VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis
USA - NASDAQ:VRTX - US92532F1003 - Common Stock
425.57 USD
+5.68 (+1.35%)
425.57 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to VRTX. VRTX was compared to 534 industry peers in the Biotechnology industry. VRTX gets an excellent profitability rating and is at the same time showing great financial health properties. VRTX is evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, VRTX could be worth investigating further for value and growth and quality 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
Looking at the Return On Assets, with a value of 15.13%, VRTX belongs to the top of the industry, outperforming 95.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.18%, VRTX belongs to the top of the industry, outperforming 95.88% of the companies in the same industry.
VRTX has a better Return On Invested Capital (17.58%) than 97.00% of its industry peers.
VRTX had an Average Return On Invested Capital over the past 3 years of 19.67%. This is above the industry average of 15.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 21.18% | ||
| 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 31.86%, VRTX belongs to the top of the industry, outperforming 96.44% of the companies in the same industry.
VRTX's Operating Margin of 38.77% is amongst the best of the industry. VRTX outperforms 98.31% of its industry peers.
In the last couple of years the Operating Margin of VRTX has grown nicely.
VRTX's Gross Margin of 86.11% is amongst the best of the industry. VRTX outperforms 88.76% of its industry peers.
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 | 38.77% | ||
| PM (TTM) | 31.86% | ||
| GM | 86.11% |
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
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.
Compared to 1 year ago, VRTX has an improved debt to assets ratio.
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/WACC2.02
WACC8.72%
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 Current ratio of 2.52. This is in the lower half of the industry: VRTX underperforms 68.54% of its industry peers.
A Quick Ratio of 2.16 indicates that VRTX has no problem at all paying its short term obligations.
The Quick ratio of VRTX (2.16) is worse than 71.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 7966.67% over the past year.
VRTX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -44.14% yearly.
VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.46%.
VRTX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.50% yearly.
EPS 1Y (TTM)7966.67%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%135.23%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%12.06%
3.2 Future
Based on estimates for the next years, VRTX will show a very strong growth in Earnings Per Share. The EPS will grow by 150.50% on average per year.
VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.58% yearly.
EPS Next Y6237.82%
EPS Next 2Y743.44%
EPS Next 3Y327.84%
EPS Next 5Y150.5%
Revenue Next Year10.07%
Revenue Next 2Y9.81%
Revenue Next 3Y9.46%
Revenue Next 5Y9.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.12, which means the current valuation is very expensive for VRTX.
VRTX's Price/Earnings ratio is rather cheap when compared to the industry. VRTX is cheaper than 94.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of VRTX to the average of the S&P500 Index (26.19), we can say VRTX is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.63, the valuation of VRTX can be described as rather expensive.
93.26% of the companies in the same industry are more expensive than VRTX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, VRTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 20.63 |
4.2 Price Multiples
93.45% of the companies in the same industry are more expensive than VRTX, based on the Enterprise Value to EBITDA ratio.
93.82% 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 | 31.18 | ||
| EV/EBITDA | 21.89 |
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.
VRTX has an outstanding profitability rating, which may justify a higher PE ratio.
VRTX's earnings are expected to grow with 327.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y743.44%
EPS Next 3Y327.84%
5. Dividend
5.1 Amount
No dividends for VRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
425.57
+5.68 (+1.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change0.08%
Ins Owners0.13%
Ins Owner Change1.12%
Market Cap109.11B
Revenue(TTM)11.42B
Net Income(TTM)3.64B
Analysts76.41
Price Target490.23 (15.19%)
Short Float %1.39%
Short Ratio2.32
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)1
Avg EPS beat(2)-1.87%
Min EPS beat(2)-7.2%
Max EPS beat(2)3.45%
EPS beat(4)2
Avg EPS beat(4)-0.78%
Min EPS beat(4)-7.2%
Max EPS beat(4)3.69%
EPS beat(8)5
Avg EPS beat(8)-64.35%
EPS beat(12)7
Avg EPS beat(12)-42%
EPS beat(16)10
Avg EPS beat(16)-30.64%
Revenue beat(2)1
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-4.8%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.87%
Revenue beat(12)5
Avg Revenue beat(12)-0.45%
Revenue beat(16)8
Avg Revenue beat(16)0.05%
PT rev (1m)-0.02%
PT rev (3m)-4.8%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-1%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 20.63 | ||
| P/S | 9.56 | ||
| P/FCF | 31.18 | ||
| P/OCF | 28.37 | ||
| P/B | 6.35 | ||
| P/tB | 6.97 | ||
| EV/EBITDA | 21.89 |
EPS(TTM)16.94
EY3.98%
EPS(NY)20.63
Fwd EY4.85%
FCF(TTM)13.65
FCFY3.21%
OCF(TTM)15
OCFY3.53%
SpS44.54
BVpS66.99
TBVpS61.05
PEG (NY)0
PEG (5Y)N/A
Graham Number159.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 21.18% | ||
| ROCE | 22.25% | ||
| ROIC | 17.58% | ||
| ROICexc | 25.88% | ||
| ROICexgc | 29.16% | ||
| OM | 38.77% | ||
| PM (TTM) | 31.86% | ||
| GM | 86.11% | ||
| FCFM | 30.65% |
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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 173.52% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 260.41 | ||
| Cash Conversion | 83.13% | ||
| Profit Quality | 96.21% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | N/A |
F-Score6
WACC8.72%
ROIC/WACC2.02
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)7966.67%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%135.23%
EPS Next Y6237.82%
EPS Next 2Y743.44%
EPS Next 3Y327.84%
EPS Next 5Y150.5%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%12.06%
Revenue Next Year10.07%
Revenue Next 2Y9.81%
Revenue Next 3Y9.46%
Revenue Next 5Y9.58%
EBIT growth 1Y4.24%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year820.09%
EBIT Next 3Y129.43%
EBIT Next 5Y68.38%
FCF growth 1Y-9.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.45%
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 7 / 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 8 / 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.