12.97 USD
-0.15 (-1.14%)
12.9019 USD
-0.07 (-0.53%)
We assign a fundamental rating of 4 out of 10 to VTRS. VTRS was compared to 190 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of VTRS while its profitability can be described as average. VTRS has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year VTRS was profitable.
- In the past year VTRS had a positive cash flow from operations.
- In multiple years VTRS reported negative net income over the last 5 years.
- VTRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of -9.73%, VTRS is doing good in the industry, outperforming 66.84% of the companies in the same industry.
- VTRS has a better Return On Equity (-24.26%) than 64.21% of its industry peers.
- VTRS has a better Return On Invested Capital (3.41%) than 80.53% of its industry peers.
- VTRS had an Average Return On Invested Capital over the past 3 years of 4.05%. This is significantly below the industry average of 12.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.73% | ||
| ROE | -24.26% | ||
| ROIC | 3.41% |
ROA(3y)0.91%
ROA(5y)-0.13%
ROE(3y)2.24%
ROE(5y)-0.48%
ROIC(3y)4.05%
ROIC(5y)3.56%
1.3 Margins
- VTRS's Operating Margin of 9.34% is amongst the best of the industry. VTRS outperforms 82.11% of its industry peers.
- In the last couple of years the Operating Margin of VTRS has declined.
- Looking at the Gross Margin, with a value of 39.36%, VTRS is in the better half of the industry, outperforming 61.58% of the companies in the same industry.
- VTRS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.34% | ||
| PM (TTM) | N/A | ||
| GM | 39.36% |
OM growth 3Y2.29%
OM growth 5Y-3.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.33%
GM growth 5Y1.02%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VTRS is destroying value.
- Compared to 1 year ago, VTRS has less shares outstanding
- The number of shares outstanding for VTRS has been increased compared to 5 years ago.
- The debt/assets ratio for VTRS has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.97, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.97, VTRS perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
- VTRS has a debt to FCF ratio of 8.96. This is a slightly negative value and a sign of low solvency as VTRS would need 8.96 years to pay back of all of its debts.
- VTRS has a better Debt to FCF ratio (8.96) than 80.00% of its industry peers.
- A Debt/Equity ratio of 0.82 indicates that VTRS is somewhat dependend on debt financing.
- The Debt to Equity ratio of VTRS (0.82) is worse than 71.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 8.96 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.42
WACC8.05%
2.3 Liquidity
- VTRS has a Current Ratio of 1.35. This is a normal value and indicates that VTRS is financially healthy and should not expect problems in meeting its short term obligations.
- VTRS has a Current ratio of 1.35. This is in the lower half of the industry: VTRS underperforms 74.74% of its industry peers.
- VTRS has a Quick Ratio of 1.35. This is a bad value and indicates that VTRS is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.79, VTRS is doing worse than 83.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The earnings per share for VTRS have decreased strongly by -14.65% in the last year.
- The Earnings Per Share has been decreasing by -9.73% on average over the past years.
- VTRS shows a decrease in Revenue. In the last year, the revenue decreased by -6.14%.
- VTRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.09% yearly.
EPS 1Y (TTM)-14.65%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-10.67%
Revenue 1Y (TTM)-6.14%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%0.23%
3.2 Future
- VTRS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.45% yearly.
- VTRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.49% yearly.
EPS Next Y-10.79%
EPS Next 2Y-2.43%
EPS Next 3Y1.4%
EPS Next 5Y4.45%
Revenue Next Year-4.73%
Revenue Next 2Y-1.78%
Revenue Next 3Y-0.58%
Revenue Next 5Y0.49%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 5.57, the valuation of VTRS can be described as very cheap.
- 95.26% of the companies in the same industry are more expensive than VTRS, based on the Price/Earnings ratio.
- VTRS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 5.14, the valuation of VTRS can be described as very cheap.
- Based on the Price/Forward Earnings ratio, VTRS is valued cheaper than 94.21% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, VTRS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 5.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VTRS is valued cheaper than 92.63% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VTRS indicates a rather cheap valuation: VTRS is cheaper than 91.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.27 | ||
| EV/EBITDA | 6.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.43%
EPS Next 3Y1.4%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.63%, VTRS has a reasonable but not impressive dividend return.
- VTRS's Dividend Yield is rather good when compared to the industry average which is at 0.46. VTRS pays more dividend than 96.32% of the companies in the same industry.
- VTRS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
- VTRS has been paying a dividend for at least 10 years, so it has a reliable track record.
- VTRS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- The earnings of VTRS are negative and hence is the payout ratio. VTRS will probably not be able to sustain this dividend level.
DP-15.34%
EPS Next 2Y-2.43%
EPS Next 3Y1.4%
VIATRIS INC / VTRS FAQ
What is the ChartMill fundamental rating of VIATRIS INC (VTRS) stock?
ChartMill assigns a fundamental rating of 4 / 10 to VTRS.
What is the valuation status for VTRS stock?
ChartMill assigns a valuation rating of 7 / 10 to VIATRIS INC (VTRS). This can be considered as Undervalued.
What is the profitability of VTRS stock?
VIATRIS INC (VTRS) has a profitability rating of 5 / 10.
What is the valuation of VIATRIS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VIATRIS INC (VTRS) is 5.57 and the Price/Book (PB) ratio is 0.98.
How sustainable is the dividend of VIATRIS INC (VTRS) stock?
The dividend rating of VIATRIS INC (VTRS) is 5 / 10 and the dividend payout ratio is -15.34%.