Is the business good?
How good a business is TEVA?
Teva Pharmaceutical Industries Limited earns 25% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
25%
Return on invested capital · cost of capital 9.0% · 16 points above what the capital costs: growth creates value
- Operating margin
- 16%
Operating margin · Drug Manufacturers - Specialty & Generic median 12% · 12 months to Q1 2026
- Cash conversion
- 0.75×
Cash conversion · some of the reported profit has not turned into cash yet
- Share count, year on year
- +1.7%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −21% |
| FY2021 | 11% |
| FY2022 | −15% |
| FY2023 | 2.7% |
| FY2024 | −1.8% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q1 2026
- 64%
- Operating margin12 months to Q1 2026
- 16%
- Net margin12 months to Q1 2026
- 11%
- Free cash flow margin
- 8.3%
- R&D as % of revenue
- 7.0%
- Revenue, trailing twelve months
- $14.1B
- Free cash flow, trailing twelve months
- $1.17B
- Net income, trailing twelve months
- $1.56B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 25%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Drug Manufacturers - Specialty & Generic
Ranks #15 of 28 by Smart Score