VTRS - Viatris: Skeptics Proven Right Once Again

2024-05-30 18:16:29 ET

Summary

• Viatris Inc. reported Q1 2024 results in line with expectations, with a 2% decline in net sales.
• The company's EBITDA and free cash flow have been negatively impacted by declining sales, and its debt to EBITDA ratio remains high.
• Despite the low P/E ratio, Viatris stock has not delivered significant returns. We go into the reasons why.

In our last coverage of Viatris Inc. ( VTRS ) we pointed out that the company was the epitome of a value trap. It looked cheap and appealed to the "low P/E" crowd. But the melting ice cube prevented any returns for all but those that bought the extreme dips and sold the minor rips. The chart below shows the performance of VTRS and its predecessor, Mylan Labs. Mylan Labs was combined with the generic unit of Pfizer Inc. ( PFE ) and started trading as VTRS in November 2020....

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