VIATRIS INC (VTRS) Stock Fundamental Analysis
USA - NASDAQ:VTRS - US92556V1061 - Common Stock
10.11 USD
-0.64 (-5.95%)
10.12 USD
+0.01 (+0.1%)
Taking everything into account, VTRS scores 4 out of 10 in our fundamental rating. VTRS was compared to 192 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 cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VTRS was profitable.
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
The Return On Assets of VTRS (-9.03%) is better than 67.19% of its industry peers.
VTRS has a better Return On Equity (-22.27%) than 65.63% of its industry peers.
VTRS's Return On Invested Capital of 3.61% is amongst the best of the industry. VTRS outperforms 80.73% 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 15.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.03% | ||
| ROE | -22.27% | ||
| ROIC | 3.61% |
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
With an excellent Operating Margin value of 10.13%, VTRS belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
VTRS's Operating Margin has declined in the last couple of years.
VTRS has a Gross Margin of 40.15%. This is in the better half of the industry: VTRS outperforms 61.98% of its industry peers.
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 | 10.13% | ||
| 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 0.89, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
VTRS has a Altman-Z score (0.89) which is comparable to the rest of the industry.
VTRS has a debt to FCF ratio of 7.49. This is a slightly negative value and a sign of low solvency as VTRS would need 7.49 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.49, VTRS is doing good in the industry, outperforming 79.17% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that VTRS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, VTRS is doing worse than 71.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.48
WACC7.46%
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's Current ratio of 1.37 is on the low side compared to the rest of the industry. VTRS is outperformed by 72.40% of its industry peers.
A Quick Ratio of 0.77 indicates that VTRS may have some problems paying its short term obligations.
VTRS has a worse Quick ratio (0.77) than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for VTRS have decreased strongly by -14.65% 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.
Looking at the last year, VTRS shows a decrease in Revenue. The Revenue has decreased by -4.46% in the last year.
VTRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.09% yearly.
EPS 1Y (TTM)-14.65%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-10.67%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%0.23%
3.2 Future
The Earnings Per Share is expected to grow by 2.64% on average over the next years.
Based on estimates for the next years, VTRS will show a small growth in Revenue. The Revenue will grow by 0.14% on average per year.
EPS Next Y-12.01%
EPS Next 2Y-3.03%
EPS Next 3Y0.91%
EPS Next 5Y2.64%
Revenue Next Year-6.08%
Revenue Next 2Y-2.31%
Revenue Next 3Y-1.04%
Revenue Next 5Y0.14%
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.
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 4.34, the valuation of VTRS can be described as very cheap.
Based on the Price/Earnings ratio, VTRS is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.67, VTRS is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.06, 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 97.92% of the companies in the same industry.
VTRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 4.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VTRS is valued cheaper than 97.40% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VTRS indicates a rather cheap valuation: VTRS is cheaper than 92.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.9 | ||
| EV/EBITDA | 5.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.03%
EPS Next 3Y0.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.58%, VTRS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.76, VTRS pays a better dividend. On top of this VTRS pays more dividend than 96.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, VTRS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
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
VTRS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-16.42%
EPS Next 2Y-3.03%
EPS Next 3Y0.91%
10.11
-0.64 (-5.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners85.59%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner Change1.07%
Market Cap11.79B
Revenue(TTM)14.74B
Net Income(TTM)-3.47B
Analysts71.25
Price Target11.98 (18.5%)
Short Float %2.48%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
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)6.43%
PT rev (3m)9.93%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)0.22%
EPS NY rev (3m)3.33%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 4.06 | ||
| P/S | 0.84 | ||
| P/FCF | 6.9 | ||
| P/OCF | 5.71 | ||
| P/B | 0.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.68 |
EPS(TTM)2.33
EY23.05%
EPS(NY)2.49
Fwd EY24.65%
FCF(TTM)1.46
FCFY14.49%
OCF(TTM)1.77
OCFY17.51%
SpS12.11
BVpS13.36
TBVpS-6.43
PEG (NY)N/A
PEG (5Y)N/A
Graham Number26.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.03% | ||
| ROE | -22.27% | ||
| ROCE | 4.57% | ||
| ROIC | 3.61% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 14.98% | ||
| OM | 10.13% | ||
| 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%
ROICexgc growth 3Y-9.04%
ROICexgc 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 | 3.05 | ||
| Cap/Depr | 12.94% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.89 |
F-Score4
WACC7.46%
ROIC/WACC0.48
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)-14.65%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-10.67%
EPS Next Y-12.01%
EPS Next 2Y-3.03%
EPS Next 3Y0.91%
EPS Next 5Y2.64%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%0.23%
Revenue Next Year-6.08%
Revenue Next 2Y-2.31%
Revenue Next 3Y-1.04%
Revenue Next 5Y0.14%
EBIT growth 1Y1.9%
EBIT growth 3Y-4.1%
EBIT growth 5Y1.89%
EBIT Next Year-5.71%
EBIT Next 3Y0.26%
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%
VIATRIS INC / VTRS FAQ
What is the ChartMill fundamental rating of VIATRIS INC (VTRS) stock?
ChartMill assigns a fundamental rating of 4 / 10 to VTRS.
Can you provide the valuation status for VIATRIS INC?
ChartMill assigns a valuation rating of 7 / 10 to VIATRIS INC (VTRS). This can be considered as Undervalued.
What is the profitability of VTRS stock?
VIATRIS INC (VTRS) has a profitability rating of 5 / 10.
Can you provide the financial health for VTRS stock?
The financial health rating of VIATRIS INC (VTRS) is 3 / 10.
Can you provide the expected EPS growth for VTRS stock?
The Earnings per Share (EPS) of VIATRIS INC (VTRS) is expected to decline by -12.01% in the next year.