June 17, 2025 a 02:46 am
VTRS: Dividend Analysis - Viatris Inc.
Viatris Inc. stands as a prominent player in its sector, showcasing a compelling dividend profile with a yield of 5.79%. The company has maintained a consistent dividend history over the past 27 years, indicating a commitment to rewarding shareholders. However, potential investors should be cautious of the recent payout ratios which may impact future dividend sustainability. Overall, Viatris exhibits resilience with its steady cash flow and a dedicated dividend growth trajectory.
📊 Overview
A snapshot of Viatris Inc.'s dividend profile reveals its strong presence in a competitive sector. With a dividend yield of 5.79%, investors enjoy attractive returns. A historical commitment evident from 27 years of continuous dividend payment highlights its longstanding shareholder value dedication. The table below encapsulates key data points.
| Metric | Value |
|---|---|
| Sector | Pharmaceuticals |
| Dividend Yield | 5.79% |
| Current Dividend per Share | 0.48 USD |
| Dividend History | 27 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Understanding the company's dividend history underscores its financial reliability and shareholder commitment. Staying informed of past patterns empowers investors to anticipate future actions. Below, the chart visually maps historical payments, while the table catalogs recent distributions.
| Year | Dividend per Share |
|---|---|
| 2025 | 0.24 |
| 2024 | 0.48 |
| 2023 | 0.48 |
| 2022 | 0.48 |
| 2021 | 0.33 |
📈 Dividend Growth
Evaluating Viatris Inc.'s dividend growth reveals vital trends crucial for investment decisions. A 5-year growth rate of 31.95% reflects moderate yet consistent upward momentum, fostering investor confidence.
| Time | Growth |
|---|---|
| 3 years | 13.30% |
| 5 years | 31.95% |
The average dividend growth is 31.95% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
The payout ratio is crucial in understanding the sustainability of a company's dividend. It reflects what portion of earnings and free cash flow is distributed to shareholders as dividends. Viatris's current figures indicate areas of concern requiring vigilance.
| Key Figure | Ratio |
|---|---|
| EPS-based | -15.15% |
| Free cash flow-based | 30.41% |
A negative EPS-based payout ratio indicates a payout from reserves or borrowing, as earnings are currently negative. However, a FCF-based ratio of 30.41% suggests dividends are still covered by cash flows.
✅ Cashflow & Capital Efficiency
Cash flow metrics and capital efficiency depict the core financial health, showcasing how effectively a company generates cash and utilizes capital.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 13.31% | 17.89% | 18.60% |
| Earnings Yield | -4.27% | 0.42% | 15.41% |
| CAPEX to Operating Cash Flow | 14.16% | 16.95% | 15.00% |
| Stock Compensation to Revenue | 0.99% | 1.17% | 0.72% |
| Free Cash Flow / Operating Cash Flow Ratio | 85.84% | 83.05% | 84.96% |
With a solid free cash flow yield and prudent cash flow usage, Viatris reflects strong operational efficiency and sound capital management.
⚠️ Balance Sheet & Leverage Analysis
A comprehensive balance sheet evaluation reflects a company's financial structure and ability to leverage debt effectively while maintaining financial health.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity Ratio | 0.77 | 0.90 | 0.91 |
| Debt-to-Assets Ratio | 0.34 | 0.39 | 0.39 |
| Debt-to-Capital Ratio | 0.43 | 0.47 | 0.48 |
| Net Debt to EBITDA | 4.81 | 5.03 | 2.80 |
| Current Ratio | 1.65 | 1.67 | 1.58 |
| Quick Ratio | 0.98 | 1.22 | 1.05 |
| Financial Leverage | 2.23 | 2.33 | 2.37 |
Viatris displays a stable balance sheet with managed leverage. However, slight increases in debt figures call for monitoring to avoid burden.
📈 Fundamental Strength & Profitability
Profitability and fundamental indicators measure how effectively a company manages its resources to generate profit.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | -3.40% | 0.27% | 9.86% |
| Return on Assets | -1.53% | 0.11% | 4.16% |
| Net Margin | -4.30% | 0.35% | 12.78% |
| EBIT Margin | -0.50% | 5.03% | 20.94% |
| EBITDA Margin | 19.13% | 22.41% | 39.56% |
| Gross Margin | 38.15% | 41.74% | 39.95% |
| R&D to Revenue | 5.80% | 5.90% | 4.07% |
Despite fluctuating profitability, Viatris maintains strong R&D investment, offering potential for long-term growth. Continued focus on operational improvements is needed.
🔍 Price Development
🔢 Dividend Scoring System
| Criteria | Rating | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 29/40
🏅 Rating
Viatris Inc. demonstrates a robust dividend profile with a high yield, stable payouts, and a long history of shareholder returns. However, certain financial ratios necessitate careful monitoring. Investors seeking steady income with moderate growth potential might find Viatris appealing, with the recommendation to evaluate its financial stability continuously.