This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Today's Earnings Valued Attractively (Teva)

NEW YORK ( TheStreet) -- Teva Pharmaceutical (TEVA - Get Report) -- founded in 1901 and headquartered in Israel -- is a worldwide pharmaceutical company with a mission to be "the most indispensible medicines company in the world."

Teva works across the board to develop, produce and market a wide range of products within specialty medicines, generic and over-the-counter products, active pharmaceutical ingredients and new therapeutic entities.

In the United States alone, Teva markets approximately 400 generic products in about 1,300 dosage strengths. The company also operates in 59 other countries across Europe and the rest of the world, and is perhaps best known for Copaxone, which is used to treat multiple sclerosis.

For those unfamiliar with the business behind the company, we can instantly look at Teva's past operating results through the lens of F.A.S.T. Graphs.

Here a picture is truly worth a magnitude of words. We see that Teva has grown operating earnings by nearly 24% a year for the past decade and a half and demonstrated a commitment to increasing the dividend while simultaneously keeping the earnings payout ratio quite low.

Additionally, it should be noted that Teva had exceptional earnings per share growth in the early 2000s and has since begun to moderate a bit. To be fair, even recently this pharmaceutical company has been able to grow earnings at a double-digit rate.

It follows that the return performance of Teva is also likely to be quite strong over the same period. This is precisely what we see: A shareholder beginning at the end of 1998 and holding until today would have seen capital appreciate over 15%, a dividend that grew by about 28% a year and total returns -- not to mention income provided -- that bested the S&P 50 five times over.

There's a reason that Teva recently showed up on a Value Line screen titled "Stocks for Dividend Growth With Low Risk."

The company has an absolutely excellent track record of returning shareholder value. Given this history, coupled with a low payout ratio and above-average dividend yield, it would seem that Teva is well poised to continue churning out profits for its shareholders.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TEVA $54.45 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs