449.53 USD
-5.14 (-1.13%)
450.19 USD
+0.66 (+0.15%)
Overall VRTX gets a fundamental rating of 6 out of 10. We evaluated VRTX against 528 industry peers in the Biotechnology industry. While VRTX has a great profitability rating, there are some minor concerns on its financial health. VRTX is evaluated to be cheap and growing strongly. This does not happen too often! This makes VRTX very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
- VRTX had positive earnings in the past year.
- VRTX had a positive operating cash flow in the past year.
- 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
- The Return On Assets of VRTX (14.78%) is better than 95.64% of its industry peers.
- With an excellent Return On Equity value of 21.22%, VRTX belongs to the best of the industry, outperforming 96.40% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 17.58%, VRTX belongs to the top of the industry, outperforming 97.16% of the companies in the same industry.
- VRTX had an Average Return On Invested Capital over the past 3 years of 19.67%. This is in line with the industry average of 18.28%.
| 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 96.02% of its industry peers.
- VRTX has a better Operating Margin (38.70%) than 97.92% of its industry peers.
- In the last couple of years the Operating Margin of VRTX has grown nicely.
- With an excellent Gross Margin value of 86.28%, VRTX belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
- In the last couple of years the Gross Margin of VRTX 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 VRTX is creating value.
- The number of shares outstanding for VRTX has been reduced compared to 1 year ago.
- The number of shares outstanding for VRTX has been reduced compared to 5 years ago.
- The debt/assets ratio for VRTX has been reduced compared to a year ago.
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/WACC1.99
WACC8.82%
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 71.59% of its industry peers.
- VRTX has a Quick Ratio of 2.00. This is a normal value and indicates that VRTX is financially healthy and should not expect problems in meeting its short term obligations.
- VRTX has a Quick ratio of 2.00. This is in the lower half of the industry: VRTX underperforms 73.86% 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.
- The earnings per share for VRTX have been decreasing by -44.14% on average. This is quite bad
- 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.
- VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.75% yearly.
EPS Next Y6343.89%
EPS Next 2Y739.72%
EPS Next 3Y328.89%
EPS Next 5Y150.51%
Revenue Next Year10.14%
Revenue Next 2Y9.44%
Revenue Next 3Y9.38%
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
- A Price/Earnings ratio of 25.89 indicates a quite expensive valuation of VRTX.
- 93.56% of the companies in the same industry are more expensive than VRTX, based on the Price/Earnings ratio.
- VRTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.33.
- A Price/Forward Earnings ratio of 21.98 indicates a rather expensive valuation of VRTX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 93.37% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. VRTX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.89 | ||
| Fwd PE | 21.98 |
4.2 Price Multiples
- 93.37% of the companies in the same industry are more expensive than VRTX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, VRTX is valued cheaper than 93.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.18 | ||
| EV/EBITDA | 23.03 |
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.
- VRTX has a very decent profitability rating, which may justify a higher PE ratio.
- VRTX's earnings are expected to grow with 328.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y739.72%
EPS Next 3Y328.89%
5. Dividend
5.1 Amount
- No dividends for VRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
449.53
-5.14 (-1.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners97.56%
Inst Owner Change0.12%
Ins Owners0.13%
Ins Owner Change-1.02%
Market Cap114.05B
Revenue(TTM)11.72B
Net Income(TTM)3.68B
Analysts76.92
Price Target501.03 (11.46%)
Short Float %1.69%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)3.29%
Min EPS beat(2)3.12%
Max EPS beat(2)3.45%
EPS beat(4)2
Avg EPS beat(4)-0.92%
Min EPS beat(4)-7.2%
Max EPS beat(4)3.45%
EPS beat(8)5
Avg EPS beat(8)-64.05%
EPS beat(12)7
Avg EPS beat(12)-42.39%
EPS beat(16)10
Avg EPS beat(16)-31.28%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)4
Avg Revenue beat(12)-0.78%
Revenue beat(16)7
Avg Revenue beat(16)-0.32%
PT rev (1m)0.81%
PT rev (3m)2.2%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.89 | ||
| Fwd PE | 21.98 | ||
| P/S | 9.73 | ||
| P/FCF | 34.18 | ||
| P/OCF | 30.68 | ||
| P/B | 6.59 | ||
| P/tB | 7.22 | ||
| EV/EBITDA | 23.03 |
EPS(TTM)17.36
EY3.86%
EPS(NY)20.45
Fwd EY4.55%
FCF(TTM)13.15
FCFY2.93%
OCF(TTM)14.65
OCFY3.26%
SpS46.21
BVpS68.26
TBVpS62.28
PEG (NY)0
PEG (5Y)N/A
Graham Number163.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.78% | ||
| ROE | 21.22% | ||
| ROCE | 22.25% | ||
| ROIC | 17.58% | ||
| ROICexc | 25.42% | ||
| ROICexgc | 28.48% | ||
| OM | 38.7% | ||
| PM (TTM) | 31.35% | ||
| GM | 86.28% | ||
| FCFM | 28.47% |
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)19.67%
ROIC(5y)20.26%
ROICexc(3y)48.65%
ROICexc(5y)54.9%
ROICexgc(3y)69.59%
ROICexgc(5y)85.25%
ROCE(3y)24.89%
ROCE(5y)25.65%
ROICexgc growth 3Y-29.98%
ROICexgc growth 5Y-9.76%
ROICexc growth 3Y-22.64%
ROICexc growth 5Y-1.94%
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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 189.83% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 374.91 | ||
| Cash Conversion | 78.49% | ||
| Profit Quality | 90.81% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2 | ||
| Altman-Z | N/A |
F-Score7
WACC8.82%
ROIC/WACC1.99
Cap/Depr(3y)171.61%
Cap/Depr(5y)187.83%
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)3303.92%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%9.59%
EPS Next Y6343.89%
EPS Next 2Y739.72%
EPS Next 3Y328.89%
EPS Next 5Y150.51%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%10.99%
Revenue Next Year10.14%
Revenue Next 2Y9.44%
Revenue Next 3Y9.38%
Revenue Next 5Y9.75%
EBIT growth 1Y5.79%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year811.13%
EBIT Next 3Y128.24%
EBIT Next 5Y70.14%
FCF growth 1Y-20.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-15.14%
OCF growth 3YN/A
OCF growth 5YN/A
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 25.89 and the Price/Book (PB) ratio is 6.59.
How financially healthy is VERTEX PHARMACEUTICALS INC?
The financial health rating of VERTEX PHARMACEUTICALS INC (VRTX) is 6 / 10.