Viatris ($VTRS) Extremely Undervalued and Estimated 5% Dividend Yield Soon.
Viatris is a new pharmaceutical stock formed from the combination of Mylan and the Upjohn division of Pfizer, released onto the Nasdaq in November.
The company offers many well-known therapies (such as Xanax, Viagra, etc) which were originally part of Upjohn's collection of branded drugs.
Below a brief summary of both the negatives and positives surrounding this stock, however if you want a better understanding I have left some articles below.
Positives
* The company plans to offer a dividend (estimated around 5% yield) using at least 25% of the company's free cash flow. This is a lot better than Pfizer's current yield of around 4.2%.
* A dividend cut down the road seems unlikely. Even with the recent headwind the pharma industry has faced recently, the revenue of Viatris has and should remain relatively stable, with potentially to definitely grow in the next few years.
* The stock is wildly undervalued. This large market-cap stock (close to $20 billion) trades at only 4.4 times expected earnings, joining only a handful of large-cap stocks that trade at forward-earning multiples below 5. Earnings can be deceiving so take also its price-to-sales multiple: 0.77!
Negatives
* Pfizer may offer superior growth moving forward for one simple reason. It won't have older drugs that rapidly losing market share to generic alternatives - however, Viatris will remain with those drugs in its lineup.
* Another headwind is the continued price erosion for generic drugs in the US-China volume-based procurement program. This is creating pricing pressure and may take Viatris time to find faster-rising sales and overcome these challenges.
At the time of writing this $VTRS is down 11% after a rather downbeat 2021 revenue outlook. However with an upcoming dividend release and an extreme undervalued price this could be a great reliable dividend stock with room for some conservative growth on top as the company finds its feet.
Below I have left the sources used, which should provide a much better understanding of the company financials, history and future.
[https://www.fool.com/investing/2021/01/31/the-most-wildly-undervalued-large-cap-stock-on-the/](https://www.fool.com/investing/2021/01/31/the-most-wildly-undervalued-large-cap-stock-on-the/)
[https://www.fool.com/investing/2020/11/24/should-pfizer-shareholders-sell-their-viatris-stoc/](https://www.fool.com/investing/2020/11/24/should-pfizer-shareholders-sell-their-viatris-stoc/)
[https://uk.movies.yahoo.com/mylan-vtrs-stock-undervalued-now-165004336.html](https://uk.movies.yahoo.com/mylan-vtrs-stock-undervalued-now-165004336.html)
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