VIATRIS INC (VTRS)
US92556V1061 - Common Stock
Overall VTRS gets a fundamental rating of 5 out of 10. We evaluated VTRS against 198 industry peers in the Pharmaceuticals industry. VTRS has only an average score on both its financial health and profitability. 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
The Return On Assets of VTRS (0.11%) is better than 82.56% of its industry peers.
The Return On Equity of VTRS (0.27%) is better than 83.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.17%, VTRS belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
VTRS had an Average Return On Invested Capital over the past 3 years of 3.88%. This is significantly below the industry average of 16.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 0.27% | ||
| ROIC | 3.17% |
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 has a Profit Margin of 0.35%. This is amongst the best in the industry. VTRS outperforms 82.56% of its industry peers.
In the last couple of years the Profit Margin of VTRS has declined.
Looking at the Operating Margin, with a value of 10.37%, VTRS belongs to the top of the industry, outperforming 84.10% of the companies in the same industry.
In the last couple of years the Operating Margin of VTRS has declined.
The Gross Margin of VTRS (43.64%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VTRS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.37% | ||
| PM (TTM) | 0.35% | ||
| GM | 43.64% |
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.
VTRS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VTRS has more shares outstanding
VTRS has a better debt/assets ratio than last year.
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.
VTRS has a Altman-Z score of 1.00. This is comparable to the rest of the industry: VTRS outperforms 59.49% of its industry peers.
VTRS has a debt to FCF ratio of 7.79. This is a slightly negative value and a sign of low solvency as VTRS would need 7.79 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 7.79, VTRS belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that VTRS is somewhat dependend on debt financing.
VTRS's Debt to Equity ratio of 0.79 is on the low side compared to the rest of the industry. VTRS is outperformed by 69.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 7.79 | ||
| Altman-Z | 1 |
ROIC/WACC0.44
WACC7.15%
2.3 Liquidity
A Current Ratio of 1.67 indicates that VTRS should not have too much problems paying its short term obligations.
VTRS's Current ratio of 1.67 is on the low side compared to the rest of the industry. VTRS is outperformed by 72.31% of its industry peers.
VTRS has a Quick Ratio of 1.22. This is a normal value and indicates that VTRS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.22, VTRS is doing worse than 74.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
VTRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.54%.
The Earnings Per Share has been decreasing by -8.55% on average over the past years.
The Revenue has decreased by -5.14% in the past year.
VTRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.17% yearly.
EPS 1Y (TTM)-12.54%
EPS 3Y-12.68%
EPS 5Y-8.55%
EPS growth Q2Q-7.46%
Revenue 1Y (TTM)-5.14%
Revenue growth 3Y8.9%
Revenue growth 5Y6.17%
Revenue growth Q2Q-1%
3.2 Future
VTRS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.69% yearly.
VTRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.47% yearly.
EPS Next Y-3.22%
EPS Next 2Y-1.5%
EPS Next 3Y-0.55%
EPS Next 5Y7.69%
Revenue Next Year-0.46%
Revenue Next 2Y-1.25%
Revenue Next 3Y-0.79%
Revenue Next 5Y0.47%
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
The Price/Earnings ratio is 4.02, which indicates a rather cheap valuation of VTRS.
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.
The average S&P500 Price/Earnings ratio is at 25.02. VTRS is valued rather cheaply when compared to this.
VTRS is valuated cheaply with a Price/Forward Earnings ratio of 4.15.
VTRS's Price/Forward Earnings ratio is rather cheap when compared to the industry. VTRS is cheaper than 99.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, VTRS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.02 | ||
| Fwd PE | 4.15 |
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 93.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VTRS is valued cheaply inside the industry as 96.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.02 | ||
| EV/EBITDA | 7.07 |
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-1.5%
EPS Next 3Y-0.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.18%, VTRS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.39, VTRS pays a better dividend. On top of this VTRS pays more dividend than 96.41% 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 | 4.18% |
5.2 History
The dividend of VTRS has a limited annual growth rate of 4.93%.
VTRS has been paying a dividend for at least 10 years, so it has a reliable track record.
VTRS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.93%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
VTRS pays out 1052.29% of its income as dividend. This is not a sustainable payout ratio.
The dividend of VTRS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1052.29%
EPS Next 2Y-1.5%
EPS Next 3Y-0.55%
VIATRIS INC
NASDAQ:VTRS (4/29/2024, 7:00:03 PM)
After market: 11.72 -0.06 (-0.51%)11.78
+0.21 (+1.82%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.02 | ||
| Fwd PE | 4.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 0.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.37% | ||
| PM (TTM) | 0.35% | ||
| GM | 43.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.54%
EPS 3Y-12.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y-3.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.14%
Revenue growth 3Y8.9%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y