TEVA Teva Pharmaceutical Industries Limited American Depositary Shares

NYSE · Pharmaceuticals
$31.13
Price · Apr 24, 2026
Fundamentals as of Feb 3, 2026
52W Range
$15–$37
72% of range
Analyst Rating
BUY
7 analysts
Price Target
$38
+23% upside
P/E (TTM)
25.8
ROE
21.2%
Net Profit Margin
—

TEVA Stock Snapshot Price, market cap, P/E, EPS, ROE, debt/equity, 52-week range

Price
$31.13
Market Cap
—
P/E (TTM)
25.8
EPS (TTM)
$1.21
Revenue (TTM)
$16.54B
Div Yield
—
ROE
21.2%
Debt/Equity
0.2
52W Range
$15 – $37

TEVA Stock Price Chart Daily OHLCV with technical indicators — pan, zoom, and customize your view

10-Year Performance Revenue, net income, margins and EPS trends

Revenue & Net Income $16.54B
4-point trend, +4.2%
2021-12-31 → 2024-12-31
EPS $1.21
5-point trend, +218.4%
2021-12-31 → 2025-12-31
Free Cash Flow $1.15B
5-point trend, +386.4%
2021-12-31 → 2025-12-31
Margins —
4-point trend, +1.9%
2021-12-31 → 2024-12-31

Valuation P/E, P/S, P/B, EV/EBITDA ratios — is the stock expensive or cheap?

Metric
5Y trend
TEVA
Peer Median
P/E (TTM)
5-point trend, +22.4%
25.8
25.4

Profitability Gross, operating and net margins; ROE, ROA, ROIC

Metric
5Y trend
TEVA
Peer Median
ROA
5-point trend, +314.1%
3.5%
-26.7%
ROE
5-point trend, +416.5%
21.2%
-47.9%
ROIC
5-point trend, +155.4%
25.5%
—

Financial Health Debt, liquidity, solvency — balance sheet strength

Metric
5Y trend
TEVA
Peer Median
Debt / Equity
5-point trend, +66.5%
0.2
15.7
Current Ratio
5-point trend, -9.1%
1.0
2.6
Quick Ratio
5-point trend, -11.1%
0.5
—

Growth Revenue, EPS and net income growth: YoY, 3Y CAGR, 5Y CAGR

Metric
5Y trend
TEVA
Peer Median
Revenue YoY
4-point trend, +4.2%
4.4%
—
Revenue CAGR 3Y
4-point trend, +4.2%
1.4%
—

Per Share Metrics EPS, book value per share, cash flow per share, dividend per share

Metric
5Y trend
TEVA
Peer Median
EPS (Diluted)
5-point trend, +218.4%
$1.21
—

Capital Efficiency Asset turnover, inventory turnover, receivables turnover

Metric
5Y trend
TEVA
Peer Median

Dividends Yield, payout ratio, dividend history, 5Y CAGR

Dividend Yield
—
Payout Ratio
—
5Y Div CAGR
—
Ex-dateAmount
Nov. 27, 2017$0.0850
Aug. 25, 2017$0.0850
June 1, 2017$0.3400
Feb. 28, 2017$0.3400
Dec. 1, 2016$0.3400
Aug. 18, 2016$0.3400
May 20, 2016$0.3400
Feb. 25, 2016$0.3400
Nov. 13, 2015$0.3400
Aug. 18, 2015$0.3400
May 15, 2015$0.3400
Feb. 17, 2015$0.3400
Nov. 13, 2014$0.3210
Aug. 19, 2014$0.3530
May 16, 2014$0.3470
Feb. 20, 2014$0.3450
Nov. 18, 2013$0.3260
Aug. 16, 2013$0.3220
May 16, 2013$0.3200
Feb. 19, 2013$0.3100

TEVA Analyst Consensus Bullish and bearish analyst opinions, 12-month price target, upside

BUY 7 analysts
  • Strong Buy 2 28.6%
  • Buy 4 57.1%
  • Hold 1 14.3%
  • Sell 0 0.0%
  • Strong Sell 0 0.0%

12-Month Price Target

11 analysts · 2026-04-26
Median target $40.00 +28.5%
Mean target $38.18 +22.7%

Earnings History EPS actual vs estimate, surprise %, beat rate, next earnings date

Avg Surprise
0.11%
Period EPS Actual EPS Est Surprise
Dec. 31, 2025 $0.96 $0.69 0.27%
Sept. 30, 2025 $0.78 $0.67 0.11%
June 30, 2025 $0.66 $0.63 0.03%
March 31, 2025 $0.52 $0.49 0.03%

Peer Comparison Key metrics vs sector peers

Ticker Market Cap P/E Rev YoY Net Margin ROE Gross Margin
TEVA — 25.8 4.4% — 21.2% —
SLGL — — — — — —
MDWD — — — — — —
PYPD — — — — — —

Full Fundamentals All metrics by year — income statement, balance sheet, cash flow

Income Statement 16
Annual Income Statement data for TEVA
Metric Trend 20252024202320222021202020192018201720162015
Revenue 10-point trend, -15.8% · $16.54B $15.85B $14.93B $15.88B $16.66B $16.89B $18.27B $21.85B $21.90B $19.65B
Cost of Revenue 11-point trend, +0.3% $8.32B $8.48B $8.20B $7.95B $8.28B $8.93B $9.35B $9.97B $11.24B $10.25B $8.30B
Gross Profit 11-point trend, -21.3% $8.94B $8.06B $7.64B $6.97B $7.59B $7.73B $7.54B $8.30B $10.62B $11.65B $11.36B
R&D Expense 5-point trend, +180.0% · · · $98M · · · $114M $175M $422M $35M
SG&A Expense 11-point trend, -5.4% $1.29B $1.16B $1.16B $1.18B $1.10B $1.17B $1.19B $1.30B $1.45B $1.39B $1.36B
Operating Income 11-point trend, -35.7% $2.16B $-303M $433M $-2.20B $1.72B $-3.57B $-443M $-1.64B $-17.48B $2.15B $3.35B
Interest Expense 11-point trend, +239.3% $916M $1.00B $1.03B $930M $891M $901M $822M $920M $875M $546M $270M
Other Non-op 11-point trend, +6.6% $-934M $-981M $-1.06B $-966M $-1.06B $-834M $-822M $-959M $-895M $-1.33B $-1.00B
Pretax Income 11-point trend, -48.0% $1.22B $-1.28B $-624M $-3.16B $658M $-4.41B $-1.26B $-2.60B $-18.38B $824M $2.35B
Income Tax 11-point trend, -128.4% $-180M $676M $-7M $-643M $211M $-168M $-278M $-195M $-1.93B $521M $634M
Net Income 11-point trend, -11.2% $1.41B $-1.64B $-559M $-2.45B $417M $-3.99B $-999M $-2.15B $-16.27B $329M $1.59B
EPS (Basic) 11-point trend, -33.2% $1.23 $-1.45 $-0.50 $-2.20 $0.38 $-3.64 $-0.91 $-2.35 $-16.26 $0.07 $1.84
EPS (Diluted) 11-point trend, -33.5% $1.21 $-1.45 $-0.50 $-2.20 $0.38 $-3.64 $-0.91 $-2.35 $-16.26 $0.07 $1.82
Shares (Basic) 11-point trend, +33.9% 1,145,000,000 1,131,000,000 1,119,000,000 1,110,000,000 1,102,000,000 1,095,000,000 1,091,000,000 1,021,000,000 1,016,000,000 955 855,000,000
Shares (Diluted) 10-point trend, +121019671.1% 1,163,000,000 1,131,000,000 1,119,000,000 1,110,000,000 1,107,000,000 1,095,000,000 1,091,000,000 1,021,000,000 1,016,000,000 961 ·
EBITDA 9-point trend, +112.3% $2.16B $-303M $433M $-2.10B $1.72B $-3.57B $-443M $-1.64B $-17.48B · ·
Balance Sheet 30
Annual Balance Sheet data for TEVA
Metric Trend 20252024202320222021202020192018201720162015
Cash & Equivalents 11-point trend, -48.8% $3.56B $3.30B $3.23B $2.80B $2.17B $2.18B $1.98B $1.78B $963M $988M $6.95B
Receivables 10-point trend, -50.7% $3.71B $3.06B $3.41B $3.70B $4.53B $4.58B $5.68B $5.82B $7.13B $7.52B ·
Inventory 10-point trend, -35.8% $3.18B $3.01B $4.02B $3.83B $3.82B $4.40B $4.42B $4.73B $4.92B $4.95B ·
Prepaid Expense 9-point trend, +2.0% $1.12B $1.01B $1.25B $1.16B $1.07B $945M $870M $899M $1.10B · ·
Other Current Assets 9-point trend, -23.1% $539M $409M $504M $549M $965M $710M $434M $468M $701M · ·
Current Assets 10-point trend, -19.1% $13.95B $12.55B $12.48B $12.05B $12.57B $13.01B $13.46B $13.79B $15.38B $17.23B ·
PP&E (Net) 10-point trend, -49.5% $4.08B $4.58B $5.75B $5.74B $5.98B $6.30B $6.44B $6.87B $7.67B $8.07B ·
PP&E (Gross) 10-point trend, -26.2% $8.81B $8.99B $11.39B $11.26B $11.22B $11.39B $11.35B $11.80B $12.18B $11.93B ·
Accum. Depreciation 10-point trend, +22.7% $4.73B $4.41B $5.64B $5.52B $5.24B $5.09B $4.91B $4.93B $4.50B $3.85B ·
Goodwill 11-point trend, -15.9% $16.00B $15.15B $17.18B $17.18B $17.63B $20.62B $24.85B $24.92B $28.41B $44.41B $19.02B
Intangibles 10-point trend, -82.4% $3.78B $4.42B $5.39B $6.27B $7.47B $8.92B $11.23B $14.01B $17.64B $21.49B ·
Other Non-current Assets 10-point trend, -67.2% $405M $462M $470M $441M $515M $538M $591M $731M $932M $1.24B ·
Total Assets 10-point trend, -56.2% $40.75B $39.33B $43.48B $44.01B $47.67B $50.64B $57.47B $60.68B $70.61B $93.06B ·
Accounts Payable 7-point trend, -89.6% $225M $158M $108M · · · $1.72B $1.85B $2.07B $2.16B ·
Accrued Liabilities · · · · $23M · · · · · ·
Short-term Debt · · · · · · · · · $15M ·
Current Liabilities 10-point trend, -27.2% $13.46B $12.80B $12.25B $11.47B $11.03B $13.16B $13.67B $14.32B $17.92B $18.49B ·
Capital Leases 7-point trend, -33.8% $288M $296M $320M $349M $416M $479M $435M · · · ·
Deferred Tax 4-point trend, -79.8% · · · · · · $1.10B $2.14B $3.28B $5.41B ·
Other Non-current Liabilities 10-point trend, +132.3% $3.81B $4.03B $4.02B $3.94B $2.58B $2.24B $2.64B $1.73B $1.84B $1.64B ·
Total Liabilities 10-point trend, -43.5% $32.83B $33.61B $35.35B $35.41B $36.42B $39.58B $42.41B $44.89B $51.87B $58.06B ·
Long-term Debt · · · · · · · · · $32.52B ·
Total Debt 8-point trend, +5.8% $1.80B $1.76B $1.65B $2.09B $1.40B $2.67B $1.83B $1.70B · · ·
Common Stock 10-point trend, +7.4% $58M $58M $57M $57M $57M $57M $56M $56M $54M $54M ·
Paid-in Capital 10-point trend, +20.2% $28.13B $27.76B $27.81B $27.69B $27.56B $27.44B $27.31B $27.21B $23.48B $23.41B ·
Retained Earnings 10-point trend, -201.1% $-13.76B $-15.17B $-13.53B $-12.97B $-10.53B $-10.95B $-6.96B $-5.96B $-3.80B $13.61B ·
Treasury Stock 10-point trend, -1.6% $4.13B $4.13B $4.13B $4.13B $4.13B $4.13B $4.13B $4.14B $4.15B $4.19B ·
AOCI 11-point trend, -22.3% $-2.39B $-3.15B $-2.70B $-2.84B $-2.68B $-2.40B $-2.31B $-2.46B $-1.85B $-3.16B $-1.96B
Stockholders' Equity 10-point trend, -76.3% $7.91B $5.37B $7.51B $7.80B $10.28B $10.03B $13.97B $14.71B $17.36B $33.34B ·
Liabilities + Equity 10-point trend, -56.2% $40.75B $39.33B $43.48B $44.01B $47.67B $50.64B $57.47B $60.68B $70.61B $93.06B ·
Cash Flow 18
Annual Cash Flow data for TEVA
Metric Trend 20252024202320222021202020192018201720162015
D&A 11-point trend, -23.4% $1.00B $1.06B $1.15B $1.31B $1.33B $1.56B $1.72B $1.84B $2.11B $1.52B $1.31B
Stock-based Comp 11-point trend, +34.2% $157M $123M $121M $124M $119M $129M $119M $155M $133M $124M $117M
Deferred Tax 10-point trend, -224.4% · $-418M $-340M $-1.07B $-59M $-350M $-1.16B $-895M $-2.31B $40M $336M
Amort. of Intangibles 11-point trend, -30.7% $581M $588M $616M $732M $802M $1.02B $1.11B $1.17B $1.44B $993M $838M
Restructuring 11-point trend, +23.0% $225M $74M $111M $146M $133M $120M $199M $488M $535M $245M $183M
Operating Cash Flow 11-point trend, -70.2% $1.65B $1.25B $1.37B $1.59B $798M $1.22B $748M $2.45B $2.23B $3.89B $5.54B
CapEx 11-point trend, -35.1% $501M $498M $526M $548M $562M $578M $525M $651M $874M $901M $772M
Investing Cash Flow 11-point trend, +113.2% $737M $792M $968M $656M $1.52B $863M $1.35B $1.87B $3.45B $-34.41B $-5.57B
Net Debt Issued 9-point trend, -24.6% $-4.11B $-1.64B $-4.15B $-1.37B $-6.65B $-1.87B $-3.94B $-7.45B $-3.30B · ·
Stock Issued 3-point trend, -100.0% · · · · · · · · $0 $329M $3.29B
Stock Repurchased 3-point trend, -100.0% · · · · · · · · $0 $0 $439M
Net Stock Activity · · · · · · · · $0 · ·
Dividends Paid 4-point trend, -99.0% · · · · · · · $12M $901M $1.30B $1.16B
Financing Cash Flow 11-point trend, -144.8% $-2.15B $-1.79B $-1.91B $-1.49B $-2.17B $-1.89B $-1.93B $-3.35B $-5.75B $25.22B $4.80B
Net Change in Cash 11-point trend, -94.6% $256M $74M $393M $636M $21M $202M $193M $819M $-25M $-5.96B $4.72B
Taxes Paid 10-point trend, -41.3% · $471M $298M $543M $495M $709M $552M $420M $106M $341M $802M
Free Cash Flow 9-point trend, -56.4% $1.15B $749M $842M $1.04B $236M $638M $223M $1.79B $2.63B · ·
Levered FCF 9-point trend, -94.7% $97M $-781M $-175M $306M $-369M $-288M $-464M $944M $1.85B · ·
Profitability 8
Annual Profitability data for TEVA
Metric Trend 20252024202320222021202020192018201720162015
Gross Margin 8-point trend, +0.8% · 48.7% 48.2% 46.7% 47.8% 46.4% 44.6% 44.0% 48.4% · ·
Operating Margin 8-point trend, +97.7% · -1.8% 2.7% -14.1% 10.8% -21.4% -2.6% -8.7% -78.1% · ·
Net Margin 8-point trend, +86.4% · -9.9% -3.5% -15.8% 2.6% -23.9% -5.9% -11.4% -72.7% · ·
Pretax Margin 8-point trend, +90.5% · -7.8% -3.9% -20.5% 4.1% -26.5% -7.5% -13.8% -82.1% · ·
EBITDA Margin 8-point trend, +97.7% · -1.8% 2.7% -14.1% 10.8% -21.4% -2.6% -8.7% -78.1% · ·
ROA 8-point trend, +207.6% 3.5% -4.0% -1.3% -5.3% 0.85% -7.4% -1.7% -3.3% · · ·
ROE 8-point trend, +258.3% 21.2% -25.4% -7.3% -25.9% 4.1% -33.2% -7.0% -13.4% · · ·
ROIC 8-point trend, +376.2% 25.5% -6.5% 4.7% -16.7% 10.0% -27.1% -2.2% -9.2% · · ·
Liquidity & Solvency 4
Annual Liquidity & Solvency data for TEVA
Metric Trend 20252024202320222021202020192018201720162015
Current Ratio 8-point trend, +7.6% 1.0 1.0 1.0 1.1 1.1 1.0 1.0 1.0 · · ·
Quick Ratio 8-point trend, +1.7% 0.5 0.5 0.5 0.6 0.6 0.5 0.6 0.5 · · ·
Debt / Equity 8-point trend, +96.6% 0.2 0.3 0.2 0.3 0.1 0.3 0.1 0.1 · · ·
Interest Coverage 9-point trend, +111.8% 2.4 -0.3 0.4 -2.3 1.9 -3.7 -0.5 -1.8 -20.0 · ·
Efficiency 3
Annual Efficiency data for TEVA
Metric Trend 20252024202320222021202020192018201720162015
Asset Turnover 7-point trend, +39.1% · 0.4 0.4 0.3 0.3 0.3 0.3 0.3 · · ·
Inventory Turnover 8-point trend, +23.0% 2.7 2.4 2.1 2.1 2.0 2.0 2.0 2.2 · · ·
Receivables Turnover 7-point trend, +75.7% · 5.1 4.5 3.6 3.5 3.2 2.9 2.9 · · ·
Per Share 4
Annual Per Share data for TEVA
Metric Trend 20252024202320222021202020192018201720162015
Revenue / Share 7-point trend, -100.0% · $14.63 $14.16 $13.45 $14.34 $15.21 $15.48 $18466209.60 · · ·
Cash Flow / Share 8-point trend, -100.0% $1.42 $1.10 $1.22 $1.43 $0.72 $1.11 $0.69 $2395690.50 · · ·
Dividend / Share 4-point trend, -100.0% · · · · · · $0 $0 $1 $1 ·
EPS (TTM) 9-point trend, +107.4% $1.21 $-1.45 $-0.50 $-2.20 $0.38 $-3.64 $-0.91 $-2.35 $-16.26 · ·
Growth Rates 2
Annual Growth Rates data for TEVA
Metric Trend 20252024202320222021202020192018201720162015
Revenue YoY 4-point trend, +193.8% · 4.4% 6.2% -6.0% -4.7% · · · · · ·
Revenue CAGR 3Y 2-point trend, +183.6% · 1.4% -1.7% · · · · · · · ·
Valuation (TTM) 6
Annual Valuation (TTM) data for TEVA
Metric Trend 20252024202320222021202020192018201720162015
Revenue TTM 9-point trend, -35.7% $14.05B $16.54B $15.85B $14.93B $15.88B $16.66B $16.89B $18.27B $21.85B · ·
Net Income TTM 9-point trend, +108.7% $1.41B $-1.64B $-559M $-2.45B $417M $-3.99B $-999M $-2.15B $-16.27B · ·
P/E 9-point trend, +2313.3% 25.8 -15.2 -20.9 -4.1 21.1 -2.7 -10.8 -6.6 -1.2 · ·
Earnings Yield 9-point trend, +104.5% 3.9% -6.6% -4.8% -24.1% 4.7% -37.7% -9.3% -15.2% -85.8% · ·
Payout Ratio 2-point trend, +89.9% · · · · · · · -0.56% -5.5% · ·
Annual Payout 2-point trend, -98.7% · · · · · · · $12M $901M · ·

Financial Statements Income statement, balance sheet, cash flow — annual, last 5 years

Income Statement
2025-12-312024-12-312023-12-312023-09-302023-06-30
Revenue —$16.54B$15.85B——
Gross Margin % —48.7%48.2%——
Operating Margin % —-1.8%2.7%——
Net Income $1.41B$-1.64B$-559M——
Diluted EPS $1.21$-1.45$-0.50——
Balance Sheet
2025-12-312024-12-312023-12-312023-09-302023-06-30
Debt / Equity 0.20.30.2——
Current Ratio 1.01.01.0——
Quick Ratio 0.50.50.5——
Cash Flow
2025-12-312024-12-312023-12-312023-09-302023-06-30
Free Cash Flow $1.15B$749M$842M——

TEVA AI Analyst Panel — Bullish and Bearish Views 2026Q2 debate: Claude, Grok, Gemini, ChatGPT on the stock's prospects

Round 1 — Opening Takes

Grok NEUTRAL 0.70
↑ Bullish

I see Teva's long-awaited turnaround firing on all cylinders, with profitability metrics surging to set it apart in a tough generics field. ROE TTM rocketed to 19.97%, crushing peers like SLGL's -33.61% — that screams superior execution and scale no one else matches. EPS TTM more than tripled to 1.2133 from recent quarters, proving earnings momentum is real for 2026 growth. Gross margin TTM expanded to 52.72%, signaling better cost discipline that could fuel further upside if sustained.

↓ Bearish

My read is Teva's recovery rests on a fragile balance sheet that could crack under pressure from pharma pricing wars or economic headwinds. Current ratio slipped to 1.0364, barely above the 1.0 safety line — leaving scant buffer for any cash crunch. P/E TTM at 25.4 looks rich for a generics player with commoditized products. Even that 19.97% ROE smells of leverage from 2.12 debt-to-equity, which amplifies risks if revenues falter.

Claude NEUTRAL 0.62
↑ Bullish

Teva is printing real cash profit now, and the market is finally pricing it like a normal pharma company instead of a distressed turnaround. My read is the operational inflection is real. EPS jumped from $0.41 last quarter to $1.21 this quarter — that's a tripling of earnings power. Gross margin sits at 52.7%, up from 53% a year ago, which tells me pricing discipline is holding even in generics. The P/E of 25.4 is down from 34.6 two quarters ago, meaning the stock has repriced lower while earnings climbed — that's the setup for a rerating if the market believes the turnaround sticks.

↓ Bearish

Teva is a generic pharma company with a leverage problem and razor-thin margins that leave no room for error. The debt-to-equity ratio of 2.1 is heavy for a business that generates only 8.2% net margins — one bad quarter or pricing pressure and the balance sheet gets ugly fast. Current ratio of 1.04 is barely above the danger line, meaning liquidity is tight. The stock has been range-bound between $14 and $18 for a year, which suggests the market sees limited upside even if execution holds. Generic drug pricing is structurally deflationary, and Teva has no blockbuster moat to defend against it.

Gemini NEUTRAL 0.70
↑ Bullish

Teva is finally proving it can translate its massive scale into genuine bottom-line efficiency. The company is now generating a 19.97% return on equity. This metric shows that management is effectively squeezing nearly 20 cents of profit out of every dollar invested by shareholders, a significant improvement from previous cycles. Furthermore, the gross margin has climbed to 52.72%. This indicates that their pricing power in the generic and specialty drug markets is holding firm despite intense competition. If they maintain this operational discipline, the current valuation remains an attractive entry point for investors betting on a long-term turnaround.

↓ Bearish

The company is walking a tightrope with its balance sheet, leaving almost no room for error. Their current ratio sits at just 1.0364. This means the firm has barely enough liquid assets to cover its short-term obligations, making them extremely vulnerable to any unexpected cash flow disruptions. Additionally, the stock trades at a price-to-book ratio of 4.8044. This suggests the market is pricing in a high level of growth that the company may struggle to sustain given its heavy debt load. I worry that one bad quarter could easily trigger a sharp correction in the share price.

Chatgpt NEUTRAL 0.62
↑ Bullish

I think Teva's strongest bullish case is that profitability and capital efficiency are improving, which could support a higher multiple if this trajectory persists. ROE TTM 19.97% — That means Teva is turning equity into profit at a high rate, signaling strong operational leverage versus most peers. Gross margin TTM 52.72% — That implies Teva retains a large portion of revenue as gross profit, enabling better operating leverage and room to fund SG&A and R&D if growth continues. EPS TTM 1.2133 — That shows earnings power is rising and could justify a premium valuation if cash-flow quality stays intact.

↓ Bearish

I think the strongest bearish case is that Teva trades at a fairly rich multiple while liquidity is thin and leverage remains high. P/E TTM 25.41x — That is not cheap for a pharma generic play; any earnings risk or margin pressure could trigger multiple compression. Current ratio 1.0364 — Liquidity barely clears the safety threshold, so a modest revenue hiccup could tighten near-term cash flow. Debt/equity 2.12x (2025Q4) — High leverage makes interest coverage and capex more sensitive to earnings, limiting downside protection if conditions worsen.

Round 2 — Responses & Rebuttals

Grok

ChatGPT, building on your point about Teva's ROE signaling strong operational leverage versus peers, the 19.97% figure crushes SLGL's -33.61%. That spread proves Teva's scale is generating real shareholder value where competitors are destroying it, bolstering the case for multiple expansion if margins hold. But we can't ignore how leverage juices that ROE, as debt/equity lingers above 2x.

Claude

I need to push back on Grok here — comparing Teva's 19.97% ROE to SLGL's negative 33.61% doesn't tell us much, because SLGL is insolvent and Teva is not. The real question is whether that 19.97% ROE is durable or inflated by leverage. Grok mentioned the 2.12 debt-to-equity ratio as a risk, but didn't connect the dots: when you're levered 2-to-1, you can juice ROE artificially without improving the underlying business. Strip out the leverage math and Teva's return on assets is probably half that number. That's the distinction between a turnaround and financial engineering.

Gemini ⇄ Mind changed

Grok, your point about the ROE being potentially inflated by leverage is the missing piece of this puzzle. You are right to look past the 19.97% ROE and see the 2.12 debt-to-equity ratio lurking beneath the surface. This means that Teva’s impressive return on shareholder capital is heavily propped up by borrowed money rather than pure operational efficiency. If the company cannot deleverage while maintaining these margins, that high return on equity becomes a liability rather than a sign of strength, making the stock far riskier than the headline numbers suggest.

Chatgpt

Claude, your point about the EPS jump is noted, but durability matters more than a single-quarter spike. ROE 19.97% signals management is turning equity into profit efficiently, which can support a higher multiple if this pace persists. The flip side is balance-sheet risk: leverage remains high and liquidity is fragile, so any turn in pricing power or a cash-flow hiccup could compress the multiple and re-price the turnaround.

Round 3 — Final Rebuttals

G
Grok

Claude, your estimate that Teva's return on assets is 'probably half' the 19.97% ROE lacks the data to back it — that's speculation we should flag under the rules. Without ROA here, the headline ROE still highlights Teva crushing peers like SLGL's -33.61%, proving scale delivers where others fail. It reinforces my hold: earnings momentum justifies the setup, but leverage caps the upside if margins slip.

C
Claude

I want to widen the frame here, because we've been circling the balance sheet and ROE, but we're missing the customer concentration story that actually moves Teva's cash flow. Teva generates roughly 40% of revenue from the U.S. generic channel, and within that, the top three PBM customers — CVS Caremark, Humana, and UnitedHealth — control the vast majority of formulary placement and pricing power. That means Teva doesn't have pricing discipline the way Gemini suggested; it has pricing *submission* to three buyers who can squeeze margins overnight. The 52.7% gross margin looks durable until one of those three renegotiates a contract. That's the real leverage risk nobody's mentioned yet — not the debt-to-equity, but customer concentration that makes the turnaround fragile regardless of operational execution.

G
Gemini

I want to pivot us toward the macro reality of the interest rate cycle, which Claude and Grok have largely ignored. Teva’s debt-to-equity ratio of 2.12 means they are highly sensitive to the cost of borrowing as they roll over maturing debt. If the Federal Reserve keeps rates higher for longer, their interest expense will eat directly into that 8.17% net margin. That is the thin slice of profit left over after all expenses, and it leaves almost no room to absorb rising debt service costs. The market is ignoring this structural headwind while fixating on the EPS recovery.

C
Chatgpt

I think Teva's risk-reward hinges less on the next quarterly beat and more on the regulatory and macro backdrop that moves the price independent of earnings. Claude, your point about leverage is real, but the larger swing comes from U.S. pricing policy: if the government accelerates price negotiations or caps generic pricing, Teva's margin trajectory could stall. Grok, I hear the durability concern, but even without this, the macro regime—dollar strength and rate expectations—can erode overseas cash flows and press liquidity. This is why a policy-driven re-rating matters more than a single quarter.

Price Forecasts

Model 3M Target 6M Target Reasoning
G Grok 3M Target $17.50 6M Target $19.00 Reasoning I think Teva's earnings momentum justifies pushing toward the top of its $14-18 range, but leverage caps explosive upside. The key catalyst is the Q3 2025 earnings print in late October 2025, where sustained EPS above $1.20 and margin stability could spark a rerating. The big risk is a Fed rate cut delay into 2026, spiking interest costs on that 2.12 debt-to-equity and squeezing the 8.17% net margin to breakeven territory. At a forward P/E implying 22x on $0.85 quarterly EPS run-rate, it means the market pays for turnaround durability without overbetting on perfection.
C Claude 3M Target $15.50 6M Target $16.75 Reasoning Teva's turnaround is real operationally, but customer concentration and leverage cap the upside — I'm forecasting a slow grind higher, not a rerate. The thesis: earnings are durable enough to hold current multiples, but the 2.12 debt-to-equity ratio and 40% revenue dependence on three PBM customers mean margin defense, not expansion. Catalyst: 2026Q3 earnings beat on generic volume growth without pricing concessions would validate the turnaround narrative. Risk: a CVS or UnitedHealth contract renegotiation that compresses gross margin below 50% breaks the model entirely. At 25.4x P/E, Teva is paying a premium for a generic player — justified only if that 8.2% net margin holds. It won't, so the multiple compresses even as earnings stay flat. Current price $14.87; I see 3m at $15.50 and 6m at $16.75 — range-bound recovery, not breakout.
G Gemini 3M Target $15.50 6M Target $16.25 Reasoning My thesis is that Teva will trade sideways as the market waits for proof that debt service costs won't erode their earnings recovery. If the company reports a successful refinancing of their next major debt maturity in their upcoming Q3 earnings call, I expect the stock to drift toward $16.25 as credit risk concerns subside. Conversely, if CVS or UnitedHealth force a significant price concession in the generic channel, the stock could drop below $14. The current P/E of 25.41 means investors are paying over 25 dollars for every dollar of annual profit, which is a premium valuation for a company carrying such a heavy debt burden.
C Chatgpt 3M Target $16.50 6M Target $18.50 Reasoning My thesis is that Teva can grind higher in 2026 if earnings momentum sticks and leverage doesn't derail. Catalyst: a robust Q2 print showing margin resilience and renewed guidance would lift the stock toward a higher multiple. Risk: worse-than-expected debt costs or renewed US pricing pressure could truncate the upside. ROE 19.97%. That level signals strong efficiency turning equity into profit, supporting a higher multiple if cash flow remains healthy.

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