Teva Pharmaceutical IndustriesBSP:T1EV34 11 Gross Margin % is 49.54% as of Mar. 2026, which is 3% above its 10-year median of 48.04. GuruFocus rates BSP:T1EV34 with a GF Score™ of 11/100 and a GF Value™ of R$49.25 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 938 Drug Manufacturers companies, Teva Pharmaceutical Industries ranks better than 55.12% on this metric.
BSP:T1EV34's Gross Margin % is ranked better than 55.12% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs BSP:T1EV34: 52.08
Teva Pharmaceutical Industries had a gross margin of 49.54% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Teva Pharmaceutical Industries had a gross margin of 49.54% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Teva Pharmaceutical Industries Gross Margin % Related Terms
Teva Pharmaceutical Industries Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:T1EV34 vs ZTS, UTHR, VTRS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Teva Pharmaceutical Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Teva Pharmaceutical Industries Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Teva Pharmaceutical Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Teva Pharmaceutical Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Teva Pharmaceutical Industries (BSP:T1EV34) has a Gross Margin % of 49.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Teva Pharmaceutical Industries and its competitors. This is near median its historical median of 48.04. Over the past decade, Teva Pharmaceutical Industries' Gross Margin % has ranged from 44.63 to 53.20. According to the industry distribution chart, Teva Pharmaceutical Industries ranks #421 out of 938 companies in the Drug Manufacturers industry, placing it in the top 44.9%.
Is Teva Pharmaceutical Industries' Gross Margin % too high?
Teva Pharmaceutical Industries' current Gross Margin % of 49.54% is near median its 10-year median of 48.04. Over the past 10 years, this metric has ranged from a low of 44.63 to a high of 53.20. The Drug Manufacturers industry median Gross Margin % is 48.54. Teva Pharmaceutical Industries' value of 49.54% is 2.1% above this industry median. Based on the distribution chart, Teva Pharmaceutical Industries ranks #421 out of 938 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Teva Pharmaceutical Industries has a GF Score™ of 11/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Teva Pharmaceutical Industries' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Teva Pharmaceutical Industries ranks #421 out of 938 companies for Gross Margin %. This puts Teva Pharmaceutical Industries in the upper half of its industry. The industry median Gross Margin % is 48.54. Teva Pharmaceutical Industries' value of 49.54% is 2.1% above this benchmark. Historically, Teva Pharmaceutical Industries' own Gross Margin % has ranged from 44.63 to 53.20 over the past decade. While the company's 10-year median is 48.04 vs. the industry median of 48.54, Teva Pharmaceutical Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Teva Pharmaceutical Industries's current Gross Margin % of 49.54% is 2.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Teva Pharmaceutical Industries and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teva Pharmaceutical Industries's current Gross Margin % is 49.54%, which is near median its own 10-year median of 48.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teva Pharmaceutical Industries stock overvalued right now?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries (BSP:T1EV34) is currently considered Significantly Overvalued. The stock's GF Value™ is R$49.25, compared to a current price of R$89.28 — trading 81.3% above its estimated fair value. The current Gross Margin % is 49.54%, which is near median its 10-year median of 48.04 and 2.1% above the Drug Manufacturers industry median of 48.54. Teva Pharmaceutical Industries' overall GF Score™ is 11/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Teva Pharmaceutical Industries (BSP:T1EV34), the current Gross Margin % is 49.54% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Teva Pharmaceutical Industries (BSP:T1EV34) Overvalued in 2026?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries stock appears to be overvalued.
The current stock price of R$89.28 is trading 81.3% above its estimated GF Value™ of R$49.25.
GuruFocus considers Teva Pharmaceutical Industries to be Significantly Overvalued.
Key valuation signals for BSP:T1EV34:
Gross Margin %: 49.54% (near median its 10-year median of 48.04)
GF Value™: R$49.25 vs. price of R$89.28 (81.3% above fair value)
Industry Position: 2.1% above the Drug Manufacturers median (#421 of 938)
No single metric tells the full story. See the BSP:T1EV34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Teva Pharmaceutical Industries Business Description
Teva Pharmaceutical, based in Israel, is the world's leading generic drug manufacturer. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the US. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in two main therapeutic areas: neurology and immunology. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a US-based generic and specialty drug distributor.
11GF Score
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