Teva Pharmaceutical Industries Ltd.
TEVA Healthcare Drug Manufacturers Specialty & Generic
In the quarter to June 2026, revenue was flat, EPS fell 296.0%, free cash flow grew 121.4% and total debt fell 3.69%, each against the same quarter a year earlier. Revenue growth for three consecutive years.
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Teva Pharmaceutical Industries Ltd. (TEVA) Altman Z-score
Teva Pharmaceutical Industries Ltd.'s Altman Z-score for fiscal 2025 is 0.79, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 0.79 | 0.40 |
| FY2024 | 0.40 | 0.23 |
| FY2023 | 0.17 | 0.22 |
| FY2022 | −0.05 | (0.38) |
| FY2021 | 0.33 | 0.38 |
| FY2020 | −0.05 | (0.30) |
| FY2019 | 0.25 | (0.19) |
| FY2018 | 0.44 | 0.84 |
| FY2017 | −0.40 | (1.25) |
| FY2016 | 0.86 | (1.60) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.01 | — | 0.01 | |
| Retained earnings / total assets | (0.34) | — | −0.47 | |
| EBIT / total assets | 0.05 | — | 0.17 | |
| Market value of equity / total liabilities | 1.09 | — | 0.65 | |
| Sales / total assets | 0.42 | — | 0.42 | |
| Altman Z-score | Distress zone | 0.79 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −0.41 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| UTHR United Therapeutics Corporation compare | 19.6× |
| NBIX Neurocrine Biosciences, Inc. compare | 7.8× |
| ZTS Zoetis Inc. compare | 5.7× |
| RDY Dr. Reddy's Laboratories Ltd compare | 5.3× |
| HLN Haleon PLC Sponsored ADR compare | 3.0× |
| ELAN Elanco Animal Health Incorporated compare | 1.3× |
| TAK Takeda Pharmaceutical Co. compare | 1.0× |
| TEVA Teva Pharmaceutical Industries Ltd. | 0.8× |
| VTRS Viatris Inc. compare | 0.6× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets