Teva Pharmaceutical Stock Analysis, Valuation (NYSE:TEVA)

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$17.71 $0.21 (1.17%) TEVA stock closing price Apr 19, 2018 (Closing)
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Teva Pharmaceutical
Updated on : Apr 18, 2018
previous close
TEVA 17.9 (0%)
S&P 500 2708.6 (0%)
Closing Price On: Apr 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Generic Drugs
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
2%
Operating Profit
Operating Margin:
-78.1%
Sector Average:
-7.3%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
32.48B
Debt/Equity Ratio:
 1.73
Compared to the industry
Cash Flow
Operating cash flow:
$1.18B
Net Income:
-$11.54B
Dividend Yield
TEVA dividend yield:
4.02%
PROS      CONS
FCF Margin
High Dividend Yield
PE Valuation
PS Valuation
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TEVA PS :
0.8
Industry PS :
5.9
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-23.9%
Return on Equity:
-54.4%
Free Cash Flow Margin:
51%
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Teva Pharmaceutical Stock Analysis

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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 2.8/5

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 2017 Q4 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?

  • The Teva Pharmaceutical stock currently trades at a price to earnings ratio of 4.6. We rate this as a positive, compared to the industry average of 24.9.
  • When compared with the Medical-Generic Drugs industry average PS ratio of 5.9, the price-to-sales ratio of 0.8 for TEVA stock is attractive.
  • Teva Pharmaceutical's dividend yield of 4.02% is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 51%.

Should you sell TEVA stock?

  • Long term revenue growth of 2% over the past 5 years has been disappointing.
  • Teva Pharmaceutical registered a negative operating margin of -78.1% (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Teva Pharmaceutical had an average Net loss of -72.7%.
  • Teva Pharmaceutical has a debt/equity ratio of  1.73, which is worse than the average in the Medical sector.
  • The company has a negative Return on Invested Capital of -23.9%, which is a red flag.
  • Teva Pharmaceutical has a negative return on equity of -54.4%. This indicates that the firm is inefficient at generating profits.

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.