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VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis

NASDAQ:VRTX - Nasdaq - US92532F1003 - Common Stock - Currency: USD

459.62  +2.59 (+0.57%)

After market: 459.62 0 (0%)

Fundamental Rating

5

VRTX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 556 industry peers in the Biotechnology industry. VRTX has only an average score on both its financial health and profitability. VRTX has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

VRTX had negative earnings in the past year.
In the past year VRTX has reported a negative cash flow from operations.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

1.2 Ratios

Looking at the Return On Assets, with a value of -4.32%, VRTX belongs to the top of the industry, outperforming 87.75% of the companies in the same industry.
VRTX has a better Return On Equity (-5.99%) than 89.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.41%, VRTX belongs to the top of the industry, outperforming 97.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VRTX is above the industry average of 14.78%.
Industry RankSector Rank
ROA -4.32%
ROE -5.99%
ROIC 17.41%
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)19.47%
ROIC(5y)20.15%
VRTX Yearly ROA, ROE, ROICVRTX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40

1.3 Margins

VRTX has a Operating Margin of 37.91%. This is amongst the best in the industry. VRTX outperforms 98.92% of its industry peers.
VRTX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 86.03%, VRTX belongs to the top of the industry, outperforming 89.19% 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 37.91%
PM (TTM) N/A
GM 86.03%
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%
VRTX Yearly Profit, Operating, Gross MarginsVRTX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRTX is creating value.
Compared to 1 year ago, VRTX has less shares outstanding
VRTX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VRTX has an improved debt to assets ratio.
VRTX Yearly Shares OutstandingVRTX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
VRTX Yearly Total Debt VS Total AssetsVRTX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

An Altman-Z score of 13.14 indicates that VRTX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.14, VRTX belongs to the top of the industry, outperforming 89.55% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that VRTX is not too dependend on debt financing.
VRTX has a Debt to Equity ratio (0.01) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 13.14
ROIC/WACC1.81
WACC9.64%
VRTX Yearly LT Debt VS Equity VS FCFVRTX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

2.3 Liquidity

VRTX has a Current Ratio of 2.65. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.65, VRTX is doing worse than 67.93% of the companies in the same industry.
A Quick Ratio of 2.29 indicates that VRTX has no problem at all paying its short term obligations.
The Quick ratio of VRTX (2.29) is worse than 70.27% of its industry peers.
Industry RankSector Rank
Current Ratio 2.65
Quick Ratio 2.29
VRTX Yearly Current Assets VS Current LiabilitesVRTX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

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6

3. Growth

3.1 Past

VRTX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -102.42%.
The earnings per share for VRTX have been decreasing by -44.14% on average. This is quite bad
VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.98%.
Measured over the past years, VRTX shows a very strong growth in Revenue. The Revenue has been growing by 21.50% on average per year.
EPS 1Y (TTM)-102.42%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%2.96%

3.2 Future

Based on estimates for the next years, VRTX will show a very strong growth in Earnings Per Share. The EPS will grow by 152.83% on average per year.
VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.19% yearly.
EPS Next Y6218.78%
EPS Next 2Y751.41%
EPS Next 3Y331.01%
EPS Next 5Y152.83%
Revenue Next Year9.62%
Revenue Next 2Y10.15%
Revenue Next 3Y9.78%
Revenue Next 5Y10.19%

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.
VRTX Yearly Revenue VS EstimatesVRTX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
VRTX Yearly EPS VS EstimatesVRTX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 10 20 30

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4

4. Valuation

4.1 Price/Earnings Ratio

VRTX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 21.86, VRTX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VRTX is valued cheaply inside the industry as 91.89% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. VRTX is around the same levels.
Industry RankSector Rank
PE N/A
Fwd PE 21.86
VRTX Price Earnings VS Forward Price EarningsVRTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400 -600 -800 -1K

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 93.87% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 25.04
VRTX Per share dataVRTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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.
VRTX has a very decent profitability rating, which may justify a higher PE ratio.
VRTX's earnings are expected to grow with 331.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y751.41%
EPS Next 3Y331.01%

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0

5. Dividend

5.1 Amount

No dividends for VRTX!.
Industry RankSector Rank
Dividend Yield N/A

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VERTEX PHARMACEUTICALS INC

NASDAQ:VRTX (7/3/2025, 8:16:31 PM)

After market: 459.62 0 (0%)

459.62

+2.59 (+0.57%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)05-05 2025-05-05/amc
Earnings (Next)07-31 2025-07-31/amc
Inst Owners97.73%
Inst Owner Change2.49%
Ins Owners0.12%
Ins Owner Change9.33%
Market Cap118.03B
Analysts75
Price Target515.04 (12.06%)
Short Float %1.58%
Short Ratio2.41
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)0
Avg EPS beat(2)-5.13%
Min EPS beat(2)-7.2%
Max EPS beat(2)-3.07%
EPS beat(4)1
Avg EPS beat(4)-133.54%
Min EPS beat(4)-527.57%
Max EPS beat(4)3.69%
EPS beat(8)4
Avg EPS beat(8)-65%
EPS beat(12)7
Avg EPS beat(12)-42.16%
EPS beat(16)10
Avg EPS beat(16)-29.51%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-4.8%
Max Revenue beat(2)2.68%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.75%
Revenue beat(12)5
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)0.2%
PT rev (1m)-0.24%
PT rev (3m)0.59%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.15%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 21.86
P/S 10.63
P/FCF N/A
P/OCF N/A
P/B 7.15
P/tB 7.89
EV/EBITDA 25.04
EPS(TTM)-0.41
EYN/A
EPS(NY)21.02
Fwd EY4.57%
FCF(TTM)-4.9
FCFYN/A
OCF(TTM)-3.82
OCFYN/A
SpS43.22
BVpS64.24
TBVpS58.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.32%
ROE -5.99%
ROCE 22.04%
ROIC 17.41%
ROICexc 25.78%
ROICexgc 29.25%
OM 37.91%
PM (TTM) N/A
GM 86.03%
FCFM N/A
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)19.47%
ROIC(5y)20.15%
ROICexc(3y)50.94%
ROICexc(5y)56.27%
ROICexgc(3y)73.51%
ROICexgc(5y)87.59%
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 RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Debt/EBITDA 0.03
Cap/Depr 137.41%
Cap/Sales 2.5%
Interest Coverage 181.38
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.65
Quick Ratio 2.29
Altman-Z 13.14
F-Score4
WACC9.64%
ROIC/WACC1.81
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)-102.42%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%-14.71%
EPS Next Y6218.78%
EPS Next 2Y751.41%
EPS Next 3Y331.01%
EPS Next 5Y152.83%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%2.96%
Revenue Next Year9.62%
Revenue Next 2Y10.15%
Revenue Next 3Y9.78%
Revenue Next 5Y10.19%
EBIT growth 1Y-1.84%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year827.23%
EBIT Next 3Y131%
EBIT Next 5Y70.83%
FCF growth 1Y-132.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-124.06%
OCF growth 3YN/A
OCF growth 5YN/A