Viatris (VTRS) AI Stock Analysis

• Market Cap: $10.94B
• Dividend Yield: 5.15%
• Average Volume (3M): 14.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -6.88%
• EPS Growth: -6809.78%
• Country: US
• Employees: 32,000
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.50
• Shares Outstanding: 1,173,682,000
• 10 Day Avg. Volume: 12,241,955
• 30 Day Avg. Volume: 14,736,696
• PEG Ratio: <0.01
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.60
• Enterprise Value/Market Cap: 2.20
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 3.10
• 1Y Price Target: $9.00
• Price Target Upside: -3.43% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $9.00 ▼(-3.43%Downside)

Viatris' overall score is primarily impacted by financial struggles, including declining revenues and significant net losses, which are partially offset by stable cash flow. Technical indicators are neutral, and the valuation is weakened by negative earnings. Positive corporate events and pipeline developments provide some optimism, though significant operational hurdles remain.

Positive Factors

Negative Factors

Financial Performance

Disappointing FY25 EBITDA guidance is 8% below consensus.

Regulatory Challenges

The generic Revlimid impact results in $200 million lost revenue due to being on the import ban list.

Strategic Challenges

The company struggles to define its identity in the biopharma ecosystem, affecting strategic direction.

Viatris Business Overview & Revenue Model

Company Description

Viatris Inc. is a global healthcare company focused on providing access to medicines, sustainable operations, and innovative solutions to improve patient health. Formed through the merger of Mylan and Upjohn, a division of Pfizer, Viatris operates in the pharmaceutical sector and offers a diverse portfolio of generic, branded, over-the-counter, and biosimilar products. The company serves a broad range of therapeutic areas, including infectious diseases, oncology, dermatology, and cardiovascular health, across multiple international markets.

How the Company Makes Money

Viatris makes money through the sale of its pharmaceutical products, which include both generic and branded medications as well as biosimilars. The company capitalizes on its extensive global reach and diverse product portfolio to generate revenue from markets worldwide. Key revenue streams include sales of complex generics and biosimilars, which cater to high-demand therapeutic areas, and branded products that rely on strong market recognition. Additionally, Viatris benefits from strategic partnerships and collaborations that expand its distribution network and enhance its product offerings. The company also focuses on operational efficiencies and cost management to maximize profitability.

Viatris Financial Statement Overview

Summary

Viatris faces significant financial challenges, with declining revenues and substantial net losses. While cash flow generation remains stable, high leverage and negative equity returns pose substantial risks.

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	14.32B	14.74B	15.43B	16.26B	17.89B	11.95B
Gross Profit	5.33B	5.62B	6.44B	6.50B	5.58B	3.80B
EBITDA	-527.50M	2.82B	3.46B	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: Positive
• Last Price: 9.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 9.32 is above the 20-day moving average (MA) of 8.95, above the 50-day MA of 8.67, and below the 200-day MA of 10.24, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 85.45 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	77 Outperform	$12.73B	18.78	18.36%	0.64%	14.23%	-0.84%
PRGO	63 Neutral	$3.74B	―	-3.64%	4.26%	-4.85%	-4290.31%
AMRX	63 Neutral	$2.64B	―	106.97%	―	13.42%	92.50%
TEVA	57 Neutral	$19.59B	―	-18.98%	―	3.38%	-175.90%
VTRS	54 Neutral	$10.94B	―	-21.25%	5.15%	-6.88%	-6809.78%
Sector *	46 Neutral	C$194.71M	-4.33	-8.58%	2.64%	13.66%	-0.73%

Viatris Corporate Events

Viatris Reports Q1 2025 Financial Results and Pipeline Progress

On May 8, 2025, Viatris Inc. reported its first quarter 2025 financial results, showing total revenues in line with expectations and significant progress in its pipeline with three positive Phase 3 data readouts. Despite an 11% decrease in total revenues compared to the previous year, the company returned over $450 million in capital to shareholders and reaffirmed its 2025 outlook, emphasizing its strategic focus on capital discipline and operational execution.

Viatris Expands Board with New Appointments

On May 5, 2025, Viatris Inc. announced the appointment of Frank D’Amelio and Michael Severino as independent members of its Board of Directors, expanding the board from 12 to 14 members. This move is part of Viatris’ ongoing efforts to refresh its board, aiming to leverage D’Amelio’s extensive finance and operational expertise and Severino’s drug development experience to drive long-term growth and shareholder returns. Concurrently, directors Rajiv Malik and Harry Korman announced their retirement at the end of their current terms, with no disagreements with the company. The changes reflect Viatris’ strategic focus on enhancing its board’s capabilities to support its vision for future achievements.