IDNA - Viatris: A Cigar Butt With Many Puffs Left

• By selling its only growth asset, Viatris has turned out to be a cigar butt investment that still has many puffs left in it due to its strong free cash flow.
• Debt remains a concern, but the company continues to deleverage thanks to its strong free cash flow and has accelerated the process through the announced asset sale.
• Debt remains a concern, but the company continues to deleverage thanks to its strong free cashflow and has accelerated the process through the announced asset sale.
• Q1 earnings came in better than expected and the company continues to generate very solid free cash flow. During the quarter, the debt of $840 million was repaid.
• Viatris is certainly not for the faint-hearted, but the strong free cash flow and well-covered dividend are too hard to pass up considering the rock-bottom valuation.

For further details see: