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Should you consider NASDAQ:VRTX for quality investing?

By Mill Chart

Last update: Dec 21, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if VERTEX PHARMACEUTICALS INC (NASDAQ:VRTX) is suited for quality investing. Investors should of course do their own research, but we spotted VERTEX PHARMACEUTICALS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • VERTEX PHARMACEUTICALS INC has demonstrated significant revenue growth over the past 5 years, with a 29.12% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • VERTEX PHARMACEUTICALS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 70.65% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a Debt/Free Cash Flow Ratio of 0.09, VERTEX PHARMACEUTICALS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a robust Profit Quality (5-year) ratio of 103.0%, VERTEX PHARMACEUTICALS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • With a robust 5-year EBIT growth of 61.54%, VERTEX PHARMACEUTICALS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • The EBIT 5-year growth of VERTEX PHARMACEUTICALS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall VRTX gets a fundamental rating of 7 out of 10. We evaluated VRTX against 608 industry peers in the Biotechnology industry. VRTX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. VRTX has a decent growth rate and is not valued too expensively. This makes VRTX very considerable for quality investing!

Check the latest full fundamental report of VRTX for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

VERTEX PHARMACEUTICALS INC

NASDAQ:VRTX (2/19/2025, 8:27:41 PM)

After market: 469.8 -1.96 (-0.42%)

471.76

+9.65 (+2.09%)



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