NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C+ . The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 25.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TEVA PHARMACEUTICALS has improved earnings per share by 15.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEVA PHARMACEUTICALS reported lower earnings of $3.08 versus $3.67 in the prior year. This year, the market expects an improvement in earnings ($5.37 versus $3.08).
- Net operating cash flow has decreased to $756.00 million or 16.00% when compared to the same quarter last year. Despite a decrease in cash flow TEVA PHARMACEUTICALS is still fairing well by exceeding its industry average cash flow growth rate of -46.33%.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Pharmaceuticals industry and the overall market, TEVA PHARMACEUTICALS's return on equity is below that of both the industry average and the S&P 500.
Teva Pharmaceutical Industries Limited develops, manufactures, and sells pharmaceutical products worldwide. The company has a P/E ratio of 13.2, above the average drugs industry P/E ratio of 12.9and below the S&P 500 P/E ratio of 17.7. Teva has a market cap of $36.24 billion and is part of the
industry. Shares are up 0.4% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.