One-glance verdict
Undervalued
$42.10 our estimate vs market $20.85
Wall Street consensus: $21.00 (-50.1% lower than our fair-value estimate)
50% below our estimate, below the bear case
Fundamentals snapshot
Viatris Inc.
VTRS · NMS · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$20.85
52-week range
$10.15 - $20.86
Market cap
$23.90B
Balance sheet
Distressed
0.54x Concerning
Net debt $11.57B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.0% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Return on equity was -4.2% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 0.3% (peer median: 0.4%).
What this company does
Viatris Inc.
Viatris is a company that sells a wide range of medicines, from well-known brand-name drugs to more affordable generic versions, treating everything from heart disease to allergies. Most of their money comes from selling these drugs across many countries, and this matters because it shows how broad their reach is in helping people manage their health globally.
How the company got here
Viatris was formed in 2020 through the merger of Mylan, a company known for its generic drugs, and Pfizer's Upjohn division, which had a portfolio of established brand-name drugs. This combination aimed to create a larger, more diversified pharmaceutical company capable of competing globally. The goal was to leverage the strengths of both entities, combining Mylan's expertise in generics with Upjohn's established products and global reach. This strategic move was designed to navigate the complex pharmaceutical landscape by offering a broad range of medicines.
What it actually does
Viatris is a global healthcare company that makes and sells a wide variety of medicines. Think of them as a company that provides both the well-known brand-name drugs you might recognize and the more affordable generic versions. They offer these medications in different forms, like pills, injections, and inhalers, to treat a broad spectrum of health conditions. These medicines are then sold to pharmacies, hospitals, and governments worldwide.
Developed Markets
This segment focuses on selling Viatris's medicines in highly developed countries, such as those in North America and Europe. Here, the company offers a mix of prescription brand drugs, generic drugs (which are copies of brand-name drugs that are no longer under patent protection), and biosimilars (similar versions of biologic drugs). These products are crucial for treating a wide range of non-communicable and infectious diseases, from heart conditions to diabetes. This is a significant portion of Viatris's business, serving established healthcare systems.
Greater China
This business unit concentrates on the sale of Viatris's pharmaceutical products within the large and growing Chinese market. It includes both branded and generic medications aimed at addressing various health needs prevalent in the region. The company provides drugs for conditions like cardiovascular diseases and diabetes, among others. This segment represents a key growth opportunity for Viatris due to China's large population and increasing demand for healthcare.
JANZ
The JANZ segment covers Viatris's operations in Japan, Australia, and New Zealand. In these markets, the company provides a portfolio of prescription brands, generics, and biosimilars. These medicines are used to treat a variety of illnesses, reflecting the healthcare needs of these developed nations. This region contributes to Viatris's global presence and revenue diversification.
Emerging Markets
This segment encompasses Viatris's business in regions like Africa, Latin America, and other parts of Asia. Here, the company provides essential medicines, including generics and some established brands, to meet diverse healthcare demands. The focus is often on making treatments more accessible and affordable in these developing economies. This part of the business is vital for Viatris's mission to expand healthcare access globally.
What management is betting on now
Viatris's current strategy revolves around optimizing its diverse portfolio of medicines and expanding its global reach, particularly in emerging markets. Management is focused on efficiently managing its established brands and generic offerings while also investing in complex generics and biosimilars. They aim to drive growth by ensuring their products are accessible and affordable, thereby addressing unmet medical needs worldwide. This involves strengthening their supply chain and distribution networks to effectively serve a broad customer base.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$342.30M
FY2025 Q1
$492.90M
FY2025 Q2
$166.80M
FY2025 Q3
$658.10M
FY2025 Q4
$619.30M
FY2026 Q1
$348.40M
FY2026 Q2
$329.00M
FY2026 Q3
$813.70M
Revenue
$3.75B
Net income
—
Diluted EPS
-0.28
Operating cash flow
$899.40M
Free cash flow
$813.70M
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Sources
Revenue
$3.76B
Net income
—
Diluted EPS
-0.10
Operating cash flow
$381.80M
Free cash flow
$329.00M
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Sources
Revenue
$3.52B
Net income
—
Diluted EPS
0.15
Operating cash flow
$388.30M
Free cash flow
$348.40M
Fetching…
Sources
Revenue
$3.70B
Net income
—
Diluted EPS
-0.34
Operating cash flow
$815.80M
Free cash flow
$619.30M
Fetching…
Sources
Revenue
$3.76B
Net income
—
Diluted EPS
-0.11
Operating cash flow
$744.90M
Free cash flow
$658.10M
Fetching…
Sources
Revenue
$3.58B
Net income
—
Diluted EPS
0.00
Operating cash flow
$219.70M
Free cash flow
$166.80M
Fetching…
Sources
Revenue
$3.25B
Net income
—
Diluted EPS
-2.55
Operating cash flow
$535.50M
Free cash flow
$492.90M
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Sources
Revenue
$3.53B
Net income
—
Diluted EPS
-0.43
Operating cash flow
$482.70M
Free cash flow
$342.30M
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Sources
Is it cheap or expensive?
Fair value $42.10 vs current price $20.85
Wall Street consensus is the average analyst price target: $21.00 (-50.1% lower than our fair-value estimate).
Our most-likely fair value is $42.10 a share — about 101.9% above today's price of $20.85, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $11.6B. Interest coverage 0.5x.
Net debt
$11.57B
Interest coverage
0.54x
Viatris Inc.'s profit covers its interest bill about 0.5 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
VTRS
BASELINE
Viatris Inc.
Total debt $13.58B Interest coverage 0.54x This is the baseline the peer rows are being compared against.
Total debt $17.00B Interest coverage 4.31x +702% vs VTRS Carries about 8.0x more debt cushion than VTRS.
Total debt $6.20B Interest coverage 6.48x +1,104% vs VTRS Carries about 12.0x more debt cushion than VTRS.
Total debt $769.68M Interest coverage 13.41x +2,393% vs VTRS Carries about 24.9x more debt cushion than VTRS.
Total debt $8.55B Interest coverage 2.43x +352% vs VTRS Carries about 4.5x more debt cushion than VTRS.
Total debt $3.46B Interest coverage 1.92x +258% vs VTRS Carries about 3.6x more debt cushion than VTRS.
What you should know
The case for and against VTRS
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.0% last year.
-
Free cash flow was positive in 8/10 years.
-
Dividend yield is 2.3% with 41-year payout history.
Risks
-
Return on equity was -4.2% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 0.3% (peer median: 0.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
7.58x
P/B
1.75x
P/S
1.62x
EV/EBITDA
8.11x
PEG ratio
3.73x
Profitability
How much profit each dollar creates
Gross margin
41.1%
Operating margin
13.9%
Net margin
-4.1%
ROE
-4.2%
ROA
2.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.99x
Current ratio
1.55x
Quick ratio
0.82x
Total debt
$13.58B
Total cash
$2.01B
Growth
How the business has been compounding
Revenue TTM
$14.73B
Revenue 5Y CAGR
-5.4%
EPS TTM
-0.53
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$2.49B
Free CF TTM
$1.94B
FCF margin
13.2%
Dividend
Shareholder payout
Yield
2.3%
Payout ratio
960.0%
Last ex-div date
2026-11-23