463.86 USD
-5.82 (-1.24%)
463.86 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VRTX. VRTX was compared to 530 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. 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.
In the past year VRTX had a positive cash flow from operations.
VRTX had positive earnings in 4 of the past 5 years.
VRTX had a positive operating cash flow in 4 of the past 5 years.
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.
Looking at the Return On Equity, with a value of 21.22%, VRTX belongs to the top of the industry, outperforming 96.42% of the companies in the same industry.
The Return On Invested Capital of VRTX (17.58%) is better than 97.17% 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 18.28%.
| 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
VRTX has a Profit Margin of 31.35%. This is amongst the best in the industry. VRTX outperforms 96.04% of its industry peers.
VRTX has a Operating Margin of 38.70%. This is amongst the best in the industry. VRTX outperforms 97.92% of its industry peers.
In the last couple of years the Operating Margin of VRTX has grown nicely.
VRTX has a Gross Margin of 86.28%. This is amongst the best in the industry. VRTX outperforms 89.06% of its industry peers.
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 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.
Compared to 1 year ago, VRTX has less shares outstanding
VRTX has less shares outstanding than it did 5 years ago.
VRTX has a better debt/assets ratio than last year.
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/WACC1.99
WACC8.82%
2.3 Liquidity
VRTX has a Current Ratio of 2.36. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
VRTX has a Current ratio of 2.36. This is in the lower half of the industry: VRTX underperforms 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
The Earnings Per Share has grown by an impressive 3303.92% over the past year.
The earnings per share for VRTX have been decreasing by -44.14% on average. This is quite bad
The Revenue has grown by 10.33% in the past year. This is quite good.
The Revenue has been growing by 21.50% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 150.51% on average over the next years. This is a very strong growth
VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.75% yearly.
EPS Next Y6343.89%
EPS Next 2Y739.72%
EPS Next 3Y328.89%
EPS Next 5Y150.51%
Revenue Next Year10.14%
Revenue Next 2Y9.44%
Revenue Next 3Y9.38%
Revenue Next 5Y9.75%
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
Based on the Price/Earnings ratio of 26.72, the valuation of VRTX can be described as expensive.
Based on the Price/Earnings ratio, VRTX is valued cheaply inside the industry as 93.40% 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.
A Price/Forward Earnings ratio of 22.68 indicates a rather expensive valuation of VRTX.
Based on the Price/Forward Earnings ratio, VRTX is valued cheaply inside the industry as 93.40% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.88. VRTX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 22.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaply inside the industry as 93.58% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VRTX is valued cheaply inside the industry as 93.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.27 | ||
| EV/EBITDA | 23.52 |
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.
The decent profitability rating of VRTX may justify a higher PE ratio.
VRTX's earnings are expected to grow with 328.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y739.72%
EPS Next 3Y328.89%
5. Dividend
5.1 Amount
VRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
463.86
-5.82 (-1.24%)
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 Cap117.69B
Revenue(TTM)11.72B
Net Income(TTM)3.68B
Analysts76.92
Price Target501.03 (8.01%)
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)0.81%
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 | 26.72 | ||
| Fwd PE | 22.68 | ||
| P/S | 10.04 | ||
| P/FCF | 35.27 | ||
| P/OCF | 31.65 | ||
| P/B | 6.8 | ||
| P/tB | 7.45 | ||
| EV/EBITDA | 23.52 |
EPS(TTM)17.36
EY3.74%
EPS(NY)20.45
Fwd EY4.41%
FCF(TTM)13.15
FCFY2.84%
OCF(TTM)14.65
OCFY3.16%
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
WACC8.82%
ROIC/WACC1.99
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 5Y150.51%
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 5Y9.75%
EBIT growth 1Y5.79%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year811.13%
EBIT Next 3Y128.24%
EBIT Next 5Y70.14%
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 26.72 and the Price/Book (PB) ratio is 6.8.
How financially healthy is VERTEX PHARMACEUTICALS INC?
The financial health rating of VERTEX PHARMACEUTICALS INC (VRTX) is 6 / 10.