Logo image of 1VRTX.MI

VERTEX PHARMACEUTICALS INC (1VRTX.MI) Stock Fundamental Analysis

BIT:1VRTX - Euronext Milan - US92532F1003 - Common Stock - Currency: EUR

384.6  -88.8 (-18.76%)

Fundamental Rating

6

1VRTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Biotechnology industry. While 1VRTX has a great health rating, its profitability is only average at the moment. 1VRTX has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

6

1. Profitability

1.1 Basic Checks

1VRTX had negative earnings in the past year.
1VRTX had a negative operating cash flow in the past year.
1VRTX had positive earnings in 4 of the past 5 years.
1VRTX had a positive operating cash flow in 4 of the past 5 years.
1VRTX.MI Yearly Net Income VS EBIT VS OCF VS FCF1VRTX.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

1.2 Ratios

1VRTX has a better Return On Assets (-4.32%) than 65.67% of its industry peers.
1VRTX has a Return On Equity of -5.99%. This is in the better half of the industry: 1VRTX outperforms 70.15% of its industry peers.
1VRTX has a Return On Invested Capital of 16.53%. This is amongst the best in the industry. 1VRTX outperforms 92.54% of its industry peers.
1VRTX had an Average Return On Invested Capital over the past 3 years of 18.48%. This is significantly above the industry average of 11.69%.
Industry RankSector Rank
ROA -4.32%
ROE -5.99%
ROIC 16.53%
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)18.48%
ROIC(5y)19.13%
1VRTX.MI Yearly ROA, ROE, ROIC1VRTX.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40

1.3 Margins

Looking at the Operating Margin, with a value of 37.91%, 1VRTX belongs to the top of the industry, outperforming 94.03% of the companies in the same industry.
In the last couple of years the Operating Margin of 1VRTX has grown nicely.
1VRTX has a Gross Margin of 86.03%. This is amongst the best in the industry. 1VRTX outperforms 82.09% of its industry peers.
In the last couple of years the Gross Margin of 1VRTX has remained more or less at the same level.
Industry RankSector Rank
OM 37.91%
PM (TTM) N/A
GM 86.03%
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%
1VRTX.MI Yearly Profit, Operating, Gross Margins1VRTX.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

More info and screens

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1VRTX is creating value.
1VRTX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1VRTX has been reduced compared to 5 years ago.
Compared to 1 year ago, 1VRTX has an improved debt to assets ratio.
1VRTX.MI Yearly Shares Outstanding1VRTX.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
1VRTX.MI Yearly Total Debt VS Total Assets1VRTX.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

An Altman-Z score of 12.89 indicates that 1VRTX is not in any danger for bankruptcy at the moment.
1VRTX has a Altman-Z score of 12.89. This is amongst the best in the industry. 1VRTX outperforms 91.04% of its industry peers.
1VRTX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
1VRTX has a better Debt to Equity ratio (0.01) than 82.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 12.89
ROIC/WACC1.69
WACC9.8%
1VRTX.MI Yearly LT Debt VS Equity VS FCF1VRTX.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 2.65 indicates that 1VRTX has no problem at all paying its short term obligations.
1VRTX's Current ratio of 2.65 is fine compared to the rest of the industry. 1VRTX outperforms 62.69% of its industry peers.
A Quick Ratio of 2.29 indicates that 1VRTX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.29, 1VRTX is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.65
Quick Ratio 2.29
1VRTX.MI Yearly Current Assets VS Current Liabilites1VRTX.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

More info and screens

6

3. Growth

3.1 Past

1VRTX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -102.42%.
Measured over the past years, 1VRTX 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, 1VRTX shows a quite strong growth in Revenue. The Revenue has grown by 8.98% in the last year.
Measured over the past years, 1VRTX shows a very strong growth in Revenue. The Revenue has been growing by 21.50% on average per year.
EPS 1Y (TTM)-102.42%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%2.96%

3.2 Future

The Earnings Per Share is expected to grow by 152.83% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.19% on average over the next years. This is quite good.
EPS Next Y6211.74%
EPS Next 2Y753.07%
EPS Next 3Y332.19%
EPS Next 5Y152.83%
Revenue Next Year9.56%
Revenue Next 2Y10.19%
Revenue Next 3Y9.82%
Revenue Next 5Y10.19%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
1VRTX.MI Yearly Revenue VS Estimates1VRTX.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
1VRTX.MI Yearly EPS VS Estimates1VRTX.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 10 20 30

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for 1VRTX. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 21.29, the valuation of 1VRTX can be described as rather expensive.
88.06% of the companies in the same industry are more expensive than 1VRTX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1VRTX to the average of the S&P500 Index (36.44), we can say 1VRTX is valued slightly cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 21.29
1VRTX.MI Price Earnings VS Forward Price Earnings1VRTX.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400 -600 -800 -1K

4.2 Price Multiples

77.61% of the companies in the same industry are more expensive than 1VRTX, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 24.44
1VRTX.MI Per share data1VRTX.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

1VRTX'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 1VRTX may justify a higher PE ratio.
1VRTX's earnings are expected to grow with 332.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y753.07%
EPS Next 3Y332.19%

More info and screens

0

5. Dividend

5.1 Amount

1VRTX does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

VERTEX PHARMACEUTICALS INC

BIT:1VRTX (7/1/2025, 7:00:00 PM)

384.6

-88.8 (-18.76%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)05-05 2025-05-05/amc
Earnings (Next)08-04 2025-08-04/amc
Inst Owners97.73%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap98.77B
Analysts75
Price Target438.94 (14.13%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.13%
Min EPS beat(2)-7.2%
Max EPS beat(2)-3.07%
EPS beat(4)1
Avg EPS beat(4)-133.54%
Min EPS beat(4)-527.57%
Max EPS beat(4)3.69%
EPS beat(8)4
Avg EPS beat(8)-65%
EPS beat(12)7
Avg EPS beat(12)-42.16%
EPS beat(16)10
Avg EPS beat(16)-29.51%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-4.8%
Max Revenue beat(2)2.68%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.75%
Revenue beat(12)5
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)0.2%
PT rev (1m)-6.62%
PT rev (3m)-6.62%
EPS NQ rev (1m)-1.55%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.21%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 21.29
P/S 10.4
P/FCF N/A
P/OCF N/A
P/B 6.99
P/tB 7.71
EV/EBITDA 24.44
EPS(TTM)-0.35
EYN/A
EPS(NY)18.06
Fwd EY4.7%
FCF(TTM)-4.19
FCFYN/A
OCF(TTM)-3.27
OCFYN/A
SpS37
BVpS54.98
TBVpS49.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.32%
ROE -5.99%
ROCE 22.04%
ROIC 16.53%
ROICexc 24.47%
ROICexgc 27.77%
OM 37.91%
PM (TTM) N/A
GM 86.03%
FCFM N/A
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)18.48%
ROIC(5y)19.13%
ROICexc(3y)48.36%
ROICexc(5y)53.43%
ROICexgc(3y)69.79%
ROICexgc(5y)83.16%
ROCE(3y)24.64%
ROCE(5y)25.5%
ROICexcg growth 3Y-26.3%
ROICexcg growth 5Y-6.95%
ROICexc growth 3Y-19.26%
ROICexc growth 5Y0.61%
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-Score4
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Debt/EBITDA 0.03
Cap/Depr 137.41%
Cap/Sales 2.5%
Interest Coverage 181.38
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.65
Quick Ratio 2.29
Altman-Z 12.89
F-Score4
WACC9.8%
ROIC/WACC1.69
Cap/Depr(3y)171.61%
Cap/Depr(5y)187.84%
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)-102.42%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%-14.71%
EPS Next Y6211.74%
EPS Next 2Y753.07%
EPS Next 3Y332.19%
EPS Next 5Y152.83%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%2.96%
Revenue Next Year9.56%
Revenue Next 2Y10.19%
Revenue Next 3Y9.82%
Revenue Next 5Y10.19%
EBIT growth 1Y-1.84%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year827.23%
EBIT Next 3Y131%
EBIT Next 5Y70.83%
FCF growth 1Y-132.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-124.06%
OCF growth 3YN/A
OCF growth 5YN/A