VERTEX PHARMACEUTICALS INC (VRTX) Fundamental Analysis & Valuation

NASDAQ:VRTX • US92532F1003

Current stock price

435.1 USD
-2.57 (-0.59%)
At close:
434.48 USD
-0.62 (-0.14%)
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

  • In the past year VRTX was profitable.
  • VRTX had a positive operating cash flow in the past year.
  • VRTX had positive earnings in 4 of the past 5 years.
  • VRTX had a positive operating cash flow in 4 of the past 5 years.
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 95.35% of its industry peers.
  • VRTX's Return On Equity of 21.18% is amongst the best of the industry. VRTX outperforms 95.54% of its industry peers.
  • VRTX has a Return On Invested Capital of 16.99%. This is amongst the best in the industry. VRTX outperforms 96.71% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for VRTX is significantly below the industry average of 27.75%.
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 95.35% of its industry peers.
  • In the last couple of years the Profit Margin of VRTX has declined.
  • Looking at the Operating Margin, with a value of 39.04%, VRTX belongs to the top of the industry, outperforming 97.48% of the companies in the same industry.
  • In the last couple of years the Operating Margin of VRTX has declined.
  • Looking at the Gross Margin, with a value of 86.24%, VRTX belongs to the top of the industry, outperforming 87.79% of the companies in the same industry.
  • In the last couple of years the Gross Margin of VRTX has remained more or less at the same level.
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.
  • VRTX has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, VRTX has less shares outstanding
  • VRTX has a better debt/assets ratio than last year.
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 11.73 indicates that VRTX is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of VRTX (11.73) is better than 82.75% of its industry peers.
  • The Debt to FCF ratio of VRTX is 0.03, which is an excellent value as it means it would take VRTX, only 0.03 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of VRTX (0.03) is better than 96.32% of its industry peers.
  • A Debt/Equity ratio of 0.01 indicates that VRTX is not too dependend on debt financing.
  • The Debt to Equity ratio of VRTX (0.01) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.03
Altman-Z 11.73
ROIC/WACC1.78
WACC9.55%
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.
  • VRTX's Current ratio of 2.90 is on the low side compared to the rest of the industry. VRTX is outperformed by 64.15% of its industry peers.
  • A Quick Ratio of 2.46 indicates that VRTX has no problem at all paying its short term obligations.
  • VRTX's Quick ratio of 2.46 is on the low side compared to the rest of the industry. VRTX is outperformed by 68.22% 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

  • VRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 6248.28%, which is quite impressive.
  • Measured over the past years, VRTX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.27% on average per year.
  • VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.90%.
  • VRTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.10% yearly.
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.
  • Based on estimates for the next years, VRTX will show a quite strong growth in Revenue. The Revenue will grow by 10.31% on average per year.
EPS Next Y5.79%
EPS Next 2Y10.09%
EPS Next 3Y12.27%
EPS Next 5Y12.36%
Revenue Next Year8.79%
Revenue Next 2Y9.63%
Revenue Next 3Y10.51%
Revenue Next 5Y10.31%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • 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 23.63, which indicates a rather expensive current valuation of VRTX.
  • 92.83% of the companies in the same industry are more expensive than VRTX, based on the Price/Earnings ratio.
  • VRTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.47.
  • A Price/Forward Earnings ratio of 22.34 indicates a rather expensive valuation of VRTX.
  • Based on the Price/Forward Earnings ratio, VRTX is valued cheaper than 93.99% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of VRTX to the average of the S&P500 Index (22.62), we can say VRTX is valued inline with the index average.
Industry RankSector Rank
PE 23.63
Fwd PE 22.34
VRTX Price Earnings VS Forward Price EarningsVRTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaper than 92.64% of the companies in the same industry.
  • VRTX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.60% of the companies in the same industry.
Industry RankSector Rank
P/FCF 34.65
EV/EBITDA 20.79
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 VRTX does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of VRTX may justify a higher PE ratio.
  • VRTX's earnings are expected to grow with 12.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.08
PEG (5Y)1.93
EPS Next 2Y10.09%
EPS Next 3Y12.27%

More info and screens

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

0

5. VRTX Dividend Analysis

5.1 Amount

  • VRTX does not give a dividend.
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 (4/23/2026, 8:00:02 PM)

After market: 434.48 -0.62 (-0.14%)

435.1

-2.57 (-0.59%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners97.83%
Inst Owner Change0%
Ins Owners0.14%
Ins Owner Change0.97%
Market Cap110.67B
Revenue(TTM)12.00B
Net Income(TTM)3.95B
Analysts82
Price Target557.95 (28.23%)
Short Float %1.58%
Short Ratio2.8
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)9.92%
EPS NQ rev (1m)-1.29%
EPS NQ rev (3m)-9.34%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-4.75%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.29%
Valuation
Industry RankSector Rank
PE 23.63
Fwd PE 22.34
P/S 9.22
P/FCF 34.65
P/OCF 30.48
P/B 5.93
P/tB 6.45
EV/EBITDA 20.79
EPS(TTM)18.41
EY4.23%
EPS(NY)19.48
Fwd EY4.48%
FCF(TTM)12.56
FCFY2.89%
OCF(TTM)14.28
OCFY3.28%
SpS47.18
BVpS73.38
TBVpS67.44
PEG (NY)4.08
PEG (5Y)1.93
Graham Number174.348 (-59.93%)
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 11.73
F-Score7
WACC9.55%
ROIC/WACC1.78
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 Y5.79%
EPS Next 2Y10.09%
EPS Next 3Y12.27%
EPS Next 5Y12.36%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y10.35%
Revenue growth 5Y14.1%
Sales Q2Q%9.55%
Revenue Next Year8.79%
Revenue Next 2Y9.63%
Revenue Next 3Y10.51%
Revenue Next 5Y10.31%
EBIT growth 1Y6.59%
EBIT growth 3Y1.84%
EBIT growth 5Y10.4%
EBIT Next Year7.63%
EBIT Next 3Y14.56%
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 5.79% in the next year.