Teva Pharmaceuticals (TEVA) Stock: 90-second ⏲️ Investment Analysis

We’re going to analyze TEVA Pharmaceutical
as an investment, and we’re gonna do it all in 90 seconds… You wanna keep up with stocks but you don’t
have the time to read a lengthy report on every company that interests you. You’re busy, I get it. I respect that. So, I took the most important considerations
from my research and packed it into 90 seconds. Use this to decide if it’s worth your time
to research further, to keep up with stocks you already own, or to just check in on some
of the largest companies in the world. To vote on which companies we cover next,
go join our private FB Group – the link is in the description! You all voted for TEVA, so here it is… Fair warning: I’m obviously gonna go fast. Adjust your playback speed now as needed. Let’s put up a clock. And let’s do this! TEVA Pharmaceutical Industries Limited, develops,
manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines
worldwide. As of this recording, TEVA has a market cap
of $24B and a price per share of ~$24. To own or not to own, that is the question… Here are some reasons to own TEVA:
Buffet. Warren Buffet [transparent Buffett headshot]
is a catalyst himself and he recently invested $358M (a 1.8% stake) in TEVA. Whenever Buffet invests in a stock, the stock
instantly becomes one to watch. Warren Buffet typically prefers self-sustaining
businesses. Since TEVA is a provider of generic and brand-name
prescriptions drugs, consumers constantly have a need for medicine. Whether the economy is in the longest bull
market in history or a recession, the healthcare industry doesn’t care. There’ll always be a need for prescription
drugs which will result in consistent revenue. TEVA’s cash flows remain positive at $3.5B
from operations in 2017, despite how beaten up the stock has been. Before net capital expenditures, TEVA generated
$2.7B in free cash flow. Being conservative and excluding the sales
of TEVA’s highest margin product – Copaxone – in 2018, TEVA’s free cash flow is still
estimated at $2.6B – $2.8B, more than enough to pay off their debt load. But here are some reasons to NOT own TEVA:
The company is currently unprofitable with an EPS of negative $16.26. Furthermore, TEVA has stopped paying a dividend,
making their last dividend payments at the end of 2017. So, sorry dividend investors, this stock is
not for you. TEVA’s moat is getting broken into. With more competition and pricing decreases,
resulting in a significant decline in company revenue. In Q2 2018, TEVA’s revenue declined from
$5.7 billion to $4.7 billion, which included a 30% sales decrease in North America. … So what do you say: buy or no? Facing new competition and pricing pressures,
can TEVA increase their sales going forward, or will they continue to lose revenue? I look forward to continuing this discussion
in the comments below. If you found this helpful and would like to
see more of these ’90 Second Analysis’ videos, don’t forget to check out our Private
FB Group, like this video, subscribe, and click the bell so that you can keep up with
all the companies we cover as we continue to build your rapidly-growing, highly diversified
net worth. I’ll see you in the next one. Take care!

26 comments

  1. ✔ Join our Private FB Group to vote one what we cover next: https://SpicerCapital.com/Group ✅
    ✔ And follow me on Instagram if you want a behind-the-scenes look: https://www.Instagram.com/SpicerCapital 🔬
    ✔ So… what do you think about TEVA 💊 right now? 🤔 Let me know in the comments below 👇👇👇

  2. Pfffff I just don't like them as a company. Current ratio of just 1.

    30 billion in debt, and loosing marketshare with Copaxone. PS and PB are good looking. BV per share at almost 14. Cash at 1 per share.

    So all and all it has upside, but also downside with mostly the big debt. I like Pfizer better in this field and does pay a nice dividend.

  3. Great video. $358 million for Buffet is nothing though. It could be a speculative buy from him or even his managers more likely. Because he is a catalyst in of himself he probably knows he'll cause the shares to go up and thus give him a margin of safety. I personally bought Apple stock early fall back in 2017 when the price went down after the hype of iPhone 10 ended (as I predicted) and the model itself proved to be an issue, then Buffet bought in 2 days after me. Dumb money followed him and I sold at the higher price, then a lawsuit filed shortly after and brought the price down again. I bought in at low again and Buffet followed suit by adding, this happened again a few times throughout the early 2018 spring. Normally it's not a good idea to just follow what the big money is doing. Good short analysis. I'll have to look for additional catalysts and get in contact with IR before I consider this buy. Thanks for bringing it to our attention though!

  4. You have made some good point in the video and the way you analyse the stock is easy to understand. Beginners like me get a lot to learn about the ways to analyse the stock, the stock is just a bonus. If anything, I would love to see is how to reach to a fair value for the stock.

  5. Doesn't sound like an investment for me, seems to risky maby after further analysis but the negative earnings per share doesn't seem to good for me , maby i'm wrong in this? Also the fact that Buffet bought in probably means that the price already increased quite a bit ? Great video again btw !

  6. Sorry but Teva is not a good investment as of right now since they stop paying dividends. It seems like they are not in good financial shape right now. Unless I see a pivot point I will not be investing in Teva. Just my 2 cents

  7. Great video again! This one looks a little risky for me. I already a large chunk of my portfolio in NBEV. That company has enough risk for 2-3 portfolios, lol.

  8. I been looking over the channel, very good stuff. I align with some of your ideas…. let me ask, have you tried live streaming yet?

  9. Not for me at this point. I would like to see a possible dividend start to return to the picture, then I might take a look.

  10. I've been away for most of the past couple weeks and playing catch up here. Good stuff as always Stephen! Balance sheet, specifically the $30B+ in long term debt makes TEVA a no touch for me. I was going to make a small speculative bet late last year if it dipped under $10, but I think it bottomed out somewhere near $11 so that never happened. Missed out on a nice double from there, but the bet would have been small and I'm comfortable with the decision made.

  11. I bought Teva at 9.02 USD. I thing the market overreacted the news about the share, now i think this is a strong buy a 1 time opportunity in life to buy shares of the biggest generics producers of the world st this cheap price.

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