VERTEX PHARMACEUTICALS INC (VRTX) Fundamental Analysis & Valuation

NASDAQ:VRTX • US92532F1003

Current stock price

434.3 USD
-4.41 (-1.01%)
At close:
434.3 USD
0 (0%)
After Hours:

This VRTX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. VRTX Profitability Analysis

1.1 Basic Checks

  • VRTX had positive earnings in the past year.
  • In the past year VRTX had a positive cash flow from operations.
  • VRTX had positive earnings in 4 of the past 5 years.
  • Of the past 5 years VRTX 4 years had a positive operating cash flow.
VRTX Yearly Net Income VS EBIT VS OCF VS FCFVRTX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • VRTX has a better Return On Assets (15.42%) than 95.36% of its industry peers.
  • With an excellent Return On Equity value of 21.18%, VRTX belongs to the best of the industry, outperforming 95.55% of the companies in the same industry.
  • VRTX's Return On Invested Capital of 16.99% is amongst the best of the industry. VRTX outperforms 96.91% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for VRTX is significantly below the industry average of 27.63%.
Industry RankSector Rank
ROA 15.42%
ROE 21.18%
ROIC 16.99%
ROA(3y)9.65%
ROA(5y)12.94%
ROE(3y)12.83%
ROE(5y)17.11%
ROIC(3y)17.75%
ROIC(5y)19.09%
VRTX Yearly ROA, ROE, ROICVRTX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

1.3 Margins

  • The Profit Margin of VRTX (32.94%) is better than 95.36% of its industry peers.
  • In the last couple of years the Profit Margin of VRTX has declined.
  • With an excellent Operating Margin value of 39.04%, VRTX belongs to the best of the industry, outperforming 97.49% of the companies in the same industry.
  • VRTX's Operating Margin has declined in the last couple of years.
  • VRTX has a Gross Margin of 86.24%. This is amongst the best in the industry. VRTX outperforms 88.20% of its industry peers.
  • VRTX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 39.04%
PM (TTM) 32.94%
GM 86.24%
OM growth 3Y-7.71%
OM growth 5Y-3.24%
PM growth 3Y-3.97%
PM growth 5Y-5.49%
GM growth 3Y-0.63%
GM growth 5Y-0.43%
VRTX Yearly Profit, Operating, Gross MarginsVRTX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. VRTX Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRTX is creating value.
  • The number of shares outstanding for VRTX has been reduced compared to 1 year ago.
  • Compared to 5 years ago, VRTX has less shares outstanding
  • The debt/assets ratio for VRTX has been reduced compared to a year ago.
VRTX Yearly Shares OutstandingVRTX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
VRTX Yearly Total Debt VS Total AssetsVRTX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 11.74 indicates that VRTX is not in any danger for bankruptcy at the moment.
  • VRTX has a better Altman-Z score (11.74) than 83.56% of its industry peers.
  • VRTX has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
  • VRTX has a Debt to FCF ratio of 0.03. This is amongst the best in the industry. VRTX outperforms 96.13% of its industry peers.
  • VRTX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.01, VRTX perfoms like the industry average, outperforming 47.97% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.03
Altman-Z 11.74
ROIC/WACC1.84
WACC9.22%
VRTX Yearly LT Debt VS Equity VS FCFVRTX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 2.90 indicates that VRTX has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.90, VRTX is doing worse than 64.60% of the companies in the same industry.
  • A Quick Ratio of 2.46 indicates that VRTX has no problem at all paying its short term obligations.
  • VRTX has a worse Quick ratio (2.46) than 68.28% of its industry peers.
Industry RankSector Rank
Current Ratio 2.9
Quick Ratio 2.46
VRTX Yearly Current Assets VS Current LiabilitesVRTX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. VRTX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 6248.28% over the past year.
  • The Earnings Per Share has been growing by 12.27% on average over the past years. This is quite good.
  • Looking at the last year, VRTX shows a quite strong growth in Revenue. The Revenue has grown by 8.90% in the last year.
  • Measured over the past years, VRTX shows a quite strong growth in Revenue. The Revenue has been growing by 14.10% on average per year.
EPS 1Y (TTM)6248.28%
EPS 3Y7.33%
EPS 5Y12.27%
EPS Q2Q%26.38%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y10.35%
Revenue growth 5Y14.1%
Sales Q2Q%9.55%

3.2 Future

  • VRTX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.36% yearly.
  • VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.31% yearly.
EPS Next Y5.3%
EPS Next 2Y9.43%
EPS Next 3Y10.17%
EPS Next 5Y12.36%
Revenue Next Year8.81%
Revenue Next 2Y9.61%
Revenue Next 3Y10.47%
Revenue Next 5Y10.31%

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 stable.
  • 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.
VRTX Yearly Revenue VS EstimatesVRTX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
VRTX Yearly EPS VS EstimatesVRTX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 10 20 30 40

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Find the best growth stocksShow best growing peers

5

4. VRTX Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 23.59, which indicates a rather expensive current valuation of VRTX.
  • Compared to the rest of the industry, the Price/Earnings ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 92.46% of the companies listed in the same industry.
  • VRTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 22.40, VRTX is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 93.62% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.05. VRTX is around the same levels.
Industry RankSector Rank
PE 23.59
Fwd PE 22.4
VRTX Price Earnings VS Forward Price EarningsVRTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 92.65% of the companies in the same industry are more expensive than VRTX, based on the Enterprise Value to EBITDA ratio.
  • 93.62% of the companies in the same industry are more expensive than VRTX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 34.54
EV/EBITDA 20.82
VRTX Per share dataVRTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • VRTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.45
PEG (5Y)1.92
EPS Next 2Y9.43%
EPS Next 3Y10.17%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. VRTX Dividend Analysis

5.1 Amount

  • No dividends for VRTX!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

VRTX Fundamentals: All Metrics, Ratios and Statistics

VERTEX PHARMACEUTICALS INC

NASDAQ:VRTX (4/6/2026, 4:30:02 PM)

After market: 434.3 0 (0%)

434.3

-4.41 (-1.01%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners97.75%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change0.97%
Market Cap110.33B
Revenue(TTM)12.00B
Net Income(TTM)3.95B
Analysts82
Price Target557.95 (28.47%)
Short Float %1.63%
Short Ratio2.7
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.17%
Min EPS beat(2)-2.79%
Max EPS beat(2)3.12%
EPS beat(4)2
Avg EPS beat(4)-0.85%
Min EPS beat(4)-7.2%
Max EPS beat(4)3.45%
EPS beat(8)4
Avg EPS beat(8)-64.44%
EPS beat(12)6
Avg EPS beat(12)-43.04%
EPS beat(16)9
Avg EPS beat(16)-31.46%
Revenue beat(2)0
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)-1.21%
Revenue beat(4)1
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)0.06%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)4
Avg Revenue beat(12)-0.75%
Revenue beat(16)6
Avg Revenue beat(16)-0.51%
PT rev (1m)3.15%
PT rev (3m)11.36%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)-8.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.2%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.02%
Valuation
Industry RankSector Rank
PE 23.59
Fwd PE 22.4
P/S 9.19
P/FCF 34.54
P/OCF 30.38
P/B 5.91
P/tB 6.43
EV/EBITDA 20.82
EPS(TTM)18.41
EY4.24%
EPS(NY)19.39
Fwd EY4.46%
FCF(TTM)12.57
FCFY2.89%
OCF(TTM)14.3
OCFY3.29%
SpS47.24
BVpS73.48
TBVpS67.53
PEG (NY)4.45
PEG (5Y)1.92
Graham Number174.46
Profitability
Industry RankSector Rank
ROA 15.42%
ROE 21.18%
ROCE 21.51%
ROIC 16.99%
ROICexc 27.12%
ROICexgc 30.49%
OM 39.04%
PM (TTM) 32.94%
GM 86.24%
FCFM 26.61%
ROA(3y)9.65%
ROA(5y)12.94%
ROE(3y)12.83%
ROE(5y)17.11%
ROIC(3y)17.75%
ROIC(5y)19.09%
ROICexc(3y)32.46%
ROICexc(5y)46.28%
ROICexgc(3y)40.07%
ROICexgc(5y)66.49%
ROCE(3y)22.47%
ROCE(5y)24.17%
ROICexgc growth 3Y-36.41%
ROICexgc growth 5Y-24.43%
ROICexc growth 3Y-28.98%
ROICexc growth 5Y-17.32%
OM growth 3Y-7.71%
OM growth 5Y-3.24%
PM growth 3Y-3.97%
PM growth 5Y-5.49%
GM growth 3Y-0.63%
GM growth 5Y-0.43%
F-Score7
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.03
Debt/EBITDA 0.02
Cap/Depr 208.58%
Cap/Sales 3.65%
Interest Coverage 377.85
Cash Conversion 74.18%
Profit Quality 80.79%
Current Ratio 2.9
Quick Ratio 2.46
Altman-Z 11.74
F-Score7
WACC9.22%
ROIC/WACC1.84
Cap/Depr(3y)195.12%
Cap/Depr(5y)182.1%
Cap/Sales(3y)3.56%
Cap/Sales(5y)3.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6248.28%
EPS 3Y7.33%
EPS 5Y12.27%
EPS Q2Q%26.38%
EPS Next Y5.3%
EPS Next 2Y9.43%
EPS Next 3Y10.17%
EPS Next 5Y12.36%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y10.35%
Revenue growth 5Y14.1%
Sales Q2Q%9.55%
Revenue Next Year8.81%
Revenue Next 2Y9.61%
Revenue Next 3Y10.47%
Revenue Next 5Y10.31%
EBIT growth 1Y6.59%
EBIT growth 3Y1.84%
EBIT growth 5Y10.4%
EBIT Next Year6.57%
EBIT Next 3Y12.66%
EBIT Next 5Y11.43%
FCF growth 1Y426.56%
FCF growth 3Y-6.64%
FCF growth 5Y1.3%
OCF growth 1Y837.19%
OCF growth 3Y-4.2%
OCF growth 5Y2.22%

VERTEX PHARMACEUTICALS INC / VRTX Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for VERTEX PHARMACEUTICALS INC?

ChartMill assigns a fundamental rating of 7 / 10 to VRTX.


What is the valuation status for VRTX stock?

ChartMill assigns a valuation rating of 5 / 10 to VERTEX PHARMACEUTICALS INC (VRTX). This can be considered as Fairly Valued.


How profitable is VERTEX PHARMACEUTICALS INC (VRTX) stock?

VERTEX PHARMACEUTICALS INC (VRTX) has a profitability rating of 7 / 10.


What is the expected EPS growth for VERTEX PHARMACEUTICALS INC (VRTX) stock?

The Earnings per Share (EPS) of VERTEX PHARMACEUTICALS INC (VRTX) is expected to grow by 5.3% in the next year.