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VERTEX PHARMACEUTICALS INC (1VRTX.MI) Stock Fundamental Analysis

BIT:1VRTX - Euronext Milan - US92532F1003 - Common Stock - Currency: EUR

384.6  -88.8 (-18.76%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to 1VRTX. 1VRTX was compared to 67 industry peers in the Biotechnology industry. While 1VRTX has a great health rating, its profitability is only average at the moment. 1VRTX is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year 1VRTX was profitable.
1VRTX had a negative operating cash flow in the past year.
Of the past 5 years 1VRTX 4 years were profitable.
Of the past 5 years 1VRTX 4 years had a positive operating cash flow.
1VRTX.MI Yearly Net Income VS EBIT VS OCF VS FCF1VRTX.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

1.2 Ratios

1VRTX has a better Return On Assets (-2.38%) than 68.66% of its industry peers.
The Return On Equity of 1VRTX (-3.26%) is better than 71.64% of its industry peers.
1VRTX has a better Return On Invested Capital (17.38%) than 92.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1VRTX is significantly above the industry average of 12.64%.
Industry RankSector Rank
ROA -2.38%
ROE -3.26%
ROIC 17.38%
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)18.48%
ROIC(5y)19.13%
1VRTX.MI Yearly ROA, ROE, ROIC1VRTX.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40

1.3 Margins

With an excellent Operating Margin value of 39.89%, 1VRTX belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
1VRTX's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 86.11%, 1VRTX belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
1VRTX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 39.89%
PM (TTM) N/A
GM 86.11%
OM growth 3Y2.79%
OM growth 5Y6.75%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.74%
GM growth 5Y-0.17%
1VRTX.MI Yearly Profit, Operating, Gross Margins1VRTX.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1VRTX is creating value.
The number of shares outstanding for 1VRTX has been reduced compared to 1 year ago.
1VRTX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1VRTX has been reduced compared to a year ago.
1VRTX.MI Yearly Shares Outstanding1VRTX.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
1VRTX.MI Yearly Total Debt VS Total Assets1VRTX.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

An Altman-Z score of 13.39 indicates that 1VRTX is not in any danger for bankruptcy at the moment.
1VRTX's Altman-Z score of 13.39 is amongst the best of the industry. 1VRTX outperforms 92.54% of its industry peers.
1VRTX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
1VRTX's Debt to Equity ratio of 0.01 is amongst the best of the industry. 1VRTX outperforms 80.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 13.39
ROIC/WACC1.79
WACC9.73%
1VRTX.MI Yearly LT Debt VS Equity VS FCF1VRTX.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 2.69 indicates that 1VRTX has no problem at all paying its short term obligations.
1VRTX's Current ratio of 2.69 is fine compared to the rest of the industry. 1VRTX outperforms 62.69% of its industry peers.
1VRTX has a Quick Ratio of 2.35. This indicates that 1VRTX is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.35, 1VRTX is doing good in the industry, outperforming 62.69% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.69
Quick Ratio 2.35
1VRTX.MI Yearly Current Assets VS Current Liabilites1VRTX.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

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6

3. Growth

3.1 Past

The earnings per share for 1VRTX have decreased strongly by -98.09% in the last year.
Measured over the past years, 1VRTX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -44.14% on average per year.
Looking at the last year, 1VRTX shows a quite strong growth in Revenue. The Revenue has grown by 11.66% in the last year.
1VRTX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.50% yearly.
EPS 1Y (TTM)-98.09%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%-5.24%
Revenue 1Y (TTM)11.66%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%15.66%

3.2 Future

Based on estimates for the next years, 1VRTX will show a very strong growth in Earnings Per Share. The EPS will grow by 151.37% on average per year.
The Revenue is expected to grow by 10.51% on average over the next years. This is quite good.
EPS Next Y6259.25%
EPS Next 2Y742.26%
EPS Next 3Y329.61%
EPS Next 5Y151.37%
Revenue Next Year9.79%
Revenue Next 2Y9.4%
Revenue Next 3Y9.26%
Revenue Next 5Y10.51%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
1VRTX.MI Yearly Revenue VS Estimates1VRTX.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
1VRTX.MI Yearly EPS VS Estimates1VRTX.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 10 20 30

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 1538.40 indicates a quite expensive valuation of 1VRTX.
Based on the Price/Earnings ratio, 1VRTX is valued a bit cheaper than 76.12% of the companies in the same industry.
1VRTX is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.44, 1VRTX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, 1VRTX is valued cheaply inside the industry as 85.07% of the companies are valued more expensively.
1VRTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 1538.4
Fwd PE 24.44
1VRTX.MI Price Earnings VS Forward Price Earnings1VRTX.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 500 1K 1.5K

4.2 Price Multiples

77.61% of the companies in the same industry are more expensive than 1VRTX, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 23.17
1VRTX.MI Per share data1VRTX.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

1VRTX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of 1VRTX may justify a higher PE ratio.
1VRTX's earnings are expected to grow with 329.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y742.26%
EPS Next 3Y329.61%

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0

5. Dividend

5.1 Amount

1VRTX does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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VERTEX PHARMACEUTICALS INC

BIT:1VRTX (7/1/2025, 7:00:00 PM)

384.6

-88.8 (-18.76%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-10 2025-02-10/amc
Earnings (Next)04-30 2025-04-30/amc
Inst Owners96.16%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap98.76B
Analysts77
Price Target470.05 (22.22%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.31%
Min EPS beat(2)-3.07%
Max EPS beat(2)3.69%
EPS beat(4)2
Avg EPS beat(4)-128.02%
Min EPS beat(4)-527.57%
Max EPS beat(4)14.85%
EPS beat(8)4
Avg EPS beat(8)-64.13%
EPS beat(12)7
Avg EPS beat(12)-41.66%
EPS beat(16)11
Avg EPS beat(16)-28.52%
Revenue beat(2)1
Avg Revenue beat(2)1.23%
Min Revenue beat(2)-0.22%
Max Revenue beat(2)2.68%
Revenue beat(4)2
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.06%
Revenue beat(16)9
Avg Revenue beat(16)0.62%
PT rev (1m)-1.24%
PT rev (3m)-3.76%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-2.97%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-3.91%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.89%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.17%
Valuation
Industry RankSector Rank
PE 1538.4
Fwd PE 24.44
P/S 10.5
P/FCF N/A
P/OCF N/A
P/B 7.05
P/tB 7.98
EV/EBITDA 23.17
EPS(TTM)0.25
EY0.07%
EPS(NY)15.74
Fwd EY4.09%
FCF(TTM)-3.25
FCFYN/A
OCF(TTM)-1.64
OCFYN/A
SpS36.62
BVpS54.53
TBVpS48.17
PEG (NY)0.25
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.38%
ROE -3.26%
ROCE 23.17%
ROIC 17.38%
ROICexc 29.16%
ROICexgc 35.1%
OM 39.89%
PM (TTM) N/A
GM 86.11%
FCFM N/A
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)18.48%
ROIC(5y)19.13%
ROICexc(3y)48.36%
ROICexc(5y)53.43%
ROICexgc(3y)69.79%
ROICexgc(5y)83.16%
ROCE(3y)24.64%
ROCE(5y)25.5%
ROICexcg growth 3Y-26.3%
ROICexcg growth 5Y-6.95%
ROICexc growth 3Y-19.26%
ROICexc growth 5Y0.61%
OM growth 3Y2.79%
OM growth 5Y6.75%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.74%
GM growth 5Y-0.17%
F-Score4
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Debt/EBITDA 0.02
Cap/Depr 234.27%
Cap/Sales 4.4%
Interest Coverage 144.12
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.69
Quick Ratio 2.35
Altman-Z 13.39
F-Score4
WACC9.73%
ROIC/WACC1.79
Cap/Depr(3y)171.61%
Cap/Depr(5y)187.84%
Cap/Sales(3y)3.11%
Cap/Sales(5y)3.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-98.09%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%-5.24%
EPS Next Y6259.25%
EPS Next 2Y742.26%
EPS Next 3Y329.61%
EPS Next 5Y151.37%
Revenue 1Y (TTM)11.66%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%15.66%
Revenue Next Year9.79%
Revenue Next 2Y9.4%
Revenue Next 3Y9.26%
Revenue Next 5Y10.51%
EBIT growth 1Y14.17%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year831.04%
EBIT Next 3Y131.05%
EBIT Next 5Y68.15%
FCF growth 1Y-129.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-113.93%
OCF growth 3YN/A
OCF growth 5YN/A