468.38 USD
+19.58 (+4.36%)
470 USD
+1.62 (+0.35%)
VRTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 530 industry peers in the Biotechnology industry. VRTX has an excellent profitability rating, but there are some minor concerns on its financial health. VRTX is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, VRTX could be worth investigating further 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 95.66% of its industry peers.
With an excellent Return On Equity value of 21.22%, VRTX belongs to the best of the industry, outperforming 96.42% 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 97.17% of the companies in the same industry.
VRTX had an Average Return On Invested Capital over the past 3 years of 19.67%. This 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 96.04% of the companies in the same industry.
With an excellent Operating Margin value of 38.70%, VRTX belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
In the last couple of years the Operating Margin of VRTX has grown nicely.
With an excellent Gross Margin value of 86.28%, VRTX belongs to the best of the industry, outperforming 89.06% 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.
Compared to 1 year ago, VRTX has less shares outstanding
The number of shares outstanding for VRTX has been reduced compared to 5 years ago.
The debt/assets ratio for VRTX has been reduced compared to a year ago.
2.2 Solvency
There is no outstanding debt for VRTX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2
WACC8.81%
2.3 Liquidity
A Current Ratio of 2.36 indicates that VRTX has no problem at all paying its short term obligations.
VRTX's Current ratio of 2.36 is on the low side compared to the rest of the industry. VRTX is outperformed by 71.51% of its industry peers.
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.
Looking at the Quick ratio, with a value of 2.00, VRTX is doing worse than 73.77% of the companies in the same industry.
| 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.
Looking at the last year, VRTX shows a quite strong growth in Revenue. The Revenue has grown by 10.33% in the last year.
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
VRTX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 150.35% yearly.
The Revenue is expected to grow by 9.70% on average over the next years. This is quite good.
EPS Next Y6343.89%
EPS Next 2Y739.72%
EPS Next 3Y328.89%
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.
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 26.98.
93.40% of the companies in the same industry are more expensive than VRTX, based on the Price/Earnings ratio.
VRTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
VRTX is valuated rather expensively with a Price/Forward Earnings ratio of 22.91.
VRTX's Price/Forward Earnings ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.58% of the companies in the same industry.
VRTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 22.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaper than 93.40% of the companies in the same industry.
93.96% 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 | 35.61 | ||
| EV/EBITDA | 22.71 |
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.
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
No dividends for VRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
468.38
+19.58 (+4.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.56%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner Change-0.69%
Market Cap118.84B
Revenue(TTM)11.72B
Net Income(TTM)3.68B
Analysts76.41
Price Target501.03 (6.97%)
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)1.08%
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 | 26.98 | ||
| Fwd PE | 22.91 | ||
| P/S | 10.14 | ||
| P/FCF | 35.61 | ||
| P/OCF | 31.96 | ||
| P/B | 6.86 | ||
| P/tB | 7.52 | ||
| EV/EBITDA | 22.71 |
EPS(TTM)17.36
EY3.71%
EPS(NY)20.45
Fwd EY4.37%
FCF(TTM)13.15
FCFY2.81%
OCF(TTM)14.65
OCFY3.13%
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 5Y150.35%
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 3Y128.24%
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
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 26.98 and the Price/Book (PB) ratio is 6.86.
How financially healthy is VERTEX PHARMACEUTICALS INC?
The financial health rating of VERTEX PHARMACEUTICALS INC (VRTX) is 6 / 10.