Market Inference Overview — TEVA Stock

Teva Pharmaceutical Industries logged a 7.4% change during today's afternoon session, and is now trading at a price of $10.71 per share. The S&P 500 index moved 1.8% and the Nasdaq posted a 1.9% change. TEVA's trading volume is 8,355,197 compared to the stock's average volume of 9,096,129.

Shares of Teva Pharmaceutical Industries have a 50-day average price of $8.9276 as of January 2022. Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, and internationally. The large-cap Healthcare company has 34,713 full time employees and is based in Tel Aviv, Israel. Teva Pharmaceutical Industries has not offered any dividends in the last year.

We Are Concerned About the Company's Excessive Leverage:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $16,887 $16,658 $15,879
Revenue Growth n/a -1.36% -4.68%
Gross Margins 44.6% 46.4% 47.8%
Gross Margins Growth n/a 4.04% 3.02%
Operating Margins 16.1% 18.4% 19.5%
Operating Margins Growth n/a 14.29% 5.98%
Earnings Per Share -$0.91 -$3.64 $0.38
EPS Growth n/a -300.0% 110.44%
Free Cash Flow (MM) $223 $638 $236
FCF Growth n/a 186.1% -63.01%
Capital Expenditures (MM) -$525 -$578 -$562
Net Debt / EBITDA 5.61 5.15 4.81

Teva Pharmaceutical Industries Is Too Expensive at Current Levels:

Compared to the Healthcare sector's average of 13.21, Teva Pharmaceutical Industries has a trailing twelve month price to earnings (P/E) ratio of -2.9 and, based on its EPS guidance of 2.74, an expected P/E ratio of 3.9.

The firm's price to earnings growth (PEG) is 1.64, which indicates that it is overvalued in terms of its expected rate of earnings growth.

Teva Pharmaceutical Industries is undervalued in terms of its assets because its price to book (P/B) ratio is 1.2 compared to its sector average of 4.07. The company's shares are now trading 21.6% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * EPS * book value per share) = √(22.5 * 0.38 * 9.072) = $8.81

Most of the Market Indicators on Teva Pharmaceutical Industries Are Negative:

8 analysts are following Teva Pharmaceutical Industries and have set target prices ranging from $8 to $13 per share. On average, they have given the company a rating of hold. At the current price of $10.71, TEVA is trading 2.0% away from its average analyst target price of $10.5 per share, implying an analyst consensus of little upside potential for the stock.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.