VERTEX PHARMACEUTICALS INC (VRTX) Fundamental Analysis & Valuation

NASDAQ:VRTX • US92532F1003

476.605 USD
+2.34 (+0.49%)
Last: Mar 4, 2026, 11:26 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This VRTX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to VRTX. VRTX was compared to 520 industry peers in the Biotechnology industry. While VRTX has a great profitability rating, there are some minor concerns on its financial health. VRTX is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. VRTX Profitability Analysis

1.1 Basic Checks

  • In the past year VRTX was profitable.
  • In the past year VRTX had a positive cash flow from operations.
  • VRTX had positive earnings in 4 of the past 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: VRTX reported negative operating cash flow in multiple 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • With an excellent Return On Assets value of 14.78%, VRTX belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
  • The Return On Equity of VRTX (21.22%) is better than 95.96% of its industry peers.
  • VRTX has a better Return On Invested Capital (17.58%) than 97.31% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for VRTX is in line with the industry average of 18.99%.
Industry RankSector Rank
ROA 14.78%
ROE 21.22%
ROIC 17.58%
ROA(3y)9.65%
ROA(5y)12.94%
ROE(3y)12.83%
ROE(5y)17.11%
ROIC(3y)17.75%
ROIC(5y)19.09%
VRTX Yearly ROA, ROE, ROICVRTX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

1.3 Margins

  • With an excellent Profit Margin value of 31.35%, VRTX belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
  • VRTX's Profit Margin has declined in the last couple of years.
  • VRTX has a Operating Margin of 38.70%. This is amongst the best in the industry. VRTX outperforms 97.69% of its industry peers.
  • In the last couple of years the Operating Margin of VRTX has declined.
  • VRTX has a better Gross Margin (86.28%) than 88.46% 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 38.7%
PM (TTM) 31.35%
GM 86.28%
OM growth 3Y-7.71%
OM growth 5Y-3.24%
PM growth 3Y-3.97%
PM growth 5Y-5.49%
GM growth 3Y-0.63%
GM growth 5Y-0.43%
VRTX Yearly Profit, Operating, Gross MarginsVRTX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. VRTX Health Analysis

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.
  • VRTX has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for VRTX has been reduced compared to 5 years ago.
  • VRTX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
VRTX Yearly Shares OutstandingVRTX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
VRTX Yearly Total Debt VS Total AssetsVRTX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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/WACC2.02
WACC8.69%
VRTX Yearly LT Debt VS Equity VS FCFVRTX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • VRTX has a Current Ratio of 2.36. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
  • VRTX has a Current ratio of 2.36. This is in the lower half of the industry: VRTX underperforms 72.50% of its industry peers.
  • A Quick Ratio of 2.00 indicates that VRTX should not have too much problems paying its short term obligations.
  • VRTX has a worse Quick ratio (2.00) than 74.62% of its industry peers.
Industry RankSector Rank
Current Ratio 2.36
Quick Ratio 2
VRTX Yearly Current Assets VS Current LiabilitesVRTX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. VRTX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 6248.28% over the past year.
  • Measured over the past years, VRTX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.27% on average per year.
  • Looking at the last year, VRTX shows a quite strong growth in Revenue. The Revenue has grown by 8.90% in the last year.
  • The Revenue has been growing by 14.10% on average over the past years. This is quite good.
EPS 1Y (TTM)6248.28%
EPS 3Y7.33%
EPS 5Y12.27%
EPS Q2Q%26.38%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y10.35%
Revenue growth 5Y14.1%
Sales Q2Q%9.55%

3.2 Future

  • VRTX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.80% yearly.
  • VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.17% yearly.
EPS Next Y10.74%
EPS Next 2Y11.49%
EPS Next 3Y10.83%
EPS Next 5Y11.8%
Revenue Next Year9.09%
Revenue Next 2Y9.66%
Revenue Next 3Y10.22%
Revenue Next 5Y9.17%

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 stable.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
VRTX Yearly Revenue VS EstimatesVRTX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
VRTX Yearly EPS VS EstimatesVRTX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 10 20 30 40

More info and screens

Find the best growth stocksShow best growing peers

5

4. VRTX Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.89, which means the current valuation is very expensive for VRTX.
  • Based on the Price/Earnings ratio, VRTX is valued cheaper than 92.69% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.83. VRTX is around the same levels.
  • A Price/Forward Earnings ratio of 23.38 indicates a rather expensive valuation of VRTX.
  • Based on the Price/Forward Earnings ratio, VRTX is valued cheaply inside the industry as 93.08% of the companies are valued more expensively.
  • VRTX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.95.
Industry RankSector Rank
PE 25.89
Fwd PE 23.38
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

  • Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaply inside the industry as 92.88% of the companies are valued more expensively.
  • VRTX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 36.24
EV/EBITDA 24.08
VRTX Per share dataVRTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of VRTX may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)2.11
EPS Next 2Y11.49%
EPS Next 3Y10.83%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. VRTX Dividend Analysis

5.1 Amount

  • VRTX does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

VRTX Fundamentals: All Metrics, Ratios and Statistics

VERTEX PHARMACEUTICALS INC

NASDAQ:VRTX (3/4/2026, 11:26:40 AM)

476.605

+2.34 (+0.49%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners97.56%
Inst Owner Change-0.9%
Ins Owners0.13%
Ins Owner Change1.74%
Market Cap120.92B
Revenue(TTM)12.00B
Net Income(TTM)3.68B
Analysts80
Price Target540.92 (13.49%)
Short Float %1.76%
Short Ratio3.06
Dividend
Industry RankSector 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)6.57%
PT rev (3m)9.13%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)-0.46%
Valuation
Industry RankSector Rank
PE 25.89
Fwd PE 23.38
P/S 10.31
P/FCF 36.24
P/OCF 32.52
P/B 6.98
P/tB 7.65
EV/EBITDA 24.08
EPS(TTM)18.41
EY3.86%
EPS(NY)20.39
Fwd EY4.28%
FCF(TTM)13.15
FCFY2.76%
OCF(TTM)14.65
OCFY3.07%
SpS46.21
BVpS68.26
TBVpS62.28
PEG (NY)2.41
PEG (5Y)2.11
Graham Number168.15
Profitability
Industry RankSector 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)9.65%
ROA(5y)12.94%
ROE(3y)12.83%
ROE(5y)17.11%
ROIC(3y)17.75%
ROIC(5y)19.09%
ROICexc(3y)31.55%
ROICexc(5y)45.74%
ROICexgc(3y)38.88%
ROICexgc(5y)65.77%
ROCE(3y)22.47%
ROCE(5y)24.17%
ROICexgc growth 3Y-38.98%
ROICexgc growth 5Y-26.28%
ROICexc growth 3Y-31.44%
ROICexc growth 5Y-19.05%
OM growth 3Y-7.71%
OM growth 5Y-3.24%
PM growth 3Y-3.97%
PM growth 5Y-5.49%
GM growth 3Y-0.63%
GM growth 5Y-0.43%
F-Score7
Asset Turnover0.47
Health
Industry RankSector 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
WACC8.69%
ROIC/WACC2.02
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6248.28%
EPS 3Y7.33%
EPS 5Y12.27%
EPS Q2Q%26.38%
EPS Next Y10.74%
EPS Next 2Y11.49%
EPS Next 3Y10.83%
EPS Next 5Y11.8%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y10.35%
Revenue growth 5Y14.1%
Sales Q2Q%9.55%
Revenue Next Year9.09%
Revenue Next 2Y9.66%
Revenue Next 3Y10.22%
Revenue Next 5Y9.17%
EBIT growth 1Y5.79%
EBIT growth 3Y1.84%
EBIT growth 5Y10.4%
EBIT Next Year6.57%
EBIT Next 3Y12.66%
EBIT Next 5Y11.86%
FCF growth 1Y346.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y541.25%
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 5 / 10 to VERTEX PHARMACEUTICALS INC (VRTX). This can be considered as Fairly Valued.


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 6.98.


How financially healthy is VERTEX PHARMACEUTICALS INC?

The financial health rating of VERTEX PHARMACEUTICALS INC (VRTX) is 6 / 10.