VERTEX PHARMACEUTICALS INC (1VRTX.MI) Stock Fundamental Analysis
BIT:1VRTX - Euronext Milan - US92532F1003 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1VRTX. 1VRTX was compared to 75 industry peers in the Biotechnology industry. While 1VRTX has a great health rating, its profitability is only average at the moment. 1VRTX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1VRTX had positive earnings in the past year.
In the past year 1VRTX has reported a negative cash flow from operations.
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
The Return On Assets of 1VRTX (-2.38%) is better than 69.12% of its industry peers.
Looking at the Return On Equity, with a value of -3.26%, 1VRTX is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.38%, 1VRTX belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.
1VRTX had an Average Return On Invested Capital over the past 3 years of 18.48%. This is significantly above the industry average of 12.02%.
| Industry Rank | Sector 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%
1.3 Margins
With an excellent Operating Margin value of 39.89%, 1VRTX belongs to the best of the industry, outperforming 98.53% of the companies in the same industry.
1VRTX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 86.11%, 1VRTX belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
In the last couple of years the Gross Margin of 1VRTX has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1VRTX is creating value.
The number of shares outstanding for 1VRTX has been reduced compared to 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 an Altman-Z score of 14.03. This indicates that 1VRTX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1VRTX (14.03) is better than 95.59% 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 has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. 1VRTX outperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 14.03 |
ROIC/WACC1.82
WACC9.56%
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 in line compared to the rest of the industry. 1VRTX outperforms 55.88% of its industry peers.
A Quick Ratio of 2.35 indicates that 1VRTX has no problem at all paying its short term obligations.
With a Quick ratio value of 2.35, 1VRTX perfoms like the industry average, outperforming 54.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The earnings per share for 1VRTX have decreased strongly by -98.09% in the last year.
1VRTX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -44.14% yearly.
1VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.66%.
The Revenue has been growing by 21.50% on average over the past years. This is a very strong growth!
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 151.00% 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 9.03% on average per year.
EPS Next Y6260.03%
EPS Next 2Y739.5%
EPS Next 3Y329.95%
EPS Next 5Y151%
Revenue Next Year8.75%
Revenue Next 2Y9%
Revenue Next 3Y8.67%
Revenue Next 5Y9.03%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 1627.14, the valuation of 1VRTX can be described as expensive.
Based on the Price/Earnings ratio, 1VRTX is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.30, 1VRTX is valued quite expensively.
The Price/Forward Earnings ratio is 25.80, which means the current valuation is very expensive for 1VRTX.
80.88% of the companies in the same industry are more expensive than 1VRTX, based on the Price/Forward Earnings ratio.
1VRTX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1627.14 | ||
| Fwd PE | 25.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1VRTX indicates a somewhat cheap valuation: 1VRTX is cheaper than 79.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.58 |
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 decent 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 329.94% in the coming years.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y739.5%
EPS Next 3Y329.95%
5. Dividend
5.1 Amount
No dividends for 1VRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1VRTX (2/10/2025, 7:00:00 PM)
455.6
-12.45 (-2.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners95.47%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap117.04B
Analysts77
Price Target475.96 (4.47%)
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)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)-2.55%
PT rev (3m)0.76%
EPS NQ rev (1m)-3.1%
EPS NQ rev (3m)-2.07%
EPS NY rev (1m)-3.9%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)1.96%
Revenue NQ rev (3m)4.94%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1627.14 | ||
| Fwd PE | 25.8 | ||
| P/S | 11.09 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.45 | ||
| P/tB | 8.43 | ||
| EV/EBITDA | 24.58 |
EPS(TTM)0.28
EY0.06%
EPS(NY)17.66
Fwd EY3.88%
FCF(TTM)-3.65
FCFYN/A
OCF(TTM)-1.84
OCFYN/A
SpS41.08
BVpS61.17
TBVpS54.03
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 14.03 |
F-Score4
WACC9.56%
ROIC/WACC1.82
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 Y6260.03%
EPS Next 2Y739.5%
EPS Next 3Y329.95%
EPS Next 5Y151%
Revenue 1Y (TTM)11.66%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%15.66%
Revenue Next Year8.75%
Revenue Next 2Y9%
Revenue Next 3Y8.67%
Revenue Next 5Y9.03%
EBIT growth 1Y14.17%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year867.56%
EBIT Next 3Y128.8%
EBIT Next 5Y71.26%
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