.44
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