VIATRIS INC (VTRS) Stock Fundamental Analysis
NASDAQ:VTRS - Nasdaq - US92556V1061 - Common Stock - Currency: USD
Taking everything into account, VTRS scores 4 out of 10 in our fundamental rating. VTRS was compared to 193 industry peers in the Pharmaceuticals industry. VTRS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year VTRS had a positive cash flow from operations.
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's Return On Assets of -9.85% is fine compared to the rest of the industry. VTRS outperforms 68.91% of its industry peers.
VTRS has a better Return On Equity (-24.22%) than 67.88% of its industry peers.
VTRS's Return On Invested Capital of 3.68% is amongst the best of the industry. VTRS outperforms 81.35% 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 14.87%.
| 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
VTRS has a Operating Margin of 10.63%. This is amongst the best in the industry. VTRS outperforms 82.38% of its industry peers.
In the last couple of years the Operating Margin of VTRS has declined.
VTRS has a Gross Margin of 40.69%. This is in the better half of the industry: VTRS outperforms 61.14% of its industry peers.
VTRS's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for VTRS has been reduced compared to 1 year ago.
VTRS has more shares outstanding than it did 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 0.91, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
VTRS's Altman-Z score of 0.91 is in line compared to the rest of the industry. VTRS outperforms 57.51% of its industry peers.
VTRS has a debt to FCF ratio of 7.66. This is a slightly negative value and a sign of low solvency as VTRS would need 7.66 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.66, VTRS belongs to the top of the industry, outperforming 81.35% 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.
Looking at the Debt to Equity ratio, with a value of 0.91, VTRS is doing worse than 70.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 7.66 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.46
WACC7.99%
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.
With a Current ratio value of 1.68, VTRS is not doing good in the industry: 66.84% of the companies in the same industry are doing better.
A Quick Ratio of 0.97 indicates that VTRS may have some problems paying its short term obligations.
VTRS has a worse Quick ratio (0.97) than 77.72% 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%.
The Earnings Per Share has been decreasing by -9.73% on average over the past years.
The Revenue has decreased by -6.71% in the past 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
VTRS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.92% yearly.
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-14.8%
EPS Next 2Y-3.05%
EPS Next 3Y1.6%
EPS Next 5Y2.92%
Revenue Next Year-6.93%
Revenue Next 2Y-2.64%
Revenue Next 3Y-1.33%
Revenue Next 5Y-0.21%
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
A Price/Earnings ratio of 3.60 indicates a rather cheap valuation of VTRS.
Based on the Price/Earnings ratio, VTRS is valued cheaper than 97.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.18, VTRS is valued rather cheaply.
The Price/Forward Earnings ratio is 3.59, 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 96.89% of the companies listed in the same industry.
VTRS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.6 | ||
| Fwd PE | 3.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VTRS is valued cheaper than 96.37% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VTRS is valued cheaper than 96.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.66 | ||
| EV/EBITDA | 5.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.05%
EPS Next 3Y1.6%
5. Dividend
5.1 Amount
VTRS has a Yearly Dividend Yield of 5.19%, which is a nice return.
VTRS's Dividend Yield is rather good when compared to the industry average which is at 4.00. VTRS pays more dividend than 97.93% of the companies in the same industry.
VTRS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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-15.18%
EPS Next 2Y-3.05%
EPS Next 3Y1.6%
8.93
-0.21 (-2.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners85.07%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner Change26.32%
Market Cap10.48B
Analysts54.67
Price Target10.9 (22.06%)
Short Float %3.4%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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)-1.26%
PT rev (3m)-8.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.6 | ||
| Fwd PE | 3.59 | ||
| P/S | 0.73 | ||
| P/FCF | 5.66 | ||
| P/OCF | 4.71 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.4 |
EPS(TTM)2.48
EY27.77%
EPS(NY)2.49
Fwd EY27.89%
FCF(TTM)1.58
FCFY17.66%
OCF(TTM)1.89
OCFY21.22%
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 | 0.91 |
F-Score5
WACC7.99%
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-14.8%
EPS Next 2Y-3.05%
EPS Next 3Y1.6%
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-6.93%
Revenue Next 2Y-2.64%
Revenue Next 3Y-1.33%
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%