VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis
USA - NASDAQ:VRTX - US92532F1003 - Common Stock
437.15 USD
+2.63 (+0.61%)
437.15 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to VRTX. VRTX was compared to 531 industry peers in the Biotechnology industry. VRTX scores excellent on profitability, but there are some minor concerns on its financial health. VRTX has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make VRTX a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
VRTX had positive earnings in the past year.
VRTX had a positive operating cash flow in the past year.
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 has a better Return On Assets (14.78%) than 95.48% of its industry peers.
VRTX's Return On Equity of 21.22% is amongst the best of the industry. VRTX outperforms 96.05% of its industry peers.
The Return On Invested Capital of VRTX (17.58%) is better than 96.99% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRTX is above the industry average of 15.76%.
| 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 96.05% of its industry peers.
VRTX has a Operating Margin of 38.70%. This is amongst the best in the industry. VRTX outperforms 98.12% 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 88.70% 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 | 38.7% | ||
| 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.
The number of shares outstanding for VRTX has been reduced compared to 1 year ago.
Compared to 5 years ago, VRTX has less shares outstanding
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/WACC2.01
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.36 indicates that VRTX has no problem at all paying its short term obligations.
With a Current ratio value of 2.36, VRTX is not doing good in the industry: 70.24% of the companies in the same industry are doing better.
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 73.63% 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.
Measured over the past years, VRTX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -44.14% on average per year.
Looking at the last year, VRTX shows a quite strong growth in Revenue. The Revenue has grown by 10.33% in the last year.
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
VRTX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 149.22% yearly.
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 2Y744.13%
EPS Next 3Y327.84%
EPS Next 5Y149.22%
Revenue Next Year10.08%
Revenue Next 2Y9.82%
Revenue Next 3Y9.46%
Revenue Next 5Y9.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
VRTX is valuated quite expensively with a Price/Earnings ratio of 25.18.
93.03% of the companies in the same industry are more expensive than VRTX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of VRTX to the average of the S&P500 Index (25.89), we can say VRTX is valued inline with the index average.
A Price/Forward Earnings ratio of 21.16 indicates a rather expensive valuation of VRTX.
92.84% 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 34.59, VRTX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 21.16 |
4.2 Price Multiples
VRTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.22% of the companies in the same industry.
93.22% 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 | 33.59 | ||
| EV/EBITDA | 22.19 |
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.
A more expensive valuation may be justified as VRTX's earnings are expected to grow with 327.84% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y744.13%
EPS Next 3Y327.84%
5. Dividend
5.1 Amount
VRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
437.15
+2.63 (+0.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change-1.01%
Ins Owners0.13%
Ins Owner Change0.95%
Market Cap112.08B
Revenue(TTM)11.72B
Net Income(TTM)3.68B
Analysts76.41
Price Target491.86 (12.52%)
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)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)0.33%
PT rev (3m)-3.11%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-0.98%
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)0.02%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 21.16 | ||
| P/S | 9.56 | ||
| P/FCF | 33.59 | ||
| P/OCF | 30.15 | ||
| P/B | 6.47 | ||
| P/tB | 7.09 | ||
| EV/EBITDA | 22.19 |
EPS(TTM)17.36
EY3.97%
EPS(NY)20.66
Fwd EY4.73%
FCF(TTM)13.02
FCFY2.98%
OCF(TTM)14.5
OCFY3.32%
SpS45.72
BVpS67.55
TBVpS61.63
PEG (NY)0
PEG (5Y)N/A
Graham Number162.43
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
WACC8.75%
ROIC/WACC2.01
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 Y6237.82%
EPS Next 2Y744.13%
EPS Next 3Y327.84%
EPS Next 5Y149.22%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%10.99%
Revenue Next Year10.08%
Revenue Next 2Y9.82%
Revenue Next 3Y9.46%
Revenue Next 5Y9.58%
EBIT growth 1Y5.79%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year820.09%
EBIT Next 3Y129.43%
EBIT Next 5Y68.42%
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 7 / 10 to VRTX.
Can you provide the valuation status for VERTEX PHARMACEUTICALS INC?
ChartMill assigns a valuation rating of 8 / 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.