VERTEX PHARMACEUTICALS INC (VRTX)
US92532F1003 - Common Stock
Overall VRTX gets a fundamental rating of 6 out of 10. We evaluated VRTX against 588 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 not valued too expensively and it also shows a decent growth rate. This makes VRTX very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year VRTX was profitable.
VRTX had a positive operating cash flow in the past year.
VRTX had positive earnings in each of the past 5 years.
Each year in the past 5 years VRTX had a positive operating cash flow.
1.2 Ratios
VRTX has a Return On Assets of 15.92%. This is amongst the best in the industry. VRTX outperforms 98.80% of its industry peers.
With an excellent Return On Equity value of 20.59%, VRTX belongs to the best of the industry, outperforming 97.60% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.09%, VRTX belongs to the best of the industry, outperforming 98.12% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRTX is significantly above the industry average of 13.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.92% | ||
| ROE | 20.59% | ||
| ROIC | 16.09% |
ROA(3y)17.22%
ROA(5y)17.78%
ROE(3y)22.55%
ROE(5y)23.64%
ROIC(3y)19.51%
ROIC(5y)19.13%
1.3 Margins
The Profit Margin of VRTX (36.68%) is better than 99.49% of its industry peers.
VRTX's Profit Margin has declined in the last couple of years.
VRTX has a Operating Margin of 38.83%. This is amongst the best in the industry. VRTX outperforms 99.14% 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 87.21%, VRTX belongs to the best of the industry, outperforming 91.10% 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 | 38.83% | ||
| PM (TTM) | 36.68% | ||
| GM | 87.21% |
OM growth 3Y-5.51%
OM growth 5Y12.25%
PM growth 3Y-5.67%
PM growth 5Y-11.82%
GM growth 3Y-0.35%
GM growth 5Y0.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRTX is creating value.
VRTX has more shares outstanding than it did 1 year ago.
VRTX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VRTX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 14.05 indicates that VRTX is not in any danger for bankruptcy at the moment.
VRTX's Altman-Z score of 14.05 is amongst the best of the industry. VRTX outperforms 89.55% of its industry peers.
The Debt to FCF ratio of VRTX is 0.11, which is an excellent value as it means it would take VRTX, only 0.11 years of fcf income to pay off all of its debts.
VRTX has a better Debt to FCF ratio (0.11) than 97.26% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that VRTX is not too dependend on debt financing.
VRTX has a Debt to Equity ratio of 0.02. This is comparable to the rest of the industry: VRTX outperforms 42.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 14.05 |
ROIC/WACC1.74
WACC9.25%
2.3 Liquidity
VRTX has a Current Ratio of 3.99. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
VRTX has a Current ratio (3.99) which is comparable to the rest of the industry.
A Quick Ratio of 3.78 indicates that VRTX has no problem at all paying its short term obligations.
VRTX has a Quick ratio (3.78) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.99 | ||
| Quick Ratio | 3.78 |
3. Growth
3.1 Past
VRTX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.22%.
Measured over the past years, VRTX shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.06% on average per year.
VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.51%.
Measured over the past years, VRTX shows a very strong growth in Revenue. The Revenue has been growing by 26.49% on average per year.
EPS 1Y (TTM)2.22%
EPS 3Y13.83%
EPS 5Y30.06%
EPS growth Q2Q11.7%
Revenue 1Y (TTM)10.51%
Revenue growth 3Y16.73%
Revenue growth 5Y26.49%
Revenue growth Q2Q9.34%
3.2 Future
Based on estimates for the next years, VRTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.52% on average per year.
The Revenue is expected to grow by 8.27% on average over the next years. This is quite good.
EPS Next Y12.44%
EPS Next 2Y10.9%
EPS Next 3Y11.2%
EPS Next 5Y8.52%
Revenue Next Year8.63%
Revenue Next 2Y8.99%
Revenue Next 3Y9.33%
Revenue Next 5Y8.27%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
VRTX is valuated quite expensively with a Price/Earnings ratio of 26.28.
95.89% of the companies in the same industry are more expensive than VRTX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.95, VRTX is valued at the same level.
The Price/Forward Earnings ratio is 23.37, which indicates a rather expensive current valuation of VRTX.
VRTX's Price/Forward Earnings ratio is rather cheap when compared to the industry. VRTX is cheaper than 96.06% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VRTX to the average of the S&P500 Index (21.40), we can say VRTX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.28 | ||
| Fwd PE | 23.37 |
4.2 Price Multiples
VRTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRTX is cheaper than 95.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRTX is valued cheaper than 95.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.52 | ||
| EV/EBITDA | 22.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VRTX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)0.87
EPS Next 2Y10.9%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
VRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERTEX PHARMACEUTICALS INC
NASDAQ:VRTX (4/22/2024, 7:00:03 PM)
After market: 399.92 0 (0%)399.92
+5.64 (+1.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap103.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.28 | ||
| Fwd PE | 23.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.11
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.92% | ||
| ROE | 20.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.83% | ||
| PM (TTM) | 36.68% | ||
| GM | 87.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.99 | ||
| Quick Ratio | 3.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.22%
EPS 3Y13.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.51%
Revenue growth 3Y16.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y