VERTEX PHARMACEUTICALS INC (VRTX)
US92532F1003 - Common Stock
VRTX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 565 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VRTX was profitable.
VRTX had a negative operating cash flow in the past year.
Each year in the past 5 years VRTX has been profitable.
VRTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.16%, VRTX belongs to the top of the industry, outperforming 90.93% of the companies in the same industry.
VRTX has a Return On Equity of -3.07%. This is amongst the best in the industry. VRTX outperforms 92.35% of its industry peers.
VRTX has a Return On Invested Capital of 18.91%. This is amongst the best in the industry. VRTX outperforms 98.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRTX is significantly above the industry average of 13.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -3.07% | ||
| ROIC | 18.91% |
ROA(3y)17.22%
ROA(5y)17.78%
ROE(3y)22.55%
ROE(5y)23.64%
ROIC(3y)20.25%
ROIC(5y)19.57%
1.3 Margins
In the last couple of years the Profit Margin of VRTX has declined.
With an excellent Operating Margin value of 40.36%, VRTX belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.
In the last couple of years the Operating Margin of VRTX has grown nicely.
The Gross Margin of VRTX (86.12%) is better than 89.15% of its industry peers.
VRTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.36% | ||
| PM (TTM) | N/A | ||
| GM | 86.12% |
OM growth 3Y-1.36%
OM growth 5Y15.18%
PM growth 3Y-5.67%
PM growth 5Y-11.82%
GM growth 3Y-0.35%
GM growth 5Y0.15%
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.
VRTX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VRTX has more shares outstanding
Compared to 1 year ago, VRTX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.26 indicates that VRTX is not in any danger for bankruptcy at the moment.
VRTX has a Altman-Z score of 11.26. This is amongst the best in the industry. VRTX outperforms 87.72% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that VRTX is not too dependend on debt financing.
VRTX has a Debt to Equity ratio (0.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 11.26 |
ROIC/WACC1.73
WACC10.92%
2.3 Liquidity
A Current Ratio of 2.47 indicates that VRTX has no problem at all paying its short term obligations.
VRTX has a worse Current ratio (2.47) than 71.35% of its industry peers.
VRTX has a Quick Ratio of 2.20. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
VRTX's Quick ratio of 2.20 is on the low side compared to the rest of the industry. VRTX is outperformed by 72.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
The earnings per share for VRTX have decreased strongly by -96.55% in the last year.
The Earnings Per Share has been growing by 30.06% on average over the past years. This is a very strong growth
Looking at the last year, VRTX shows a quite strong growth in Revenue. The Revenue has grown by 10.06% in the last year.
Measured over the past years, VRTX shows a very strong growth in Revenue. The Revenue has been growing by 26.49% on average per year.
EPS 1Y (TTM)-96.55%
EPS 3Y13.83%
EPS 5Y30.06%
EPS Q2Q%7.35%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y16.73%
Revenue growth 5Y26.49%
Sales Q2Q%11.61%
3.2 Future
VRTX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
The Revenue is expected to grow by 9.45% on average over the next years. This is quite good.
EPS Next Y-96.09%
EPS Next 2Y12.29%
EPS Next 3Y11.05%
EPS Next 5Y11.89%
Revenue Next Year10.41%
Revenue Next 2Y9.46%
Revenue Next 3Y9.59%
Revenue Next 5Y9.45%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 778.96, the valuation of VRTX can be described as expensive.
92.35% of the companies in the same industry are more expensive than VRTX, based on the Price/Earnings ratio.
VRTX is valuated expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.70 indicates a rather expensive valuation of VRTX.
94.84% 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 23.73, VRTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 778.96 | ||
| Fwd PE | 20.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaply inside the industry as 95.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.7 |
4.3 Compensation for Growth
VRTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)25.91
EPS Next 2Y12.29%
EPS Next 3Y11.05%
5. Dividend
5.1 Amount
No dividends for VRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERTEX PHARMACEUTICALS INC
NASDAQ:VRTX (12/20/2024, 8:00:01 PM)
After market: 394.85 -2.42 (-0.61%)397.27
+0.63 (+0.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners95.47%
Inst Owner Change0.06%
Ins Owners0.09%
Ins Owner Change-4.85%
Market Cap102.31B
Analysts76.59
Price Target529.12 (33.19%)
Short Float %1.43%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-261.94%
Min EPS beat(2)-527.57%
Max EPS beat(2)3.69%
EPS beat(4)3
Avg EPS beat(4)-127.17%
Min EPS beat(4)-527.57%
Max EPS beat(4)14.85%
EPS beat(8)5
Avg EPS beat(8)-63.13%
EPS beat(12)8
Avg EPS beat(12)-41.4%
EPS beat(16)11
Avg EPS beat(16)-28.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-2.56%
Max Revenue beat(2)-0.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)2.3%
Revenue beat(8)2
Avg Revenue beat(8)-0.77%
Revenue beat(12)5
Avg Revenue beat(12)-0.16%
Revenue beat(16)9
Avg Revenue beat(16)0.5%
PT rev (1m)1.16%
PT rev (3m)0.93%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)1.21%
EPS NY rev (1m)46.6%
EPS NY rev (3m)81.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 778.96 | ||
| Fwd PE | 20.7 | ||
| P/S | 9.63 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.55 | ||
| P/tB | 7.46 | ||
| EV/EBITDA | 20.7 |
EPS(TTM)0.51
EY0.13%
EPS(NY)19.19
Fwd EY4.83%
FCF(TTM)-5.25
FCFYN/A
OCF(TTM)-3.27
OCFYN/A
SpS41.26
BVpS60.7
TBVpS53.24
PEG (NY)N/A
PEG (5Y)25.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -3.07% | ||
| ROCE | 23.48% | ||
| ROIC | 18.91% | ||
| ROICexc | 33.04% | ||
| ROICexgc | 40.47% | ||
| OM | 40.36% | ||
| PM (TTM) | N/A | ||
| GM | 86.12% | ||
| FCFM | N/A |
ROA(3y)17.22%
ROA(5y)17.78%
ROE(3y)22.55%
ROE(5y)23.64%
ROIC(3y)20.25%
ROIC(5y)19.57%
ROICexc(3y)61.35%
ROICexc(5y)57.2%
ROICexgc(3y)93.66%
ROICexgc(5y)92.47%
ROCE(3y)25.13%
ROCE(5y)24.3%
ROICexcg growth 3Y-18.9%
ROICexcg growth 5Y19.28%
ROICexc growth 3Y-11.65%
ROICexc growth 5Y12.56%
OM growth 3Y-1.36%
OM growth 5Y15.18%
PM growth 3Y-5.67%
PM growth 5Y-11.82%
GM growth 3Y-0.35%
GM growth 5Y0.15%
F-Score3
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 231.63% | ||
| Cap/Sales | 4.79% | ||
| Interest Coverage | 111.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.2 | ||
| Altman-Z | 11.26 |
F-Score3
WACC10.92%
ROIC/WACC1.73
Cap/Depr(3y)155.89%
Cap/Depr(5y)155.11%
Cap/Sales(3y)2.67%
Cap/Sales(5y)2.8%
Profit Quality(3y)103.86%
Profit Quality(5y)109.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-96.55%
EPS 3Y13.83%
EPS 5Y30.06%
EPS Q2Q%7.35%
EPS Next Y-96.09%
EPS Next 2Y12.29%
EPS Next 3Y11.05%
EPS Next 5Y11.89%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y16.73%
Revenue growth 5Y26.49%
Sales Q2Q%11.61%
Revenue Next Year10.41%
Revenue Next 2Y9.46%
Revenue Next 3Y9.59%
Revenue Next 5Y9.45%
EBIT growth 1Y10.61%
EBIT growth 3Y15.13%
EBIT growth 5Y45.7%
EBIT Next Year-70.34%
EBIT Next 3Y13.37%
EBIT Next 5Y12.96%
FCF growth 1Y-135.44%
FCF growth 3Y3.08%
FCF growth 5Y22.79%
OCF growth 1Y-120.82%
OCF growth 3Y2.83%
OCF growth 5Y22.73%