VERTEX PHARMACEUTICALS INC (VX1.DE) Stock Fundamental Analysis
FRA:VX1 - Deutsche Boerse Ag - US92532F1003 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to VX1. VX1 was compared to 72 industry peers in the Biotechnology industry. While VX1 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VX1 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VX1 had positive earnings in the past year.
VX1 had a negative operating cash flow in the past year.
In the past 5 years VX1 has always been profitable.
VX1 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%, VX1 is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
With a decent Return On Equity value of -3.07%, VX1 is doing good in the industry, outperforming 76.56% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.91%, VX1 belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
VX1 had an Average Return On Invested Capital over the past 3 years of 20.25%. This is significantly above the industry average of 10.31%.
| 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
VX1's Profit Margin has declined in the last couple of years.
VX1's Operating Margin of 40.36% is amongst the best of the industry. VX1 outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of VX1 has grown nicely.
Looking at the Gross Margin, with a value of 86.12%, VX1 belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
VX1'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
VX1 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, VX1 has more shares outstanding
The number of shares outstanding for VX1 has been increased compared to 5 years ago.
The debt/assets ratio for VX1 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 13.08 indicates that VX1 is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.08, VX1 belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
VX1 has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
VX1's Debt to Equity ratio of 0.01 is amongst the best of the industry. VX1 outperforms 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 13.08 |
ROIC/WACC1.76
WACC10.72%
2.3 Liquidity
A Current Ratio of 2.47 indicates that VX1 has no problem at all paying its short term obligations.
With a Current ratio value of 2.47, VX1 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
VX1 has a Quick Ratio of 2.20. This indicates that VX1 is financially healthy and has no problem in meeting its short term obligations.
VX1 has a Quick ratio (2.20) which is in line with 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 VX1 have decreased strongly by -96.55% in the last year.
Measured over the past years, VX1 shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.06% on average per year.
The Revenue has grown by 10.06% in the past year. This is quite good.
Measured over the past years, VX1 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
VX1 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.69% yearly.
The Revenue is expected to grow by 8.99% on average over the next years. This is quite good.
EPS Next Y-96.21%
EPS Next 2Y11.77%
EPS Next 3Y11.58%
EPS Next 5Y11.69%
Revenue Next Year10.42%
Revenue Next 2Y9.32%
Revenue Next 3Y9.53%
Revenue Next 5Y8.99%
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
A Price/Earnings ratio of 937.76 indicates a quite expensive valuation of VX1.
VX1's Price/Earnings ratio is a bit cheaper when compared to the industry. VX1 is cheaper than 78.13% of the companies in the same industry.
When comparing the Price/Earnings ratio of VX1 to the average of the S&P500 Index (28.47), we can say VX1 is valued expensively.
With a Price/Forward Earnings ratio of 24.98, VX1 is valued on the expensive side.
VX1's Price/Forward Earnings ratio is rather cheap when compared to the industry. VX1 is cheaper than 82.81% of the companies in the same industry.
VX1's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 937.76 | ||
| Fwd PE | 24.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VX1 is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.14 |
4.3 Compensation for Growth
VX1 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)31.2
EPS Next 2Y11.77%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
No dividends for VX1!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERTEX PHARMACEUTICALS INC
FRA:VX1 (2/4/2025, 7:00:00 PM)
459.5
+8.75 (+1.94%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners95.47%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap118.34B
Analysts77
Price Target476.98 (3.8%)
Short Float %N/A
Short RatioN/A
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)-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)-2.65%
PT rev (3m)-1.53%
EPS NQ rev (1m)-1.67%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)-3.14%
EPS NY rev (3m)245.84%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.86%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 937.76 | ||
| Fwd PE | 24.98 | ||
| P/S | 11.51 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 7.82 | ||
| P/tB | 8.92 | ||
| EV/EBITDA | 25.14 |
EPS(TTM)0.49
EY0.11%
EPS(NY)18.4
Fwd EY4%
FCF(TTM)-5.08
FCFYN/A
OCF(TTM)-3.17
OCFYN/A
SpS39.92
BVpS58.73
TBVpS51.52
PEG (NY)N/A
PEG (5Y)31.2
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 | 13.08 |
F-Score3
WACC10.72%
ROIC/WACC1.76
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-96.21%
EPS Next 2Y11.77%
EPS Next 3Y11.58%
EPS Next 5Y11.69%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y16.73%
Revenue growth 5Y26.49%
Sales Q2Q%11.61%
Revenue Next Year10.42%
Revenue Next 2Y9.32%
Revenue Next 3Y9.53%
Revenue Next 5Y8.99%
EBIT growth 1Y10.61%
EBIT growth 3Y15.13%
EBIT growth 5Y45.7%
EBIT Next Year-71.38%
EBIT Next 3Y13.87%
EBIT Next 5Y11.86%
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%