VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis
NASDAQ:VRTX • US92532F1003
477.08 USD
-14.39 (-2.93%)
Last: Feb 17, 2026, 12:04 PM
VRTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 521 industry peers in the Biotechnology industry. VRTX has an excellent profitability rating, 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
- 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.
- In multiple years VRTX reported negative operating cash flow during the last 5 years.
1.2 Ratios
- VRTX has a better Return On Assets (14.78%) than 95.59% of its industry peers.
- VRTX's Return On Equity of 21.22% is amongst the best of the industry. VRTX outperforms 95.97% of its industry peers.
- VRTX has a better Return On Invested Capital (17.58%) than 97.12% 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 18.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.78% | ||
| ROE | 21.22% | ||
| ROIC | 17.58% |
ROA(3y)9.65%
ROA(5y)12.94%
ROE(3y)12.83%
ROE(5y)17.11%
ROIC(3y)17.75%
ROIC(5y)19.09%
1.3 Margins
- VRTX has a Profit Margin of 31.35%. This is amongst the best in the industry. VRTX outperforms 95.97% of its industry peers.
- VRTX's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 38.70%, VRTX belongs to the top of the industry, outperforming 98.08% of the companies in the same industry.
- In the last couple of years the Operating Margin of VRTX has declined.
- Looking at the Gross Margin, with a value of 86.28%, VRTX belongs to the top of the industry, outperforming 88.87% of the companies in the same industry.
- VRTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.7% | ||
| PM (TTM) | 31.35% | ||
| GM | 86.28% |
OM growth 3Y-7.71%
OM growth 5Y-3.24%
PM growth 3Y-3.97%
PM growth 5Y-5.49%
GM growth 3Y-0.63%
GM growth 5Y-0.43%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRTX is creating value.
- Compared to 1 year ago, VRTX has less shares outstanding
- Compared to 5 years ago, VRTX has less shares outstanding
- VRTX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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/WACC2.03
WACC8.68%
2.3 Liquidity
- A Current Ratio of 2.36 indicates that VRTX has no problem at all paying its short term obligations.
- VRTX has a Current ratio of 2.36. This is in the lower half of the industry: VRTX underperforms 71.59% 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.
- With a Quick ratio value of 2.00, VRTX is not doing good in the industry: 73.90% of the companies in the same industry are doing better.
| 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 6248.28% over the past year.
- Measured over the past years, VRTX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.27% on average per year.
- VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.90%.
- The Revenue has been growing by 14.10% on average over the past years. This is quite good.
EPS 1Y (TTM)6248.28%
EPS 3Y7.33%
EPS 5Y12.27%
EPS Q2Q%26.38%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y10.35%
Revenue growth 5Y14.1%
Sales Q2Q%9.55%
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 11.80% yearly.
- The Revenue is expected to grow by 9.17% on average over the next years. This is quite good.
EPS Next Y10.74%
EPS Next 2Y11.49%
EPS Next 3Y10.83%
EPS Next 5Y11.8%
Revenue Next Year9.09%
Revenue Next 2Y9.66%
Revenue Next 3Y10.22%
Revenue Next 5Y9.17%
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 stable.
- 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
- Based on the Price/Earnings ratio of 25.91, the valuation of VRTX can be described as expensive.
- Based on the Price/Earnings ratio, VRTX is valued cheaply inside the industry as 93.28% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.19, VRTX is valued at the same level.
- The Price/Forward Earnings ratio is 23.40, which indicates a rather expensive current valuation of VRTX.
- Based on the Price/Forward Earnings ratio, VRTX is valued cheaper than 92.71% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. VRTX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 23.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaply inside the industry as 93.47% of the companies are valued more expensively.
- VRTX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.27 | ||
| EV/EBITDA | 25 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VRTX does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of VRTX may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)2.11
EPS Next 2Y11.49%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
- VRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:VRTX (2/17/2026, 12:04:02 PM)
477.08
-14.39 (-2.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-04 2026-05-04
Inst Owners97.56%
Inst Owner Change0.43%
Ins Owners0.13%
Ins Owner Change5.18%
Market Cap121.04B
Revenue(TTM)12.00B
Net Income(TTM)3.68B
Analysts80
Price Target532.5 (11.62%)
Short Float %1.75%
Short Ratio2.99
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)6.28%
PT rev (3m)8.26%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.91 | ||
| Fwd PE | 23.4 | ||
| P/S | 10.33 | ||
| P/FCF | 36.27 | ||
| P/OCF | 32.56 | ||
| P/B | 6.99 | ||
| P/tB | 7.66 | ||
| EV/EBITDA | 25 |
EPS(TTM)18.41
EY3.86%
EPS(NY)20.39
Fwd EY4.27%
FCF(TTM)13.15
FCFY2.76%
OCF(TTM)14.65
OCFY3.07%
SpS46.21
BVpS68.26
TBVpS62.28
PEG (NY)2.41
PEG (5Y)2.11
Graham Number168.15
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)9.65%
ROA(5y)12.94%
ROE(3y)12.83%
ROE(5y)17.11%
ROIC(3y)17.75%
ROIC(5y)19.09%
ROICexc(3y)31.55%
ROICexc(5y)45.74%
ROICexgc(3y)38.88%
ROICexgc(5y)65.77%
ROCE(3y)22.47%
ROCE(5y)24.17%
ROICexgc growth 3Y-38.98%
ROICexgc growth 5Y-26.28%
ROICexc growth 3Y-31.44%
ROICexc growth 5Y-19.05%
OM growth 3Y-7.71%
OM growth 5Y-3.24%
PM growth 3Y-3.97%
PM growth 5Y-5.49%
GM growth 3Y-0.63%
GM growth 5Y-0.43%
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
WACC8.68%
ROIC/WACC2.03
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6248.28%
EPS 3Y7.33%
EPS 5Y12.27%
EPS Q2Q%26.38%
EPS Next Y10.74%
EPS Next 2Y11.49%
EPS Next 3Y10.83%
EPS Next 5Y11.8%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y10.35%
Revenue growth 5Y14.1%
Sales Q2Q%9.55%
Revenue Next Year9.09%
Revenue Next 2Y9.66%
Revenue Next 3Y10.22%
Revenue Next 5Y9.17%
EBIT growth 1Y5.79%
EBIT growth 3Y1.84%
EBIT growth 5Y10.4%
EBIT Next Year17.45%
EBIT Next 3Y11.61%
EBIT Next 5Y11.91%
FCF growth 1Y346.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y541.25%
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 5 / 10 to VERTEX PHARMACEUTICALS INC (VRTX). This can be considered as Fairly Valued.
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 25.91 and the Price/Book (PB) ratio is 6.99.
How financially healthy is VERTEX PHARMACEUTICALS INC?
The financial health rating of VERTEX PHARMACEUTICALS INC (VRTX) is 6 / 10.