NEW YORK (TheStreet) -- Teva Pharmaceuticals (TEVA), along with Les Laboratoires Servier and four other makers of generic drugs, were fined 427.7 million euros, or $583 million, by the European Union over agreements that delayed the release of cheaper versions of a hypertension treatment, Bloomberg reports.
Servier, the inventor of the drug, received the largest penalty at 331 million euros for hampering the generic entry of perindopril. Teva, the world's biggest maker of generic medicines, was fined 15.6 million euros, Bloomberg said.
Shares of Teva Pharmaceuticals are up 0.86% to $53.72 in early afternoon trade.
TheStreet Ratings team rates TEVA PHARMACEUTICALS as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEVA PHARMACEUTICALS (TEVA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TEVA's revenue growth has slightly outpaced the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for TEVA PHARMACEUTICALS is rather high; currently it is at 62.37%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.87% trails the industry average.
- The current debt-to-equity ratio, 0.51, 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 0.54, displays a potential problem in covering short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.39% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- TEVA PHARMACEUTICALS has improved earnings per share by 17.6% 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 $1.50 versus $2.24 in the prior year. This year, the market expects an improvement in earnings ($4.80 versus $1.50).
- You can view the full analysis from the report here:TEVA Ratings Report