Important note

This AI stock analysis for Viatris is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Viatris - AI Stock Analysis

Analysis generated May 4, 2024

Viatris is a healthcare company formed through the merger of Mylan N.V. and Upjohn, a division of Pfizer. It is a global pharmaceutical and life sciences company that specializes in generic, brand name, and over-the-counter products. With a portfolio of more than 1,400 approved molecules, Viatris operates in more than 165 countries and territories, working to empower people worldwide to live healthier at every stage of life.

Fundamental Analysis

Viatris reported revenue for the last quarter at $3.84 billion. This is a decrease of 2.65% compared to the quarter before it, illustrating a potential area for concern. Year-over-year, the revenue decrease is around 1.00%, signaling a potential challenge in revenue growth.

The company's net income for the last quarter was $766 million. This shows a worrying decrease of 330.88% from the previous quarter, which may raise red flags to investors about the company's profitability. The year-over-year decrease in net income is 256.28%, adding to the concerns about Viatris's continuous earning capability.

Viatris’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) came in at $176 million for the last quarter, a decrease of 115.56% from the prior quarter and a year-over-year decrease of 110.32%, both of which could potentially point towards operational challenges within the company.

The current P/E (Price to Earnings) ratio stands at a staggering 232, which traditionally suggests that the company might be overvalued, painting a bearish picture for investors. Furthermore, several company insiders have been selling their stock recently, adding to the bearish sentiment.

Technical Analysis

Today's stock price of Viatris sits at $11.79, noting a slight increase of 0.26% compared to one month ago. Over a longer period, specifically a year, the stock has increased by 33.07%, indicating a strong positive long-term trend and an overall bullish sentiment in the market.

The moving average over the last 10 days (SMA10) is 11.64, slightly up from the previous SMA10 of 11.61, which hints at a positive short-term price movement. The Relative Strength Index (RSI) at 51.6 is indicative of a neutrally positioned stock, neither overbought nor oversold.

Alternative Data Analysis

Viatris is currently showing vibrant signs of growth and potential through alternative data metrics. The company has 357 open job positions, which represents an 8% increase over the past couple of months, suggestive of expansion and the potential for future growth.

There is a significant uptick of approximately 87% in webpage visitors, reaching an estimate of 140,000, signaling a pronounced bullish trend in customer acquisition. Meanwhile, Viatris is garnering increasing interest on social media platforms too; their Instagram followers have grown by 12% in recent months to 6,500, enhancing customer engagement. Twitter activity remains stable with 8,500 followers.

Conclusion and Recommendation

While Viatris's fundamental data—highlighting declining revenues and profit margins—show cause for concern, the positive trends in both the technical and alternative data analyses present a counterpoint. The stock's bullish technical indicators and the alternative data indicating company growth, increased customer interest, and employee expansion suggest the potential for a turnaround. However, the alarmingly high P/E ratio and the insider selling could deter investors looking for a value investment or immediate gains.

In conclusion, Viatris's stock analysis presents a mixed view. Given the challenging fundamentals juxtaposed with positive alternative and technical signals, the stock may be best suited for investors with a moderate risk appetite and a longer-term investment horizon. Those looking for short-term profitability or risk-averse investments may want to proceed with caution or look to other opportunities.