VERTEX PHARMACEUTICALS INC (1VRTX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1VRTX - US92532F1003 - Common Stock
334.7 EUR
-2.05 (-0.61%)
We assign a fundamental rating of 7 out of 10 to 1VRTX. 1VRTX was compared to 85 industry peers in the Biotechnology industry. 1VRTX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. An interesting combination arises when we look at growth and value: 1VRTX is growing strongly while it also seems undervalued. This makes 1VRTX very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year 1VRTX was profitable.
- 1VRTX had a positive 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.
1.2 Ratios
- The Return On Assets of 1VRTX (15.13%) is better than 86.84% of its industry peers.
- 1VRTX has a Return On Equity of 21.18%. This is amongst the best in the industry. 1VRTX outperforms 88.16% of its industry peers.
- With an excellent Return On Invested Capital value of 16.69%, 1VRTX belongs to the best of the industry, outperforming 90.79% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1VRTX is significantly above the industry average of 11.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 21.18% | ||
| ROIC | 16.69% |
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)18.67%
ROIC(5y)19.24%
1.3 Margins
- The Profit Margin of 1VRTX (31.86%) is better than 86.84% of its industry peers.
- 1VRTX has a better Operating Margin (38.77%) than 92.11% of its industry peers.
- 1VRTX's Operating Margin has improved in the last couple of years.
- 1VRTX has a Gross Margin of 86.11%. This is in the better half of the industry: 1VRTX outperforms 75.00% of its industry peers.
- 1VRTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.77% | ||
| PM (TTM) | 31.86% | ||
| 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1VRTX is creating value.
- 1VRTX has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1VRTX has less shares outstanding
- The debt/assets ratio for 1VRTX has been reduced compared to a year ago.
2.2 Solvency
- 1VRTX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC1.73
WACC9.67%
2.3 Liquidity
- 1VRTX has a Current Ratio of 2.52. This indicates that 1VRTX is financially healthy and has no problem in meeting its short term obligations.
- 1VRTX has a Current ratio (2.52) which is in line with its industry peers.
- A Quick Ratio of 2.16 indicates that 1VRTX has no problem at all paying its short term obligations.
- 1VRTX has a Quick ratio (2.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
- 1VRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 7966.67%, which is quite impressive.
- The earnings per share for 1VRTX have been decreasing by -44.14% on average. This is quite bad
- The Revenue has grown by 10.46% in the past year. This is quite good.
- The Revenue has been growing by 21.50% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)7966.67%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%135.23%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%12.06%
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 150.73% on average per year.
- 1VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.01% yearly.
EPS Next Y6256.61%
EPS Next 2Y749.77%
EPS Next 3Y329.69%
EPS Next 5Y150.73%
Revenue Next Year10.03%
Revenue Next 2Y9.8%
Revenue Next 3Y9.48%
Revenue Next 5Y10.01%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.19, which indicates a rather expensive current valuation of 1VRTX.
- Based on the Price/Earnings ratio, 1VRTX is valued cheaply inside the industry as 80.26% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.25. 1VRTX is around the same levels.
- Based on the Price/Forward Earnings ratio of 18.76, the valuation of 1VRTX can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, 1VRTX is valued cheaper than 81.58% of the companies in the same industry.
- 1VRTX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
- 76.32% of the companies in the same industry are more expensive than 1VRTX, based on the Enterprise Value to EBITDA ratio.
- 1VRTX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1VRTX is cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.78 | ||
| EV/EBITDA | 20.39 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of 1VRTX may justify a higher PE ratio.
- A more expensive valuation may be justified as 1VRTX's earnings are expected to grow with 329.69% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y749.77%
EPS Next 3Y329.69%
5. Dividend
5.1 Amount
- 1VRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERTEX PHARMACEUTICALS INC / 1VRTX.MI FAQ
Can you provide the ChartMill fundamental rating for VERTEX PHARMACEUTICALS INC?
ChartMill assigns a fundamental rating of 7 / 10 to 1VRTX.MI.
What is the valuation status for 1VRTX stock?
ChartMill assigns a valuation rating of 6 / 10 to VERTEX PHARMACEUTICALS INC (1VRTX.MI). This can be considered as Fairly Valued.
What is the profitability of 1VRTX stock?
VERTEX PHARMACEUTICALS INC (1VRTX.MI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of VERTEX PHARMACEUTICALS INC (1VRTX.MI) stock?
The Price/Earnings (PE) ratio for VERTEX PHARMACEUTICALS INC (1VRTX.MI) is 23.19 and the Price/Book (PB) ratio is 5.86.
How financially healthy is VERTEX PHARMACEUTICALS INC?
The financial health rating of VERTEX PHARMACEUTICALS INC (1VRTX.MI) is 7 / 10.