VIATRIS INC (VTRS)
US92556V1061 - Common Stock
VTRS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 193 industry peers in the Pharmaceuticals industry. VTRS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
VTRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VTRS's Return On Assets of -1.97% is fine compared to the rest of the industry. VTRS outperforms 80.00% of its industry peers.
The Return On Equity of VTRS (-4.46%) is better than 81.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.87%, VTRS is in the better half of the industry, outperforming 80.00% 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 43.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.97% | ||
| ROE | -4.46% | ||
| ROIC | 2.87% |
ROA(3y)0.65%
ROA(5y)0.18%
ROE(3y)1.31%
ROE(5y)0.23%
ROIC(3y)3.88%
ROIC(5y)3.76%
1.3 Margins
In the last couple of years the Profit Margin of VTRS has declined.
With an excellent Operating Margin value of 8.98%, VTRS belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
In the last couple of years the Operating Margin of VTRS has declined.
Looking at the Gross Margin, with a value of 42.49%, VTRS is in line with its industry, outperforming 59.47% of the companies in the same industry.
VTRS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.98% | ||
| PM (TTM) | N/A | ||
| GM | 42.49% |
OM growth 3Y-5.44%
OM growth 5Y-7.29%
PM growth 3YN/A
PM growth 5Y-35.13%
GM growth 3Y4.7%
GM growth 5Y1.76%
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
VTRS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VTRS has an improved debt to assets ratio.
2.2 Solvency
VTRS has an Altman-Z score of 1.02. This is a bad value and indicates that VTRS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.02, VTRS perfoms like the industry average, outperforming 58.42% of the companies in the same industry.
The Debt to FCF ratio of VTRS is 8.32, which is on the high side as it means it would take VTRS, 8.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.32, VTRS belongs to the top of the industry, outperforming 83.68% of the companies in the same industry.
VTRS has a Debt/Equity ratio of 0.72. This is a neutral value indicating VTRS is somewhat dependend on debt financing.
VTRS has a worse Debt to Equity ratio (0.72) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.35
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.51 indicates that VTRS should not have too much problems paying its short term obligations.
VTRS has a worse Current ratio (1.51) than 73.16% of its industry peers.
VTRS has a Quick Ratio of 1.51. This is a bad value and indicates that VTRS is not financially healthy enough and could expect problems in meeting its short term obligations.
VTRS has a Quick ratio of 0.96. This is amonst the worse of the industry: VTRS underperforms 81.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
VTRS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.39%.
VTRS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.55% yearly.
The Revenue has decreased by -2.70% in the past year.
The Revenue has been growing slightly by 6.17% on average over the past years.
EPS 1Y (TTM)-8.39%
EPS 3Y-12.68%
EPS 5Y-8.55%
EPS Q2Q%-5.06%
Revenue 1Y (TTM)-2.7%
Revenue growth 3Y8.9%
Revenue growth 5Y6.17%
Sales Q2Q%-4.84%
3.2 Future
Based on estimates for the next years, VTRS will show a decrease in Earnings Per Share. The EPS will decrease by -0.44% on average per year.
The Revenue is expected to decrease by -1.16% on average over the next years.
EPS Next Y-6.55%
EPS Next 2Y-4.35%
EPS Next 3Y-1.78%
EPS Next 5Y-0.44%
Revenue Next Year-3.97%
Revenue Next 2Y-3.28%
Revenue Next 3Y-2.12%
Revenue Next 5Y-1.16%
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
Based on the Price/Earnings ratio of 4.54, the valuation of VTRS can be described as very cheap.
Based on the Price/Earnings ratio, VTRS is valued cheaply inside the industry as 97.89% of the companies are valued more expensively.
VTRS is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.63 indicates a rather cheap valuation of VTRS.
Based on the Price/Forward Earnings ratio, VTRS is valued cheaply inside the industry as 96.84% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VTRS to the average of the S&P500 Index (23.99), we can say VTRS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.54 | ||
| Fwd PE | 4.63 |
4.2 Price Multiples
93.16% of the companies in the same industry are more expensive than VTRS, based on the Enterprise Value to EBITDA ratio.
94.21% of the companies in the same industry are more expensive than VTRS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.82 | ||
| EV/EBITDA | 6.87 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.35%
EPS Next 3Y-1.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.96%, VTRS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.42, VTRS pays a better dividend. On top of this VTRS pays more dividend than 94.74% of the companies listed in the same industry.
VTRS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of VTRS has a limited annual growth rate of 4.93%.
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)4.93%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
VTRS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-65.15%
EPS Next 2Y-4.35%
EPS Next 3Y-1.78%
VIATRIS INC
NASDAQ:VTRS (12/24/2024, 7:44:57 PM)
After market: 12.4 0 (0%)12.4
-0.09 (-0.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.3%
Inst Owner ChangeN/A
Ins Owners0.29%
Ins Owner Change-4.7%
Market Cap14.80B
Analysts54.67
Price Target13.28 (7.1%)
Short Float %1.73%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Dividend Growth(5Y)4.93%
DP-65.15%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.23%
Min EPS beat(2)-0.27%
Max EPS beat(2)8.74%
EPS beat(4)1
Avg EPS beat(4)0.01%
Min EPS beat(4)-6%
Max EPS beat(4)8.74%
EPS beat(8)4
Avg EPS beat(8)1.22%
EPS beat(12)7
Avg EPS beat(12)1.73%
EPS beat(16)10
Avg EPS beat(16)2.43%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-2.78%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-2.54%
Revenue beat(12)0
Avg Revenue beat(12)-2.7%
Revenue beat(16)3
Avg Revenue beat(16)-2.51%
PT rev (1m)2.18%
PT rev (3m)2.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.96%
EPS NY rev (1m)0.35%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.71%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.54 | ||
| Fwd PE | 4.63 | ||
| P/S | 0.98 | ||
| P/FCF | 7.82 | ||
| P/OCF | 6.44 | ||
| P/B | 0.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.87 |
EPS(TTM)2.73
EY22.02%
EPS(NY)2.68
Fwd EY21.62%
FCF(TTM)1.59
FCFY12.79%
OCF(TTM)1.93
OCFY15.54%
SpS12.61
BVpS16.58
TBVpS-6.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.97% | ||
| ROE | -4.46% | ||
| ROCE | 3.63% | ||
| ROIC | 2.87% | ||
| ROICexc | 3.03% | ||
| ROICexgc | 13.82% | ||
| OM | 8.98% | ||
| PM (TTM) | N/A | ||
| GM | 42.49% | ||
| FCFM | 12.58% |
ROA(3y)0.65%
ROA(5y)0.18%
ROE(3y)1.31%
ROE(5y)0.23%
ROIC(3y)3.88%
ROIC(5y)3.76%
ROICexc(3y)3.98%
ROICexc(5y)3.86%
ROICexgc(3y)19.63%
ROICexgc(5y)20.85%
ROCE(3y)4.96%
ROCE(5y)4.81%
ROICexcg growth 3Y0.64%
ROICexcg growth 5Y-16.53%
ROICexc growth 3Y12.89%
ROICexc growth 5Y-8%
OM growth 3Y-5.44%
OM growth 5Y-7.29%
PM growth 3YN/A
PM growth 5Y-35.13%
GM growth 3Y4.7%
GM growth 5Y1.76%
F-Score5
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 8.32 | ||
| Debt/EBITDA | 3.45 | ||
| Cap/Depr | 14.57% | ||
| Cap/Sales | 2.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.02 |
F-Score5
WACC8.16%
ROIC/WACC0.35
Cap/Depr(3y)14.42%
Cap/Depr(5y)18.82%
Cap/Sales(3y)2.88%
Cap/Sales(5y)3.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.39%
EPS 3Y-12.68%
EPS 5Y-8.55%
EPS Q2Q%-5.06%
EPS Next Y-6.55%
EPS Next 2Y-4.35%
EPS Next 3Y-1.78%
EPS Next 5Y-0.44%
Revenue 1Y (TTM)-2.7%
Revenue growth 3Y8.9%
Revenue growth 5Y6.17%
Sales Q2Q%-4.84%
Revenue Next Year-3.97%
Revenue Next 2Y-3.28%
Revenue Next 3Y-2.12%
Revenue Next 5Y-1.16%
EBIT growth 1Y-34.58%
EBIT growth 3Y2.98%
EBIT growth 5Y-1.57%
EBIT Next Year-2.17%
EBIT Next 3Y-1.57%
EBIT Next 5Y-0.57%
FCF growth 1Y-33.22%
FCF growth 3Y61.63%
FCF growth 5Y15.2%
OCF growth 1Y-31.01%
OCF growth 3Y31.48%
OCF growth 5Y3.64%