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 195 industry peers in the Pharmaceuticals industry. While VTRS is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Each year in the past 5 years VTRS had a positive operating cash flow.
1.2 Ratios
VTRS has a better Return On Assets (-9.85%) than 69.23% of its industry peers.
Looking at the Return On Equity, with a value of -24.22%, VTRS is in the better half of the industry, outperforming 68.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.68%, VTRS belongs to the top of the industry, outperforming 81.03% 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 14.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.85% | ||
| ROE | -24.22% | ||
| ROIC | 3.68% |
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 10.63%, VTRS belongs to the best of the industry, outperforming 82.56% of the companies in the same industry.
In the last couple of years the Operating Margin of VTRS has declined.
VTRS has a better Gross Margin (40.69%) than 61.54% 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 | 10.63% | ||
| PM (TTM) | N/A | ||
| GM | 40.69% |
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
VTRS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
VTRS has an Altman-Z score of 0.90. This is a bad value and indicates that VTRS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.90, VTRS is in line with its industry, outperforming 57.44% of the companies in the same industry.
The Debt to FCF ratio of VTRS is 7.66, which is on the high side as it means it would take VTRS, 7.66 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 7.66, VTRS belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
VTRS has a Debt/Equity ratio of 0.91. This is a neutral value indicating VTRS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.91, VTRS is not doing good in the industry: 70.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 7.66 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.46
WACC8.06%
2.3 Liquidity
VTRS has a Current Ratio of 1.68. 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 1.68. This is in the lower half of the industry: VTRS underperforms 66.67% of its industry peers.
A Quick Ratio of 0.97 indicates that VTRS may have some problems paying its short term obligations.
The Quick ratio of VTRS (0.97) is worse than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.97 |
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%.
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 -6.71% in the last year.
Measured over the past years, VTRS shows a small growth in Revenue. The Revenue has been growing by 5.09% on average per year.
EPS 1Y (TTM)-12.37%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-25.37%
Revenue 1Y (TTM)-6.71%
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 2.92% on average over the next years.
Based on estimates for the next years, VTRS will show a decrease in Revenue. The Revenue will decrease by -0.21% on average per year.
EPS Next Y-14.78%
EPS Next 2Y-2.88%
EPS Next 3Y1.8%
EPS Next 5Y2.92%
Revenue Next Year-6.88%
Revenue Next 2Y-2.6%
Revenue Next 3Y-1.31%
Revenue Next 5Y-0.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 3.65, the valuation of VTRS can be described as very cheap.
VTRS's Price/Earnings ratio is rather cheap when compared to the industry. VTRS is cheaper than 97.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of VTRS to the average of the S&P500 Index (26.59), we can say VTRS is valued rather cheaply.
VTRS is valuated cheaply with a Price/Forward Earnings ratio of 3.62.
Based on the Price/Forward Earnings ratio, VTRS is valued cheaper than 95.90% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, VTRS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.65 | ||
| Fwd PE | 3.62 |
4.2 Price Multiples
VTRS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VTRS is cheaper than 96.41% 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 96.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.73 | ||
| EV/EBITDA | 5.37 |
4.3 Compensation for Growth
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 5.67%, VTRS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.16, VTRS pays a better dividend. On top of this VTRS pays more dividend than 97.95% 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
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
VTRS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-15.18%
EPS Next 2Y-2.88%
EPS Next 3Y1.8%
9.04
+0.23 (+2.61%)
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 Cap10.61B
Analysts54.29
Price Target11.04 (22.12%)
Short Float %4.42%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP-15.18%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.57%
Min EPS beat(2)-7.28%
Max EPS beat(2)0.14%
EPS beat(4)2
Avg EPS beat(4)0.33%
Min EPS beat(4)-7.28%
Max EPS beat(4)8.74%
EPS beat(8)4
Avg EPS beat(8)0.13%
EPS beat(12)7
Avg EPS beat(12)0.7%
EPS beat(16)10
Avg EPS beat(16)2.09%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-2.22%
Revenue beat(12)0
Avg Revenue beat(12)-2.76%
Revenue beat(16)2
Avg Revenue beat(16)-2.15%
PT rev (1m)-2.05%
PT rev (3m)-14.69%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-11.3%
EPS NY rev (1m)0.43%
EPS NY rev (3m)-14.92%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.65 | ||
| Fwd PE | 3.62 | ||
| P/S | 0.74 | ||
| P/FCF | 5.73 | ||
| P/OCF | 4.77 | ||
| P/B | 0.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.37 |
EPS(TTM)2.48
EY27.43%
EPS(NY)2.5
Fwd EY27.65%
FCF(TTM)1.58
FCFY17.45%
OCF(TTM)1.89
OCFY20.96%
SpS12.21
BVpS13.33
TBVpS-6.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.85% | ||
| ROE | -24.22% | ||
| ROCE | 4.65% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.77% | ||
| ROICexgc | 13.71% | ||
| OM | 10.63% | ||
| PM (TTM) | N/A | ||
| GM | 40.69% | ||
| FCFM | 12.92% |
ROA(3y)0.91%
ROA(5y)-0.13%
ROE(3y)2.24%
ROE(5y)-0.48%
ROIC(3y)4.05%
ROIC(5y)3.56%
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 7.66 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 12.99% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.9 |
F-Score5
WACC8.06%
ROIC/WACC0.46
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 5Y2.92%
Revenue 1Y (TTM)-6.71%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-11.17%
Revenue Next Year-6.88%
Revenue Next 2Y-2.6%
Revenue Next 3Y-1.31%
Revenue Next 5Y-0.21%
EBIT growth 1Y2.71%
EBIT growth 3Y-4.1%
EBIT growth 5Y1.89%
EBIT Next Year-6.75%
EBIT Next 3Y0.97%
EBIT Next 5Y1%
FCF growth 1Y-20.6%
FCF growth 3Y-7.94%
FCF growth 5Y6.95%
OCF growth 1Y-20.16%
OCF growth 3Y-8.61%
OCF growth 5Y5.01%