TEVA PHARMACEUTICAL-SP ADR (TEVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEVA - US8816242098 - ADR
31.89 USD
+0.08 (+0.25%)
TEVA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 190 industry peers in the Pharmaceuticals industry. TEVA scores excellent on profitability, but there are concerns on its financial health. TEVA has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year TEVA was profitable.
- 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
- TEVA has a better Return On Assets (1.79%) than 81.58% of its industry peers.
- TEVA has a Return On Equity of 9.82%. This is amongst the best in the industry. TEVA outperforms 84.74% of its industry peers.
- The Return On Invested Capital of TEVA (10.63%) is better than 90.00% of its industry peers.
- TEVA had an Average Return On Invested Capital over the past 3 years of 9.12%. This is below the industry average of 12.83%.
- The last Return On Invested Capital (10.63%) for TEVA is above the 3 year average (9.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.79% | ||
| ROE | 9.82% | ||
| ROIC | 10.63% |
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
- The Profit Margin of TEVA (4.24%) is better than 81.05% of its industry peers.
- The Operating Margin of TEVA (22.76%) is better than 90.00% of its industry peers.
- In the last couple of years the Operating Margin of TEVA has grown nicely.
- TEVA's Gross Margin of 51.33% is fine compared to the rest of the industry. TEVA outperforms 64.74% of its industry peers.
- In the last couple of years the Gross Margin of TEVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.76% | ||
| PM (TTM) | 4.24% | ||
| GM | 51.33% |
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.
- TEVA has more shares outstanding than it did 1 year ago.
- TEVA has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for TEVA has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.95, we must say that TEVA is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.95, TEVA is in line with its industry, outperforming 51.05% of the companies in the same industry.
- The Debt to FCF ratio of TEVA is 29.05, which is on the high side as it means it would take TEVA, 29.05 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of TEVA (29.05) is better than 74.74% of its industry peers.
- TEVA has a Debt/Equity ratio of 2.32. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.32, TEVA is not doing good in the industry: 77.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 29.05 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.32
WACC8.02%
2.3 Liquidity
- TEVA has a Current Ratio of 1.11. This is a normal value and indicates that TEVA is financially healthy and should not expect problems in meeting its short term obligations.
- TEVA has a worse Current ratio (1.11) than 82.11% of its industry peers.
- A Quick Ratio of 0.82 indicates that TEVA may have some problems paying its short term obligations.
- With a Quick ratio value of 0.82, TEVA is not doing good in the industry: 81.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
- TEVA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.96%.
- The Earnings Per Share has been decreasing by -1.18% on average over the past years.
- The Revenue has been growing slightly by 0.02% in the past year.
- The Revenue has been decreasing by -0.41% on average over the past years.
EPS 1Y (TTM)-3.96%
EPS 3Y-1.18%
EPS 5YN/A
EPS Q2Q%13.04%
Revenue 1Y (TTM)0.02%
Revenue growth 3Y1.38%
Revenue growth 5Y-0.41%
Sales Q2Q%3.42%
3.2 Future
- Based on estimates for the next years, TEVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.02% on average per year.
- Based on estimates for the next years, TEVA will show a small growth in Revenue. The Revenue will grow by 1.76% on average per year.
EPS Next Y8.14%
EPS Next 2Y5.78%
EPS Next 3Y8.02%
EPS Next 5YN/A
Revenue Next Year3.29%
Revenue Next 2Y1.8%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 11.77, which indicates a very decent valuation of TEVA.
- 88.42% of the companies in the same industry are more expensive than TEVA, based on the Price/Earnings ratio.
- TEVA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 11.28, which indicates a very decent valuation of TEVA.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TEVA indicates a rather cheap valuation: TEVA is cheaper than 86.32% of the companies listed in the same industry.
- TEVA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 11.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TEVA is valued cheaper than 88.42% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEVA indicates a somewhat cheap valuation: TEVA is cheaper than 77.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.29 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of TEVA may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y5.78%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
- TEVA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TEVA PHARMACEUTICAL-SP ADR / TEVA FAQ
What is the fundamental rating for TEVA stock?
ChartMill assigns a fundamental rating of 4 / 10 to TEVA.
What is the valuation status of TEVA PHARMACEUTICAL-SP ADR (TEVA) stock?
ChartMill assigns a valuation rating of 7 / 10 to TEVA PHARMACEUTICAL-SP ADR (TEVA). This can be considered as Undervalued.
Can you provide the profitability details for TEVA PHARMACEUTICAL-SP ADR?
TEVA PHARMACEUTICAL-SP ADR (TEVA) has a profitability rating of 7 / 10.
What is the valuation of TEVA PHARMACEUTICAL-SP ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TEVA PHARMACEUTICAL-SP ADR (TEVA) is 11.77 and the Price/Book (PB) ratio is 5.05.
What is the earnings growth outlook for TEVA PHARMACEUTICAL-SP ADR?
The Earnings per Share (EPS) of TEVA PHARMACEUTICAL-SP ADR (TEVA) is expected to grow by 8.14% in the next year.