Teva Pharmaceutical Industries Limited American Depositary Shares (TEVA)

FairStock Score: 20/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for a durable business bought at a sensible price. Teva is a global generics and specialty medicines company, but generics are a tough trade: price pressure, competition, and regulation can erode returns. The filed results are uneven. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.1B but net income was -$576.0M, or -$0.49 per diluted share. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was $369.0M, or $0.31 per diluted share. For full fiscal 2025, ended 2025-12-31, revenue was $17.3B and net income was $1.4B, after a fiscal 2024 net loss of $1.6B and a fiscal 2023 net loss of $559.0M. FairStock labels it a TURNAROUND—returned to profit after a loss within the last three years. But the latest quarter challenges that. The balance sheet is stretched: debt-to-equity is 2.18, Altman Z-Score is 0.47, ROCE is 5.13%, and ROE is 9.69%. Free cash flow is $1.3B, only a 2.8% FCF yield. At the $41.25 close on 2026-10-13, FairStock calculations show a P/E of 68.75, P/B of 6.20, EV/EBITDA of 23.63, and a Graham Number of $9.47, a -335.59% margin of safety. The FairStock Score is 20/100 and the Piotroski F-Score is 4/9, so quality signals are not strong. The market is pricing a lot of recovery for a business without a clear durable moat.

In plain English: Teva makes generic and specialty medicines and sells them around the world. The business has swung between losses and profits, and its latest filed quarter was a loss, so it does not look steady or strong. At the recent price, the stock looks expensive compared with the company's recent profits and financial condition.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer