VERTEX PHARMACEUTICALS INC (VRTX)
US92532F1003 - Common Stock
Overall VRTX gets a fundamental rating of 6 out of 10. We evaluated VRTX against 565 industry peers in the Biotechnology industry. VRTX scores excellent on profitability, but there are some minor concerns on its financial health. VRTX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
VRTX had positive earnings in the past year.
VRTX had a negative operating cash flow in the past year.
Each year in the past 5 years VRTX has been profitable.
Each year in the past 5 years VRTX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VRTX (-2.43%) is better than 91.09% of its industry peers.
VRTX has a Return On Equity of -3.32%. This is amongst the best in the industry. VRTX outperforms 92.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.38%, VRTX belongs to the top of the industry, outperforming 98.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRTX is above the industry average of 15.31%.
The 3 year average ROIC (20.25%) for VRTX is below the current ROIC(20.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.43% | ||
| ROE | -3.32% | ||
| ROIC | 20.38% |
ROA(3y)17.22%
ROA(5y)17.78%
ROE(3y)22.55%
ROE(5y)23.64%
ROIC(3y)20.25%
ROIC(5y)19.57%
1.3 Margins
In the last couple of years the Profit Margin of VRTX has declined.
The Operating Margin of VRTX (40.58%) is better than 99.29% of its industry peers.
VRTX's Operating Margin has improved in the last couple of years.
VRTX has a better Gross Margin (86.45%) than 89.48% of its industry peers.
VRTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.58% | ||
| PM (TTM) | N/A | ||
| GM | 86.45% |
OM growth 3Y-1.36%
OM growth 5Y15.18%
PM growth 3Y-5.67%
PM growth 5Y-11.82%
GM growth 3Y-0.35%
GM growth 5Y0.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRTX is creating value.
The number of shares outstanding for VRTX has been increased compared to 1 year ago.
VRTX has more shares outstanding than it did 5 years ago.
VRTX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 15.04 indicates that VRTX is not in any danger for bankruptcy at the moment.
VRTX has a Altman-Z score of 15.04. This is amongst the best in the industry. VRTX outperforms 90.20% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that VRTX is not too dependend on debt financing.
The Debt to Equity ratio of VRTX (0.02) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 15.04 |
ROIC/WACC1.96
WACC10.42%
2.3 Liquidity
VRTX has a Current Ratio of 2.52. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
VRTX has a worse Current ratio (2.52) than 70.05% of its industry peers.
A Quick Ratio of 2.26 indicates that VRTX has no problem at all paying its short term obligations.
VRTX has a Quick ratio of 2.26. This is in the lower half of the industry: VRTX underperforms 71.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
VRTX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -96.55%.
VRTX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.06% yearly.
VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.06%.
Measured over the past years, VRTX shows a very strong growth in Revenue. The Revenue has been growing by 26.49% on average per year.
EPS 1Y (TTM)-96.55%
EPS 3Y13.83%
EPS 5Y30.06%
EPS Q2Q%7.35%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y16.73%
Revenue growth 5Y26.49%
Sales Q2Q%11.61%
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 10.75% yearly.
Based on estimates for the next years, VRTX will show a quite strong growth in Revenue. The Revenue will grow by 9.49% on average per year.
EPS Next Y-97.33%
EPS Next 2Y8.06%
EPS Next 3Y9.47%
EPS Next 5Y10.75%
Revenue Next Year10.07%
Revenue Next 2Y9.19%
Revenue Next 3Y9.37%
Revenue Next 5Y9.49%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VRTX is valuated quite expensively with a Price/Earnings ratio of 888.19.
92.51% 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 28.96, VRTX is valued quite expensively.
Based on the Price/Forward Earnings ratio of 25.49, the valuation of VRTX can be described as expensive.
Based on the Price/Forward Earnings ratio, VRTX is valued cheaply inside the industry as 94.30% 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 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 888.19 | ||
| Fwd PE | 25.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaply inside the industry as 95.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.82 |
4.3 Compensation for Growth
The excellent profitability rating of VRTX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)29.55
EPS Next 2Y8.06%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
No dividends for VRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERTEX PHARMACEUTICALS INC
NASDAQ:VRTX (11/22/2024, 11:52:05 AM)
452.975
+2.61 (+0.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap116.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 888.19 | ||
| Fwd PE | 25.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)29.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.43% | ||
| ROE | -3.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 40.58% | ||
| PM (TTM) | N/A | ||
| GM | 86.45% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-96.55%
EPS 3Y13.83%
EPS 5Y
EPS Q2Q%
EPS Next Y-97.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.06%
Revenue growth 3Y16.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y