445.93 USD
+1.29 (+0.29%)
446.33 USD
+0.4 (+0.09%)
Taking everything into account, VRTX scores 6 out of 10 in our fundamental rating. VRTX was compared to 531 industry peers in the Biotechnology industry. VRTX has an excellent profitability rating, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: VRTX is growing strongly while it also seems undervalued. This makes VRTX very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
VRTX had positive earnings in the past year.
VRTX had a positive operating cash flow in the past year.
Of the past 5 years VRTX 4 years were profitable.
Of the past 5 years VRTX 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 14.78%, VRTX belongs to the best of the industry, outperforming 95.48% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.22%, VRTX belongs to the top of the industry, outperforming 96.42% of the companies in the same industry.
VRTX has a better Return On Invested Capital (17.58%) than 97.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRTX is in line with the industry average of 18.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.78% | ||
| ROE | 21.22% | ||
| ROIC | 17.58% |
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)19.67%
ROIC(5y)20.26%
1.3 Margins
VRTX has a better Profit Margin (31.35%) than 96.05% of its industry peers.
The Operating Margin of VRTX (38.70%) is better than 97.93% of its industry peers.
VRTX's Operating Margin has improved in the last couple of years.
VRTX has a Gross Margin of 86.28%. This is amongst the best in the industry. VRTX outperforms 88.89% of its industry peers.
In the last couple of years the Gross Margin of VRTX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.7% | ||
| PM (TTM) | 31.35% | ||
| GM | 86.28% |
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
VRTX 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 VRTX has been reduced compared to 1 year ago.
Compared to 5 years ago, VRTX has less shares outstanding
VRTX has a better debt/assets ratio than last year.
2.2 Solvency
VRTX 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/WACC2
WACC8.77%
2.3 Liquidity
VRTX has a Current Ratio of 2.36. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
VRTX has a Current ratio of 2.36. This is in the lower half of the industry: VRTX underperforms 72.32% of its industry peers.
A Quick Ratio of 2.00 indicates that VRTX should not have too much problems paying its short term obligations.
VRTX has a Quick ratio of 2.00. This is in the lower half of the industry: VRTX underperforms 75.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
VRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 3303.92%, which is quite impressive.
VRTX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -44.14% yearly.
VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.33%.
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)3303.92%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%9.59%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%10.99%
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 150.35% on average per year.
VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.70% yearly.
EPS Next Y6342.88%
EPS Next 2Y738.5%
EPS Next 3Y328.69%
EPS Next 5Y150.35%
Revenue Next Year10.14%
Revenue Next 2Y9.44%
Revenue Next 3Y9.38%
Revenue Next 5Y9.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
VRTX is valuated quite expensively with a Price/Earnings ratio of 25.69.
93.60% of the companies in the same industry are more expensive than VRTX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.76, VRTX is valued at the same level.
VRTX is valuated rather expensively with a Price/Forward Earnings ratio of 21.87.
94.16% of the companies in the same industry are more expensive than VRTX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.96. VRTX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 21.87 |
4.2 Price Multiples
VRTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.79% of the companies in the same industry.
93.60% of the companies in the same industry are more expensive than VRTX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.9 | ||
| EV/EBITDA | 22.56 |
4.3 Compensation for Growth
VRTX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VRTX may justify a higher PE ratio.
VRTX's earnings are expected to grow with 328.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y738.5%
EPS Next 3Y328.69%
5. Dividend
5.1 Amount
VRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
445.93
+1.29 (+0.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.5%
Inst Owner Change-2.15%
Ins Owners0.13%
Ins Owner Change-3.43%
Market Cap113.14B
Revenue(TTM)11.72B
Net Income(TTM)3.68B
Analysts76.41
Price Target496.99 (11.45%)
Short Float %1.58%
Short Ratio2.75
Dividend
| Industry Rank | Sector 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)2
Avg EPS beat(2)3.29%
Min EPS beat(2)3.12%
Max EPS beat(2)3.45%
EPS beat(4)2
Avg EPS beat(4)-0.92%
Min EPS beat(4)-7.2%
Max EPS beat(4)3.45%
EPS beat(8)5
Avg EPS beat(8)-64.05%
EPS beat(12)7
Avg EPS beat(12)-42.39%
EPS beat(16)10
Avg EPS beat(16)-31.28%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)4
Avg Revenue beat(12)-0.78%
Revenue beat(16)7
Avg Revenue beat(16)-0.32%
PT rev (1m)1.04%
PT rev (3m)1.07%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)2.31%
EPS NY rev (1m)1.66%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 21.87 | ||
| P/S | 9.65 | ||
| P/FCF | 33.9 | ||
| P/OCF | 30.43 | ||
| P/B | 6.53 | ||
| P/tB | 7.16 | ||
| EV/EBITDA | 22.56 |
EPS(TTM)17.36
EY3.89%
EPS(NY)20.39
Fwd EY4.57%
FCF(TTM)13.15
FCFY2.95%
OCF(TTM)14.65
OCFY3.29%
SpS46.21
BVpS68.26
TBVpS62.28
PEG (NY)0
PEG (5Y)N/A
Graham Number163.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.78% | ||
| ROE | 21.22% | ||
| ROCE | 22.25% | ||
| ROIC | 17.58% | ||
| ROICexc | 25.42% | ||
| ROICexgc | 28.48% | ||
| OM | 38.7% | ||
| PM (TTM) | 31.35% | ||
| GM | 86.28% | ||
| FCFM | 28.47% |
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)19.67%
ROIC(5y)20.26%
ROICexc(3y)48.65%
ROICexc(5y)54.9%
ROICexgc(3y)69.59%
ROICexgc(5y)85.25%
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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 189.83% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 374.91 | ||
| Cash Conversion | 78.49% | ||
| Profit Quality | 90.81% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2 | ||
| Altman-Z | N/A |
F-Score7
WACC8.77%
ROIC/WACC2
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)3303.92%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%9.59%
EPS Next Y6342.88%
EPS Next 2Y738.5%
EPS Next 3Y328.69%
EPS Next 5Y150.35%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%10.99%
Revenue Next Year10.14%
Revenue Next 2Y9.44%
Revenue Next 3Y9.38%
Revenue Next 5Y9.7%
EBIT growth 1Y5.79%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year811.13%
EBIT Next 3Y127.98%
EBIT Next 5Y68.84%
FCF growth 1Y-20.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-15.14%
OCF growth 3YN/A
OCF growth 5YN/A
VERTEX PHARMACEUTICALS INC / VRTX FAQ
What is the fundamental rating for VRTX stock?
ChartMill assigns a fundamental rating of 6 / 10 to VRTX.
Can you provide the valuation status for VERTEX PHARMACEUTICALS INC?
ChartMill assigns a valuation rating of 7 / 10 to VERTEX PHARMACEUTICALS INC (VRTX). This can be considered as Undervalued.
What is the profitability of 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 6342.88% in the next year.