441.36 USD
+2.44 (+0.56%)
441.2 USD
-0.16 (-0.04%)
VRTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 528 industry peers in the Biotechnology industry. While VRTX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VRTX has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes VRTX very considerable for value and growth investing!
1. Profitability
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.
- VRTX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- VRTX has a better Return On Assets (14.78%) than 95.64% of its industry peers.
- VRTX's Return On Equity of 21.22% is amongst the best of the industry. VRTX outperforms 96.40% of its industry peers.
- VRTX has a Return On Invested Capital of 17.58%. This is amongst the best in the industry. VRTX outperforms 97.16% 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 18.28%.
| 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
- Looking at the Profit Margin, with a value of 31.35%, VRTX belongs to the top of the industry, outperforming 96.02% of the companies in the same industry.
- VRTX's Operating Margin of 38.70% is amongst the best of the industry. VRTX outperforms 97.92% of its industry peers.
- In the last couple of years the Operating Margin of VRTX has grown nicely.
- VRTX has a better Gross Margin (86.28%) than 89.02% 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
- The debt/assets ratio for VRTX has been reduced compared to a year ago.
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
WACC8.81%
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 worse Current ratio (2.36) than 71.59% 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's Quick ratio of 2.00 is on the low side compared to the rest of the industry. VRTX is outperformed by 73.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 3303.92% over the past year.
- 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 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
- The Earnings Per Share is expected to grow by 150.51% on average over the next years. This is a very strong growth
- VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.75% yearly.
EPS Next Y6343.89%
EPS Next 2Y739.72%
EPS Next 3Y328.89%
EPS Next 5Y150.51%
Revenue Next Year10.14%
Revenue Next 2Y9.44%
Revenue Next 3Y9.38%
Revenue Next 5Y9.75%
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
- With a Price/Earnings ratio of 25.42, VRTX can be considered very expensive at the moment.
- VRTX's Price/Earnings ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.75% of the companies in the same industry.
- VRTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 21.58, the valuation of VRTX can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, VRTX is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
- VRTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.42 | ||
| Fwd PE | 21.58 |
4.2 Price Multiples
- VRTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.75% of the companies in the same industry.
- 93.37% 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 | 33.56 | ||
| EV/EBITDA | 22.18 |
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.
- VRTX has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as VRTX's earnings are expected to grow with 328.89% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y739.72%
EPS Next 3Y328.89%
5. Dividend
5.1 Amount
- VRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
441.36
+2.44 (+0.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners97.56%
Inst Owner Change0.12%
Ins Owners0.13%
Ins Owner Change-1.02%
Market Cap111.98B
Revenue(TTM)11.72B
Net Income(TTM)3.68B
Analysts76.92
Price Target501.03 (13.52%)
Short Float %1.69%
Short Ratio3.09
Dividend
| Industry Rank | Sector 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)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)0.81%
PT rev (3m)2.2%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.42 | ||
| Fwd PE | 21.58 | ||
| P/S | 9.55 | ||
| P/FCF | 33.56 | ||
| P/OCF | 30.12 | ||
| P/B | 6.47 | ||
| P/tB | 7.09 | ||
| EV/EBITDA | 22.18 |
EPS(TTM)17.36
EY3.93%
EPS(NY)20.45
Fwd EY4.63%
FCF(TTM)13.15
FCFY2.98%
OCF(TTM)14.65
OCFY3.32%
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
WACC8.81%
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 Y6343.89%
EPS Next 2Y739.72%
EPS Next 3Y328.89%
EPS Next 5Y150.51%
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 5Y9.75%
EBIT growth 1Y5.79%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year811.13%
EBIT Next 3Y128.24%
EBIT Next 5Y70.14%
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
Can you provide the ChartMill fundamental rating for VERTEX PHARMACEUTICALS INC?
ChartMill assigns a fundamental rating of 6 / 10 to VRTX.
What is the valuation status for VRTX stock?
ChartMill assigns a valuation rating of 7 / 10 to VERTEX PHARMACEUTICALS INC (VRTX). This can be considered as Undervalued.
Can you provide the profitability details for VERTEX PHARMACEUTICALS INC?
VERTEX PHARMACEUTICALS INC (VRTX) has a profitability rating of 7 / 10.
What is the valuation of VERTEX PHARMACEUTICALS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VERTEX PHARMACEUTICALS INC (VRTX) is 25.42 and the Price/Book (PB) ratio is 6.47.
How financially healthy is VERTEX PHARMACEUTICALS INC?
The financial health rating of VERTEX PHARMACEUTICALS INC (VRTX) is 6 / 10.