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Teva Pharmaceutical Industries Limited

TEVA
37
Drug Manufacturers - Specialty & Generic · Healthcare
Exchange
New York Stock Exchange
Winston Score
37
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Mixed
Cash Flow
Strong
Stability
Mixed
Valuation
Good

Winston Score History

The full picture

Teva Pharmaceutical Industries makes medicines and sells them to patients, hospitals, and pharmacies around the world. The company is best known for generic drugs — cheaper copies of brand-name medicines that work the same way — and it is one of the largest generic drug makers on the planet. Teva also makes a small number of its own branded medicines, including Austedo for movement disorders and Ajovy for migraines.

Teva earns money by selling both generic and branded drugs, with generics making up the majority of its revenue. The company operates globally, with strong businesses in the United States, Europe, and Israel, and it generates roughly $16 billion in annual revenue. Teva carries a heavy debt load from a costly acquisition spree in the 2010s, and it has spent years working to pay that debt down while also settling billions of dollars in opioid-related lawsuits in the U.S. The key question going forward is whether growth from newer branded drugs can offset ongoing price pressure in the highly competitive generics market.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-296.0% YoY

YoY Growth Rate

Earnings declining

Insider Activity

0.0%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$3.7B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Teva Pharmaceutical Industries Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
52.0%
Healthy — 52.0% gross margin
Profit after running costs
Operating Margin
3.6%
Thin — 3.6% operating margin
Return on the money invested
ROCE
8.1%
Below par — 8.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+4.1%
Slow sales growth (+4.1% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
313%
Turns 313% of profit into real cash
Spare cash per sale
FCF Margin
9.6%
Modest free cash flow (9.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
2.18
Heavy debt load (2.18)
Covers its interest
Interest Cover
2.20x
Tight — interest eats into profit (2.2x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
57.7x
no trend
Expensive — P/E 57.7

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+47.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (57.7 → 10.2)

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Dividends

Not applicable for this business.
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