Teva Pharmaceutical Industries (TEVA) Is Today's Pre-Market Laggard Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Teva Pharmaceutical Industries ( TEVA) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Teva Pharmaceutical Industries as such a stock due to the following factors:

  • TEVA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $171.6 million.
  • TEVA traded 281,016 shares today in the pre-market hours as of 7:38 AM.
  • TEVA is down 4.2% today from Friday's close.

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More details on TEVA:

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes pharmaceutical products worldwide. The stock currently has a dividend yield of 2.6%. TEVA has a PE ratio of 17.2. Currently there are 7 analysts that rate Teva Pharmaceutical Industries a buy, 1 analyst rates it a sell, and 14 rate it a hold.

The average volume for Teva Pharmaceutical Industries has been 3.4 million shares per day over the past 30 days. Teva has a market cap of $32.7 billion and is part of the health care sector and drugs industry. Shares are up 3.7% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Teva Pharmaceutical Industries as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that TEVA's debt-to-equity ratio is low, the quick ratio, which is currently 0.51, displays a potential problem in covering short-term cash needs.
  • The gross profit margin for TEVA PHARMACEUTICALS is rather high; currently it is at 60.93%. Regardless of TEVA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TEVA's net profit margin of -9.17% significantly underperformed when compared to the industry average.
  • Net operating cash flow has decreased to $875.00 million or 26.53% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, TEVA PHARMACEUTICALS has marginally lower results.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, TEVA PHARMACEUTICALS's return on equity significantly trails that of both the industry average and the S&P 500.

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