About TEVA PHARMACEUTICAL INDUSTRIES LTD
Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, and internationally. The company offers sterile products, hormones, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams. It also develops, manufactures, and sells active pharmaceutical ingredients. In addition, it focuses on the central nervous system, pain, respiratory, and oncology areas. Its products in the central nervous system include Copaxone for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine; and AUSTEDO for the treatment of tardive dyskinesia and chorea associated with Huntington disease.
The company's products in the respiratory market comprise ProAir, QVAR, ProAir Digihaler, AirDuo Digihaler, and ArmonAir Digihaler, BRALTUS, CINQAIR/CINQAERO, DuoResp Spiromax, and AirDuo RespiClick/ArmonAir RespiClick for the treatment of asthma and chronic obstructive pulmonary disease. Its products in the oncology market include Bendeka, Treanda, Granix, Trisenox, Lonquex, and Tevagrastim/Ratiograstim. Teva Pharmaceutical Industries Limited has a collaboration MedinCell for the development and commercialization of multiple long-acting injectable products, a risperidone suspension for the treatment of patients with schizophrenia. The company was founded in 1901 and is headquartered in Tel Aviv-Yafo, Israel.
TEVA operates in the Manufacturing | Pharmaceutical Products | approximately 36,800 employees | led by CEO Kåre Schultz.
The $23.2B question: What happens when a company this good becomes this expensive?
In the constellation of American capitalism, certain companies shine brighter than others — not because they are inherently more valuable, but because they have positioned themselves at the nexus of forces that shape the economy. TEVA PHARMACEUTICAL INDUSTRIES LTD is one such company.
At $23.2B in market capitalization, TEVA PHARMACEUTICAL INDUSTRIES LTD (TEVA) currently ranks #188 in our quantitative model, with a composite score of 76.7/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives TEVA the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 79/100 | 30% | Strong |
| Value | 58/100 | 15% | Premium |
| Momentum | 87/100 | 25% | Accelerating |
| Investment | 32/100 | 10% | Low |
| Stability | 58/100 | 10% | Volatile |
| Short Interest | 57/100 | 10% | Normal |
The quality score of 79/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 30.1%
- Net Margin: 9.7%
- Gross Margin: 51.4%
These aren't just good numbers. They're the kind of numbers that make TEVA a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like TEVA."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. TEVA is quality defined.
- Momentum is real. With a momentum score of 87/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 32.5x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
TEVA PHARMACEUTICAL INDUSTRIES LTD is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, TEVA is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 76.7/100 | Rank: #188 of 3,571 stocks
Sector: Materials
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.