TEVATeva Pharmaceutical Industries Limited
Is the business good?
The checks split: earnings fully cash-backed (1.2×) and margins widening, but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 14% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TEVA?
Teva Pharmaceutical Industries Limited earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 5.7 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Drug Manufacturers - Specialty & Generic median 11% · 12 months to Q2 2026
- Cash conversion
- 1.20×
Cash conversion · 1.97× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.34%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −21% |
| FY2021 | 11% |
| FY2022 | −15% |
| FY2023 | 2.7% |
| FY2024 | −1.8% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q2 2026
- 64%
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 5.0%
- Free cash flow margin
- 9.6%
- R&D as % of revenue
- 12%
- Revenue, trailing twelve months
- $14.1B
- Free cash flow, trailing twelve months
- $1.35B
- Net income, trailing twelve months
- $706M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Drug Manufacturers, Specialty & Generic
Ranks #14 of 41 by RyuScore