Teva Pharmaceutical IndustriesFRA:TEV +3.96%57 Operating Margin % is 19.07% as of Mar. 2026, which is 1% above its 10-year median of 18.94. GuruFocus rates FRA:TEV with a GF Score™ of 57/100 and a GF Value™ of €17.85 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 955 Drug Manufacturers companies, Teva Pharmaceutical Industries ranks better than 86.81% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Teva Pharmaceutical Industries Operating Margin % Related Terms
Teva Pharmaceutical Industries Operating 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.
FRA:TEV vs ZTS, UTHR, VTRS: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Teva Pharmaceutical Industries's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Teva Pharmaceutical Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Teva Pharmaceutical Industries's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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.
Teva Pharmaceutical Industries (FRA:TEV) has a Operating Margin % of 19.07% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Teva Pharmaceutical Industries and its competitors. This is near median its historical median of 18.94. Over the past decade, Teva Pharmaceutical Industries' Operating Margin % has ranged from 15.70 to 23.07. According to the industry distribution chart, Teva Pharmaceutical Industries ranks #126 out of 955 companies in the Drug Manufacturers industry, placing it in the top 13.2%.
Is Teva Pharmaceutical Industries' Operating Margin % too high?
Teva Pharmaceutical Industries' current Operating Margin % of 19.07% is near median its 10-year median of 18.94. Over the past 10 years, this metric has ranged from a low of 15.70 to a high of 23.07. The Drug Manufacturers industry median Operating Margin % is 7.45. Teva Pharmaceutical Industries' value of 19.07% is 156% above this industry median. Based on the distribution chart, Teva Pharmaceutical Industries ranks #126 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Teva Pharmaceutical Industries has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Teva Pharmaceutical Industries' Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Teva Pharmaceutical Industries ranks #126 out of 955 companies for Operating Margin %. This places Teva Pharmaceutical Industries in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Teva Pharmaceutical Industries' value of 19.07% is 156% above this benchmark. Historically, Teva Pharmaceutical Industries' own Operating Margin % has ranged from 15.70 to 23.07 over the past decade. While the company's 10-year median is 18.94 vs. the industry median of 7.45, 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 Operating Margin % for a Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Teva Pharmaceutical Industries's current Operating Margin % of 19.07% is 156% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Teva Pharmaceutical Industries and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teva Pharmaceutical Industries's current Operating Margin % is 19.07%, which is near median its own 10-year median of 18.94. 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 (FRA:TEV) is currently considered Significantly Overvalued. The stock's GF Value™ is €17.85, compared to a current price of €28.90 — trading 61.9% above its estimated fair value. The current Operating Margin % is 19.07%, which is near median its 10-year median of 18.94 and 156% above the Drug Manufacturers industry median of 7.45. Teva Pharmaceutical Industries' overall GF Score™ is 57/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Teva Pharmaceutical Industries (FRA:TEV), the current Operating Margin % is 19.07% 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 (FRA:TEV) Overvalued in 2026?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries stock appears to be overvalued.
The current stock price of €28.90 is trading 61.9% above its estimated GF Value™ of €17.85.
GuruFocus considers Teva Pharmaceutical Industries to be Significantly Overvalued.
Key valuation signals for FRA:TEV:
Operating Margin %: 19.07% (near median its 10-year median of 18.94)
GF Value™: €17.85 vs. price of €28.90 (61.9% above fair value)
Industry Position: 156% above the Drug Manufacturers median (#126 of 955)
No single metric tells the full story. See the FRA:TEV 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.
57GF Score
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