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. Both the health and profitability get an excellent rating, making 1VRTX a very profitable company, without any liquidiy or solvency issues. 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
1VRTX had positive earnings in the past year.
1VRTX had a positive operating cash flow in the past year.
1VRTX had positive earnings in 4 of the past 5 years.
1VRTX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
1VRTX has a Return On Assets of 15.13%. This is amongst the best in the industry. 1VRTX outperforms 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.
The Average Return On Invested Capital over the past 3 years for 1VRTX 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
The Profit Margin of 1VRTX (31.86%) is better than 86.84% of its industry peers.
With an excellent Operating Margin value of 38.77%, 1VRTX belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
1VRTX's Operating Margin has improved in the last couple of years.
1VRTX's Gross Margin of 86.11% is fine compared to the rest 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
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.
The number of shares outstanding for 1VRTX has been reduced compared to 5 years ago.
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
A Current Ratio of 2.52 indicates that 1VRTX has no problem at all paying its short term obligations.
1VRTX has a Current ratio (2.52) which is in line with its industry peers.
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 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.
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 10.46% 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)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.
The Revenue is expected to grow by 10.01% on average over the next years. This is quite good.
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.19, 1VRTX is valued on the expensive side.
Based on the Price/Earnings ratio, 1VRTX is valued cheaply inside the industry as 80.26% of the companies are valued more expensively.
1VRTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 18.76 indicates a rather expensive valuation of 1VRTX.
81.58% of the companies in the same industry are more expensive than 1VRTX, based on the Price/Forward Earnings ratio.
1VRTX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.04, 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
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.
Based on the Price/Free Cash Flow ratio, 1VRTX is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
| 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.