VIATRIS INC (VTRS) Stock Fundamental Analysis
NASDAQ:VTRS - Nasdaq - US92556V1061 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to VTRS. VTRS was compared to 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 valued quite cheap, but it does not seem to be growing. Finally VTRS also has an excellent dividend rating.
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.
Of the past 5 years VTRS 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of -1.97%, VTRS is doing good in the industry, outperforming 78.80% of the companies in the same industry.
VTRS has a better Return On Equity (-4.46%) than 80.43% of its industry peers.
With a decent Return On Invested Capital value of 2.87%, VTRS is doing good in the industry, outperforming 79.89% 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 44.08%.
| 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.
VTRS has a better Operating Margin (8.98%) than 80.43% 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 42.49%, VTRS is in line with its industry, outperforming 59.24% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VTRS is destroying value.
There is no outstanding debt for VTRS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
VTRS has an Altman-Z score of 0.94. This is a bad value and indicates that VTRS is not financially healthy and even has some risk of bankruptcy.
VTRS has a Altman-Z score (0.94) which is in line with its industry peers.
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's Debt to FCF ratio of 8.32 is amongst the best of the industry. VTRS outperforms 81.52% of its industry peers.
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 70.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 8.32 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.38
WACC7.52%
2.3 Liquidity
VTRS has a Current Ratio of 1.51. 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 Current ratio of 1.51. This is in the lower half of the industry: VTRS underperforms 73.37% of its industry peers.
A Quick Ratio of 0.96 indicates that VTRS may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, VTRS is not doing good in the industry: 81.52% of the companies in the same industry are doing better.
| 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 -9.56%.
The Earnings Per Share has been decreasing by -9.73% 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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
Based on estimates for the next years, VTRS will show a small growth in Revenue. The Revenue will grow by 1.68% on average per year.
EPS Next Y0.16%
EPS Next 2Y1.81%
EPS Next 3Y2.28%
EPS Next 5Y11.86%
Revenue Next Year-3.52%
Revenue Next 2Y-1.46%
Revenue Next 3Y-0.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 3.48, 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 98.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.43, VTRS is valued rather cheaply.
VTRS is valuated cheaply with a Price/Forward Earnings ratio of 3.48.
Based on the Price/Forward Earnings ratio, VTRS is valued cheaply inside the industry as 97.28% of the companies are valued more expensively.
VTRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.48 | ||
| Fwd PE | 3.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VTRS is valued cheaper than 94.02% of the companies in the same industry.
VTRS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VTRS is cheaper than 96.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.82 | ||
| EV/EBITDA | 6.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VTRS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)22.12
PEG (5Y)N/A
EPS Next 2Y1.81%
EPS Next 3Y2.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.04%, VTRS is a good candidate for dividend investing.
In the last 3 months the price of VTRS has falen by -29.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.44, VTRS pays a better dividend. On top of this VTRS pays more dividend than 97.28% 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 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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.
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
The earnings of VTRS are negative and hence is the payout ratio. VTRS will probably not be able to sustain this dividend level.
The dividend of VTRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-65.15%
EPS Next 2Y1.81%
EPS Next 3Y2.28%
9.23
-0.3 (-3.15%)
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 Change-4.39%
Market Cap11.02B
Analysts54.67
Price Target13.11 (42.04%)
Short Float %2.53%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
Yearly Dividend0.48
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)-2.53%
PT rev (3m)-0.24%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.48 | ||
| Fwd PE | 3.48 | ||
| P/S | 0.73 | ||
| P/FCF | 5.82 | ||
| P/OCF | 4.79 | ||
| P/B | 0.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.05 |
EPS(TTM)2.65
EY28.71%
EPS(NY)2.65
Fwd EY28.76%
FCF(TTM)1.59
FCFY17.18%
OCF(TTM)1.93
OCFY20.87%
SpS12.61
BVpS16.58
TBVpS-6.49
PEG (NY)22.12
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 | 0.94 |
F-Score5
WACC7.52%
ROIC/WACC0.38
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)-9.56%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-12.9%
EPS Next Y0.16%
EPS Next 2Y1.81%
EPS Next 3Y2.28%
EPS Next 5Y11.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-8.06%
Revenue Next Year-3.52%
Revenue Next 2Y-1.46%
Revenue Next 3Y-0.74%
Revenue Next 5Y1.68%
EBIT growth 1Y-34.58%
EBIT growth 3Y2.98%
EBIT growth 5Y-1.57%
EBIT Next Year-1.58%
EBIT Next 3Y-1.92%
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%