VIATRIS INC (VTRS) Stock Fundamental Analysis
USA - NASDAQ:VTRS - US92556V1061 - Common Stock
9.74 USD
-0.25 (-2.5%)
9.75 USD
+0.01 (+0.1%)
VTRS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
In the past year VTRS was profitable.
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.
In the past 5 years VTRS always reported a positive cash flow from operatings.
1.2 Ratios
VTRS has a better Return On Assets (-9.03%) than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of -22.27%, VTRS is in the better half of the industry, outperforming 65.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.61%, VTRS is in the better half of the industry, outperforming 80.00% 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 15.30%.
| 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
Looking at the Operating Margin, with a value of 10.13%, VTRS belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
In the last couple of years the Operating Margin of VTRS has declined.
Looking at the Gross Margin, with a value of 40.15%, VTRS is in the better half of the industry, outperforming 60.51% of the companies in the same industry.
VTRS's Gross Margin has been stable in the last couple of years.
| 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
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
The number of shares outstanding for VTRS has been increased compared to 5 years ago.
Compared to 1 year ago, VTRS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
VTRS has a Altman-Z score (0.87) which is comparable to the rest of the industry.
The Debt to FCF ratio of VTRS is 7.49, which is on the high side as it means it would take VTRS, 7.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VTRS (7.49) is better than 80.00% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that VTRS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.82, VTRS is not doing good in the industry: 71.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.5
WACC7.27%
2.3 Liquidity
A Current Ratio of 1.37 indicates that VTRS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, VTRS is doing worse than 71.79% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that VTRS may have some problems paying its short term obligations.
VTRS's Quick ratio of 0.77 is on the low side compared to the rest of the industry. VTRS is outperformed by 82.05% 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 -13.00% 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.
VTRS shows a decrease in Revenue. In the last year, the revenue decreased by -7.37%.
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)-13%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-10.14%
Revenue 1Y (TTM)-7.37%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-5.65%
3.2 Future
VTRS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.64% yearly.
Based on estimates for the next years, VTRS will show a small growth in Revenue. The Revenue will grow by 0.09% on average per year.
EPS Next Y-12.16%
EPS Next 2Y-3.01%
EPS Next 3Y0.91%
EPS Next 5Y2.64%
Revenue Next Year-6.25%
Revenue Next 2Y-2.36%
Revenue Next 3Y-1.08%
Revenue Next 5Y0.09%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.04, 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 97.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of VTRS to the average of the S&P500 Index (27.02), we can say VTRS is valued rather cheaply.
The Price/Forward Earnings ratio is 3.91, which indicates a rather cheap valuation of VTRS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VTRS indicates a rather cheap valuation: VTRS is cheaper than 97.44% of the companies listed in the same industry.
VTRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.04 | ||
| Fwd PE | 3.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VTRS is valued cheaply inside the industry as 96.41% of the companies are valued more expensively.
93.33% of the companies in the same industry are more expensive than VTRS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.65 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.01%
EPS Next 3Y0.91%
5. Dividend
5.1 Amount
VTRS has a Yearly Dividend Yield of 4.80%, which is a nice return.
Compared to an average industry Dividend Yield of 6.60, 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 2.44, VTRS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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-3.01%
EPS Next 3Y0.91%
9.74
-0.25 (-2.5%)
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 Change1.5%
Market Cap11.36B
Analysts54.29
Price Target11.26 (15.61%)
Short Float %3.59%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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)0%
PT rev (3m)3.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.04 | ||
| Fwd PE | 3.91 | ||
| P/S | 0.8 | ||
| P/FCF | 6.65 | ||
| P/OCF | 5.5 | ||
| P/B | 0.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.58 |
EPS(TTM)2.41
EY24.74%
EPS(NY)2.49
Fwd EY25.59%
FCF(TTM)1.46
FCFY15.04%
OCF(TTM)1.77
OCFY18.18%
SpS12.11
BVpS13.36
TBVpS-6.43
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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 | 0.87 |
F-Score4
WACC7.27%
ROIC/WACC0.5
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)-13%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-10.14%
EPS Next Y-12.16%
EPS Next 2Y-3.01%
EPS Next 3Y0.91%
EPS Next 5Y2.64%
Revenue 1Y (TTM)-7.37%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%-5.65%
Revenue Next Year-6.25%
Revenue Next 2Y-2.36%
Revenue Next 3Y-1.08%
Revenue Next 5Y0.09%
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%