VIATRIS INC (VTRS) Stock Fundamental Analysis
NASDAQ:VTRS - Nasdaq - US92556V1061 - Common Stock - Currency: USD
Overall VTRS gets a fundamental rating of 5 out of 10. We evaluated VTRS against 197 industry peers in the Pharmaceuticals industry. VTRS has a medium profitability rating, but doesn't score so well on its financial health evaluation. VTRS has a bad growth rate and is valued cheaply.
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
VTRS's Return On Assets of -1.53% is amongst the best of the industry. VTRS outperforms 80.20% of its industry peers.
The Return On Equity of VTRS (-3.40%) is better than 80.71% of its industry peers.
VTRS has a better Return On Invested Capital (3.92%) than 80.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VTRS is significantly below the industry average of 40.40%.
The 3 year average ROIC (3.81%) for VTRS is below the current ROIC(3.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.53% | ||
| ROE | -3.4% | ||
| ROIC | 3.92% |
ROA(3y)0.91%
ROA(5y)-0.13%
ROE(3y)2.24%
ROE(5y)-0.48%
ROIC(3y)3.81%
ROIC(5y)3.41%
1.3 Margins
The Operating Margin of VTRS (12.04%) is better than 81.73% of its industry peers.
In the last couple of years the Operating Margin of VTRS has declined.
Looking at the Gross Margin, with a value of 41.65%, VTRS is in line with its industry, outperforming 59.90% of the companies in the same industry.
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 | 12.04% | ||
| PM (TTM) | N/A | ||
| GM | 41.65% |
OM growth 3Y-4.29%
OM growth 5Y-6.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.33%
GM growth 5Y1.02%
2. Health
2.1 Basic Checks
VTRS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VTRS has less shares outstanding than it did 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 0.96, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
VTRS has a better Altman-Z score (0.96) than 62.44% of its industry peers.
VTRS has a debt to FCF ratio of 7.18. This is a slightly negative value and a sign of low solvency as VTRS would need 7.18 years to pay back of all of its debts.
VTRS's Debt to FCF ratio of 7.18 is amongst the best of the industry. VTRS outperforms 81.73% of its industry peers.
VTRS has a Debt/Equity ratio of 0.75. This is a neutral value indicating VTRS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, VTRS is doing worse than 69.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.52
WACC7.49%
2.3 Liquidity
A Current Ratio of 1.65 indicates that VTRS should not have too much problems paying its short term obligations.
VTRS's Current ratio of 1.65 is on the low side compared to the rest of the industry. VTRS is outperformed by 68.02% of its industry peers.
VTRS has a Quick Ratio of 1.65. This is a bad value and indicates that VTRS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.98, VTRS is not doing good in the industry: 77.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for VTRS have decreased by -9.56% in the last year.
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.
The Revenue has decreased by -4.46% in the past year.
The Revenue has been growing slightly by 5.09% on average over the past years.
EPS 1Y (TTM)-9.56%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-12.9%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-8.06%
3.2 Future
VTRS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.86% yearly.
VTRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.68% yearly.
EPS Next Y-15.22%
EPS Next 2Y-3.81%
EPS Next 3Y-0.14%
EPS Next 5Y11.86%
Revenue Next Year-6.98%
Revenue Next 2Y-2.98%
Revenue Next 3Y-1.65%
Revenue Next 5Y1.68%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
VTRS is valuated cheaply with a Price/Earnings ratio of 2.85.
Based on the Price/Earnings ratio, VTRS is valued cheaply inside the industry as 96.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VTRS to the average of the S&P500 Index (28.29), we can say VTRS is valued rather cheaply.
The Price/Forward Earnings ratio is 3.36, which indicates a rather cheap valuation of VTRS.
VTRS's Price/Forward Earnings ratio is rather cheap when compared to the industry. VTRS is cheaper than 97.46% of the companies in the same industry.
VTRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.85 | ||
| Fwd PE | 3.36 |
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 95.94% of the companies listed in the same industry.
97.46% 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 | 4.61 | ||
| EV/EBITDA | 4.74 |
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-3.81%
EPS Next 3Y-0.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.35%, VTRS is a good candidate for dividend investing.
The stock price of VTRS dropped by -33.10% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.50, VTRS pays a better dividend. On top of this VTRS pays more dividend than 98.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, VTRS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
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-90.63%
EPS Next 2Y-3.81%
EPS Next 3Y-0.14%
7.56
+0.17 (+2.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners85.9%
Inst Owner ChangeN/A
Ins Owners0.38%
Ins Owner Change24.71%
Market Cap9.02B
Analysts72
Price Target11.85 (56.75%)
Short Float %2.24%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP-90.63%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.73%
Min EPS beat(2)-7.28%
Max EPS beat(2)8.74%
EPS beat(4)1
Avg EPS beat(4)-0.31%
Min EPS beat(4)-7.28%
Max EPS beat(4)8.74%
EPS beat(8)4
Avg EPS beat(8)1.36%
EPS beat(12)7
Avg EPS beat(12)1.56%
EPS beat(16)10
Avg EPS beat(16)2.89%
Revenue beat(2)0
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-2.32%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-2.54%
Revenue beat(12)0
Avg Revenue beat(12)-2.89%
Revenue beat(16)3
Avg Revenue beat(16)-1.82%
PT rev (1m)-8.38%
PT rev (3m)-11.86%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)-18.87%
EPS NY rev (1m)-15.35%
EPS NY rev (3m)-16.2%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-4.13%
Revenue NY rev (1m)-1.31%
Revenue NY rev (3m)-4.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.85 | ||
| Fwd PE | 3.36 | ||
| P/S | 0.61 | ||
| P/FCF | 4.61 | ||
| P/OCF | 3.92 | ||
| P/B | 0.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.74 |
EPS(TTM)2.65
EY35.05%
EPS(NY)2.25
Fwd EY29.72%
FCF(TTM)1.64
FCFY21.68%
OCF(TTM)1.93
OCFY25.52%
SpS12.35
BVpS15.61
TBVpS-6.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.53% | ||
| ROE | -3.4% | ||
| ROCE | 4.97% | ||
| ROIC | 3.92% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 16.14% | ||
| OM | 12.04% | ||
| PM (TTM) | N/A | ||
| GM | 41.65% | ||
| FCFM | 13.27% |
ROA(3y)0.91%
ROA(5y)-0.13%
ROE(3y)2.24%
ROE(5y)-0.48%
ROIC(3y)3.81%
ROIC(5y)3.41%
ROICexc(3y)3.92%
ROICexc(5y)3.5%
ROICexgc(3y)16.89%
ROICexgc(5y)16.95%
ROCE(3y)4.82%
ROCE(5y)4.36%
ROICexcg growth 3Y-14.89%
ROICexcg growth 5Y-16.57%
ROICexc growth 3Y-1.85%
ROICexc growth 5Y-8.3%
OM growth 3Y-4.29%
OM growth 5Y-6.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.33%
GM growth 5Y1.02%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 7.18 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 11.99% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 3.16 | ||
| Cash Conversion | 49.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 0.96 |
F-Score5
WACC7.49%
ROIC/WACC0.52
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)-9.56%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-12.9%
EPS Next Y-15.22%
EPS Next 2Y-3.81%
EPS Next 3Y-0.14%
EPS Next 5Y11.86%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-8.06%
Revenue Next Year-6.98%
Revenue Next 2Y-2.98%
Revenue Next 3Y-1.65%
Revenue Next 5Y1.68%
EBIT growth 1Y10.92%
EBIT growth 3Y-10.27%
EBIT growth 5Y-2.09%
EBIT Next Year-7.09%
EBIT Next 3Y0.56%
EBIT Next 5Y5.78%
FCF growth 1Y-19.35%
FCF growth 3Y-7.94%
FCF growth 5Y6.95%
OCF growth 1Y-20.59%
OCF growth 3Y-8.61%
OCF growth 5Y5.01%