Viatris (VTRS) AI Stock Analysis

• Market Cap: $9.10B
• Dividend Yield: 6.3%
• Average Volume (3M): 17.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -4.58%
• EPS Growth: -1269.23%
• Country: US
• Employees: 32,000
• Sector: Healthcare
• Sector Strength: 77
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.53
• Shares Outstanding: 1,193,688,700
• 10 Day Avg. Volume: 13,099,293
• 30 Day Avg. Volume: 17,592,435
• 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: $11.25
• Price Target Upside: 47.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Viatris is facing significant challenges with declining revenues and profitability, reflected in its financial performance. Technical indicators suggest bearish momentum, with the stock trading below major moving averages and in oversold territory. Although the company offers a high dividend yield, its negative P/E ratio indicates profitability issues. The earnings call provided some positive strategic plans, but the Indore facility challenges pose a significant risk to future financials. Overall, the stock score reflects a cautious outlook with areas needing improvement.

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.

International Performance

Management is confident about the company's performance in China, which has exceeded initial expectations.

Revenue Growth

The company expects significant new product revenues, supported by an estimated 140 filings annually, which contribute to incremental growth.

Negative Factors

EBITDA Guidance

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

Growth Challenges

Viatris has limited potential for upward revisions and lacks clinical catalysts for 2025, which affects its growth prospects.

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).

Viatris Business Overview & Revenue Model

Company Description

Viatris Inc. operates as a healthcare company worldwide. The company operates in four segments: Developed Markets, Greater China, JANZ, and Emerging Markets. It offers prescription brand drugs, generic drugs, complex generic drugs, biosimilars, and active pharmaceutical ingredients (APIs). The company offers drugs in various therapeutic areas, including noncommunicable and infectious diseases; biosimilars in the areas of oncology, immunology, endocrinology, ophthalmology, and dermatology; and APIs for antibacterial, central nervous system agents, antihistamines/antiasthmatics, cardiovascular, antivirals, antidiabetics, antifungals, and proton pump inhibitor areas, as well as support services, such as diagnostic clinics, educational seminars, and digital tools to help patients better manage their health. It provides its medicines in the form of oral solid doses, injectables, complex dosage forms, and APIs to retail and pharmacy establishments, wholesalers and distributors, payers, insurers and governments, and institutions. The company distributes its products through pharmaceutical wholesalers/distributors, pharmaceutical retailers, institutional pharmacies, mail-order and e-commerce pharmacies, and specialty pharmacies. It sells its products under the Lyrica, Lipitor, Creon, Influvac, Wixela Inhub, EpiPen auto-injector, Fraxiparine, and Yupelri; Norvasc and Viagra; AMITIZA, Lipacreon, and Effexor; and Celebrex and ARV names, as well as offers biosimilars franchises, including Fulphila, Ogivri, Hulio, and SEMGLEE. The company has collaboration and licensing agreements with Revance Therapeutics, Inc.; Momenta Pharmaceuticals, Inc.; Theravance Biopharma, Inc.; Biocon Ltd.; and Fujifilm Kyowa Kirin Biologics Co. Ltd. Viatris Inc. was founded in 1961 and is headquartered in Canonsburg, Pennsylvania.

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: Negative
• Last Price: 7.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTRS, the sentiment is Negative. The current price of 7.62 is below the 20-day moving average (MA) of 8.97, below the 50-day MA of 9.91, and below the 200-day MA of 11.14, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 29.62 is Positive, neither overbought nor oversold. The STOCH value of 8.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTRS.

Viatris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDY	70 Outperform	$10.79B	16.06	18.51%	0.65%	13.26%	1.33%
PRGO	62 Neutral	$3.59B	―	-3.53%	4.25%	-6.05%	-1677.05%
AMRX	62 Neutral	$2.31B	―	106.97%	―	16.73%	-22.44%
VTRS	54 Neutral	$9.10B	―	-3.24%	6.30%	-4.58%	-1269.23%
TEVA	50 Neutral	$17.10B	―	-25.44%	―	4.34%	-206.85%
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%

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.