Viatris shares moved -7.8% 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 April 2023, the company's 50-day average price is $10.57. 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 4.9% dividend yield over the last 12 months.
The Company Has a Highly Leveraged Balance Sheet:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue | $11,500,500 | $11,946,000 | $17,886,300 | $16,262,700 |
| Gross Margins | 33.9% | 31.8% | 31.2% | 40.0% |
| Operating Margins | 6.0% | -0.9% | 1.6% | 10.2% |
| Net Income | $16,800 | -$669,900 | -$1,269,100 | $2,078,600 |
| Net Margins | 0.15% | -5.61% | -7.1% | 12.78% |
| Earnings Per Share | $0.03 | -$1.11 | -$1.05 | $1.7 |
| Diluted Shares | 516,500 | 601,200 | 1,208,800 | 1,196,810 |
| Free Cash Flow | $1,397,700 | $550,600 | $2,507,500 | $2,509,600 |
| Capital Expenditures | -$406,000 | -$681,200 | -$509,400 | -$443,000 |
| Net Current Assets | -$12,614,400 | -$25,731,400 | -$23,447,200 | -$18,314,500 |
| Current Ratio | 1.21 | 1.22 | 1.1 | 1.58 |
| Long Term Debt | $11,214,300 | $22,429,200 | $19,717,100 | $18,015,200 |
| Net Debt / EBITDA | 4.55 | 12.56 | 4.67 | 2.8 |
Viatris Is Potentially Undervalued and Trades Below Its Graham Number:
Compared to the Health Care sector's average of 24.45, Viatris has a trailing twelve month P/E ratio of 6.2 and, according to its EPS guidance of $2.9, an expected P/E ratio of 3.6. Viatris's PEG ratio is 0.04 based on its 149.5% compound average growth rate of historical and projected earnings per share. We also consider the weighted average of the company's EPS growth rate and the projected growth rate for the broader market, which in Viatris's case is 11.8%. This normalized growth rate gives us a PEG ratio of 0.53, which still suggests that company's shares are possibly undervalued. Furthermore, Viatris is possibly undervalued in terms of its book value because its P/B ratio is 0.6 compared to its sector average of 4.16. As of the date of publication, the company's shares are trading -61.7% below their Graham number of $25.77.
Analysts Give Viatris an Average Rating of Hold:
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 $10.57, VTRS is trading -32.4% 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 2.3% of the company's shares are tied to short positions. Institutions own 79.1% of Viatris's shares, while the insider ownership rate stands at 0.28%. which is a small amount of insider investors. The company's biggest shareholder is the Vanguard Group, Inc. with a 12% stake in the company worth $1,474,521,826.
