Viatris Inc. (VTRS)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I look for understandable businesses with durable pricing power and a margin of safety. Viatris is a global generic and specialty drug manufacturer. The filed record is not comforting: in FY2023 revenue was $15.4B, net income $54.7M, and EPS $0.05; in FY2024 revenue fell to $14.7B and net income turned to a loss of $634.2M, or EPS -$0.53; in FY2025 revenue was $14.3B and the loss widened to $3.5B, or EPS -$3.00. Fiscal Q1 2026 showed EPS $0.15, but fiscal Q2 2026 revenue was $3.7B with EPS -$0.10. FairStock's Lynch category is TURNAROUND — loss in the latest year after earlier profits. The balance sheet is stretched: debt-to-equity is 0.96 and Altman Z-Score is 0.80, while ROCE is only 2.67% and ROE is -2.75%. Generic drugs have little pricing power; scale helps, but competition erodes returns. On the positive side, trailing free cash flow is $1.8B, a 9.1% FCF yield on the 2026-10-13 market cap, and the dividend yield is 2.83%. On FairStock calculations, P/B is 1.37, EV/EBITDA is 12.42, and the FairStock Score is 53/100. That is not a bargain if returns stay low. I would need evidence that losses are truly one-time, debt is falling, and cash flow is durable before calling this a sound value. Otherwise it is a cigar butt — possibly one puff, but not a wonderful business.

In plain English: Viatris makes and sells prescription and generic medicines around the world. The business has been losing money recently and carries a lot of debt, though it still produces cash. At the 2026-10-13 price, the shares look roughly fair rather than clearly cheap, and the situation is uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer