NasdaqGS:VTRS

Stock Analysis Report

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Market Cap

US$17.0b

Last Updated

2021/07/31 22:50 UTC

Data Sources

Company Financials +

Executive Summary

Viatris Inc., a healthcare company, develops, licenses, manufactures, markets, and distributes brand and generic drugs, complex generics, biosimilars, and active pharmaceutical ingredients (APIs) worldwide. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Viatris's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VTRS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VTRS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

VTRS

-0.02%

US Pharmaceuticals

-0.5%

US Market


1 Year Return

-12.7%

VTRS

17.5%

US Pharmaceuticals

35.9%

US Market

Return vs Industry: VTRS underperformed the US Pharmaceuticals industry which returned 17.5% over the past year.

Return vs Market: VTRS underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

VTRSIndustryMarket
7 Day1.1%-0.02%-0.5%
30 Day-4.6%3.4%0.3%
90 Day5.8%9.2%3.1%
1 Year-12.0%-12.7%22.4%17.5%38.0%35.9%
3 Year-63.1%-63.4%32.9%21.7%62.9%52.7%
5 Year-70.8%-71.0%49.0%29.8%121.7%97.3%

Long-Term Price Volatility Vs. Market

How volatile is Viatris's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Viatris undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VTRS ($14.07) is trading below our estimate of fair value ($57.59)

Significantly Below Fair Value: VTRS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VTRS is unprofitable, so we can't compare its PE Ratio to the US Pharmaceuticals industry average.

PE vs Market: VTRS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VTRS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VTRS is good value based on its PB Ratio (0.8x) compared to the US Pharmaceuticals industry average (2.9x).


Future Growth

How is Viatris forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VTRS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: VTRS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VTRS's is expected to become profitable in the next 3 years.

Revenue vs Market: VTRS's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: VTRS's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VTRS's Return on Equity is forecast to be high in 3 years time (23%)


Past Performance

How has Viatris performed over the past 5 years?

-54.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VTRS is currently unprofitable.

Growing Profit Margin: VTRS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VTRS is unprofitable, and losses have increased over the past 5 years at a rate of 54.3% per year.

Accelerating Growth: Unable to compare VTRS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VTRS is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (12.9%).


Return on Equity

High ROE: VTRS has a negative Return on Equity (-8.07%), as it is currently unprofitable.


Financial Health

How is Viatris's financial position?


Financial Position Analysis

Short Term Liabilities: VTRS's short term assets ($12.3B) exceed its short term liabilities ($10.0B).

Long Term Liabilities: VTRS's short term assets ($12.3B) do not cover its long term liabilities ($27.6B).


Debt to Equity History and Analysis

Debt Level: VTRS's debt to equity ratio (113.9%) is considered high.

Reducing Debt: VTRS's debt to equity ratio has increased from 73.2% to 113.9% over the past 5 years.

Debt Coverage: VTRS's debt is not well covered by operating cash flow (7.3%).

Interest Coverage: VTRS's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Dividend

What is Viatris's current dividend yield, its reliability and sustainability?

3.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VTRS's dividend (3.13%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: VTRS's dividend (3.13%) is low compared to the top 25% of dividend payers in the US market (3.54%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether VTRS's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if VTRS's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: VTRS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: VTRS's dividends in 3 years are forecast to be well covered by earnings (17.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Michael Goettler (53 yo)

no data

Tenure

US$5,472,905

Compensation

Mr. Michael Goettler serves as Chief Executive Officer and Executive Director at Viatris Inc. Mr. Goettler is a Member of the Board of Directors of Population Services International (PSI), a global organiz...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD5.47M) is below average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Insufficient data to compare Michael's compensation with company performance.


Leadership Team

Experienced Management: VTRS's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: VTRS's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VTRS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 133.8%.


Top Shareholders

Company Information

Viatris Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Viatris Inc.
  • Ticker: VTRS
  • Exchange: NasdaqGS
  • Founded: 1961
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$17.006b
  • Shares outstanding: 1.21b
  • Website: https://www.viatris.com

Number of Employees


Location

  • Viatris Inc.
  • 1000 Mylan Boulevard
  • Canonsburg
  • Pennsylvania
  • 15317
  • United States

Listings


Biography

Viatris Inc., a healthcare company, develops, licenses, manufactures, markets, and distributes brand and generic drugs, complex generics, biosimilars, and active pharmaceutical ingredients (APIs) worldwide...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 22:50
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.