VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis
USA - NASDAQ:VRTX - US92532F1003 - Common Stock
387.15 USD
-4.21 (-1.08%)
387.15 USD
0 (0%)
Taking everything into account, VRTX scores 7 out of 10 in our fundamental rating. VRTX was compared to 540 industry peers in the Biotechnology industry. VRTX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. VRTX is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make VRTX suitable 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.
VRTX had positive earnings in 4 of the past 5 years.
Of the past 5 years VRTX 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VRTX (15.13%) is better than 95.37% of its industry peers.
VRTX's Return On Equity of 21.18% is amongst the best of the industry. VRTX outperforms 95.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.58%, VRTX belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRTX is above the industry average of 15.95%.
| 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
VRTX has a Profit Margin of 31.86%. This is amongst the best in the industry. VRTX outperforms 96.48% of its industry peers.
VRTX has a Operating Margin of 38.77%. This is amongst the best in the industry. VRTX outperforms 98.33% of its industry peers.
In the last couple of years the Operating Margin of VRTX has grown nicely.
Looking at the Gross Margin, with a value of 86.11%, VRTX belongs to the top of the industry, outperforming 88.89% 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 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
VRTX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for VRTX has been reduced compared to 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
VRTX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC1.84
WACC9.57%
2.3 Liquidity
A Current Ratio of 2.52 indicates that VRTX has no problem at all paying its short term obligations.
VRTX's Current ratio of 2.52 is on the low side compared to the rest of the industry. VRTX is outperformed by 68.89% of its industry peers.
VRTX has a Quick Ratio of 2.16. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.16, VRTX is doing worse than 71.30% of the companies in the same industry.
| 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.
The earnings per share for VRTX have been decreasing by -44.14% on average. This is quite bad
The Revenue has grown by 10.46% 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)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 150.73% on average per year.
VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.01% yearly.
EPS Next Y6256.61%
EPS Next 2Y749.77%
EPS Next 3Y329.69%
EPS Next 5Y150.73%
Revenue Next Year10.03%
Revenue Next 2Y9.8%
Revenue Next 3Y9.48%
Revenue Next 5Y10.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
VRTX is valuated rather expensively with a Price/Earnings ratio of 22.85.
VRTX's Price/Earnings ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.70% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. VRTX is around the same levels.
With a Price/Forward Earnings ratio of 18.49, VRTX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VRTX is valued cheaper than 92.96% of the companies in the same industry.
VRTX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.85 | ||
| Fwd PE | 18.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaply inside the industry as 93.70% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VRTX is valued cheaper than 93.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.36 | ||
| EV/EBITDA | 20.31 |
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.
VRTX has an outstanding profitability rating, which may justify a higher PE ratio.
VRTX's earnings are expected to grow with 329.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y749.77%
EPS Next 3Y329.69%
5. Dividend
5.1 Amount
VRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
387.15
-4.21 (-1.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner Change-0.76%
Ins Owners0.13%
Ins Owner Change1.26%
Market Cap99.26B
Analysts75.9
Price Target490.31 (26.65%)
Short Float %1.42%
Short Ratio2.1
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)-3.42%
PT rev (3m)-4.85%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)0.71%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.85 | ||
| Fwd PE | 18.49 | ||
| P/S | 8.69 | ||
| P/FCF | 28.36 | ||
| P/OCF | 25.81 | ||
| P/B | 5.78 | ||
| P/tB | 6.34 | ||
| EV/EBITDA | 20.31 |
EPS(TTM)16.94
EY4.38%
EPS(NY)20.94
Fwd EY5.41%
FCF(TTM)13.65
FCFY3.53%
OCF(TTM)15
OCFY3.88%
SpS44.54
BVpS66.99
TBVpS61.05
PEG (NY)0
PEG (5Y)N/A
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%
ROICexcg growth 3Y-29.98%
ROICexcg 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
WACC9.57%
ROIC/WACC1.84
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 Y6256.61%
EPS Next 2Y749.77%
EPS Next 3Y329.69%
EPS Next 5Y150.73%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%12.06%
Revenue Next Year10.03%
Revenue Next 2Y9.8%
Revenue Next 3Y9.48%
Revenue Next 5Y10.01%
EBIT growth 1Y4.24%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year816.11%
EBIT Next 3Y130.8%
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