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 83 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. 1VRTX has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make 1VRTX a good candidate 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.
1VRTX had positive earnings in 4 of the past 5 years.
Of the past 5 years 1VRTX 4 years had a positive operating cash flow.
1.2 Ratios
1VRTX has a better Return On Assets (15.13%) than 86.84% of its industry peers.
The Return On Equity of 1VRTX (21.18%) is better than 88.16% of its industry peers.
1VRTX has a better Return On Invested Capital (16.69%) than 90.79% of its industry peers.
1VRTX had an Average Return On Invested Capital over the past 3 years of 18.67%. This is significantly above the industry average of 12.74%.
| 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
With an excellent Profit Margin value of 31.86%, 1VRTX belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
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.
The Gross Margin of 1VRTX (86.11%) is better than 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
1VRTX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, 1VRTX has an improved debt to assets ratio.
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.
Looking at the Current ratio, with a value of 2.52, 1VRTX is in line with its industry, outperforming 57.89% of the companies in the same industry.
1VRTX has a Quick Ratio of 2.16. This indicates that 1VRTX is financially healthy and has no problem in meeting its short term obligations.
1VRTX has a Quick ratio (2.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 7966.67% over the past year.
The earnings per share for 1VRTX have been decreasing by -44.14% on average. This is quite bad
Looking at the last year, 1VRTX shows a quite strong growth in Revenue. The Revenue has grown by 10.46% in the last year.
Measured over the past years, 1VRTX shows a very strong growth in Revenue. The Revenue has been growing by 21.50% on average per year.
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.
Based on estimates for the next years, 1VRTX will show a quite strong growth in Revenue. The Revenue will grow by 10.01% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.19, the valuation of 1VRTX can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 1VRTX indicates a rather cheap valuation: 1VRTX is cheaper than 80.26% of the companies listed in the same industry.
1VRTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 18.76 indicates a rather expensive valuation of 1VRTX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1VRTX indicates a rather cheap valuation: 1VRTX is cheaper than 81.58% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, 1VRTX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
1VRTX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1VRTX is cheaper than 76.32% of the companies in the same industry.
78.95% of the companies in the same industry are more expensive than 1VRTX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.78 | ||
| EV/EBITDA | 20.39 |
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 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
No dividends for 1VRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1VRTX (9/10/2025, 7:00:00 PM)
334.7
-2.05 (-0.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap85.81B
Revenue(TTM)11.42B
Net Income(TTM)3.64B
Analysts75.9
Price Target416.5 (24.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)-1.87%
Min EPS beat(2)-7.2%
Max EPS beat(2)3.45%
EPS beat(4)2
Avg EPS beat(4)-0.78%
Min EPS beat(4)-7.2%
Max EPS beat(4)3.69%
EPS beat(8)5
Avg EPS beat(8)-64.35%
EPS beat(12)7
Avg EPS beat(12)-42%
EPS beat(16)10
Avg EPS beat(16)-30.64%
Revenue beat(2)1
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-4.8%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.87%
Revenue beat(12)5
Avg Revenue beat(12)-0.45%
Revenue beat(16)8
Avg Revenue beat(16)0.05%
PT rev (1m)-5.11%
PT rev (3m)-11.39%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)0.71%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 18.76 | ||
| P/S | 8.82 | ||
| P/FCF | 28.78 | ||
| P/OCF | 26.18 | ||
| P/B | 5.86 | ||
| P/tB | 6.43 | ||
| EV/EBITDA | 20.39 |
EPS(TTM)14.43
EY4.31%
EPS(NY)17.84
Fwd EY5.33%
FCF(TTM)11.63
FCFY3.47%
OCF(TTM)12.78
OCFY3.82%
SpS37.95
BVpS57.08
TBVpS52.02
PEG (NY)0
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 21.18% | ||
| ROCE | 22.25% | ||
| ROIC | 16.69% | ||
| ROICexc | 24.57% | ||
| ROICexgc | 27.69% | ||
| OM | 38.77% | ||
| PM (TTM) | 31.86% | ||
| GM | 86.11% | ||
| FCFM | 30.65% |
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)18.67%
ROIC(5y)19.24%
ROICexc(3y)46.18%
ROICexc(5y)52.12%
ROICexgc(3y)66.07%
ROICexgc(5y)80.93%
ROCE(3y)24.89%
ROCE(5y)25.65%
ROICexgc growth 3Y-29.98%
ROICexgc growth 5Y-9.76%
ROICexc growth 3Y-22.64%
ROICexc growth 5Y-1.94%
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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 173.52% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 260.41 | ||
| Cash Conversion | 83.13% | ||
| Profit Quality | 96.21% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | N/A |
F-Score6
WACC9.67%
ROIC/WACC1.73
Cap/Depr(3y)171.61%
Cap/Depr(5y)187.83%
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)7966.67%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%135.23%
EPS Next Y6256.61%
EPS Next 2Y749.77%
EPS Next 3Y329.69%
EPS Next 5Y150.73%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%12.06%
Revenue Next Year10.03%
Revenue Next 2Y9.8%
Revenue Next 3Y9.48%
Revenue Next 5Y10.01%
EBIT growth 1Y4.24%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year816.11%
EBIT Next 3Y130.8%
EBIT Next 5Y68.38%
FCF growth 1Y-9.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.45%
OCF growth 3YN/A
OCF growth 5YN/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.