# Teva Pharma Industries (TEVA.US)

Canonical: https://gigainvestors.com/s/TEVA

Analysis as of: 2026-10-16T07:32:19.983Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $41.11 per share; close as of 2026-10-15.

Estimated value: low $3.51 per share, central $3.61 per share, high $3.74 per share. Buy at or below the central value $3.61 per share. Valuation as of 2026-10-16T07:32:19.983Z; scenarios are not confidence intervals.

Expected annual return: 3.1% at the stated quote. About 3.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 7

- Operating margin variation: 2.83×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.78×

- FY2018: -0.09×

- FY2019: -0.03×

- FY2020: -0.21×

- FY2021: 0.11×

- FY2022: -0.15×

- FY2023: 0.03×

- FY2024: -0.02×

- FY2025: 0.12×

- LTM to Jun 2026: 0.11×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -3.6%

- ROIC, second-lowest year: -20.7%

- Typical minus recent gross margin: -3.8 pp

- Typical gross margin (annual median): 48.0%

- Recent gross margin (lower of latest and 3-year median): 51.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.4%

- ROIC including acquisitions, ten-year median: -1.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -67.5%

- FY2018: -7.6%

- FY2019: -2.4%

- FY2020: -20.7%

- FY2021: 8.4%

- FY2022: -18.5%

- FY2023: 4.7%

- FY2024: -4.8%

- FY2025: 37.6%

- LTM to Jun 2026: 38.0%

### economics: pass

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $360M

- Net income, five-year total: -$2.5B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -3.1 pp

- Working capital / revenue, change between three-year averages: -22.9 pp

- Working capital / revenue, final three-year average: 23.9%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$1.7B

- FY2023: $68M

- FY2024: -$1.1B

- FY2025: $1.9B

- LTM to Jun 2026: $1.1B

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -7.6% vs 4.7%

- Per-share earnings: 0.32 to -0.49 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.0%

- Ordinary dilution, 5-year annual growth: 1.2%

- Market cap gain: -$184M

- Cumulative retained earnings: -$27B

- Diluted shares, 10-year annual growth: 3.0%

- Diluted shares, 5-year annual growth: 1.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$0.82

- Per-share value, starting three-year median: $0.32

- Per-share value, ending three-year median: -$0.49

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 14.8%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: $39B

- Cumulative net income, 10 years: -$26B

- ROIC, first three-year median: -7.6%

- ROIC, last three-year median: 4.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.32

- FY2017: -$15.99

- FY2018: -$2.09

- FY2019: -$0.91

- FY2020: -$3.60

- FY2021: $0.38

- FY2022: -$2.20

- FY2023: -$0.49

- FY2024: -$1.45

- FY2025: $1.20

### accounting: pass

- Sloan accruals: -0.6%

- Receivables to sales index (DSRI): 1.16×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 9.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.17×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.50×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.3%

- FY2017: -28.0%

- FY2018: -7.6%

- FY2019: -2.7%

- FY2020: -10.3%

- FY2021: -0.8%

- FY2022: -9.2%

- FY2023: -4.4%

- FY2024: -7.3%

- FY2025: -0.6%

## Holders

- [David Einhorn](https://gigainvestors.com/GLRE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 54.6% a year for ten years · sales +0.3%

Story as of 2026-10-16T09:59:40.804Z; price observation 2026-10-15.

Price needs cash profits to grow 54.6% a year for ten years

- 2025-05-08: TEVA Beats on Q1 Earnings, Expects $700M Cost Savings by 2027, Stock Up ([finance.yahoo.com](https://finance.yahoo.com/news/teva-beats-q1-earnings-expects-114800974.html))

- 2025-08-29: Teva Pharmaceutical Industries Limited (TEVA) Gains FDA Nod for Pediatric Migraine Drug AJOVY ([finance.yahoo.com](https://finance.yahoo.com/news/teva-pharmaceutical-industries-limited-teva-090249499.html))

- 2025-11-05: Teva gains after Q3 beat and guidance hike ([seekingalpha.com](https://seekingalpha.com/news/4515614-teva-stock-gains-q3-beat-guidance-hike?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-29: TEVA's Q4 Earnings Beat, Branded Drugs Drive Revenue Growth ([finance.yahoo.com](https://finance.yahoo.com/news/tevas-q4-earnings-beat-branded-162300787.html))

- 2026-04-30: TEVA Q1 Earnings Top Estimates, Branded Drugs Drive Revenues, Stock Up ([finance.yahoo.com](https://finance.yahoo.com/sectors/healthcare/articles/teva-q1-earnings-top-estimates-141800366.html))

- 2026-09-14: Teva Pharmaceuticals Sees Pivot to Growth Accelerating on Branded Drugs, Biosimilars ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/teva-pharmaceuticals-sees-pivot-growth-140227795.html))

### Sales · FY2025–2026

sales +0.3%; source https://www.sec.gov/Archives/edgar/data/818686/000119312526034532/d93612d10k.htm; observed 2026-02-03.

- FY2017: $22B 

- FY2018: $19B 

- FY2019: $17B 

- FY2020: $17B 

- FY2021: $16B 

- FY2022: $15B 

- FY2023: $16B 

- FY2024: $17B 

- FY2025: $17B 

- FY2026: $17B 

### Gross margin · FY2026

gross margin 52.5%; source https://www.sec.gov/Archives/edgar/data/818686/000119312526034532/d93612d10k.htm; observed 2026-02-03.

- FY2017: 48.4% 

- FY2018: 44.0% 

- FY2019: 44.6% 

- FY2020: 46.4% 

- FY2021: 47.8% 

- FY2022: 46.7% 

- FY2023: 48.2% 

- FY2024: 48.7% 

- FY2025: 51.8% 

- FY2026: 52.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in drug manufacturers specialty & generic; annual sales are USD 17.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/818686/000119312526034532/d93612d10k.htm (filed 2026-02-03); FY2025: revenue 17257000000; grossProfit 8938000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TEVA.US: Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic and other medicines, and biopharmaceutical products in the United States, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company also focuses on the central nervous system (CNS), respiratory, oncology, and other areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin's lymphoma; COPAXONE, glatiramer acetate injection to treat patients with relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of tardive dyskinesia, chorea associated with Huntington's disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; QVAR RediHaler to treat asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax budesonide and formoterol powder inhaler; AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder; and ProAir RespiClick inhalation powder. It offers its OTC products under the SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. The company has collaboration agreements with MedinCell S.A.; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. Teva Pharmaceutical Industries Limited was founded in 1901 and is based in Tel Aviv-Yafo, Israel.

### Why customers stay

Margins ranged from 48.2% to 51.8% during 2023–25; it lost 3.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-03); FY2023: grossProfit / revenue = 48.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-03); FY2024: grossProfit / revenue = 48.7%.

- Source: https://www.sec.gov/Archives/edgar/data/818686/000119312526034532/d93612d10k.htm (filed 2026-02-03); FY2025: grossProfit / revenue = 51.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-03); 10-year return on capital observations [[2017,-0.6751899105440681],[2018,-0.07641396832900024],[2019,-0.02414751949216863],[2020,-0.20714086471408646],[2021,0.08416367180496127],[2022,-0.18489719825290296],[2023,0.04714305402425579],[2024,-0.04782617382617382],[2025,0.3760600552391599],[2026,0.3795892544286549]]; median -0.03598684665917123. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 47% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/818686/000119312526034532/d93612d10k.htm (filed 2026-02-03); Gross margin observations: [[2021,0.47827182264768864],[2022,0.46720268006700166],[2023,0.4824561403508772]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 4 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-03); FY2016: growth capex 0; upkeep 901000000; owner earnings 952000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-03); FY2019: growth capex 0; upkeep 119000000; owner earnings 604000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-03); FY2021: growth capex 0; upkeep 562000000; owner earnings 1185000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-03); FY2023: growth capex 0; upkeep 526000000; owner earnings 68000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/818686/000119312526034532/d93612d10k.htm (filed 2026-02-03); FY2025: growth capex 0; upkeep 501000000; owner earnings 1911000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-03); Dividend observations: [[2016,1558000000],[2017,1161000000],[2018,22000000],[2019,52000000],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TEVA.US SharesStats.PercentInsiders = 0.5599999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 54.6% yearly over ten years; actual decline was 3.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-03); Ten-year compound average after fade. Initial solved rate 0.8070064537600083. Price 41.11; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.4274285714285715 → FY2025 1.629156010230179. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $42.74 per share

- 2016-11: $37.70 per share

- 2016-12: $36.25 per share

- 2017-01: $33.43 per share

- 2017-02: $35.02 per share

- 2017-03: $32.09 per share

- 2017-04: $31.58 per share

- 2017-05: $27.86 per share

- 2017-06: $33.22 per share

- 2017-07: $32.17 per share

- 2017-08: $15.86 per share

- 2017-09: $17.60 per share

- 2017-10: $13.80 per share

- 2017-11: $14.82 per share

- 2017-12: $18.95 per share

- 2018-01: $20.41 per share

- 2018-02: $18.72 per share

- 2018-03: $17.09 per share

- 2018-04: $17.98 per share

- 2018-05: $21.50 per share

- 2018-06: $24.32 per share

- 2018-07: $23.94 per share

- 2018-08: $22.91 per share

- 2018-09: $21.54 per share

- 2018-10: $19.98 per share

- 2018-11: $21.54 per share

- 2018-12: $15.42 per share

- 2019-01: $19.85 per share

- 2019-02: $16.83 per share

- 2019-03: $15.68 per share

- 2019-04: $15.22 per share

- 2019-05: $8.65 per share

- 2019-06: $9.23 per share

- 2019-07: $7.93 per share

- 2019-08: $6.90 per share

- 2019-09: $6.88 per share

- 2019-10: $8.15 per share

- 2019-11: $10.42 per share

- 2019-12: $9.80 per share

- 2020-01: $10.40 per share

- 2020-02: $11.53 per share

- 2020-03: $8.98 per share

- 2020-04: $10.74 per share

- 2020-05: $12.53 per share

- 2020-06: $12.33 per share

- 2020-07: $11.54 per share

- 2020-08: $9.87 per share

- 2020-09: $9.01 per share

- 2020-10: $8.72 per share

- 2020-11: $9.51 per share

- 2020-12: $9.65 per share

- 2021-01: $11.78 per share

- 2021-02: $10.76 per share

- 2021-03: $11.54 per share

- 2021-04: $10.70 per share

- 2021-05: $10.40 per share

- 2021-06: $9.90 per share

- 2021-07: $9.65 per share

- 2021-08: $9.42 per share

- 2021-09: $9.74 per share

- 2021-10: $8.74 per share

- 2021-11: $8.25 per share

- 2021-12: $8.01 per share

- 2022-01: $8.43 per share

- 2022-02: $8.13 per share

- 2022-03: $9.39 per share

- 2022-04: $8.71 per share

- 2022-05: $9.10 per share

- 2022-06: $7.52 per share

- 2022-07: $9.38 per share

- 2022-08: $9.04 per share

- 2022-09: $8.07 per share

- 2022-10: $8.92 per share

- 2022-11: $8.77 per share

- 2022-12: $9.12 per share

- 2023-01: $10.54 per share

- 2023-02: $9.91 per share

- 2023-03: $8.85 per share

- 2023-04: $8.73 per share

- 2023-05: $7.20 per share

- 2023-06: $7.53 per share

- 2023-07: $8.40 per share

- 2023-08: $9.76 per share

- 2023-09: $10.20 per share

- 2023-10: $8.58 per share

- 2023-11: $9.82 per share

- 2023-12: $10.44 per share

- 2024-01: $12.10 per share

- 2024-02: $13.15 per share

- 2024-03: $14.11 per share

- 2024-04: $14.05 per share

- 2024-05: $16.93 per share

- 2024-06: $16.25 per share

- 2024-07: $17.43 per share

- 2024-08: $18.87 per share

- 2024-09: $18.02 per share

- 2024-10: $18.44 per share

- 2024-11: $16.78 per share

- 2024-12: $22.04 per share

- 2025-01: $17.73 per share

- 2025-02: $16.46 per share

- 2025-03: $15.37 per share

- 2025-04: $15.51 per share

- 2025-05: $16.78 per share

- 2025-06: $16.76 per share

- 2025-07: $15.45 per share

- 2025-08: $18.38 per share

- 2025-09: $20.20 per share

- 2025-10: $20.48 per share

- 2025-11: $26.89 per share

- 2025-12: $31.21 per share

- 2026-01: $34.08 per share

- 2026-02: $33.86 per share

- 2026-03: $30.12 per share

- 2026-04: $35.07 per share

- 2026-05: $35.32 per share

- 2026-06: $33.88 per share

- 2026-07: $35.01 per share

- 2026-08: $36.05 per share

- 2026-09: $39.60 per share

- 2026-10: $41.25 per share

## Annual estimated value (USD per share)

- FY2016: low $27.19 per share, central $32.31 per share, high $37.53 per share

- FY2017: low $22.77 per share, central $25.84 per share, high $29.93 per share

- FY2018: low $10.05 per share, central $11.25 per share, high $12.84 per share

- FY2019: low $7.53 per share, central $8.36 per share, high $9.47 per share

- FY2023: low $3.21 per share, central $3.30 per share, high $3.42 per share

- FY2025: low $3.43 per share, central $3.52 per share, high $3.65 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/818686/000119312526034532/d93612d10k.htm); period 2025-12-31, filed 2026-02-03.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.