VIATRIS INC (VTRS) Stock Fundamental Analysis
USA - NASDAQ:VTRS - US92556V1061 - Common Stock
9.9 USD
+0.04 (+0.41%)
9.9499 USD
+0.05 (+0.5%)
Taking everything into account, VTRS scores 4 out of 10 in our fundamental rating. VTRS was compared to 196 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.
VTRS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VTRS reported negative net income in multiple years.
VTRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -9.03%, VTRS is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
Looking at the Return On Equity, with a value of -22.27%, VTRS is in the better half of the industry, outperforming 65.82% of the companies in the same industry.
The Return On Invested Capital of VTRS (3.66%) is better than 80.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VTRS is significantly below the industry average of 15.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.03% | ||
| ROE | -22.27% | ||
| ROIC | 3.66% |
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 has a Operating Margin of 10.28%. This is amongst the best in the industry. VTRS outperforms 83.16% of its industry peers.
In the last couple of years the Operating Margin of VTRS has declined.
VTRS has a better Gross Margin (40.15%) than 60.71% of its industry peers.
VTRS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.28% | ||
| PM (TTM) | N/A | ||
| GM | 40.15% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VTRS is destroying value.
Compared to 1 year ago, VTRS has less shares outstanding
Compared to 5 years ago, VTRS has more shares outstanding
Compared to 1 year ago, VTRS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.88, VTRS perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
The Debt to FCF ratio of VTRS is 7.49, which is on the high side as it means it would take VTRS, 7.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.49, VTRS belongs to the top of the industry, outperforming 80.10% of the companies in the same industry.
VTRS has a Debt/Equity ratio of 0.82. This is a neutral value indicating VTRS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.82, VTRS is not doing good in the industry: 70.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.45
WACC8.17%
2.3 Liquidity
VTRS has a Current Ratio of 1.37. 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 worse Current ratio (1.37) than 70.92% of its industry peers.
VTRS has a Quick Ratio of 1.37. 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 0.77, VTRS is doing worse than 81.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
VTRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.00%.
Measured over the past years, VTRS shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.73% on average per year.
VTRS shows a decrease in Revenue. In the last year, the revenue decreased by -7.37%.
VTRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.09% yearly.
EPS 1Y (TTM)-13%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-10.14%
Revenue 1Y (TTM)-7.37%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-5.65%
3.2 Future
The Earnings Per Share is expected to grow by 2.64% on average over the next years.
VTRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.09% yearly.
EPS Next Y-12.15%
EPS Next 2Y-2.86%
EPS Next 3Y1.18%
EPS Next 5Y2.64%
Revenue Next Year-6.25%
Revenue Next 2Y-2.36%
Revenue Next 3Y-1.08%
Revenue Next 5Y0.09%
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
A Price/Earnings ratio of 4.11 indicates a rather cheap valuation of VTRS.
Based on the Price/Earnings ratio, VTRS is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.41. VTRS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 3.96, the valuation of VTRS can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VTRS indicates a rather cheap valuation: VTRS is cheaper than 97.45% of the companies listed in the same industry.
VTRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 3.96 |
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 96.94% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VTRS is valued cheaply inside the industry as 93.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.86%
EPS Next 3Y1.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.72%, VTRS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.04, VTRS pays a better dividend. On top of this VTRS pays more dividend than 95.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, VTRS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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-16.42%
EPS Next 2Y-2.86%
EPS Next 3Y1.18%
9.9
+0.04 (+0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.88%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner Change1.5%
Market Cap11.54B
Analysts71.25
Price Target11.26 (13.74%)
Short Float %3.49%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP-16.42%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.75%
Min EPS beat(2)0.14%
Max EPS beat(2)9.36%
EPS beat(4)3
Avg EPS beat(4)2.74%
Min EPS beat(4)-7.28%
Max EPS beat(4)9.36%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)7
Avg EPS beat(12)1.16%
EPS beat(16)10
Avg EPS beat(16)2.05%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)1.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)1.3%
Revenue beat(8)1
Avg Revenue beat(8)-1.98%
Revenue beat(12)1
Avg Revenue beat(12)-2.35%
Revenue beat(16)2
Avg Revenue beat(16)-2.22%
PT rev (1m)3.29%
PT rev (3m)1.99%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)3.11%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 3.96 | ||
| P/S | 0.82 | ||
| P/FCF | 6.76 | ||
| P/OCF | 5.59 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.59 |
EPS(TTM)2.41
EY24.34%
EPS(NY)2.5
Fwd EY25.26%
FCF(TTM)1.46
FCFY14.79%
OCF(TTM)1.77
OCFY17.89%
SpS12.11
BVpS13.36
TBVpS-6.43
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.03% | ||
| ROE | -22.27% | ||
| ROCE | 4.64% | ||
| ROIC | 3.66% | ||
| ROICexc | 3.74% | ||
| ROICexgc | 15.2% | ||
| OM | 10.28% | ||
| PM (TTM) | N/A | ||
| GM | 40.15% | ||
| FCFM | 12.1% |
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-Score4
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.49 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 12.94% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.88 |
F-Score4
WACC8.17%
ROIC/WACC0.45
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)-13%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-10.14%
EPS Next Y-12.15%
EPS Next 2Y-2.86%
EPS Next 3Y1.18%
EPS Next 5Y2.64%
Revenue 1Y (TTM)-7.37%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-5.65%
Revenue Next Year-6.25%
Revenue Next 2Y-2.36%
Revenue Next 3Y-1.08%
Revenue Next 5Y0.09%
EBIT growth 1Y3.36%
EBIT growth 3Y-4.1%
EBIT growth 5Y1.89%
EBIT Next Year-6.55%
EBIT Next 3Y0.86%
EBIT Next 5Y0.47%
FCF growth 1Y-16.49%
FCF growth 3Y-7.94%
FCF growth 5Y6.95%
OCF growth 1Y-17.35%
OCF growth 3Y-8.61%
OCF growth 5Y5.01%