Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, generic-drug giant Teva Pharmaceutical Industries
With that in mind, let's take a closer look at Teva's business and see what CAPS investors are saying about the stock right now.
Teva facts
| Headquarters (Founded) | Petach Tikva, Israel (1901) |
| Market Cap | $50.79 billion |
| Industry | Pharmaceuticals |
| Trailing-12-Month Revenue | $15.5 billion |
| Management |
CEO Shlomo Yanai (since 2007) CFO Eyal Desheh (since 2008) |
| Return on Equity (Average, Past 3 Years) | 11.1% |
| Cash/Debt | $956 million / $7.15 billion |
| Dividend Yield | 1.4% |
| Competitors |
Novartis
Mylan
Watson Pharmaceuticals |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 2,032 members who have rated Teva believe the stock will outperform the S&P 500 going forward. These bulls include owens4414 and NeuroNerd.
Just two weeks ago, owens4414 tapped Teva as a global best-of-breed opportunity: "Major player in generic drug market which I can only foresee getting bigger not just in the USA where generics still have room to grow but especially in emerging markets."
Teva's leadership in generics continues to make it a popular play on the looming "patent cliff" that several pharmaceutical giants face. Over the next five years, Teva is even expected to grow its bottom line at a faster pace (14.8% per annum) than generic rivals Novartis (5.2%), Mylan (13.4%), and Watson (11.2%), as well as big pharma foes like Pfizer
CAPS member NeuroNerd touches on several of the tailwinds working in Teva's favor:
1) Patent Expiration. ... During the patent cliff years of 2011-2014, ~$80-90 billion USD of drugs are slated to lose patent protection (yup, with a B). ...
2) Demographics. Aging populations in the US and Europe (where Teva has a strong presence) will lead to increased health-care expenditures across the board in coming decades. ...
3) Budget Constraints. ... Given the blood and tears that are going to be required, "easy" measures like expanded usage of generics is quite likely to be part of the solution.
4) Emerging Markets. Not only are incomes and consumption rising in many emerging markets, but the social safety nets of these countries will only improve as time goes on. ...
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