Teva Pharmaceutical Industries TEVA
Teva Pharmaceutical Industries is an Israeli pharmaceutical company that develops, manufactures, and markets generic and branded medicines, with a business model focused on innovation in generics and specialties such as the central nervous system. Teva is in the midst of a transformation: it has regained investment-grade status, is executing a $700M savings plan, and is pivoting to biopharma, with a forward P/E of 12.88 and a PEG of 0.71 suggesting the market has not yet priced in all the potential. However, a Net Debt/EBITDA of 3.10 and an operating margin of 4.03% weigh on its financial health and quality.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Teva Pharmaceutical Industries is an Israeli pharmaceutical company that develops, manufactures, and markets generic and branded medicines, with a business model focused on innovation in generics and specialties such as the central nervous system. Teva is in the midst of a transformation: it has regained investment-grade status, is executing a $700M savings plan, and is pivoting to biopharma, with a forward P/E of 12.88 and a PEG of 0.71 suggesting the market has not yet priced in all the potential. However, a Net Debt/EBITDA of 3.10 and an operating margin of 4.03% weigh on its financial health and quality.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.2 |
| Quality / Moat | 4.6 |
| Valuation | 5.6 |
| Growth | 4.2 |
| Dividend | 1.5 |
| Momentum | 9.8 |
| Risk & Context | 6.4 |
OVERALL SCORE: 5.1/10
Context and risks
Teva is domiciled in Israel, a country with moderate governance risk and exposed to regional geopolitical tensions that could affect its operations or risk perception. However, its business is global and diversified, which limits the impact.
News considered in the analysis
- Teva Enters Acceleration Phase of Transformation Supported by Multi-Year Launch Cycle, Oppenheimer Says — El respaldo de un analista y la perspectiva de un ciclo de lanzamientos plurianual refuerzan la tesis de crecimiento, aunque es una opinión que ya está parcialmente en el precio.
- Microsoft upgraded, HubSpot initiated: Wall Street's top analyst calls — Ruido de mercado sin relación con Teva.
- Teva Eyes New Growth Phase After Securing Investment-Grade Ratings — Recuperar el grado de inversión es un hito material que reduce el coste de financiación y amplía el acceso a los mercados de capitales, con efecto directo en la salud financiera.
- Teva CEO Details Biopharma Pivot, $700M Savings Plan and Growth Pipeline — El plan de ahorro de 700 millones y el giro hacia biofarma son medidas concretas que deberían mejorar márgenes y crecimiento, aunque su ejecución aún no está garantizada.
- Teva Pharmaceutical Industries (TEVA), Why Is It Back In The Spotlight? — Artículo de análisis genérico sin información nueva.
Verdict: Hold, with a positive bias: the transformation is progressing, but high debt and low margins warrant caution until sustained results are seen.
Main risk: The biggest risk is the execution of the transformation: if the savings plan and biopharma pivot fail to improve the operating margin (4.03%) and reduce debt (ND/EBITDA 3.10), the current valuation (forward P/E 12.88) may not be sustainable.
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