VIATRIS INC (VTRS)
US92556V1061 - Common Stock
VTRS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 194 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of VTRS while its profitability can be described as average. VTRS is valued quite cheap, but it does not seem to be growing.
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.
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
VTRS has a better Return On Assets (-1.97%) than 79.69% of its industry peers.
With an excellent Return On Equity value of -4.46%, VTRS belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
With a decent Return On Invested Capital value of 2.87%, VTRS is doing good in the industry, outperforming 79.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VTRS is significantly below the industry average of 42.20%.
| 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
VTRS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.98%, VTRS belongs to the top of the industry, outperforming 82.29% of the companies in the same industry.
VTRS's Operating Margin has declined in the last couple of years.
VTRS's Gross Margin of 42.49% is in line compared to the rest of the industry. VTRS outperforms 59.90% of its industry peers.
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.
VTRS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VTRS has more shares outstanding
The debt/assets ratio for VTRS has been reduced compared to a year ago.
2.2 Solvency
VTRS has an Altman-Z score of 1.05. 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 1.05, VTRS perfoms like the industry average, outperforming 58.85% of the companies in the same industry.
VTRS has a debt to FCF ratio of 8.32. This is a slightly negative value and a sign of low solvency as VTRS would need 8.32 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 8.32, VTRS belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that VTRS is somewhat dependend on debt financing.
VTRS has a worse Debt to Equity ratio (0.72) than 69.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.37
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.51 indicates that VTRS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.51, VTRS is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
A Quick Ratio of 0.96 indicates that VTRS may have some problems paying its short term obligations.
The Quick ratio of VTRS (0.96) is worse than 81.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for VTRS have decreased by -8.39% in the last year.
The Earnings Per Share has been decreasing by -8.55% on average over the past years.
Looking at the last year, VTRS shows a decrease in Revenue. The Revenue has decreased by -2.70% in the last year.
VTRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.17% yearly.
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
VTRS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.53% yearly.
The Revenue is expected to decrease by -1.80% on average over the next years.
EPS Next Y-6.88%
EPS Next 2Y-3.43%
EPS Next 3Y-1.43%
EPS Next 5Y0.53%
Revenue Next Year-4.25%
Revenue Next 2Y-3.35%
Revenue Next 3Y-2.15%
Revenue Next 5Y-1.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.90, the valuation of VTRS can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of VTRS indicates a rather cheap valuation: VTRS is cheaper than 96.35% of the companies listed in the same industry.
VTRS is valuated cheaply when we compare the Price/Earnings ratio to 29.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.89, the valuation of VTRS can be described as very cheap.
Based on the Price/Forward Earnings ratio, VTRS is valued cheaply inside the industry as 95.31% of the companies are valued more expensively.
VTRS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.9 | ||
| Fwd PE | 4.89 |
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 91.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VTRS is valued cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.43 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.43%
EPS Next 3Y-1.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.62%, 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 4.28. VTRS pays more dividend than 94.79% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.19, VTRS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
The dividend of VTRS has a limited annual growth rate of 4.93%.
VTRS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of VTRS decreased in the last 3 years.
Dividend Growth(5Y)4.93%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
VTRS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of VTRS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-65.15%
EPS Next 2Y-3.43%
EPS Next 3Y-1.43%
VIATRIS INC
NASDAQ:VTRS (11/22/2024, 8:12:26 PM)
After market: 13.35 -0.02 (-0.15%)13.37
+0.12 (+0.91%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.9 | ||
| Fwd PE | 4.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.97% | ||
| ROE | -4.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.98% | ||
| PM (TTM) | N/A | ||
| GM | 42.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-8.39%
EPS 3Y-12.68%
EPS 5Y
EPS Q2Q%
EPS Next Y-6.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.7%
Revenue growth 3Y8.9%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y