432.17 USD
+2.35 (+0.55%)
431.76 USD
-0.41 (-0.09%)
We assign a fundamental rating of 6 out of 10 to VRTX. VRTX was compared to 533 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! With these ratings, VRTX could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
VRTX had positive earnings in the past year.
In the past year VRTX had a positive cash flow from operations.
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.
1.2 Ratios
With an excellent Return On Assets value of 14.78%, VRTX belongs to the best of the industry, outperforming 95.50% of the companies in the same industry.
VRTX has a better Return On Equity (21.22%) than 96.25% of its industry peers.
VRTX's Return On Invested Capital of 17.58% is amongst the best of the industry. VRTX outperforms 97.00% of its industry peers.
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 18.83%.
| 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
VRTX has a Profit Margin of 31.35%. This is amongst the best in the industry. VRTX outperforms 96.25% of its industry peers.
With an excellent Operating Margin value of 38.70%, VRTX belongs to the best of the industry, outperforming 97.94% of the companies in the same industry.
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 88.37% 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.
Compared to 1 year ago, VRTX has less shares outstanding
VRTX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VRTX has an improved debt to assets ratio.
2.2 Solvency
There is no outstanding debt for VRTX. 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/WACC2.03
WACC8.64%
2.3 Liquidity
A Current Ratio of 2.36 indicates that VRTX has no problem at all paying its short term obligations.
VRTX has a worse Current ratio (2.36) than 70.54% 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.
With a Quick ratio value of 2.00, VRTX is not doing good in the industry: 74.11% of the companies in the same industry are doing better.
| 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.
VRTX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -44.14% yearly.
Looking at the last year, VRTX shows a quite strong growth in Revenue. The Revenue has grown by 10.33% in the last year.
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)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 149.22% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.58% on average over the next years. This is quite good.
EPS Next Y6237.82%
EPS Next 2Y744.13%
EPS Next 3Y327.84%
EPS Next 5Y149.22%
Revenue Next Year10.08%
Revenue Next 2Y9.82%
Revenue Next 3Y9.46%
Revenue Next 5Y9.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 24.89 indicates a rather expensive valuation of VRTX.
93.25% 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 26.15.
The Price/Forward Earnings ratio is 20.91, which indicates a rather expensive current valuation of VRTX.
93.43% of the companies in the same industry are more expensive than VRTX, based on the Price/Forward Earnings ratio.
VRTX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 20.91 |
4.2 Price Multiples
93.81% of the companies in the same industry are more expensive than VRTX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 93.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.2 | ||
| EV/EBITDA | 22.06 |
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.
VRTX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as VRTX's earnings are expected to grow with 327.84% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y744.13%
EPS Next 3Y327.84%
5. Dividend
5.1 Amount
No dividends for VRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
432.17
+2.35 (+0.55%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change-2.17%
Ins Owners0.13%
Ins Owner Change-2.01%
Market Cap110.80B
Revenue(TTM)11.72B
Net Income(TTM)3.68B
Analysts76.41
Price Target495.66 (14.69%)
Short Float %1.62%
Short Ratio2.74
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)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)1.11%
PT rev (3m)0.8%
EPS NQ rev (1m)3.56%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 20.91 | ||
| P/S | 9.45 | ||
| P/FCF | 33.2 | ||
| P/OCF | 29.8 | ||
| P/B | 6.4 | ||
| P/tB | 7.01 | ||
| EV/EBITDA | 22.06 |
EPS(TTM)17.36
EY4.02%
EPS(NY)20.66
Fwd EY4.78%
FCF(TTM)13.02
FCFY3.01%
OCF(TTM)14.5
OCFY3.36%
SpS45.72
BVpS67.55
TBVpS61.63
PEG (NY)0
PEG (5Y)N/A
Graham Number162.43
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
WACC8.64%
ROIC/WACC2.03
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 Y6237.82%
EPS Next 2Y744.13%
EPS Next 3Y327.84%
EPS Next 5Y149.22%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%10.99%
Revenue Next Year10.08%
Revenue Next 2Y9.82%
Revenue Next 3Y9.46%
Revenue Next 5Y9.58%
EBIT growth 1Y5.79%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year820.09%
EBIT Next 3Y129.43%
EBIT Next 5Y68.42%
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
What is the fundamental rating for VRTX stock?
ChartMill assigns a fundamental rating of 6 / 10 to VRTX.
Can you provide the valuation status for VERTEX PHARMACEUTICALS INC?
ChartMill assigns a valuation rating of 7 / 10 to VERTEX PHARMACEUTICALS INC (VRTX). This can be considered as Undervalued.
What is the profitability of VRTX stock?
VERTEX PHARMACEUTICALS INC (VRTX) has a profitability rating of 7 / 10.
What is the expected EPS growth for VERTEX PHARMACEUTICALS INC (VRTX) stock?
The Earnings per Share (EPS) of VERTEX PHARMACEUTICALS INC (VRTX) is expected to grow by 6237.82% in the next year.