VIATRIS INC (VTRS) Stock Fundamental Analysis
USA - NASDAQ:VTRS - US92556V1061 - Common Stock
11.01 USD
-0.19 (-1.7%)
10.92 USD
-0.09 (-0.82%)
Overall VTRS gets a fundamental rating of 4 out of 10. We evaluated VTRS against 191 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 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's Return On Assets of -9.73% is fine compared to the rest of the industry. VTRS outperforms 66.49% of its industry peers.
VTRS's Return On Equity of -24.26% is fine compared to the rest of the industry. VTRS outperforms 63.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.41%, VTRS belongs to the top of the industry, outperforming 80.63% of the companies in the same industry.
VTRS had an Average Return On Invested Capital over the past 3 years of 4.05%. This is significantly below the industry average of 15.35%.
| 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 83.25% of its industry peers.
VTRS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 39.36%, VTRS is in the better half of the industry, outperforming 60.73% of the companies in the same industry.
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.
VTRS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VTRS has been increased compared to 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 0.91. This is a bad value and indicates that VTRS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VTRS (0.91) 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 79.06% 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.
The Debt to Equity ratio of VTRS (0.82) is worse than 71.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 8.96 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.45
WACC7.6%
2.3 Liquidity
VTRS has a Current Ratio of 1.35. 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 1.35. This is in the lower half of the industry: VTRS underperforms 73.30% of its industry peers.
A Quick Ratio of 0.79 indicates that VTRS may have some problems paying its short term obligations.
The Quick ratio of VTRS (0.79) is worse than 81.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
VTRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.65%.
The Earnings Per Share has been decreasing by -9.73% on average over the past years.
VTRS shows a decrease in Revenue. In the last year, the revenue decreased by -6.14%.
VTRS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.09% yearly.
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.
VTRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.14% yearly.
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
Based on the Price/Earnings ratio of 4.73, the valuation of VTRS can be described as very cheap.
Based on the Price/Earnings ratio, VTRS is valued cheaper than 97.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of VTRS to the average of the S&P500 Index (26.34), we can say VTRS is valued rather cheaply.
VTRS is valuated cheaply with a Price/Forward Earnings ratio of 4.42.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VTRS indicates a rather cheap valuation: VTRS is cheaper than 96.34% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. VTRS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.73 | ||
| Fwd PE | 4.42 |
4.2 Price Multiples
VTRS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VTRS is cheaper than 95.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VTRS indicates a rather cheap valuation: VTRS is cheaper than 91.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.97 | ||
| EV/EBITDA | 6.42 |
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 6.98. VTRS pays more dividend than 96.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, VTRS pays a better dividend.
| 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
The earnings of VTRS are negative and hence is the payout ratio. VTRS will probably not be able to sustain this dividend level.
DP-15.34%
EPS Next 2Y-3.03%
EPS Next 3Y0.91%
11.01
-0.19 (-1.7%)
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 Change1.07%
Market Cap12.84B
Revenue(TTM)14.12B
Net Income(TTM)-3.69B
Analysts71.25
Price Target11.98 (8.81%)
Short Float %2.48%
Short Ratio3.27
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)-0.02%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)0.18%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.73 | ||
| Fwd PE | 4.42 | ||
| P/S | 0.91 | ||
| P/FCF | 7.97 | ||
| P/OCF | 6.47 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.42 |
EPS(TTM)2.33
EY21.16%
EPS(NY)2.49
Fwd EY22.63%
FCF(TTM)1.38
FCFY12.55%
OCF(TTM)1.7
OCFY15.45%
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 | 0.91 |
F-Score4
WACC7.6%
ROIC/WACC0.45
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.