TEVA PHARMACEUTICAL-SP ADR (TEVA) Stock Fundamental Analysis
NYSE:TEVA - New York Stock Exchange, Inc. - US8816242098 - ADR - Currency: USD
TEVA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 195 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of TEVA while its profitability can be described as average. TEVA is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TEVA had positive earnings in the past year.
In the past year TEVA had a positive cash flow from operations.
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's Return On Assets of -3.35% is fine compared to the rest of the industry. TEVA outperforms 78.46% of its industry peers.
With a decent Return On Equity value of -20.54%, TEVA is doing good in 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 3 year average ROIC (9.12%) for TEVA is below the current ROIC(10.69%), indicating increased profibility in the last year.
| 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.
TEVA's Operating Margin has improved in the last couple of years.
TEVA's Gross Margin of 50.49% is fine compared to the rest of the industry. TEVA outperforms 63.59% of its industry peers.
TEVA's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TEVA 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
TEVA has a debt to FCF ratio of 21.74. This is a negative value and a sign of low solvency as TEVA would need 21.74 years to pay back of all of its debts.
TEVA's Debt to FCF ratio of 21.74 is fine compared to the rest of the industry. TEVA outperforms 77.44% of its industry peers.
A Debt/Equity ratio of 2.59 is on the high side and indicates that TEVA has dependencies on debt financing.
With a Debt to Equity ratio value of 2.59, TEVA is not doing good in the industry: 79.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.59 | ||
| Debt/FCF | 21.74 | ||
| Altman-Z | N/A |
ROIC/WACC1.4
WACC7.62%
2.3 Liquidity
TEVA has a Current Ratio of 1.03. 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 Current ratio of 1.03. This is amonst the worse of the industry: TEVA underperforms 81.54% of its industry peers.
TEVA has a Quick Ratio of 1.03. This is a bad value and indicates that TEVA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.74, TEVA is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
TEVA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.17%.
TEVA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.18% yearly.
Looking at the last year, TEVA shows a small growth in Revenue. The Revenue has grown by 3.82% in the last 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)-4.17%
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
TEVA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.08% yearly.
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.
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
TEVA is valuated cheaply with a Price/Earnings ratio of 6.68.
Compared to the rest of the industry, the Price/Earnings ratio of TEVA indicates a rather cheap valuation: TEVA is cheaper than 94.36% of the companies listed in the same industry.
TEVA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
A Price/Forward Earnings ratio of 6.33 indicates a rather cheap valuation of TEVA.
Based on the Price/Forward Earnings ratio, TEVA is valued cheaper than 93.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, TEVA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 6.33 |
4.2 Price Multiples
TEVA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TEVA is cheaper than 90.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TEVA is valued cheaply inside the industry as 81.03% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.09 | ||
| EV/EBITDA | 7.24 |
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)1.45
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 |
16.76
0 (0%)
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 Change4.82%
Market Cap19.22B
Analysts42.22
Price Target0.05 (-99.7%)
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)0.2%
PT rev (3m)2.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.72%
EPS NY rev (1m)0%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 6.33 | ||
| P/S | 1.16 | ||
| P/FCF | 25.09 | ||
| P/OCF | 15.17 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.24 |
EPS(TTM)2.51
EY14.98%
EPS(NY)2.65
Fwd EY15.81%
FCF(TTM)0.67
FCFY3.99%
OCF(TTM)1.1
OCFY6.59%
SpS14.49
BVpS5.46
TBVpS-11.69
PEG (NY)1.45
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
WACC7.62%
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)-4.17%
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%