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VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis

NASDAQ:VRTX - Nasdaq - US92532F1003 - Common Stock - Currency: USD

468.85  -10.68 (-2.23%)

After market: 468.85 0 (0%)

Fundamental Rating

5

Overall VRTX gets a fundamental rating of 5 out of 10. We evaluated VRTX against 557 industry peers in the Biotechnology industry. VRTX has only an average score on both its financial health and profitability. VRTX is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year VRTX has reported negative net income.
VRTX had a negative operating cash flow in the past year.
VRTX had positive earnings in 4 of the past 5 years.
Of the past 5 years VRTX 4 years had a positive operating cash flow.
VRTX Yearly Net Income VS EBIT VS OCF VS FCFVRTX 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

VRTX has a Return On Assets of -4.32%. This is amongst the best in the industry. VRTX outperforms 87.79% of its industry peers.
With an excellent Return On Equity value of -5.99%, VRTX belongs to the best of the industry, outperforming 89.59% of the companies in the same industry.
VRTX has a Return On Invested Capital of 17.41%. This is amongst the best in the industry. VRTX outperforms 97.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRTX is above the industry average of 14.78%.
Industry RankSector Rank
ROA -4.32%
ROE -5.99%
ROIC 17.41%
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)19.47%
ROIC(5y)20.15%
VRTX Yearly ROA, ROE, ROICVRTX 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

The Operating Margin of VRTX (37.91%) is better than 98.92% of its industry peers.
VRTX's Operating Margin has improved in the last couple of years.
VRTX has a Gross Margin of 86.03%. This is amongst the best in the industry. VRTX outperforms 89.23% 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 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%
VRTX Yearly Profit, Operating, Gross MarginsVRTX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRTX is creating value.
VRTX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VRTX has less shares outstanding
VRTX has a better debt/assets ratio than last year.
VRTX Yearly Shares OutstandingVRTX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
VRTX Yearly Total Debt VS Total AssetsVRTX 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

VRTX has an Altman-Z score of 13.62. This indicates that VRTX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 13.62, VRTX belongs to the best of the industry, outperforming 89.59% of the companies in the same industry.
VRTX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
VRTX's Debt to Equity ratio of 0.01 is in line compared to the rest of the industry. VRTX outperforms 43.45% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 13.62
ROIC/WACC1.78
WACC9.8%
VRTX Yearly LT Debt VS Equity VS FCFVRTX 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 VRTX has no problem at all paying its short term obligations.
VRTX's Current ratio of 2.65 is on the low side compared to the rest of the industry. VRTX is outperformed by 67.68% of its industry peers.
A Quick Ratio of 2.29 indicates that VRTX has no problem at all paying its short term obligations.
VRTX has a worse Quick ratio (2.29) than 70.02% of its industry peers.
Industry RankSector Rank
Current Ratio 2.65
Quick Ratio 2.29
VRTX Yearly Current Assets VS Current LiabilitesVRTX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

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6

3. Growth

3.1 Past

VRTX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -102.42%.
VRTX 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 8.98% in the past year. This is quite good.
Measured over the past years, VRTX 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

Based on estimates for the next years, VRTX will show a very strong growth in Earnings Per Share. The EPS will grow by 152.83% on average per year.
The Revenue is expected to grow by 10.19% on average over the next years. This is quite good.
EPS Next Y6218.78%
EPS Next 2Y751.41%
EPS Next 3Y331.01%
EPS Next 5Y152.83%
Revenue Next Year9.62%
Revenue Next 2Y10.15%
Revenue Next 3Y9.78%
Revenue Next 5Y10.19%

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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
VRTX Yearly Revenue VS EstimatesVRTX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
VRTX Yearly EPS VS EstimatesVRTX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 10 20 30

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4

4. Valuation

4.1 Price/Earnings Ratio

VRTX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 22.30, VRTX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VRTX is valued cheaply inside the industry as 91.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. VRTX is around the same levels.
Industry RankSector Rank
PE N/A
Fwd PE 22.3
VRTX Price Earnings VS Forward Price EarningsVRTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400 -600 -800 -1K

4.2 Price Multiples

VRTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.72% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 26.2
VRTX Per share dataVRTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

The 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.
VRTX's earnings are expected to grow with 331.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y751.41%
EPS Next 3Y331.01%

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0

5. Dividend

5.1 Amount

No dividends for VRTX!.
Industry RankSector Rank
Dividend Yield N/A

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VERTEX PHARMACEUTICALS INC

NASDAQ:VRTX (7/11/2025, 8:00:02 PM)

After market: 468.85 0 (0%)

468.85

-10.68 (-2.23%)

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 Change-0.07%
Ins Owners0.12%
Ins Owner Change6.76%
Market Cap120.40B
Analysts75
Price Target515.04 (9.85%)
Short Float %1.58%
Short Ratio2.41
Dividend
Industry RankSector 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)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)-0.24%
PT rev (3m)0.54%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 22.3
P/S 10.85
P/FCF N/A
P/OCF N/A
P/B 7.3
P/tB 8.04
EV/EBITDA 26.2
EPS(TTM)-0.41
EYN/A
EPS(NY)21.02
Fwd EY4.48%
FCF(TTM)-4.9
FCFYN/A
OCF(TTM)-3.82
OCFYN/A
SpS43.22
BVpS64.24
TBVpS58.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.32%
ROE -5.99%
ROCE 22.04%
ROIC 17.41%
ROICexc 25.78%
ROICexgc 29.25%
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)19.47%
ROIC(5y)20.15%
ROICexc(3y)50.94%
ROICexc(5y)56.27%
ROICexgc(3y)73.51%
ROICexgc(5y)87.59%
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 13.62
F-Score4
WACC9.8%
ROIC/WACC1.78
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 Y6218.78%
EPS Next 2Y751.41%
EPS Next 3Y331.01%
EPS Next 5Y152.83%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%2.96%
Revenue Next Year9.62%
Revenue Next 2Y10.15%
Revenue Next 3Y9.78%
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