Viatris logged a 0.5% change during today's morning session, and is now trading at a price of $9.66 per share.
Over the last year, Viatris logged a 5.0% change, with its stock price reaching a high of $12.4 and a low of $8.84. Over the same period, the stock underperformed the S&P 500 index by -18.0%. As of April 2023, the company's 50-day average price was $10.39. Viatris Inc. operates as a healthcare company worldwide. Based in Canonsburg, PA, the large-cap Health Care company has 38,000 full time employees. Viatris has offered a 5.0% dividend yield over the last 12 months.
The Business Has Weak Operating Margins:
| 2021-02-08 | 2022-02-28 | 2023-02-27 | |
|---|---|---|---|
| Revenue (MM) | $11,946 | $17,886 | $16,263 |
| Gross Margins | 32.0% | 31.0% | 40.0% |
| Operating Margins | -1% | 2% | 10% |
| Net Margins | -6.0% | -7.0% | 13.0% |
| Net Income (MM) | -$670 | -$1,269 | $2,079 |
| Net Interest Expense (MM) | -$498 | -$636 | -$592 |
| Depreciation & Amort. (MM) | -$2,216 | -$4,506 | -$3,028 |
| Earnings Per Share | -$1.11 | -$1.05 | $1.71 |
| EPS Growth | n/a | 5.41% | 262.86% |
| Diluted Shares (MM) | 601 | 1,213 | 1,217 |
| Free Cash Flow (MM) | $1,453 | $3,359 | $1,395 |
| Capital Expenditures (MM) | -$221 | -$342 | $1,558 |
| Net Current Assets (MM) | -$25,731 | -$23,447 | -$18,314 |
| Long Term Debt (MM) | $22,429 | $19,717 | $18,015 |
| Net Debt / EBITDA | 11.6 | 4.6 | 3.85 |
Viatris has slimmer gross margins than its peers, weak operating margins with a positive growth rate, and a highly leveraged balance sheet. On the other hand, the company has a strong EPS growth trend working in its favor. Furthermore, Viatris has weak revenue growth and a flat capital expenditure trend, irregular cash flows, and a decent current ratio.
Viatris Has Attractive Multiples and Trades Below Its Graham Number:
Viatris has a trailing twelve month P/E ratio of 6.8, compared to an average of 24.45 for the Health Care sector. Based on its EPS guidance of $2.87, the company has a forward P/E ratio of 3.6. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 3 years of reported EPS is 33.5%. On this basis, Viatris's PEG ratio is 0.2. Using instead the 10.9% weighted average of Viatris's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 0.62, which implies that its shares may be underpriced. Additionally, the market is possibly undervaluing Viatris in terms of its equity because its P/B ratio is 0.56 whereas the sector average is 4.16. The company's shares are currently trading -62.6% below their Graham number.
Viatris Has an Average Rating of Hold:
The 9 analysts following Viatris have set target prices ranging from $10.0 to $35.0 per share, for an average of $14.78 with a hold rating. As of April 2023, the company is trading -29.7% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Viatris has an average amount of shares sold short because 3.4% of the company's shares are sold short. Institutions own 78.2% of the company's shares, and the insider ownership rate stands at 0.32%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $1,396,548,982.
