VERTEX PHARMACEUTICALS INC (VRTX) Fundamental Analysis & Valuation

NASDAQ:VRTX • US92532F1003

Current stock price

441.7 USD
-2.58 (-0.58%)
At close:
441.7 USD
0 (0%)
After Hours:

This VRTX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. VRTX Profitability Analysis

1.1 Basic Checks

  • VRTX had positive earnings in the past year.
  • In the past year VRTX had a positive cash flow from operations.
  • Of the past 5 years VRTX 4 years were profitable.
  • Of the past 5 years VRTX 4 years had a positive operating cash flow.
VRTX Yearly Net Income VS EBIT VS OCF VS FCFVRTX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • The Return On Assets of VRTX (15.42%) is better than 95.35% of its industry peers.
  • The Return On Equity of VRTX (21.18%) is better than 95.54% of its industry peers.
  • VRTX has a better Return On Invested Capital (16.99%) than 96.71% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for VRTX is significantly below the industry average of 27.73%.
Industry RankSector Rank
ROA 15.42%
ROE 21.18%
ROIC 16.99%
ROA(3y)9.65%
ROA(5y)12.94%
ROE(3y)12.83%
ROE(5y)17.11%
ROIC(3y)17.75%
ROIC(5y)19.09%
VRTX Yearly ROA, ROE, ROICVRTX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 32.94%, VRTX belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
  • In the last couple of years the Profit Margin of VRTX has declined.
  • VRTX has a better Operating Margin (39.04%) than 97.48% of its industry peers.
  • VRTX's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 86.24%, VRTX belongs to the best of the industry, outperforming 88.18% 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 RankSector Rank
OM 39.04%
PM (TTM) 32.94%
GM 86.24%
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%
VRTX Yearly Profit, Operating, Gross MarginsVRTX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. VRTX Health Analysis

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 reduced compared to 1 year ago.
  • VRTX has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for VRTX has been reduced compared to a year ago.
VRTX Yearly Shares OutstandingVRTX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
VRTX Yearly Total Debt VS Total AssetsVRTX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 11.87 indicates that VRTX is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 11.87, VRTX belongs to the top of the industry, outperforming 82.56% of the companies in the same industry.
  • The Debt to FCF ratio of VRTX is 0.03, which is an excellent value as it means it would take VRTX, only 0.03 years of fcf income to pay off all of its debts.
  • VRTX's Debt to FCF ratio of 0.03 is amongst the best of the industry. VRTX outperforms 96.12% of its industry peers.
  • VRTX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of VRTX (0.01) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.03
Altman-Z 11.87
ROIC/WACC1.86
WACC9.12%
VRTX Yearly LT Debt VS Equity VS FCFVRTX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 2.90 indicates that VRTX has no problem at all paying its short term obligations.
  • VRTX's Current ratio of 2.90 is on the low side compared to the rest of the industry. VRTX is outperformed by 64.15% of its industry peers.
  • VRTX has a Quick Ratio of 2.46. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of VRTX (2.46) is worse than 67.83% of its industry peers.
Industry RankSector Rank
Current Ratio 2.9
Quick Ratio 2.46
VRTX Yearly Current Assets VS Current LiabilitesVRTX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. VRTX Growth Analysis

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.
  • Looking at the last year, VRTX shows a quite strong growth in Revenue. The Revenue has grown by 8.90% in the last year.
  • VRTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.10% yearly.
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

  • Based on estimates for the next years, VRTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.36% on average per year.
  • The Revenue is expected to grow by 10.31% on average over the next years. This is quite good.
EPS Next Y5.79%
EPS Next 2Y10.09%
EPS Next 3Y12.27%
EPS Next 5Y12.36%
Revenue Next Year8.81%
Revenue Next 2Y9.61%
Revenue Next 3Y10.47%
Revenue Next 5Y10.31%

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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
VRTX Yearly Revenue VS EstimatesVRTX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
VRTX Yearly EPS VS EstimatesVRTX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 10 20 30 40

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Find the best growth stocksShow best growing peers

6

4. VRTX Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 23.99, which indicates a rather expensive current valuation of VRTX.
  • Compared to the rest of the industry, the Price/Earnings ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 92.44% of the companies listed in the same industry.
  • VRTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 22.68, which indicates a rather expensive current valuation of VRTX.
  • Based on the Price/Forward Earnings ratio, VRTX is valued cheaper than 94.19% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.16, VRTX is valued a bit cheaper.
Industry RankSector Rank
PE 23.99
Fwd PE 22.68
VRTX Price Earnings VS Forward Price EarningsVRTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaper than 92.44% of the companies in the same industry.
  • VRTX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.60% of the companies in the same industry.
Industry RankSector Rank
P/FCF 35.18
EV/EBITDA 21.14
VRTX Per share dataVRTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of VRTX may justify a higher PE ratio.
  • VRTX's earnings are expected to grow with 12.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.14
PEG (5Y)1.95
EPS Next 2Y10.09%
EPS Next 3Y12.27%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. VRTX Dividend Analysis

5.1 Amount

  • VRTX does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

VRTX Fundamentals: All Metrics, Ratios and Statistics

VERTEX PHARMACEUTICALS INC

NASDAQ:VRTX (4/15/2026, 4:52:19 PM)

After market: 441.7 0 (0%)

441.7

-2.58 (-0.58%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners97.83%
Inst Owner Change-0.01%
Ins Owners0.14%
Ins Owner Change0.97%
Market Cap112.35B
Revenue(TTM)12.00B
Net Income(TTM)3.95B
Analysts82
Price Target557.95 (26.32%)
Short Float %1.58%
Short Ratio2.8
Dividend
Industry RankSector 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)1
Avg EPS beat(2)0.17%
Min EPS beat(2)-2.79%
Max EPS beat(2)3.12%
EPS beat(4)2
Avg EPS beat(4)-0.85%
Min EPS beat(4)-7.2%
Max EPS beat(4)3.45%
EPS beat(8)4
Avg EPS beat(8)-64.44%
EPS beat(12)6
Avg EPS beat(12)-43.04%
EPS beat(16)9
Avg EPS beat(16)-31.46%
Revenue beat(2)0
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)-1.21%
Revenue beat(4)1
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)0.06%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)4
Avg Revenue beat(12)-0.75%
Revenue beat(16)6
Avg Revenue beat(16)-0.51%
PT rev (1m)3.15%
PT rev (3m)11.36%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)-8.74%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-4.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.02%
Valuation
Industry RankSector Rank
PE 23.99
Fwd PE 22.68
P/S 9.36
P/FCF 35.18
P/OCF 30.94
P/B 6.02
P/tB 6.55
EV/EBITDA 21.14
EPS(TTM)18.41
EY4.17%
EPS(NY)19.48
Fwd EY4.41%
FCF(TTM)12.56
FCFY2.84%
OCF(TTM)14.28
OCFY3.23%
SpS47.18
BVpS73.38
TBVpS67.44
PEG (NY)4.14
PEG (5Y)1.95
Graham Number174.348 (-60.53%)
Profitability
Industry RankSector Rank
ROA 15.42%
ROE 21.18%
ROCE 21.51%
ROIC 16.99%
ROICexc 27.12%
ROICexgc 30.49%
OM 39.04%
PM (TTM) 32.94%
GM 86.24%
FCFM 26.61%
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)32.46%
ROICexc(5y)46.28%
ROICexgc(3y)40.07%
ROICexgc(5y)66.49%
ROCE(3y)22.47%
ROCE(5y)24.17%
ROICexgc growth 3Y-36.41%
ROICexgc growth 5Y-24.43%
ROICexc growth 3Y-28.98%
ROICexc growth 5Y-17.32%
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 RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.03
Debt/EBITDA 0.02
Cap/Depr 208.58%
Cap/Sales 3.65%
Interest Coverage 377.85
Cash Conversion 74.18%
Profit Quality 80.79%
Current Ratio 2.9
Quick Ratio 2.46
Altman-Z 11.87
F-Score7
WACC9.12%
ROIC/WACC1.86
Cap/Depr(3y)195.12%
Cap/Depr(5y)182.1%
Cap/Sales(3y)3.56%
Cap/Sales(5y)3.21%
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 Y5.79%
EPS Next 2Y10.09%
EPS Next 3Y12.27%
EPS Next 5Y12.36%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y10.35%
Revenue growth 5Y14.1%
Sales Q2Q%9.55%
Revenue Next Year8.81%
Revenue Next 2Y9.61%
Revenue Next 3Y10.47%
Revenue Next 5Y10.31%
EBIT growth 1Y6.59%
EBIT growth 3Y1.84%
EBIT growth 5Y10.4%
EBIT Next Year7.63%
EBIT Next 3Y14.56%
EBIT Next 5Y11.43%
FCF growth 1Y426.56%
FCF growth 3Y-6.64%
FCF growth 5Y1.3%
OCF growth 1Y837.19%
OCF growth 3Y-4.2%
OCF growth 5Y2.22%

VERTEX PHARMACEUTICALS INC / VRTX Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for VERTEX PHARMACEUTICALS INC?

ChartMill assigns a fundamental rating of 7 / 10 to VRTX.


What is the valuation status for VRTX stock?

ChartMill assigns a valuation rating of 6 / 10 to VERTEX PHARMACEUTICALS INC (VRTX). This can be considered as Fairly Valued.


How profitable is VERTEX PHARMACEUTICALS INC (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 5.79% in the next year.