TEVA PHARMACEUTICAL-SP ADR (TEVA) Stock Fundamental Analysis
USA - NYSE:TEVA - US8816242098 - ADR
18.35 USD
-0.1 (-0.54%)
18.33 USD
-0.02 (-0.11%)
We assign a fundamental rating of 4 out of 10 to TEVA. TEVA was compared to 196 industry peers in the Pharmaceuticals industry. While TEVA is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past 5 years TEVA reported 4 times negative net income.
TEVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of -0.39%, TEVA is doing good in the industry, outperforming 79.08% of the companies in the same industry.
With a decent Return On Equity value of -2.31%, TEVA is doing good in the industry, outperforming 79.08% of the companies in the same industry.
TEVA's Return On Invested Capital of 10.49% is amongst the best of the industry. TEVA outperforms 87.76% of its industry peers.
TEVA had an Average Return On Invested Capital over the past 3 years of 9.12%. This is significantly below the industry average of 15.28%.
The last Return On Invested Capital (10.49%) for TEVA is above the 3 year average (9.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.39% | ||
| ROE | -2.31% | ||
| ROIC | 10.49% |
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 22.59%. This is amongst the best in the industry. TEVA outperforms 89.80% of its industry peers.
TEVA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 50.88%, TEVA is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
TEVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.59% | ||
| PM (TTM) | N/A | ||
| GM | 50.88% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEVA is still creating some value.
The number of shares outstanding for TEVA has been increased compared to 1 year ago.
TEVA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TEVA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.62, we must say that TEVA is in the distress zone and has some risk of bankruptcy.
TEVA has a Altman-Z score (0.62) which is in line with its industry peers.
TEVA has a debt to FCF ratio of 19.36. This is a negative value and a sign of low solvency as TEVA would need 19.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.36, TEVA is in the better half of the industry, outperforming 76.53% of the companies in the same industry.
A Debt/Equity ratio of 2.46 is on the high side and indicates that TEVA has dependencies on debt financing.
The Debt to Equity ratio of TEVA (2.46) is worse than 77.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.46 | ||
| Debt/FCF | 19.36 | ||
| Altman-Z | 0.62 |
ROIC/WACC1.4
WACC7.5%
2.3 Liquidity
TEVA has a Current Ratio of 1.06. 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 (1.06) than 79.59% of its industry peers.
TEVA has a Quick Ratio of 1.06. This is a bad value and indicates that TEVA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TEVA (0.77) is worse than 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for TEVA have decreased by -4.09% in the last year.
TEVA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.18% yearly.
The Revenue has been growing slightly by 2.07% in the past year.
Measured over the past years, TEVA shows a decrease in Revenue. The Revenue has been decreasing by -0.41% on average per year.
EPS 1Y (TTM)-4.09%
EPS 3Y-1.18%
EPS 5YN/A
EPS Q2Q%8.2%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y1.38%
Revenue growth 5Y-0.41%
Sales Q2Q%0.29%
3.2 Future
Based on estimates for the next years, TEVA will show a small growth in Earnings Per Share. The EPS will grow by 7.43% on average per year.
Based on estimates for the next years, TEVA will show a small growth in Revenue. The Revenue will grow by 2.07% on average per year.
EPS Next Y5.48%
EPS Next 2Y6.33%
EPS Next 3Y7.43%
EPS Next 5YN/A
Revenue Next Year2.75%
Revenue Next 2Y1.77%
Revenue Next 3Y2.07%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.03, the valuation of TEVA can be described as very cheap.
94.39% of the companies in the same industry are more expensive than TEVA, based on the Price/Earnings ratio.
TEVA is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.44, the valuation of TEVA can be described as very cheap.
94.39% of the companies in the same industry are more expensive than TEVA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TEVA to the average of the S&P500 Index (22.86), we can say TEVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEVA is valued cheaper than 92.35% of the companies in the same industry.
TEVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TEVA is cheaper than 83.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.65 | ||
| EV/EBITDA | 7.58 |
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)1.28
PEG (5Y)N/A
EPS Next 2Y6.33%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
No dividends for TEVA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.35
-0.1 (-0.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners6.95%
Inst Owner Change1.01%
Ins Owners0.43%
Ins Owner Change-3.97%
Market Cap21.05B
Analysts42.22
Price Target0.06 (-99.67%)
Short Float %4.5%
Short Ratio4.44
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)5.24%
Min EPS beat(2)4.65%
Max EPS beat(2)5.84%
EPS beat(4)4
Avg EPS beat(4)3.88%
Min EPS beat(4)2.01%
Max EPS beat(4)5.84%
EPS beat(8)6
Avg EPS beat(8)4.79%
EPS beat(12)7
Avg EPS beat(12)-0.36%
EPS beat(16)9
Avg EPS beat(16)-0.6%
Revenue beat(2)0
Avg Revenue beat(2)-4.72%
Min Revenue beat(2)-4.77%
Max Revenue beat(2)-4.68%
Revenue beat(4)2
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)2.63%
Revenue beat(8)5
Avg Revenue beat(8)0.64%
Revenue beat(12)6
Avg Revenue beat(12)-0.39%
Revenue beat(16)6
Avg Revenue beat(16)-1.7%
PT rev (1m)3.42%
PT rev (3m)11.48%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)-5.37%
EPS NY rev (1m)0.83%
EPS NY rev (3m)2.84%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 6.44 | ||
| P/S | 1.27 | ||
| P/FCF | 23.65 | ||
| P/OCF | 15.14 | ||
| P/B | 3.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.58 |
EPS(TTM)2.61
EY14.22%
EPS(NY)2.85
Fwd EY15.53%
FCF(TTM)0.78
FCFY4.23%
OCF(TTM)1.21
OCFY6.6%
SpS14.5
BVpS5.95
TBVpS-11.56
PEG (NY)1.28
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.39% | ||
| ROE | -2.31% | ||
| ROCE | 13.29% | ||
| ROIC | 10.49% | ||
| ROICexc | 11.36% | ||
| ROICexgc | 49.13% | ||
| OM | 22.59% | ||
| PM (TTM) | N/A | ||
| GM | 50.88% | ||
| FCFM | 5.35% |
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-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.46 | ||
| Debt/FCF | 19.36 | ||
| Debt/EBITDA | 3.51 | ||
| Cap/Depr | 48.92% | ||
| Cap/Sales | 3.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.62 |
F-Score6
WACC7.5%
ROIC/WACC1.4
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)-4.09%
EPS 3Y-1.18%
EPS 5YN/A
EPS Q2Q%8.2%
EPS Next Y5.48%
EPS Next 2Y6.33%
EPS Next 3Y7.43%
EPS Next 5YN/A
Revenue 1Y (TTM)2.07%
Revenue growth 3Y1.38%
Revenue growth 5Y-0.41%
Sales Q2Q%0.29%
Revenue Next Year2.75%
Revenue Next 2Y1.77%
Revenue Next 3Y2.07%
Revenue Next 5YN/A
EBIT growth 1Y1.19%
EBIT growth 3Y1.63%
EBIT growth 5Y5.48%
EBIT Next Year16.85%
EBIT Next 3Y9.19%
EBIT Next 5YN/A
FCF growth 1Y-24.19%
FCF growth 3Y46.96%
FCF growth 5Y27.42%
OCF growth 1Y-18.04%
OCF growth 3Y16.04%
OCF growth 5Y10.76%