470.955 USD
-5.88 (-1.23%)
Taking everything into account, VRTX scores 6 out of 10 in our fundamental rating. VRTX was compared to 525 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
- VRTX had positive earnings in the past year.
- 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
- With an excellent Return On Assets value of 14.78%, VRTX belongs to the best of the industry, outperforming 95.62% of the companies in the same industry.
- The Return On Equity of VRTX (21.22%) is better than 96.38% of its industry peers.
- With an excellent Return On Invested Capital value of 17.58%, VRTX belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for VRTX is in line with the industry average of 18.07%.
| 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
- The Profit Margin of VRTX (31.35%) is better than 96.19% of its industry peers.
- VRTX has a Operating Margin of 38.70%. This is amongst the best in the industry. VRTX outperforms 98.10% 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 89.14% 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.
- VRTX has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, VRTX has an improved debt to assets ratio.
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/WACC1.98
WACC8.88%
2.3 Liquidity
- A Current Ratio of 2.36 indicates that VRTX has no problem at all paying its short term obligations.
- The Current ratio of VRTX (2.36) is worse than 71.81% of its industry peers.
- A Quick Ratio of 2.00 indicates that VRTX should not have too much problems paying its short term obligations.
- VRTX's Quick ratio of 2.00 is on the low side compared to the rest of the industry. VRTX is outperformed by 73.90% 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.
- 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.
- VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.33%.
- 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
- Based on estimates for the next years, VRTX will show a very strong growth in Earnings Per Share. The EPS will grow by 150.51% on average per year.
- The Revenue is expected to grow by 9.75% on average over the next years. This is quite good.
EPS Next Y6337.86%
EPS Next 2Y737.83%
EPS Next 3Y328.22%
EPS Next 5Y150.51%
Revenue Next Year10.06%
Revenue Next 2Y9.3%
Revenue Next 3Y9.36%
Revenue Next 5Y9.75%
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 27.13.
- 93.52% of the companies in the same industry are more expensive than VRTX, based on the Price/Earnings ratio.
- VRTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- VRTX is valuated rather expensively with a Price/Forward Earnings ratio of 23.13.
- Based on the Price/Forward Earnings ratio, VRTX is valued cheaply inside the industry as 92.76% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of VRTX to the average of the S&P500 Index (25.98), we can say VRTX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.13 | ||
| Fwd PE | 23.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaply inside the industry as 93.52% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, VRTX is valued cheaper than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.81 | ||
| EV/EBITDA | 24.21 |
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.
- The decent profitability rating of VRTX may justify a higher PE ratio.
- A more expensive valuation may be justified as VRTX's earnings are expected to grow with 328.21% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y737.83%
EPS Next 3Y328.22%
5. Dividend
5.1 Amount
- No dividends for VRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 27.13 and the Price/Book (PB) ratio is 6.9.
How financially healthy is VERTEX PHARMACEUTICALS INC?
The financial health rating of VERTEX PHARMACEUTICALS INC (VRTX) is 6 / 10.