TEVA's pharma. 1st qrtr figures were not too bad , at first glance but my evaluation model has shown, that the companies value only consists of Goodwill and intangible assets......... which with normal companies is hot air, but with pharmaceutical companies also consists of their patents for medicines, which is ofcourse valuable.
TEVA however reported and has done so in the last 3 years , the following proportion of figures :
14.417 current assets 7.676 non current assets/property/plants 7.331 identifiable intangible assets
18.646 goodwill ------- 48.069 total assets ==============
12.356 current liabilities 12.899 long term liabilities --------- 25.255 total liabilities ================
22.814 million is shareholders equity/ 856 m. shares = usd 26,65 p/sh bookvalue.
goodwill however accounts for Usd. 21,78 p/share
intangible assets account for Usd. 8,56 p/share.
the company depreciates the intangible assets by a factor of abt 15 pct per annum which i guess is in line with the industry, as this item
includes patents, which have a limited timespan.
The goodwill is however not depreciated, as far as i cud ascertain.
THE PROBLEM FOR INVESTORS is , that if one deducts the amount of goodwill from the assets, the bookvalue of the company is only USD. 4,87 per share or a P/E ratio of 8 x.
other pharmac.companies such as Novartis/SKG, the goodwill amounts varies between 17 and 25 pct of ttl assets, while with TEVA this amount is abt 38 pct , which to our opinion is too high to be healthy.
hans spliethoff / onneke