Teva Pharmaceutical Stock Analysis, Valuation (NYSE:TEVA)

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$23.13 $0.17 (0.73%) TEVA stock closing price Jul 17, 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 3/5

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 Q1 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 price to earnings multiple of 6.2 is attractive when compared with the sector average PE ratio of 25.5.
  • The lower PS ratio 1.1 for TEVA stock versus Medical sector average of 6.9 is a positive for the company.
  • The company has a good Free Cash Flow (FCF) margin of 42.6.

Should you sell TEVA stock?

  • Over the last 5 years, the company registered a poor revenue growth of 1.6.
  • Over the last twelve months, Teva Pharmaceutical posted an average operating loss margin of -78.34.
  • Teva Pharmaceutical registered an average TTM Net loss of -72.4%.
  • Teva Pharmaceutical has a debt/equity ratio of 1.53, which is worse than the average in the Medical sector.
  • -24.8's negative ROIC of -24.8 indicates operational inefficiency.
  • Teva Pharmaceutical has a negative return on equity of -58.7. 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.