Teva Pharma Return On Equity vs. Profit Margin
| TEVA Stock | USD 16.59 0.10 0.60% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.07) | Current Value (0.07) | Quarterly Volatility 0.28196687 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.38 | 0.4825 |
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For Teva Pharma profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Teva Pharma to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Teva Pharma Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Teva Pharma's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Teva Pharma Industries over time as well as its relative position and ranking within its peers.
Teva |
Teva Pharma's Revenue Breakdown by Earning Segment
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Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Teva Pharma. If investors know Teva will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Teva Pharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.4 | Earnings Share (0.85) | Revenue Per Share 14.879 | Quarterly Revenue Growth 0.125 | Return On Assets 0.0556 |
The market value of Teva Pharma Industries is measured differently than its book value, which is the value of Teva that is recorded on the company's balance sheet. Investors also form their own opinion of Teva Pharma's value that differs from its market value or its book value, called intrinsic value, which is Teva Pharma's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Teva Pharma's market value can be influenced by many factors that don't directly affect Teva Pharma's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Teva Pharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if Teva Pharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Teva Pharma's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Teva Pharma Industries Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Teva Pharma's current stock value. Our valuation model uses many indicators to compare Teva Pharma value to that of its competitors to determine the firm's financial worth. Teva Pharma Industries is rated below average in return on equity category among its peers. It is rated below average in profit margin category among its peers . At present, Teva Pharma's Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Teva Pharma's earnings, one of the primary drivers of an investment's value.Teva Pharma's Earnings Breakdown by Geography
Teva Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Teva Pharma |
| = | -0.18 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Teva Pharma |
| = | (0.06) % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Teva Profit Margin Comparison
Teva Pharma is currently under evaluation in profit margin category among its peers.
Teva Pharma Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Teva Pharma, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Teva Pharma will eventually generate negative long term returns. The profitability progress is the general direction of Teva Pharma's change in net profit over the period of time. It can combine multiple indicators of Teva Pharma, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -2.7 B | -2.6 B | |
| Operating Income | 433 M | 732.2 M | |
| Income Before Tax | -624 M | -592.8 M | |
| Total Other Income Expense Net | -1.1 B | -1.1 B | |
| Net Loss | -615 M | -584.2 M | |
| Income Tax Expense | -65 M | -61.8 M | |
| Net Loss | -2.1 B | -2 B | |
| Net Loss | -615 M | -645.8 M | |
| Interest Income | 948.8 M | 714.6 M | |
| Net Interest Income | -1.1 B | -1.1 B | |
| Non Operating Income Net Other | -1.2 B | -1.3 B | |
| Change To Netincome | 1.2 B | 1.2 B | |
| Net Loss | (0.50) | (0.47) | |
| Income Quality | (2.22) | (2.11) | |
| Net Income Per E B T | 0.90 | 0.61 |
Teva Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Teva Pharma. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Teva Pharma position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Teva Pharma's important profitability drivers and their relationship over time.
Use Teva Pharma in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Teva Pharma position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Teva Pharma will appreciate offsetting losses from the drop in the long position's value.Teva Pharma Pair Trading
Teva Pharma Industries Pair Trading Analysis
The ability to find closely correlated positions to Teva Pharma could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Teva Pharma when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Teva Pharma - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Teva Pharma Industries to buy it.
The correlation of Teva Pharma is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Teva Pharma moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Teva Pharma Industries moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Teva Pharma can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Teva Pharma position
In addition to having Teva Pharma in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Teva Pharma's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Teva Pharma Industries at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Teva Pharma's income statement, its balance sheet, and the statement of cash flows.