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. VTRS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
Looking at the Return On Assets, with a value of -1.97%, VTRS belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
Looking at the Return On Equity, with a value of -4.46%, VTRS belongs to the top of the industry, outperforming 81.72% of the companies in the same industry.
With an excellent Return On Invested Capital value of 2.87%, VTRS belongs to the best of the industry, outperforming 80.11% of the companies in the same industry.
VTRS had an Average Return On Invested Capital over the past 3 years of 3.88%. This is significantly below the industry average of 43.99%.
| 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 81.18% of the companies in the same industry.
In the last couple of years the Operating Margin of VTRS has declined.
The Gross Margin of VTRS (42.49%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VTRS has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VTRS is destroying value.
The number of shares outstanding for VTRS has been reduced compared to 1 year ago.
The number of shares outstanding for VTRS has been increased compared to 5 years ago.
VTRS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VTRS (0.99) is comparable to the rest of the 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.
VTRS has a better Debt to FCF ratio (8.32) than 82.80% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that VTRS is somewhat dependend on debt financing.
The Debt to Equity ratio of VTRS (0.72) is worse than 68.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.36
WACC7.94%
2.3 Liquidity
A Current Ratio of 1.51 indicates that VTRS should not have too much problems paying its short term obligations.
VTRS's Current ratio of 1.51 is on the low side compared to the rest of the industry. VTRS is outperformed by 73.66% 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 worse Quick ratio (0.96) than 80.65% 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%.
The Earnings Per Share has been decreasing by -8.55% on average over the past years.
VTRS shows a decrease in Revenue. In the last year, the revenue decreased by -2.70%.
Measured over the past years, VTRS shows a small growth in Revenue. The Revenue has been growing by 6.17% on average per year.
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
The Earnings Per Share is expected to decrease by -0.44% on average over the next years.
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 4.15, 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 98.39% of the companies listed in the same industry.
VTRS is valuated cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.23, the valuation of VTRS can be described as very cheap.
VTRS's Price/Forward Earnings ratio is rather cheap when compared to the industry. VTRS is cheaper than 97.31% of the companies in the same industry.
VTRS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.15 | ||
| Fwd PE | 4.23 |
4.2 Price Multiples
VTRS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VTRS is cheaper than 94.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VTRS is valued cheaper than 95.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
The decent profitability rating of VTRS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.35%
EPS Next 3Y-1.78%
5. Dividend
5.1 Amount
VTRS has a Yearly Dividend Yield of 4.31%, which is a nice return.
Compared to an average industry Dividend Yield of 4.29, VTRS pays a better dividend. On top of this VTRS pays more dividend than 95.70% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, VTRS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
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 (1/29/2025, 8:00:02 PM)
After market: 11.3499 +0.02 (+0.18%)11.33
+0.13 (+1.16%)
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-4.39%
Market Cap13.52B
Analysts54.67
Price Target13.45 (18.71%)
Short Float %2.89%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Yearly Dividend0.48
Dividend Growth(5Y)4.93%
DP-65.15%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)1.28%
PT rev (3m)3.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.15 | ||
| Fwd PE | 4.23 | ||
| P/S | 0.9 | ||
| P/FCF | 7.14 | ||
| P/OCF | 5.88 | ||
| P/B | 0.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.56 |
EPS(TTM)2.73
EY24.1%
EPS(NY)2.68
Fwd EY23.66%
FCF(TTM)1.59
FCFY14%
OCF(TTM)1.93
OCFY17%
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 | 0.99 |
F-Score5
WACC7.94%
ROIC/WACC0.36
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-1.5%
EBIT Next 3Y-1.66%
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%