Viatris (VTRS) AI Stock Analysis

• Market Cap: $11.10B
• Dividend Yield: 5.04%
• Average Volume (3M): 10.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -7.47%
• EPS Growth: -438.39%
• Country: US
• Employees: 32,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.62
• Shares Outstanding: 1,165,872,100
• 10 Day Avg. Volume: 13,804,813
• 30 Day Avg. Volume: 10,190,654
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.21
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 4.65
• Enterprise Value/Ebitda: -46.29
• 1Y Price Target: $10.25
• Price Target Upside: 6.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: $10.00 ▲(3.95% Upside)

Viatris' overall stock score reflects significant financial and operational challenges, with declining revenues and net losses weighing heavily. However, positive earnings call developments, including pipeline advancements and strategic initiatives, provide some optimism. The technical outlook is bearish, but the attractive dividend yield offers potential value for income investors.

Positive Factors

Pipeline Advancements

Positive Phase III results indicate strong future product offerings, enhancing Viatris' competitive position and potential revenue growth.

Strong China Market Performance

Growth in China reflects Viatris' ability to capitalize on emerging markets, supporting long-term revenue stability and expansion.

Shareholder Returns

Significant shareholder returns demonstrate strong cash flow management and commitment to enhancing shareholder value over time.

Negative Factors

Revenue Decline in North America

Declining revenue in North America highlights competitive pressures and operational challenges, impacting overall financial performance.

Challenges in Japan

Regulatory challenges in Japan affect revenue potential, requiring strategic adjustments to mitigate impact on long-term growth.

Ongoing Indore Facility Issues

Continued issues at the Indore facility could delay product availability and impact operational efficiency, affecting future profitability.

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 generates revenue primarily through the sale of prescription medicines, including generics, branded products, and biosimilars. Its revenue model is predominantly based on direct sales to healthcare providers, pharmacies, and hospitals, as well as partnerships with other pharmaceutical companies for co-marketing and distribution agreements. Key revenue streams include the sale of high-demand generic drugs, which are often less expensive alternatives to branded medications, and the ongoing development and commercialization of biosimilars that target biologic therapies. Additionally, Viatris benefits from strategic collaborations and partnerships that enhance its market reach and product offerings, contributing to its earnings and overall financial performance.

Viatris Financial Statement Overview

Summary

Viatris faces significant financial challenges, with declining revenues and substantial net losses. High leverage and negative equity returns pose risks, though cash flow generation remains stable. Efforts to improve profitability and reduce leverage could enhance financial health.

Income Statement

The company's income statement reflects significant challenges, with a declining revenue trend from $17.9 billion in 2021 to $14.3 billion in TTM. Gross profit margin remained stable at around 37%, but the net loss in TTM widened significantly to $3.79 billion. The EBIT and EBITDA margins were negative in the TTM, showing operational difficulties. The revenue growth rate from 2024 to TTM was negative, indicating a downturn in sales performance.

Balance Sheet

The balance sheet reveals a decrease in total assets from $54.8 billion in 2021 to $38.5 billion in TTM. The debt-to-equity ratio remains high, indicating significant leverage, though it improved slightly in TTM. ROE turned negative in TTM due to substantial net losses. The equity ratio has weakened, reflecting a reduction in shareholders' equity. Despite these challenges, the company has maintained a stable cash position.

Cash Flow

The cash flow statement indicates resilience, with a positive operating cash flow of $2.22 billion in TTM, though it has decreased from previous years. Free cash flow also remained positive at $1.86 billion, demonstrating effective capital management. However, the operating cash flow to net income ratio highlights the struggle in translating revenue into profit, with a significant net loss in TTM.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.33B	14.74B	15.43B	16.26B	17.89B	11.95B
Gross Profit	5.28B	5.62B	6.44B	6.50B	5.58B	3.80B
EBITDA	-530.80M	2.82B	3.52B	6.43B	4.48B	1.99B
Net Income	-3.79B	-634.20M	54.70M	2.08B	-1.27B	-669.90M
Balance Sheet
Total Assets	38.47B	41.50B	47.69B	50.02B	54.84B	61.55B
Cash, Cash Equivalents and Short-Term Investments	1.00B	1.09B	1.18B	1.47B	935.00M	1.05B
Total Debt	14.46B	14.31B	18.37B	19.27B	23.07B	25.84B
Total Liabilities	22.82B	22.87B	27.22B	28.95B	34.35B	38.60B
Stockholders Equity	15.65B	18.64B	20.47B	21.07B	20.49B	22.95B
Cash Flow
Free Cash Flow	1.86B	1.98B	2.33B	2.51B	2.51B	550.60M
Operating Cash Flow	2.22B	2.30B	2.80B	2.95B	3.02B	1.23B
Investing Cash Flow	1.89B	1.80B	-764.10M	1.52B	-117.80M	-301.10M
Financing Cash Flow	-4.37B	-4.33B	-2.30B	-3.88B	-3.01B	-605.70M

Viatris Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.62
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 9.62 is below the 20-day moving average (MA) of 9.98, below the 50-day MA of 9.83, and above the 200-day MA of 9.56, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.29 is Neutral, neither overbought nor oversold. The STOCH value of 17.79 is Positive, 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	74 Outperform	$11.79B	17.78	16.96%	0.64%	13.13%	-0.47%
ANIP	66 Neutral	$2.02B	-121.05	-2.53%	―	38.68%	-160.14%
AMRX	66 Neutral	$3.06B	1,523.44	-3.00%	―	9.81%	―
TEVA	58 Neutral	$21.65B	-126.83	-30.46%	―	2.43%	64.37%
VTRS	54 Neutral	$11.10B	―	-19.77%	5.04%	-7.47%	-438.39%
PRGO	51 Neutral	$2.95B	-38.39	-1.80%	5.34%	-2.32%	35.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%