Now trading at a price of $9.53, Viatris has moved -0.8% so far today. In contrast, the S&P 500 index moved -1.0%. Read below for a basic value analysis of Viatris.
Viatris shares moved -10.1% over the last 52 weeks, with a high of $12.4 and a low of $8.42. During this time, the stock lagged the S&P 500 index by -2.0%. As of January 2022, the company's 50-day average price is $10.9. Viatris Inc. operates as a healthcare company worldwide. The large-cap Health Care company has 37,000 full time employees and is based in Canonsburg, PA. Viatris has returned a 5.0% dividend yield over the last 12 months.
Snapshot of the Company's Inconsistent Margins and High Leverage:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $11,500 | $11,946 | $17,886 | $16,263 |
| Revenue Growth | n/a | 3.87% | 49.73% | -9.08% |
| Gross Margins | 33.9% | 31.8% | 31.2% | 40.0% |
| Gross Margins Growth | n/a | -6.19% | -1.89% | 28.21% |
| Operating Margins | 6.0% | -0.9% | 1.6% | 10.2% |
| Operating Margins Growth | n/a | -115.0% | 277.78% | 537.5% |
| Net Margins | 0.15% | -5.61% | -7.1% | 12.78% |
| Net Margins Growth | n/a | -3840.0% | -26.56% | 280.0% |
| Earnings Per Share | $0.03 | -$1.11 | -$1.05 | $1.71 |
| EPS Growth | n/a | -3800.0% | 5.41% | 262.86% |
| Diluted Shares (MM) | 516 | 601 | 1,209 | 1,197 |
| Free Cash Flow (MM) | $1,398 | $551 | $2,508 | $2,510 |
| FCF Growth | n/a | -60.61% | 355.41% | 0.08% |
| Capital Expenditures (MM) | -$406 | -$681 | -$509 | -$443 |
| Net Debt / EBITDA | 4.6 | 11.86 | 4.66 | 2.78 |
Viatris Is Reasonably Priced:
Compared to the Health Care sector's average of 24.45, Viatris has a trailing twelve month P/E ratio of 5.6 and, according to its EPS guidance of 2.9, an expected P/E ratio of 3.3.
However, Viatris is likely undervalued in terms of its equity because its P/B ratio is 0.5 compared to its sector average of 4.16. The company's shares are now trading -63.1% below their Graham number, implying there is a margin of safety for the stock. We calculate the number according to this formula:
√(22.5 * EPS * book value per share) = √(22.5 * 1.71 * 17.361) = $25.85
Viatris Is the Subject of Mixed Market Indicators:
11 analysts are following Viatris and have set target prices ranging from $10.0 to $35.0 per share. On average, they have given the company a rating of hold. At the current price of $9.53, VTRS is trading -39.03% away from its average analyst target price of $15.63 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 2.2% of the company's shares are tied to short positions. Institutions own 79.2% of Viatris's shares, while the insider ownership rate stands at 0.28%. The biggest shareholder is the Vanguard Group, Inc. with a 12% stake in the company worth approximately $1,423,006,847.
