VIATRIS INC (VTRS) Stock Fundamental Analysis
USA - NASDAQ:VTRS - US92556V1061 - Common Stock
9.9 USD
+0.04 (+0.41%)
9.95 USD
+0.05 (+0.51%)
We assign a fundamental rating of 4 out of 10 to VTRS. VTRS was compared to 196 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
VTRS had positive earnings in the past year.
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.
Each year in the past 5 years VTRS had a positive operating cash flow.
1.2 Ratios
VTRS's Return On Assets of -9.03% is fine compared to the rest of the industry. VTRS outperforms 67.35% of its industry peers.
VTRS's Return On Equity of -22.27% is fine compared to the rest of the industry. VTRS outperforms 65.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.66%, VTRS belongs to the top of the industry, outperforming 80.61% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VTRS is significantly below the industry average of 15.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.03% | ||
| ROE | -22.27% | ||
| ROIC | 3.66% |
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 10.28% is amongst the best of the industry. VTRS outperforms 83.16% of its industry peers.
In the last couple of years the Operating Margin of VTRS has declined.
VTRS has a Gross Margin of 40.15%. This is in the better half of the industry: VTRS outperforms 60.71% 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 | 10.28% | ||
| 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.
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 0.88, we must say that VTRS is in the distress zone and has some risk of bankruptcy.
VTRS has a Altman-Z score (0.88) 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.
With an excellent Debt to FCF ratio value of 7.49, VTRS belongs to the best of the industry, outperforming 80.10% of the companies in the same industry.
VTRS has a Debt/Equity ratio of 0.82. This is a neutral value indicating VTRS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, VTRS is doing worse than 70.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.45
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.37 indicates that VTRS should not have too much problems paying its short term obligations.
VTRS has a Current ratio of 1.37. This is in the lower half of the industry: VTRS underperforms 70.92% of its industry peers.
A Quick Ratio of 0.77 indicates that VTRS may have some problems paying its short term obligations.
The Quick ratio of VTRS (0.77) is worse than 81.12% 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.
The Revenue has decreased by -7.37% in the past year.
The Revenue has been growing slightly by 5.09% on average over the past years.
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
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 0.09% on average per year.
EPS Next Y-12.15%
EPS Next 2Y-2.86%
EPS Next 3Y1.18%
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.
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
With a Price/Earnings ratio of 4.11, the valuation of VTRS can be described as very cheap.
Based on the Price/Earnings ratio, VTRS is valued cheaper than 96.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, VTRS is valued rather cheaply.
A Price/Forward Earnings ratio of 3.96 indicates a rather cheap valuation of VTRS.
Based on the Price/Forward Earnings ratio, VTRS is valued cheaply inside the industry as 97.45% of the companies are valued more expensively.
VTRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 3.96 |
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 96.94% of the companies listed in the same industry.
VTRS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VTRS is cheaper than 93.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.86%
EPS Next 3Y1.18%
5. Dividend
5.1 Amount
VTRS has a Yearly Dividend Yield of 4.87%, which is a nice return.
Compared to an average industry Dividend Yield of 5.04, VTRS pays a better dividend. On top of this VTRS pays more dividend than 95.92% of the companies listed in the same industry.
VTRS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
5.2 History
VTRS has been paying a dividend for at least 10 years, so it has 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-16.42%
EPS Next 2Y-2.86%
EPS Next 3Y1.18%
9.9
+0.04 (+0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.88%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner Change1.5%
Market Cap11.54B
Analysts71.25
Price Target11.26 (13.74%)
Short Float %3.49%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
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)3.29%
PT rev (3m)1.99%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)3.11%
EPS NY rev (3m)3.09%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 3.96 | ||
| P/S | 0.82 | ||
| P/FCF | 6.76 | ||
| P/OCF | 5.59 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.59 |
EPS(TTM)2.41
EY24.34%
EPS(NY)2.5
Fwd EY25.26%
FCF(TTM)1.46
FCFY14.79%
OCF(TTM)1.77
OCFY17.89%
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 | 4.64% | ||
| ROIC | 3.66% | ||
| ROICexc | 3.74% | ||
| ROICexgc | 15.2% | ||
| OM | 10.28% | ||
| 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 | 3.04 | ||
| Cap/Depr | 12.94% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.88 |
F-Score4
WACC8.18%
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)-13%
EPS 3Y-10.45%
EPS 5Y-9.73%
EPS Q2Q%-10.14%
EPS Next Y-12.15%
EPS Next 2Y-2.86%
EPS Next 3Y1.18%
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 1Y3.36%
EBIT growth 3Y-4.1%
EBIT growth 5Y1.89%
EBIT Next Year-6.55%
EBIT Next 3Y0.86%
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%