Viatris (VTRS) AI Stock Analysis

• Market Cap: $13.36B
• Dividend Yield: 4.12%
• Average Volume (3M): 8.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -6.40%
• EPS Growth: -320.23%
• Country: US
• Employees: 32,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.67
• Shares Outstanding: 1,151,769,900
• 10 Day Avg. Volume: 7,255,395
• 30 Day Avg. Volume: 8,780,202
• PEG Ratio: 0.02
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 7.52
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 4.94
• Enterprise Value/Ebitda: -41.98
• 1Y Price Target: $12.50
• Price Target Upside: 7.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.31
• Revenue Forecast (FY): $14.08B

• Rating: 60 Neutral
• Price Target: $12.00 ▲(3.00% Upside)

Viatris' overall stock score is driven by its strategic initiatives and positive technical momentum. However, financial challenges, particularly in profitability and valuation, weigh on the score. The company's proactive steps in addressing operational issues and enhancing its market position are positive, but the financial performance remains a critical area for improvement.

Positive Factors

Strategic Portfolio Expansion

The sale enhances Viatris' access to the global biosimilars market, supporting its portfolio expansion and long-term growth prospects.

R&D Advancements

Advancements in the R&D pipeline indicate a strong focus on innovation, which can lead to new product offerings and competitive advantages.

Capital Return to Shareholders

Returning capital to shareholders reflects strong cash flow generation and management's commitment to shareholder value, enhancing investor confidence.

Negative Factors

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and financial challenges, potentially impacting long-term profitability and sustainability.

Indore Facility Issues

Operational issues at the Indore facility create uncertainty in revenue growth and may require significant resources to resolve, affecting future performance.

Declining Cash Flow

Declining cash flow growth suggests potential liquidity issues, which could limit Viatris' ability to invest in growth opportunities and manage debt.

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 and focuses on providing access to medicines, including generic and branded medications, as well as over-the-counter products. Viatris aims to empower people worldwide by offering a diverse portfolio that includes treatments for chronic conditions, infectious diseases, and other therapeutic areas.

How the Company Makes Money

Viatris generates revenue through multiple streams, primarily by selling a wide range of pharmaceutical products, including generics, branded medications, and over-the-counter treatments. The company benefits from its extensive global reach, allowing it to serve diverse markets and meet various healthcare needs. Key revenue streams include prescription drug sales, where Viatris leverages its established market presence and partnerships with healthcare providers and payers. Additionally, the company engages in strategic collaborations and alliances with other pharmaceutical firms to enhance its product offerings and reach. Viatris also derives income from its biosimilars portfolio, which is a growing segment in the pharmaceutical industry. Overall, the company's revenue model is reinforced by its commitment to providing affordable access to essential medicines and its ability to adapt to changing market dynamics.

Viatris Financial Statement Overview

Summary

Viatris faces challenges with profitability and cash flow despite maintaining a stable leverage position. The company needs to address its operational inefficiencies and improve its profit margins to enhance financial health. While revenue shows some growth, the negative net income and declining cash flow growth are areas of concern that need strategic focus.

Income Statement

Viatris shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 36.61%, which is decent but has declined from previous years. The net profit margin is negative at -24.57%, reflecting significant losses, and EBIT and EBITDA margins are also negative, indicating operational challenges. Revenue growth is slightly positive at 6.2% for the TTM, but historical data shows volatility with periods of decline.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.93 in the TTM, indicating a balanced leverage position. However, the return on equity is negative at -19.92%, suggesting inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -3.37% in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is strong at 1.23, suggesting good cash generation relative to net income. The free cash flow to net income ratio is 0.83, which is reasonable but reflects the impact of negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.12B	14.74B	15.43B	16.26B	17.89B	11.95B
Gross Profit	5.09B	5.62B	6.44B	6.50B	5.58B	3.80B
EBITDA	-598.90M	2.82B	3.52B	6.43B	4.48B	1.99B
Net Income	-3.69B	-634.20M	54.70M	2.08B	-1.27B	-669.90M
Balance Sheet
Total Assets	37.92B	41.50B	47.69B	50.02B	54.84B	61.55B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.09B	1.18B	1.47B	935.00M	1.05B
Total Debt	14.72B	14.31B	18.37B	19.53B	23.36B	26.16B
Total Liabilities	22.70B	22.87B	27.22B	28.95B	34.35B	38.60B
Stockholders Equity	15.22B	18.64B	20.47B	21.07B	20.49B	22.95B
Cash Flow
Free Cash Flow	1.60B	1.98B	2.33B	2.51B	2.51B	550.60M
Operating Cash Flow	1.98B	2.30B	2.80B	3.00B	3.02B	1.23B
Investing Cash Flow	-385.20M	1.80B	-764.10M	1.47B	-117.80M	-301.10M
Financing Cash Flow	-2.48B	-4.33B	-2.30B	-3.88B	-3.01B	-605.70M

Viatris Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTRS, the sentiment is Positive. The current price of 11.65 is above the 20-day moving average (MA) of 10.80, above the 50-day MA of 10.43, and above the 200-day MA of 9.28, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 73.43 is Negative, neither overbought nor oversold. The STOCH value of 95.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTRS.

Viatris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDY	73 Outperform	$11.73B	17.25	17.72%	0.65%	10.63%	6.35%
ANIP	64 Neutral	$1.85B	49.30	7.83%	―	48.87%	―
TEVA	63 Neutral	$34.12B	48.65	10.77%	―	-0.25%	―
VTRS	60 Neutral	$13.36B	―	-21.09%	4.12%	-6.40%	-320.23%
AMRX	58 Neutral	$3.56B	788.19	―	―	9.50%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRGO	49 Neutral	$1.81B	-34.88	-0.65%	8.83%	-2.55%	66.00%

Viatris Corporate Events

Viatris Sells Biocon Biologics Stake for $815 Million

On December 6, 2025, Viatris Inc. announced an agreement to sell its equity stake in Biocon Biologics Limited to Biocon Limited for $815 million, comprising $400 million in cash and $415 million in equity shares. This transaction, expected to close in Q1 2026, will accelerate the expiration of biosimilars non-compete restrictions, allowing Viatris to regain access to the global biosimilars market, enhancing its portfolio of generics and innovative brands.

Viatris Holds Annual Shareholder Meeting on December 5

On December 5, 2025, Viatris Inc. held its annual meeting of shareholders to elect directors, approve executive compensation, and ratify its accounting firm. The meeting resulted in the election of thirteen directors, approval of the 2024 executive compensation, and ratification of Deloitte & Touche LLP as the accounting firm for 2025.

Viatris Reports Strong Q3 2025 Financial Results

On November 6, 2025, Viatris reported strong financial results for the third quarter of 2025, with total revenues aligning with expectations. The company made significant progress in its late-stage pipeline, including an NDA submission for a low-dose estrogen patch, and acquired Aculys Pharma, enhancing its market presence in Japan and the Asia-Pacific region. Viatris returned over $920 million to shareholders, raised its financial guidance for 2025, and is preparing for strategic actions to ensure sustainable growth beyond 2025.

Viatris Announces Approval of Amended Bylaws

On October 24, 2025, Viatris Inc. announced the approval of its Amended and Restated Bylaws, which became effective immediately. These changes include specifications for timely notice of proxy access nominations and procedures for shareholder nominations and proposals for the upcoming 2026 annual meeting. The company aims to enhance efficiency by holding the 2026 annual meeting on May 15, 2026, with specific guidelines for shareholder participation and nominations.