Teva Pharmaceutical Stock Analysis, Valuation (NYSE:TEVA)

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$25.65 $1.43 (5.9%) TEVA stock closing price Aug 20, 2018 (Closing)

Investors can watch the Amigobulls Teva Pharmaceutical stock analysis video here. Our analyst opinion covering the buy and sell arguments for TEVA stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Teva Pharmaceutical Industries Ltd (ADR) Stock Rating 3.4/5

Amigobulls TEVA stock analysis takes into account various financial ratios like relative valuation, Teva Pharmaceutical revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Teva Pharmaceutical dividend performance. Teva Pharmaceutical valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Teva Pharmaceutical stock rating is our opinion about the business fundamentals of the company.

Should you buy TEVA stock?

  • TEVA stock is trading at an earnings multiple of 6.8 which is better than the sector average of 24.5.
  • TEVA stock is trading at a favorable price to sales multiple of 1.2 as against the Medical sector average multiple of 6.2.
  • Teva Pharmaceutical has a healthy FCF (Free Cash Flow) margin of 42.6.

Should you sell TEVA stock?

  • Teva Pharmaceutical revenue saw a decline of -10% YoY in 2018-03.
  • Long term revenue growth of 1.6 over the past 5 years has been disappointing.
  • Teva Pharmaceutical reported an average operating margin of -78.34 over the Last Twelve Months (LTM).
  • Teva Pharmaceutical posted an average Net loss of -72.4% in the last twelve months.
  • Teva Pharmaceutical is debt laden and has a high debt/equity ratio of 1.53.
  • Teva Pharmaceutical has a negative ROIC (Return on Invested Capital) of -24.8.
  • Teva Pharmaceutical has a negative ROE (Return On Equity) of -58.7, indicating the company is not profitable.

Comments on this video and Teva Pharmaceutical stock

Investors can make use of the Amigobulls Teva Pharmaceutical stock analysis to ascertain how TEVA stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

Teva Pharmaceutical revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about TEVA stock.