VIATRIS INC (VTRS) Stock Fundamental Analysis
NASDAQ:VTRS - Nasdaq - US92556V1061 - Common Stock - Currency: USD
Overall VTRS gets a fundamental rating of 4 out of 10. We evaluated VTRS against 195 industry peers in the Pharmaceuticals industry. While VTRS is still in line with the averages on profitability rating, there are concerns on its financial health. VTRS is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
VTRS had positive earnings in the past year.
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.
In the past 5 years VTRS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -9.85%, VTRS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
The Return On Equity of VTRS (-24.22%) is better than 68.21% of its industry peers.
With an excellent Return On Invested Capital value of 3.68%, VTRS belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VTRS is significantly below the industry average of 14.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.85% | ||
| ROE | -24.22% | ||
| ROIC | 3.68% |
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
The Operating Margin of VTRS (10.63%) is better than 82.56% of its industry peers.
VTRS's Operating Margin has declined in the last couple of years.
VTRS has a Gross Margin of 40.69%. This is in the better half of the industry: VTRS outperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of VTRS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.63% | ||
| PM (TTM) | N/A | ||
| GM | 40.69% |
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.
VTRS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VTRS has more shares outstanding
VTRS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
VTRS has a Altman-Z score (0.92) which is comparable to the rest of the industry.
VTRS has a debt to FCF ratio of 7.66. This is a slightly negative value and a sign of low solvency as VTRS would need 7.66 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 7.66, VTRS belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that VTRS is somewhat dependend on debt financing.
VTRS's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. VTRS is outperformed by 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 7.66 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.46
WACC8.03%
2.3 Liquidity
VTRS has a Current Ratio of 1.68. 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 1.68. This is in the lower half of the industry: VTRS underperforms 66.67% of its industry peers.
A Quick Ratio of 0.97 indicates that VTRS may have some problems paying its short term obligations.
VTRS has a Quick ratio of 0.97. This is in the lower half of the industry: VTRS underperforms 77.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
VTRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.37%.
The Earnings Per Share has been decreasing by -9.73% on average over the past years.
The Revenue has decreased by -6.71% in the past year.
VTRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.09% yearly.
EPS 1Y (TTM)-12.37%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-25.37%
Revenue 1Y (TTM)-6.71%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-11.17%
3.2 Future
The Earnings Per Share is expected to grow by 2.92% on average over the next years.
Based on estimates for the next years, VTRS will show a decrease in Revenue. The Revenue will decrease by -0.21% on average per year.
EPS Next Y-14.8%
EPS Next 2Y-3.05%
EPS Next 3Y1.6%
EPS Next 5Y2.92%
Revenue Next Year-6.93%
Revenue Next 2Y-2.64%
Revenue Next 3Y-1.33%
Revenue Next 5Y-0.21%
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
The Price/Earnings ratio is 3.68, which indicates a rather cheap valuation of VTRS.
Based on the Price/Earnings ratio, VTRS is valued cheaper than 97.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, VTRS is valued rather cheaply.
VTRS is valuated cheaply with a Price/Forward Earnings ratio of 3.66.
Based on the Price/Forward Earnings ratio, VTRS is valued cheaper than 96.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, VTRS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.68 | ||
| Fwd PE | 3.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VTRS indicates a rather cheap valuation: VTRS is cheaper than 95.90% of the companies listed in the same industry.
VTRS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VTRS is cheaper than 96.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.78 | ||
| EV/EBITDA | 5.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.05%
EPS Next 3Y1.6%
5. Dividend
5.1 Amount
VTRS has a Yearly Dividend Yield of 5.15%, which is a nice return.
VTRS's Dividend Yield is rather good when compared to the industry average which is at 4.05. VTRS pays more dividend than 97.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, VTRS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
5.2 History
VTRS has paid a dividend for at least 10 years, which is 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-15.18%
EPS Next 2Y-3.05%
EPS Next 3Y1.6%
9.12
-0.13 (-1.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners85.07%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner Change26.32%
Market Cap10.70B
Analysts54.67
Price Target10.9 (19.52%)
Short Float %3.67%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP-15.18%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.57%
Min EPS beat(2)-7.28%
Max EPS beat(2)0.14%
EPS beat(4)2
Avg EPS beat(4)0.33%
Min EPS beat(4)-7.28%
Max EPS beat(4)8.74%
EPS beat(8)4
Avg EPS beat(8)0.13%
EPS beat(12)7
Avg EPS beat(12)0.7%
EPS beat(16)10
Avg EPS beat(16)2.09%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-2.22%
Revenue beat(12)0
Avg Revenue beat(12)-2.76%
Revenue beat(16)2
Avg Revenue beat(16)-2.15%
PT rev (1m)-3.28%
PT rev (3m)-8.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.74%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.68 | ||
| Fwd PE | 3.66 | ||
| P/S | 0.75 | ||
| P/FCF | 5.78 | ||
| P/OCF | 4.81 | ||
| P/B | 0.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.49 |
EPS(TTM)2.48
EY27.19%
EPS(NY)2.49
Fwd EY27.31%
FCF(TTM)1.58
FCFY17.3%
OCF(TTM)1.89
OCFY20.78%
SpS12.21
BVpS13.33
TBVpS-6.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.85% | ||
| ROE | -24.22% | ||
| ROCE | 4.65% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.77% | ||
| ROICexgc | 13.71% | ||
| OM | 10.63% | ||
| PM (TTM) | N/A | ||
| GM | 40.69% | ||
| FCFM | 12.92% |
ROA(3y)0.91%
ROA(5y)-0.13%
ROE(3y)2.24%
ROE(5y)-0.48%
ROIC(3y)4.05%
ROIC(5y)3.56%
ROICexc(3y)4.16%
ROICexc(5y)3.64%
ROICexgc(3y)17.86%
ROICexgc(5y)17.54%
ROCE(3y)5.12%
ROCE(5y)4.54%
ROICexcg growth 3Y-9.04%
ROICexcg growth 5Y-13.17%
ROICexc growth 3Y4.9%
ROICexc growth 5Y-4.57%
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%
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 7.66 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 12.99% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.92 |
F-Score5
WACC8.03%
ROIC/WACC0.46
Cap/Depr(3y)14.64%
Cap/Depr(5y)17.2%
Cap/Sales(3y)2.72%
Cap/Sales(5y)3.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.37%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-25.37%
EPS Next Y-14.8%
EPS Next 2Y-3.05%
EPS Next 3Y1.6%
EPS Next 5Y2.92%
Revenue 1Y (TTM)-6.71%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-11.17%
Revenue Next Year-6.93%
Revenue Next 2Y-2.64%
Revenue Next 3Y-1.33%
Revenue Next 5Y-0.21%
EBIT growth 1Y2.71%
EBIT growth 3Y-4.1%
EBIT growth 5Y1.89%
EBIT Next Year-6.75%
EBIT Next 3Y0.97%
EBIT Next 5Y1%
FCF growth 1Y-20.6%
FCF growth 3Y-7.94%
FCF growth 5Y6.95%
OCF growth 1Y-20.16%
OCF growth 3Y-8.61%
OCF growth 5Y5.01%