TEVA Investment Analysis Report & Stock Research, Teva Pharmaceutical Industries Limited

Teva Pharmaceutical Industries Limited (TEVA)

TEVA Stock Report

2-Year Price History

View Larger TEVA Chart
NASDAQ:TEVA
$57.12
(2/9 10:21AM)
+0.4%
Open$57.35 Mkt Cap$51.9 Billion
High$57.47 52Wk High$59.45
Low$57.03 52Wk Low$42.67
Volume594,254 Avg Vol 10D5.0 Million

Ockham's Rating/Recommendation Summary

Rating specific information requires Premium Access.
Buy Now or Learn More about Ockham's Features and Services.

TEVA Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, TEVA the high and low end of the Price to Sales per share ratios are 4.87x and 3.20x respectively.

Notice that TEVA's current Price to Sales per share ratio is 4.00x, which is somewhat below its historical weighted average by 1%. Given this level of sales per share, we suggest a neutral share price forecast. To the extent there is a further drop in the Price to Sales ratio from current levels, which would occur through some combination of increased sales per share or a decline in share price, we would only become more positive about the Price to Sales ratio outlook.

TEVA Cash Earnings

Looking at TEVA specifically in their Cash Earnings capabilities, Ockham views TEVA as significantly above its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from TEVA. For example, TEVA's Cash Earnings ratio per share has fluctuated between 25.20 and 37.18 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where TEVA is with respect to prior business periods.

Therefore, at the current price of $56.76 and a Price to Cash Earnings ratio of 49.36, TEVA is significantly overvalued. This diminishes the attractiveness of TEVA until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 58% is needed just to return to the historical cash earnings multiple.

TEVA Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for TEVA to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.

The estimated annual dividend for TEVA is $0.50 producing a current dividend yield of 0.88%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from TEVA against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from TEVA over previous years was 1.28% while the lowest dividend yield was 0.32%. A current dividend yield of 10.00% above the historical median is favorable in our analysis of TEVA.

Peer Comparison

:

Teva Pharmaceutical Industries Limited Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including TEVA) 16.38 9.14 » 53.21 3.26 2.62 » 14.65 15.39% 24.57%
*10 year range does not include current year values
AstraZeneca PLC AZN $62.5 Billion $43.13 6.59 4.59 » 22.00 1.94 1.37 » 5.48 10.89% 34.96%
Amgen, Inc. AMGN $58.2 Billion $57.46 10.25 7.75 » 56.88 3.99 2.72 » 20.86 12.42% 16.78%
Teva Pharmaceutical Industries Limited TEVA $51.9 Billion $56.92 49.36 10.03 » 49.44 4.00 2.64 » 5.66 27.61% 9.38%
Bristol-Myers Squibb Company BMY $47.5 Billion $23.96 8.72 5.24 » 35.79 2.53 1.51 » 7.00 -0.29% 25.90%
Gilead Sciences, Inc. GILD $41.5 Billion $46.09 16.22 14.20 » 103.95 5.95 6.09 » 30.70 43.80% 29.07%
Eli Lilly & Company LLY $40.0 Billion $34.78 40.14 13.90 » 47.42 1.88 1.43 » 9.24 10.12% 16.12%
Ockham Coverflow

Sharpen Your Investing

  • Access to over 5,000 stock reports
  • Portfolio Analytics and Tracking
  • Business Television Tracking
  • CNBC and Fox Business Show Recaps
Get Started
The Latest Financial News
The most recent Stocks on Financial TV & Blogs from impactful financial news sources
Fox Business

See Who is Talking About News from TEVA on Fox Business

As always, the latest news on TEVA is available to Ockham clients through RazorWire, and it was mentioned recently on Fox Business.

The Motley Fool CAPS data suggests that investors believe Teva Pharmaceutical Industries Limited will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on TEVA. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, TEVA has been less covered in the news compared to the rest of our universe of stocks.

“… Cheryl: matt mccall, healthcare, been watching TEVA recently they have had a heck of a run-up. You still like that one? > > I like it on a pullback. …”

Closing Bell

Notice a Discussion Covering TEVA Appeared Recently in the Financial News

As always, the latest news on TEVA is available to Ockham clients through RazorWire, and it was mentioned recently on Closing Bell.

The Ockham valuation currently has a Fairly Valued stance on TEVA because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Teva Pharmaceutical Industries Limited has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.

“… among the biggest donations so far, $10 million in medicine and cash from TEVA pharmaceuticals and $1. 25 million from pfizer. Jeffries brokerage firm wired in $7. 5 million. …”

Squawk On The Street

See Who is Talking About News from TEVA on Squawk On The Street

News has broken via the television and viral blogs regarding TEVA, so investors should take an interest in learning what was said.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, TEVA has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Teva Pharmaceutical Industries Limited will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on TEVA.

“… But what is the potential side benefit for TEVA, especially at a time when the pharmaceutical industry has taken such a huge hit to its image and a battering in the current ... …”

Squawk On The Street

See Why Teva Pharmaceutical Industries Limited News Was Discussed on Squawk On The Street

The latest news on Squawk On The Street in regards to TEVA came through on RazorWire recently.

Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Teva Pharmaceutical Industries Limited has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on TEVA because it trades within the price range that we would expect given current market conditions and fundamentals.

“… Why has TEVA decided to go so much higher? As you said, $7 million worth of product alone. > > mike, you know, TEVA is the largest pharmaceutical company in the united states ... …”

Squawk On The Street

Interested in TEVA? See What the Pundits Said on Squawk On The Street

Teva Pharmaceutical Industries Limited is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Squawk On The Street.

Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; TEVA has received less coverage from the financial media in business television and blogs. Teva Pharmaceutical Industries Limited receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.

“… But it looks like in the health care sector at least TEVA may be setting the bar even higher. Joing me in a cnbc exclusive to announce that company's donation is TEVA north ... …”

Squawk On The Street

TEVA Gets Mentioned in the Financial Media

As always, the latest news on TEVA is available to Ockham clients through RazorWire, and it was mentioned recently on Squawk On The Street.

The Motley Fool CAPS data suggests that investors believe Teva Pharmaceutical Industries Limited will beat the market in the foreseeable future. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Teva Pharmaceutical Industries Limited has been talked about more than normal recently. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on TEVA.

“… at the top of the hour, ceo of north america TEVA pharmaceuticals. > > we are talking about the revolutionary guard. A whole lot more than a military story. …”

Squawk On The Street

Heard on Squawk On The Street: CEO of TEVA Discussed

Teva Pharmaceutical Industries Limited's CEO is obviously vital to his company, so we believe any news covering him is worth knowing for investors.

We noticed recently that in comparison to all other stocks we analyze in the news; TEVA has received less coverage from the financial media in business television and blogs. Teva Pharmaceutical Industries Limited receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… In big pharma these days you are lucky if you're going to get single digit growth rates but at a standing room only analyst investor meeting in new york city late yesterday TEVA, ... …”

Squawk On The Street

Squawk On The Street Discussed the Latest Development of Teva Pharmaceutical Industries Limited

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on TEVA from Squawk On The Street.

Teva Pharmaceutical Industries Limited receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; TEVA has received less coverage from the financial media in business television and blogs.

“… TEVA pharmaceuticals, the world's biggest drug company. Generic drug company. Says it expects sales to nearly double over the next five years. …”

Closing Bell

News Breaking on Teva Pharmaceutical Industries Limited on Closing Bell

News has broken via the television and viral blogs regarding TEVA, so investors should take an interest in learning what was said.

Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on TEVA because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Teva Pharmaceutical Industries Limited has actually sunk a bit in comparison to the others.

“… hitting a record. A day from TEVA pharmaceutical, it hit $58.30 and got smacked. Strong today. Sunpower up 3.6%, ja solar 6.6%, …”

Squawk On The Street

News Developing on Squawk On The Street for TEVA

The latest news on Squawk On The Street in regards to TEVA came through on RazorWire recently.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, TEVA has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on TEVA. That being said, the recent price appreciation may be too much, too fast and we will consider downgrading on our next report. The Motley Fool CAPS data suggests that investors believe Teva Pharmaceutical Industries Limited will beat the market in the foreseeable future. Check the news on this stock because there is a catalyst that has allowed this stock to advance 10.06% today.

“… I just want to chime in on tetherteth TEVA pharmaceuticals. Very positive this morning. Let's go to sharon epperson. > > we touched nearly $82 a barrel overnight. $81. …”

View All Teva Pharmaceutical Industries Limited Stock News

Key Fundamentals

TEVA - Teva Pharmaceutical Industries Limited Fundamentals
Price (2/9 10:21AM) $57.12
Volume (2/9 10:21AM) 594,254
Last Close Price $56.92
10 Day Average Volume 5.0 Million
13 Week Price Range $52.13 - $59.45
52 Week Price Range $42.67 - $59.45
LTM Revenue $12.9 Billion
 
Shares Outstanding (12/2008) 912.0 Million
Market Capitalization $51.9 Billion
Shares Held By Institutions 590.6 Million
Institutional Holders 1,062
% Shares Held By Institutions 64.40%
Earnings Per Share (EPS) $0.78
P/E Ratio 57.50
Book Value Per Share $21.12
 
Gross Margin 54.00%
Annual Dividend 0.50
Dividend Yield 0.90%
Beta 0.18
Fiscal Year Ends December

About Teva Pharmaceutical Industries Limited

Teva Pharmaceutical Industries Limited is considered to operate in the Healthcare sector. They specifically operate in the Drug Manufacturers/Other business segment contained within the Drugs industry.

A global pharmaceutical company, which develops, produces and markets generic drugs covering all major treatment categories.