No-moat Viatris reported first-quarter earnings that came in a tad below our expectations. Total sales of $3.6 billion were down 1.8% year over year, or up 2% on divestiture-adjusted basis, and profitability slipped on weaker gross margin and higher expenses. We maintain our fair value estimate of $13 per share as minor adjustments to our model were offset by time value of money impacts.
A new focus on dermatology, ophthalmology, and gastroenterology will pave ways for many untapped opportunities that Viatris can utilize with its scale and manufacturing power.
Base business erosion will continue to persist in developed markets and act as headwinds that Viatris must try to offset with new product launches.
|
Metric
|
VTRS
|
TEVA
|
RDY
|
|---|---|---|---|
Price/Earnings (Normalized) | 3.82 | 5.96 | 18.62 |
Price/Book Value | 0.67 | 2.45 | 3.40 |
Price/Sales | 0.88 | 1.10 | 3.42 |
Price/Cash Flow | 4.09 | 11.07 | 15.07 |
|
Metric
|
VTRS
|
TEVA
|
RDY
|
|---|---|---|---|
Quick Ratio | 0.67 | 0.54 | 1.80 |
Current Ratio | 1.67 | 1.02 | 2.55 |
Interest Coverage | 1.35 | 0.39 | 46.52 |
|
Metric
|
VTRS
|
TEVA
|
RDY
|
|---|---|---|---|
Return on Assets (Normalized) | 7.07% | 6.03% | 15.57% |
Return on Equity (Normalized) | 16.57% | 35.36% | 21.70% |
Return on Invested Capital (Normalized) | 9.85% | 12.54% | 20.10% |
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Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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