Viatris (VTRS) AI Stock Analysis

• Market Cap: $9.70B
• Dividend Yield: 5.9%
• Average Volume (3M): 15.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: -4.58%
• EPS Growth: -1269.23%
• Country: US
• Employees: 32,000
• Sector: Healthcare
• Sector Strength: 69
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.53
• Shares Outstanding: 1,193,688,700
• 10 Day Avg. Volume: 12,567,586
• 30 Day Avg. Volume: 15,389,672
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.74
• Price to Cash Flow (P/CF): 5.70
• P/FCF Ratio: 5.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.75
• Price Target Upside: 32.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Viatris faces significant hurdles with declining revenue and profitability, high leverage, and operational challenges, notably at the Indore facility impacting 2025 financials. Despite these challenges, the company has managed to maintain positive cash flow and is focused on strategic debt reduction and pipeline advancements. The technical outlook is weak, with bearish indicators suggesting further downside risk. Valuation metrics reveal concerns with negative earnings, though a high dividend yield provides some compensation for investors.

Positive Factors

Financial Flexibility

Viatris plans to be more aggressive with buybacks, supported by its financial flexibility and a substantial amount of free cash flow.

Revenue Growth

The company's pipeline and diversification, with a significant number of new product submissions annually, provide visibility into sustainable revenue growth.

Negative Factors

Earnings Guidance

Viatris’ 4Q update was highlighted by disappointing FY25 EBITDA guidance (-8% below consensus).

Import Ban Impact

The biggest surprise in the 4Q update was the generic Revlimid impact, which is on the import ban list ($200m lost revenue at an >95% gross margin).

Strategic Challenges

The company still struggles to define its identity in the biopharma ecosystem.

Viatris Business Overview & Revenue Model

Company Description

Viatris Inc. (VTRS) is a global healthcare company formed through the merger of Mylan N.V. and Upjohn, a division of Pfizer. The company operates in the pharmaceutical sector, offering a diverse portfolio of medicines, including brand-name, generic, and over-the-counter products. Viatris is committed to providing access to high-quality, affordable healthcare across the world, with a focus on therapies for chronic and acute conditions, spanning a wide range of therapeutic areas such as cardiovascular, infectious diseases, oncology, and more.

How the Company Makes Money

Viatris makes money primarily through the sale of its pharmaceutical products. The company's revenue streams include the sale of generics, branded medications, and complex specialty products. Viatris' generics business is a significant revenue driver, providing cost-effective alternatives to branded drugs. Additionally, the company generates revenue from its over-the-counter products and biosimilars. Viatris also engages in partnerships and collaborations with other pharmaceutical companies to expand its product offerings and market reach. These collaborations can include licensing agreements and co-development deals, enhancing its capability to innovate and introduce new products to the market. The company's global distribution network and strong presence in both developed and emerging markets further contribute to its earnings by enabling extensive market penetration.

Viatris Financial Statement Overview

Summary

Viatris is experiencing declining revenues and profitability challenges. The income statement reflects negative net profit margins and declining EBIT and EBITDA margins. The balance sheet shows high leverage, though there is a slight improvement in the debt-to-equity ratio. Cash flow remains a strong point, with positive operating and free cash flows indicating good cash generation ability.

Income Statement

Viatris has seen a decline in total revenue over the years, with a significant drop from 2023 to 2024. The net profit margin has been negative in recent years, indicating challenges in profitability. The gross profit margin remains relatively stable but low for the industry. The EBIT and EBITDA margins have also seen declines, indicating operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved slightly from 2023 to 2024, but it remains high, indicating significant leverage. The equity ratio is moderate, showing a balance between assets funded by equity versus liabilities. However, the return on equity has turned negative, reflecting the net loss reported in 2024, which is a concern for shareholders.

Cash Flow

Viatris has maintained positive operating cash flow, though it has decreased compared to previous years. Free cash flow remains positive, indicating the company can generate cash after maintaining its capital expenditure. The operating cash flow to net income ratio is favorable, suggesting efficient cash conversion in periods of net loss.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.74B	15.43B	16.26B	17.89B	11.95B
	Gross Profit
5.62B	6.44B	6.50B	5.58B	3.80B
	EBIT
10.10M	766.20M	1.61B	-34.00M	-210.80M
	EBITDA
10.10M	3.46B	6.43B	4.48B	1.99B
	Net Income Common Stockholders
-634.20M	54.70M	2.08B	-1.27B	-669.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
734.80M	1.18B	1.47B	935.00M	1.05B
	Total Assets
41.50B	47.69B	50.02B	54.84B	61.55B
	Total Debt
15.99B	18.37B	19.27B	23.07B	25.84B
	Net Debt
15.25B	17.38B	18.01B	22.37B	24.99B
	Total Liabilities
22.87B	27.22B	28.95B	34.35B	38.60B
	Stockholders Equity
18.64B	20.47B	21.07B	20.49B	22.95B
Cash Flow		Free Cash Flow
1.98B	2.33B	2.51B	2.51B	550.60M
	Operating Cash Flow
2.30B	2.80B	2.95B	3.02B	1.23B
	Investing Cash Flow
1.80B	-764.10M	1.52B	-117.80M	-301.10M
	Financing Cash Flow
-4.33B	-2.30B	-3.88B	-3.01B	-605.70M

Viatris Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTRS, the sentiment is Neutral. The current price of 8.13 is above the 20-day moving average (MA) of 7.86, below the 50-day MA of 9.00, and below the 200-day MA of 10.97, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 88.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VTRS.

Viatris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDY	77 Outperform	$11.46B	18.19	18.51%	0.59%	13.26%	1.33%
PRGO	53 Neutral	$3.44B	―	-3.53%	4.43%	-6.05%	-1677.05%
VTRS	52 Neutral	$9.70B	―	-3.24%	5.90%	-4.58%	-1269.23%
Sector *	51 Neutral	$5.32B	3.41	-40.36%	2.89%	17.93%	2.52%
AMRX	51 Neutral	$2.34B	―	106.97%	―	16.73%	-22.44%
TEVA	50 Neutral	$16.53B	―	-25.44%	―	4.34%	-206.85%

Viatris Corporate Events

Viatris Elects Directors and Amends Stock Plan at Meeting

At its 2024 Annual Meeting, the Company elected twelve directors and approved key proposals, including the amendment of the 2020 Stock Incentive Plan to increase available shares by 49 million and ratification of Deloitte & Touche LLP as auditors for 2024. Notably, the 2023 executive compensation proposal narrowly missed approval, garnering 49.23% support.