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VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis

NASDAQ:VRTX - US92532F1003 - Common Stock

396.12 USD
-0.81 (-0.2%)
Last: 9/5/2025, 8:00:02 PM
397 USD
+0.88 (+0.22%)
After Hours: 9/5/2025, 8:00:02 PM
Fundamental Rating

7

VRTX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 542 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making VRTX a very profitable company, without any liquidiy or solvency issues. VRTX is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make VRTX suitable for value and growth and quality investing!


Dividend Valuation Growth Profitability Health

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8

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.
Of the past 5 years VRTX 4 years were profitable.
VRTX had a positive operating cash flow in 4 of the past 5 years.
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 15.13%. This is amongst the best in the industry. VRTX outperforms 95.39% of its industry peers.
VRTX has a Return On Equity of 21.18%. This is amongst the best in the industry. VRTX outperforms 95.76% of its industry peers.
VRTX's Return On Invested Capital of 17.58% is amongst the best of the industry. VRTX outperforms 96.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRTX is above the industry average of 15.95%.
Industry RankSector Rank
ROA 15.13%
ROE 21.18%
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%
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

VRTX has a better Profit Margin (31.86%) than 96.49% of its industry peers.
VRTX has a Operating Margin of 38.77%. This is amongst the best in the industry. VRTX outperforms 98.34% of its industry peers.
In the last couple of years the Operating Margin of VRTX has grown nicely.
VRTX's Gross Margin of 86.11% is amongst the best of the industry. VRTX outperforms 88.93% 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 38.77%
PM (TTM) 31.86%
GM 86.11%
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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7

2. Health

2.1 Basic Checks

VRTX 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, VRTX has less shares outstanding
Compared to 5 years ago, VRTX has less shares outstanding
Compared to 1 year ago, VRTX has an improved debt to assets ratio.
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACC1.79
WACC9.81%
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

VRTX has a Current Ratio of 2.52. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
VRTX's Current ratio of 2.52 is on the low side compared to the rest of the industry. VRTX is outperformed by 68.82% of its industry peers.
VRTX has a Quick Ratio of 2.16. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
VRTX has a worse Quick ratio (2.16) than 71.22% of its industry peers.
Industry RankSector Rank
Current Ratio 2.52
Quick Ratio 2.16
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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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 7966.67% 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.
VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.46%.
The Revenue has been growing by 21.50% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)7966.67%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%135.23%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%12.06%

3.2 Future

The Earnings Per Share is expected to grow by 151.19% on average over the next years. This is a very strong growth
VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.04% yearly.
EPS Next Y6256.61%
EPS Next 2Y749.77%
EPS Next 3Y329.69%
EPS Next 5Y151.19%
Revenue Next Year10.07%
Revenue Next 2Y9.8%
Revenue Next 3Y9.48%
Revenue Next 5Y10.04%

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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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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7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 23.38 indicates a rather expensive valuation of VRTX.
Based on the Price/Earnings ratio, VRTX is valued cheaper than 93.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. VRTX is around the same levels.
With a Price/Forward Earnings ratio of 18.92, VRTX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VRTX is valued cheaper than 93.36% of the companies in the same industry.
VRTX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.69.
Industry RankSector Rank
PE 23.38
Fwd PE 18.92
VRTX Price Earnings VS Forward Price EarningsVRTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

93.54% 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 cheaply inside the industry as 93.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 29.02
EV/EBITDA 20.62
VRTX Per share dataVRTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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.
The excellent profitability rating of VRTX may justify a higher PE ratio.
A more expensive valuation may be justified as VRTX's earnings are expected to grow with 329.69% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y749.77%
EPS Next 3Y329.69%

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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 (9/5/2025, 8:00:02 PM)

After market: 397 +0.88 (+0.22%)

396.12

-0.81 (-0.2%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)08-04 2025-08-04/amc
Earnings (Next)11-03 2025-11-03/amc
Inst Owners97.63%
Inst Owner Change-0.76%
Ins Owners0.13%
Ins Owner Change-0.21%
Market Cap101.56B
Analysts75
Price Target491.74 (24.14%)
Short Float %1.45%
Short Ratio2.11
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)1
Avg EPS beat(2)-1.87%
Min EPS beat(2)-7.2%
Max EPS beat(2)3.45%
EPS beat(4)2
Avg EPS beat(4)-0.78%
Min EPS beat(4)-7.2%
Max EPS beat(4)3.69%
EPS beat(8)5
Avg EPS beat(8)-64.35%
EPS beat(12)7
Avg EPS beat(12)-42%
EPS beat(16)10
Avg EPS beat(16)-30.64%
Revenue beat(2)1
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-4.8%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.87%
Revenue beat(12)5
Avg Revenue beat(12)-0.45%
Revenue beat(16)8
Avg Revenue beat(16)0.05%
PT rev (1m)-4.51%
PT rev (3m)-4.75%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)0.71%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.52%
Valuation
Industry RankSector Rank
PE 23.38
Fwd PE 18.92
P/S 8.89
P/FCF 29.02
P/OCF 26.4
P/B 5.91
P/tB 6.49
EV/EBITDA 20.62
EPS(TTM)16.94
EY4.28%
EPS(NY)20.94
Fwd EY5.29%
FCF(TTM)13.65
FCFY3.45%
OCF(TTM)15
OCFY3.79%
SpS44.54
BVpS66.99
TBVpS61.05
PEG (NY)0
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 15.13%
ROE 21.18%
ROCE 22.25%
ROIC 17.58%
ROICexc 25.88%
ROICexgc 29.16%
OM 38.77%
PM (TTM) 31.86%
GM 86.11%
FCFM 30.65%
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%
ROICexcg growth 3Y-29.98%
ROICexcg 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-Score6
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 173.52%
Cap/Sales 3.04%
Interest Coverage 260.41
Cash Conversion 83.13%
Profit Quality 96.21%
Current Ratio 2.52
Quick Ratio 2.16
Altman-Z N/A
F-Score6
WACC9.81%
ROIC/WACC1.79
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)7966.67%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%135.23%
EPS Next Y6256.61%
EPS Next 2Y749.77%
EPS Next 3Y329.69%
EPS Next 5Y151.19%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%12.06%
Revenue Next Year10.07%
Revenue Next 2Y9.8%
Revenue Next 3Y9.48%
Revenue Next 5Y10.04%
EBIT growth 1Y4.24%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year816.11%
EBIT Next 3Y130.8%
EBIT Next 5Y68.38%
FCF growth 1Y-9.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.45%
OCF growth 3YN/A
OCF growth 5YN/A