One-glance verdict
Undervalued
$29.74 our estimate vs market $17.83
Wall Street consensus: $19.40 (-34.8% lower than our fair-value estimate)
40% below our estimate, below the bear case
Fundamentals snapshot
Viatris Inc.
VTRS · NMS · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$17.83
52-week range
$9.47 - $18.39
Market cap
$20.48B
Balance sheet
Distressed
0.54x Concerning
Net debt $12.11B. 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 3.1% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Return on equity was -2.8% 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 healthcare company formed by combining a maker of generic drugs (cheaper, exact copies of brand-name medicines whose legal protection has expired) with the business that owns older, well-known brands like Lipitor and Viagra. The company makes money from both its portfolio of famous drugs and high-volume sales of generics, but its main challenge is managing declining revenue (the total money coming in from sales) from its established brands as they face more competition. This makes its ability to efficiently produce large quantities of medicine and develop new products very important for its future.
How the company got here
Viatris was formed in late 2020 by combining two different kinds of drug companies. One was Mylan, a large maker of generic drugs (less expensive, approved copies of brand-name medicines). The other was Upjohn, which was a part of the giant drugmaker Pfizer that sold well-known branded medicines like Lipitor and Viagra after their main patents expired. This merger created a new, large company with a global reach and a mix of both lower-cost generics and trusted, established brands.
What it actually does
Viatris sells a vast portfolio of medicines for a wide range of health issues, from heart conditions to infections and allergies. Its products fall into two main buckets: branded drugs and generic drugs. The branded drugs are well-known names like Lipitor (for cholesterol), Viagra (for erectile dysfunction), and the EpiPen Auto-Injector, which have been on the market for years. The generics business makes more affordable versions of other companies' brand-name drugs once their patents expire, which helps lower healthcare costs for patients and insurers.
Developed Markets
This is Viatris's largest business segment, covering the United States, Canada, and Europe. It sells a mix of both well-known branded medicines like Lyrica and the EpiPen, and a large volume of generic drugs to pharmacies, hospitals, and healthcare systems. Because these are mature and competitive markets, a key part of the business is managing pricing and supply chain (the entire process of making and delivering a product) efficiency. This segment provides a steady foundation for the whole company, making up the biggest piece of its total revenue.
Greater China
This segment focuses on mainland China, Hong Kong, and Taiwan, and it represents a major growth area for the company. Customers here have strong trust in established, foreign-made medicines, so Viatris primarily sells its portfolio of well-known branded drugs like the cholesterol medicine Lipitor and the blood pressure drug Norvasc. This business is a significant and fast-growing contributor to the company's overall sales, often growing faster than its other segments.
JANZ
This is a smaller segment that includes the developed countries of Japan, Australia, and New Zealand. Each of these countries has its own unique healthcare system and regulations, so Viatris sells a specific mix of products tailored to local needs. Key products sold here include Amitiza, Effexor, and Lyrica. While not as large as the other segments, it provides a stable source of income from these high-income countries.
Emerging Markets
This segment covers a huge and diverse area of more than 125 countries across Asia, Africa, Latin America, and the Middle East. In these regions, Viatris sells a variety of its medicines, with a focus on its trusted branded products that patients and doctors recognize, such as Lipitor and Celebrex. The company sees these developing economies as a key opportunity for future growth as more people gain access to healthcare. This part of the business is important for the company's long-term expansion plans.
What management is betting on now
Management's current strategy is focused on strengthening the company's financial health and preparing for steady growth. A top priority is generating strong free cash flow (cash left after paying for operating costs and equipment spending) to pay down debt and return money to investors through dividends (a portion of profits paid out to shareholders). They are also focused on growing sales in key markets like China, advancing their pipeline (the set of products a company has in development) with several potential new drug approvals, and finding cost savings. Finally, they are looking for smart, smaller acquisitions that will be accretive (meaning, will add to the company's earnings per share, which is a company's profit divided by the number of its stock shares).
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 Q3
$749.50M
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
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
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Sources
Revenue
$3.70B
Net income
—
Diluted EPS
-0.34
Operating cash flow
$815.80M
Free cash flow
$619.30M
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Sources
Revenue
$3.76B
Net income
—
Diluted EPS
-0.11
Operating cash flow
$744.90M
Free cash flow
$658.10M
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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
Revenue
$3.75B
Net income
—
Diluted EPS
0.08
Operating cash flow
$826.50M
Free cash flow
$749.50M
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Sources
Is it cheap or expensive?
Fair value $29.74 vs current price $17.83
Wall Street consensus is the average analyst price target: $19.40 (-34.8% lower than our fair-value estimate).
Our most-likely fair value is $29.74 a share — about 66.8% above today's price of $17.83, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $12.1B. Interest coverage 0.5x.
Net debt
$12.11B
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 $13.62B Interest coverage 0.54x This is the baseline the peer rows are being compared against.
Total debt $16.89B 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 $750.91M 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 $3.48B 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 3.1% last year.
-
Free cash flow was positive in 8/10 years.
-
Dividend yield is 2.7% with 41-year payout history.
Risks
-
Return on equity was -2.8% 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
6.67x
P/B
1.42x
P/S
1.39x
EV/EBITDA
7.59x
PEG ratio
3.24x
Profitability
How much profit each dollar creates
Gross margin
40.3%
Operating margin
12.6%
Net margin
-2.8%
ROE
-2.8%
ROA
2.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.96x
Current ratio
1.58x
Quick ratio
0.82x
Total debt
$13.62B
Total cash
$1.51B
Growth
How the business has been compounding
Revenue TTM
$14.74B
Revenue 5Y CAGR
-5.4%
EPS TTM
-0.37
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$2.33B
Free CF TTM
$1.94B
FCF margin
13.1%
Dividend
Shareholder payout
Yield
2.7%
Payout ratio
960.0%
Last ex-div date
2026-08-21