Viatris Inc (VTRS) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Viatris's EV/EBITDA of 12.7 is above its 5-year median of 7.5.

P/S below the industry

Viatris's price-to-sales of 1.64 is below the Drugs median of 4.80 (book value is negative, so we use sales).

Trading below fair value

The share price of $21.06 is below our fair value estimate of $22.95.

Margin of safety under 20%

The price is 8.2% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -4.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 4.3% over the last twelve months; the Drugs median is 8.0%.

Guidance raised

Viatris raised its 2026 U.S. GAAP net cash provided by operating activities outlook on Aug 6, 2026.

Gross margin slipping

Gross margin was 35.3% over the last twelve months, against 36.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 18.7% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense -0.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.55 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.22; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Viatris paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Viatris yields 2.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.