455.48 USD
-1.88 (-0.41%)
456.5 USD
+1.02 (+0.22%)
VRTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 534 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. 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
In the past year VRTX was profitable.
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
VRTX's Return On Assets of 14.78% is amongst the best of the industry. VRTX outperforms 95.51% of its industry peers.
Looking at the Return On Equity, with a value of 21.22%, VRTX belongs to the top of the industry, outperforming 96.25% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.58%, VRTX belongs to the best of the industry, outperforming 97.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VRTX is in line with the industry average of 18.60%.
| 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
With an excellent Profit Margin value of 31.35%, VRTX belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
VRTX's Operating Margin of 38.70% is amongst the best of the industry. VRTX outperforms 97.94% of its industry peers.
In the last couple of years the Operating Margin of VRTX has grown nicely.
Looking at the Gross Margin, with a value of 86.28%, VRTX belongs to the top of the industry, outperforming 88.39% 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 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/WACC2.01
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.36 indicates that VRTX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.36, VRTX is doing worse than 70.41% of the companies in the same industry.
VRTX has a Quick Ratio of 2.00. This is a normal value and indicates that VRTX is financially healthy and should not expect problems in meeting 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 73.97% 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.
Measured over the past years, VRTX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -44.14% on average per year.
Looking at the last year, VRTX shows a quite strong growth in Revenue. The Revenue has grown by 10.33% in the last year.
VRTX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.50% yearly.
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
VRTX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 150.35% yearly.
Based on estimates for the next years, VRTX will show a quite strong growth in Revenue. The Revenue will grow by 9.70% on average per year.
EPS Next Y6237.82%
EPS Next 2Y744.13%
EPS Next 3Y327.84%
EPS Next 5Y150.35%
Revenue Next Year10.08%
Revenue Next 2Y9.82%
Revenue Next 3Y9.46%
Revenue Next 5Y9.7%
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.
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
The Price/Earnings ratio is 26.24, which means the current valuation is very expensive for VRTX.
Based on the Price/Earnings ratio, VRTX is valued cheaply inside the industry as 92.88% of the companies are valued more expensively.
VRTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.46.
VRTX is valuated rather expensively with a Price/Forward Earnings ratio of 22.04.
VRTX's Price/Forward Earnings ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.26% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VRTX to the average of the S&P500 Index (36.10), we can say VRTX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.24 | ||
| Fwd PE | 22.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaper than 93.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRTX is valued cheaper than 93.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.63 | ||
| EV/EBITDA | 23.17 |
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.
A more expensive valuation may be justified as VRTX's earnings are expected to grow with 327.84% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y744.13%
EPS Next 3Y327.84%
5. Dividend
5.1 Amount
No dividends for VRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
455.48
-1.88 (-0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change-2.16%
Ins Owners0.13%
Ins Owner Change-2.01%
Market Cap115.56B
Revenue(TTM)11.72B
Net Income(TTM)3.68B
Analysts76.41
Price Target495.66 (8.82%)
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)1.11%
PT rev (3m)0.8%
EPS NQ rev (1m)4.24%
EPS NQ rev (3m)2.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.24 | ||
| Fwd PE | 22.04 | ||
| P/S | 9.86 | ||
| P/FCF | 34.63 | ||
| P/OCF | 31.08 | ||
| P/B | 6.67 | ||
| P/tB | 7.31 | ||
| EV/EBITDA | 23.17 |
EPS(TTM)17.36
EY3.81%
EPS(NY)20.66
Fwd EY4.54%
FCF(TTM)13.15
FCFY2.89%
OCF(TTM)14.65
OCFY3.22%
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
WACC8.75%
ROIC/WACC2.01
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 Y6237.82%
EPS Next 2Y744.13%
EPS Next 3Y327.84%
EPS Next 5Y150.35%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%10.99%
Revenue Next Year10.08%
Revenue Next 2Y9.82%
Revenue Next 3Y9.46%
Revenue Next 5Y9.7%
EBIT growth 1Y5.79%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year820.09%
EBIT Next 3Y129.43%
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 6237.82% in the next year.