VIATRIS INC (VTRS) Stock Fundamental Analysis
USA - NASDAQ:VTRS - US92556V1061 - Common Stock
10.46 USD
+0.27 (+2.65%)
10.5 USD
+0.04 (+0.38%)
Taking everything into account, VTRS scores 4 out of 10 in our fundamental rating. VTRS was compared to 192 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of VTRS while its profitability can be described as average. 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.
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
Looking at the Return On Assets, with a value of -9.73%, VTRS is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
VTRS has a better Return On Equity (-24.26%) than 63.54% of its industry peers.
VTRS has a better Return On Invested Capital (3.41%) than 81.25% 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 13.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.73% | ||
| ROE | -24.26% | ||
| ROIC | 3.41% |
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's Operating Margin of 9.34% is amongst the best of the industry. VTRS outperforms 82.81% of its industry peers.
VTRS's Operating Margin has declined in the last couple of years.
VTRS has a Gross Margin of 39.36%. This is comparable to the rest of the industry: VTRS outperforms 59.90% 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 | 9.34% | ||
| PM (TTM) | N/A | ||
| GM | 39.36% |
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
Compared to 5 years ago, VTRS has more shares outstanding
Compared to 1 year ago, VTRS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VTRS (0.88) is comparable to the rest of the industry.
VTRS has a debt to FCF ratio of 8.96. This is a slightly negative value and a sign of low solvency as VTRS would need 8.96 years to pay back of all of its debts.
VTRS has a better Debt to FCF ratio (8.96) than 78.13% of its industry peers.
VTRS has a Debt/Equity ratio of 0.82. This is a neutral value indicating VTRS is somewhat dependend on debt financing.
VTRS has a worse Debt to Equity ratio (0.82) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 8.96 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.46
WACC7.46%
2.3 Liquidity
A Current Ratio of 1.35 indicates that VTRS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, VTRS is doing worse than 73.96% of the companies in the same industry.
VTRS has a Quick Ratio of 1.35. This is a bad value and indicates that VTRS is not financially healthy enough and could expect problems in meeting its short term obligations.
VTRS has a Quick ratio of 0.79. This is amonst the worse of the industry: VTRS underperforms 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for VTRS have decreased strongly by -14.65% in the last year.
VTRS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.73% yearly.
Looking at the last year, VTRS shows a decrease in Revenue. The Revenue has decreased by -6.14% in the last year.
The Revenue has been growing slightly by 5.09% on average over the past years.
EPS 1Y (TTM)-14.65%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-10.67%
Revenue 1Y (TTM)-6.14%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%0.23%
3.2 Future
Based on estimates for the next years, VTRS will show a small growth in Earnings Per Share. The EPS will grow by 2.64% on average per year.
Based on estimates for the next years, VTRS will show a small growth in Revenue. The Revenue will grow by 0.14% on average per year.
EPS Next Y-12.01%
EPS Next 2Y-3.03%
EPS Next 3Y0.91%
EPS Next 5Y2.64%
Revenue Next Year-6.08%
Revenue Next 2Y-2.31%
Revenue Next 3Y-1.04%
Revenue Next 5Y0.14%
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
A Price/Earnings ratio of 4.49 indicates a rather cheap valuation of VTRS.
VTRS's Price/Earnings ratio is rather cheap when compared to the industry. VTRS is cheaper than 96.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, VTRS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.20, the valuation of VTRS can be described as very cheap.
VTRS's Price/Forward Earnings ratio is rather cheap when compared to the industry. VTRS is cheaper than 96.35% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. VTRS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.49 | ||
| Fwd PE | 4.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VTRS is valued cheaper than 94.79% of the companies in the same industry.
92.19% 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 | 7.57 | ||
| EV/EBITDA | 6.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.03%
EPS Next 3Y0.91%
5. Dividend
5.1 Amount
VTRS has a Yearly Dividend Yield of 4.58%, which is a nice return.
VTRS's Dividend Yield is rather good when compared to the industry average which is at 7.07. VTRS pays more dividend than 97.40% of the companies in the same industry.
VTRS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
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-15.34%
EPS Next 2Y-3.03%
EPS Next 3Y0.91%
10.46
+0.27 (+2.65%)
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 Change-0.14%
Market Cap12.20B
Revenue(TTM)14.12B
Net Income(TTM)-3.69B
Analysts71.25
Price Target11.98 (14.53%)
Short Float %2.23%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP-15.34%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.6%
Min EPS beat(2)5.83%
Max EPS beat(2)9.36%
EPS beat(4)3
Avg EPS beat(4)2.01%
Min EPS beat(4)-7.28%
Max EPS beat(4)9.36%
EPS beat(8)4
Avg EPS beat(8)1.01%
EPS beat(12)7
Avg EPS beat(12)1.49%
EPS beat(16)10
Avg EPS beat(16)1.8%
Revenue beat(2)2
Avg Revenue beat(2)1.72%
Min Revenue beat(2)1.3%
Max Revenue beat(2)2.14%
Revenue beat(4)2
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)2.14%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)2
Avg Revenue beat(12)-1.88%
Revenue beat(16)2
Avg Revenue beat(16)-2.17%
PT rev (1m)6.43%
PT rev (3m)9.93%
EPS NQ rev (1m)-0.86%
EPS NQ rev (3m)-3.59%
EPS NY rev (1m)0.18%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)1.3%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.49 | ||
| Fwd PE | 4.2 | ||
| P/S | 0.86 | ||
| P/FCF | 7.57 | ||
| P/OCF | 6.15 | ||
| P/B | 0.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.13 |
EPS(TTM)2.33
EY22.28%
EPS(NY)2.49
Fwd EY23.82%
FCF(TTM)1.38
FCFY13.21%
OCF(TTM)1.7
OCFY16.26%
SpS12.11
BVpS13.05
TBVpS-6.21
PEG (NY)N/A
PEG (5Y)N/A
Graham Number26.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.73% | ||
| ROE | -24.26% | ||
| ROCE | 4.32% | ||
| ROIC | 3.41% | ||
| ROICexc | 3.53% | ||
| ROICexgc | 14.83% | ||
| OM | 9.34% | ||
| PM (TTM) | N/A | ||
| GM | 39.36% | ||
| FCFM | 11.41% |
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%
ROICexgc growth 3Y-9.04%
ROICexgc 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 | 8.96 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 13.37% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 0.88 |
F-Score4
WACC7.46%
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)-14.65%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-10.67%
EPS Next Y-12.01%
EPS Next 2Y-3.03%
EPS Next 3Y0.91%
EPS Next 5Y2.64%
Revenue 1Y (TTM)-6.14%
Revenue growth 3Y-6.25%
Revenue growth 5Y5.09%
Sales Q2Q%0.23%
Revenue Next Year-6.08%
Revenue Next 2Y-2.31%
Revenue Next 3Y-1.04%
Revenue Next 5Y0.14%
EBIT growth 1Y-2.47%
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-20.35%
FCF growth 3Y-7.94%
FCF growth 5Y6.95%
OCF growth 1Y-19.49%
OCF growth 3Y-8.61%
OCF growth 5Y5.01%
VIATRIS INC / VTRS FAQ
What is the ChartMill fundamental rating of VIATRIS INC (VTRS) stock?
ChartMill assigns a fundamental rating of 4 / 10 to VTRS.
Can you provide the valuation status for VIATRIS INC?
ChartMill assigns a valuation rating of 7 / 10 to VIATRIS INC (VTRS). This can be considered as Undervalued.
What is the profitability of VTRS stock?
VIATRIS INC (VTRS) has a profitability rating of 5 / 10.
Can you provide the financial health for VTRS stock?
The financial health rating of VIATRIS INC (VTRS) is 3 / 10.
Can you provide the expected EPS growth for VTRS stock?
The Earnings per Share (EPS) of VIATRIS INC (VTRS) is expected to decline by -12.01% in the next year.