VIATRIS INC (VTRS) Stock Fundamental Analysis
NASDAQ:VTRS - Nasdaq - US92556V1061 - Common Stock - Currency: USD
Taking everything into account, VTRS scores 5 out of 10 in our fundamental rating. VTRS was compared to 198 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
In the past year VTRS was profitable.
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 has a better Return On Assets (-1.53%) than 80.30% of its industry peers.
With an excellent Return On Equity value of -3.40%, VTRS belongs to the best of the industry, outperforming 81.31% of the companies in the same industry.
VTRS's Return On Invested Capital of 3.92% is amongst the best of the industry. VTRS outperforms 80.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VTRS is significantly below the industry average of 42.34%.
| 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)4.05%
ROIC(5y)3.56%
1.3 Margins
The Operating Margin of VTRS (12.04%) is better than 82.32% of its industry peers.
VTRS's Operating Margin has declined in the last couple of years.
VTRS has a better Gross Margin (41.65%) than 60.10% 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 | 12.04% | ||
| PM (TTM) | N/A | ||
| GM | 41.65% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VTRS is destroying value.
Compared to 1 year ago, VTRS has less shares outstanding
VTRS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VTRS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.00, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.00, VTRS is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
The Debt to FCF ratio of VTRS is 7.18, which is on the high side as it means it would take VTRS, 7.18 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 7.18, VTRS belongs to the best of the industry, outperforming 81.31% of the companies in the same industry.
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 67.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 1 |
ROIC/WACC0.49
WACC8.04%
2.3 Liquidity
VTRS has a Current Ratio of 1.65. 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 worse Current ratio (1.65) than 67.17% of its industry peers.
A Quick Ratio of 0.98 indicates that VTRS may have some problems paying its short term obligations.
VTRS has a Quick ratio of 0.98. This is in the lower half of the industry: VTRS underperforms 76.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
VTRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.37%.
VTRS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.73% yearly.
VTRS shows a decrease in Revenue. In the last year, the revenue decreased by -4.46%.
The Revenue has been growing slightly by 5.09% on average over the past years.
EPS 1Y (TTM)-12.37%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-25.37%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-11.17%
3.2 Future
The Earnings Per Share is expected to grow by 11.86% on average over the next years. This is quite good.
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-14.78%
EPS Next 2Y-2.88%
EPS Next 3Y1.8%
EPS Next 5Y11.86%
Revenue Next Year-6.9%
Revenue Next 2Y-2.62%
Revenue Next 3Y-1.3%
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.
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 3.58, the valuation of VTRS can be described as very cheap.
97.47% of the companies in the same industry are more expensive than VTRS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of VTRS to the average of the S&P500 Index (26.60), we can say VTRS is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.55, the valuation of VTRS can be described as very cheap.
97.47% of the companies in the same industry are more expensive than VTRS, based on the Price/Forward Earnings ratio.
VTRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.58 | ||
| Fwd PE | 3.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VTRS is valued cheaper than 94.95% 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 96.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.42 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
VTRS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.88%
EPS Next 3Y1.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.46%, VTRS is a good candidate for dividend investing.
The stock price of VTRS dropped by -21.07% 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 4.24, VTRS pays a better dividend. On top of this VTRS pays more dividend than 97.98% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, VTRS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
5.2 History
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)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-2.88%
EPS Next 3Y1.8%
8.88
+0.12 (+1.37%)
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 Change26.54%
Market Cap10.60B
Analysts72
Price Target11.27 (26.91%)
Short Float %4.13%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
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)-4.94%
PT rev (3m)-16.21%
EPS NQ rev (1m)-3.93%
EPS NQ rev (3m)-19.49%
EPS NY rev (1m)0.43%
EPS NY rev (3m)-14.92%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)-5.36%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.58 | ||
| Fwd PE | 3.55 | ||
| P/S | 0.72 | ||
| P/FCF | 5.42 | ||
| P/OCF | 4.6 | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.08 |
EPS(TTM)2.48
EY27.93%
EPS(NY)2.5
Fwd EY28.15%
FCF(TTM)1.64
FCFY18.45%
OCF(TTM)1.93
OCFY21.73%
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)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%
ROICexcg growth 3Y-9.04%
ROICexcg 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-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 | 1 |
F-Score5
WACC8.04%
ROIC/WACC0.49
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)-12.37%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-25.37%
EPS Next Y-14.78%
EPS Next 2Y-2.88%
EPS Next 3Y1.8%
EPS Next 5Y11.86%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-11.17%
Revenue Next Year-6.9%
Revenue Next 2Y-2.62%
Revenue Next 3Y-1.3%
Revenue Next 5Y1.68%
EBIT growth 1Y10.92%
EBIT growth 3Y-4.1%
EBIT growth 5Y1.89%
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%