VERTEX PHARMACEUTICALS INC (VX1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:VX1 - US92532F1003 - Common Stock
398 EUR
-0.95 (-0.24%)
We assign a fundamental rating of 7 out of 10 to VX1. VX1 was compared to 85 industry peers in the Biotechnology industry. VX1 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. VX1 is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make VX1 suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- VX1 had positive earnings in the past year.
- In the past year VX1 had a positive cash flow from operations.
- VX1 had positive earnings in 4 of the past 5 years.
- Of the past 5 years VX1 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 14.78%, VX1 belongs to the top of the industry, outperforming 89.77% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 21.22%, VX1 belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 15.66%, VX1 belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for VX1 is significantly above the industry average of 11.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.78% | ||
| ROE | 21.22% | ||
| ROIC | 15.67% |
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)17.53%
ROIC(5y)18.06%
1.3 Margins
- Looking at the Profit Margin, with a value of 31.35%, VX1 belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- The Operating Margin of VX1 (38.70%) is better than 94.32% of its industry peers.
- In the last couple of years the Operating Margin of VX1 has grown nicely.
- VX1's Gross Margin of 86.28% is amongst the best of the industry. VX1 outperforms 80.68% of its industry peers.
- In the last couple of years the Gross Margin of VX1 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VX1 is creating value.
- The number of shares outstanding for VX1 has been reduced compared to 1 year ago.
- Compared to 5 years ago, VX1 has less shares outstanding
- VX1 has a better debt/assets ratio than last year.
2.2 Solvency
- There is no outstanding debt for VX1. 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/WACC1.76
WACC8.88%
2.3 Liquidity
- A Current Ratio of 2.36 indicates that VX1 has no problem at all paying its short term obligations.
- VX1 has a Current ratio (2.36) which is in line with its industry peers.
- VX1 has a Quick Ratio of 2.00. This is a normal value and indicates that VX1 is financially healthy and should not expect problems in meeting its short term obligations.
- VX1 has a Quick ratio (2.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
- VX1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 3303.92%, which is quite impressive.
- VX1 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -44.14% yearly.
- The Revenue has grown by 10.33% in the past year. This is quite good.
- VX1 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.50% yearly.
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
- The Earnings Per Share is expected to grow by 150.51% on average over the next years. This is a very strong growth
- VX1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.75% yearly.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 26.93, the valuation of VX1 can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of VX1 indicates a rather cheap valuation: VX1 is cheaper than 80.68% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, VX1 is valued at the same level.
- Based on the Price/Forward Earnings ratio of 22.96, the valuation of VX1 can be described as rather expensive.
- VX1's Price/Forward Earnings ratio is rather cheap when compared to the industry. VX1 is cheaper than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, VX1 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.93 | ||
| Fwd PE | 22.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VX1 is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
- VX1's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VX1 is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.53 | ||
| EV/EBITDA | 23.7 |
4.3 Compensation for Growth
- VX1's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- VX1 has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as VX1'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
- VX1 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
VERTEX PHARMACEUTICALS INC / VX1.DE FAQ
What is the ChartMill fundamental rating of VERTEX PHARMACEUTICALS INC (VX1.DE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to VX1.DE.
What is the valuation status for VX1 stock?
ChartMill assigns a valuation rating of 7 / 10 to VERTEX PHARMACEUTICALS INC (VX1.DE). This can be considered as Undervalued.
What is the profitability of VX1 stock?
VERTEX PHARMACEUTICALS INC (VX1.DE) has a profitability rating of 8 / 10.
How financially healthy is VERTEX PHARMACEUTICALS INC?
The financial health rating of VERTEX PHARMACEUTICALS INC (VX1.DE) is 7 / 10.
What is the earnings growth outlook for VERTEX PHARMACEUTICALS INC?
The Earnings per Share (EPS) of VERTEX PHARMACEUTICALS INC (VX1.DE) is expected to grow by 6337.86% in the next year.