456.2 USD
+8.82 (+1.97%)
455.9 USD
-0.3 (-0.07%)
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 evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make VRTX suitable 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.
Of the past 5 years VRTX 4 years were profitable.
VRTX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of VRTX (14.78%) is better than 95.47% of its industry peers.
VRTX has a Return On Equity of 21.22%. This is amongst the best in the industry. VRTX outperforms 96.42% of its industry peers.
The Return On Invested Capital of VRTX (17.58%) is better than 97.17% of its industry peers.
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 18.22%.
| 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.
VRTX has a better Operating Margin (38.70%) than 97.92% of its industry peers.
In the last couple of years the Operating Margin of VRTX has grown nicely.
VRTX has a better Gross Margin (86.28%) than 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.
VRTX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VRTX has been reduced compared to 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/WACC2
WACC8.8%
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.
Looking at the Current ratio, with a value of 2.36, VRTX is doing worse than 72.08% of the companies in the same industry.
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.
VRTX has a Quick ratio of 2.00. This is in the lower half of the industry: VRTX underperforms 74.91% of its industry peers.
| 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.
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
Based on estimates for the next years, VRTX will show a very strong growth in Earnings Per Share. The EPS will grow by 150.35% on average per year.
The Revenue is expected to grow by 9.70% on average over the next years. This is quite good.
EPS Next Y6342.88%
EPS Next 2Y738.5%
EPS Next 3Y328.69%
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
Based on the Price/Earnings ratio of 26.28, the valuation of VRTX can be described as expensive.
Based on the Price/Earnings ratio, VRTX is valued cheaper than 93.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of VRTX to the average of the S&P500 Index (26.39), we can say VRTX is valued inline with the index average.
With a Price/Forward Earnings ratio of 22.37, VRTX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VRTX is valued cheaper than 93.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, VRTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.28 | ||
| Fwd PE | 22.37 |
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 cheaper than 93.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.68 | ||
| EV/EBITDA | 23.11 |
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 a very decent profitability rating, which may justify a higher PE ratio.
VRTX's earnings are expected to grow with 328.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y738.5%
EPS Next 3Y328.69%
5. Dividend
5.1 Amount
VRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
456.2
+8.82 (+1.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.5%
Inst Owner Change-2.14%
Ins Owners0.13%
Ins Owner Change-3.43%
Market Cap115.75B
Revenue(TTM)11.72B
Net Income(TTM)3.68B
Analysts76.41
Price Target496.99 (8.94%)
Short Float %1.76%
Short Ratio3.26
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)1.04%
PT rev (3m)1.36%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)2.37%
EPS NY rev (1m)1.66%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.28 | ||
| Fwd PE | 22.37 | ||
| P/S | 9.87 | ||
| P/FCF | 34.68 | ||
| P/OCF | 31.13 | ||
| P/B | 6.68 | ||
| P/tB | 7.33 | ||
| EV/EBITDA | 23.11 |
EPS(TTM)17.36
EY3.81%
EPS(NY)20.39
Fwd EY4.47%
FCF(TTM)13.15
FCFY2.88%
OCF(TTM)14.65
OCFY3.21%
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
WACC8.8%
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 Y6342.88%
EPS Next 2Y738.5%
EPS Next 3Y328.69%
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 3Y127.98%
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
What is the fundamental rating for VRTX stock?
ChartMill assigns a fundamental rating of 6 / 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 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 6342.88% in the next year.