VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis
USA - NASDAQ:VRTX - US92532F1003 - Common Stock
415.28 USD
-6.39 (-1.52%)
Overall VRTX gets a fundamental rating of 7 out of 10. We evaluated VRTX against 534 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 evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make VRTX suitable for value and growth and 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.
Of the past 5 years VRTX 4 years were profitable.
Of the past 5 years VRTX 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.13%, VRTX belongs to the top of the industry, outperforming 95.69% of the companies in the same industry.
The Return On Equity of VRTX (21.18%) is better than 96.07% 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.
Measured over the past 3 years, the Average Return On Invested Capital for VRTX is above the industry average of 15.38%.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 31.86%, VRTX belongs to the top of the industry, outperforming 96.44% of the companies in the same industry.
VRTX has a better Operating Margin (38.77%) than 98.13% of its industry peers.
VRTX's Operating Margin has improved in the last couple of years.
VRTX's Gross Margin of 86.11% is amongst the best of the industry. VRTX outperforms 88.39% 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 Rank | Sector 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%
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.
The number of shares outstanding for VRTX has been reduced compared to 1 year ago.
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
VRTX has an Altman-Z score of 11.51. This indicates that VRTX is financially healthy and has little risk of bankruptcy at the moment.
VRTX has a Altman-Z score of 11.51. This is amongst the best in the industry. VRTX outperforms 84.64% of its industry peers.
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 | 11.51 |
ROIC/WACC2
WACC8.77%
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 has a worse Current ratio (2.52) than 68.91% 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.
With a Quick ratio value of 2.16, VRTX is not doing good in the industry: 71.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 2.16 |
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.
The Revenue has grown by 10.33% in the past year. This is quite good.
VRTX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.50% yearly.
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
VRTX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.58% yearly.
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.
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
The Price/Earnings ratio is 23.92, which indicates a rather expensive current valuation of VRTX.
Compared to the rest of the industry, the Price/Earnings ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 94.38% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. VRTX is around the same levels.
VRTX is valuated rather expensively with a Price/Forward Earnings ratio of 20.10.
VRTX's Price/Forward Earnings ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.26% of the companies in the same industry.
VRTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 20.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaply inside the industry as 93.26% 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 93.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.42 | ||
| EV/EBITDA | 21.68 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
VRTX's earnings are expected to grow with 327.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y744.13%
EPS Next 3Y327.84%
5. Dividend
5.1 Amount
VRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VRTX (11/5/2025, 3:03:08 PM)
415.28
-6.39 (-1.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change-1.24%
Ins Owners0.13%
Ins Owner Change0.95%
Market Cap106.47B
Revenue(TTM)11.72B
Net Income(TTM)3.64B
Analysts76.41
Price Target491.86 (18.44%)
Short Float %1.39%
Short Ratio2.32
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)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)0.31%
PT rev (3m)-4.49%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-1.06%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 20.1 | ||
| P/S | 9.32 | ||
| P/FCF | 30.42 | ||
| P/OCF | 27.68 | ||
| P/B | 6.2 | ||
| P/tB | 6.8 | ||
| EV/EBITDA | 21.68 |
EPS(TTM)17.36
EY4.18%
EPS(NY)20.66
Fwd EY4.98%
FCF(TTM)13.65
FCFY3.29%
OCF(TTM)15
OCFY3.61%
SpS44.54
BVpS66.99
TBVpS61.05
PEG (NY)0
PEG (5Y)N/A
Graham Number161.76
Profitability
| Industry Rank | Sector 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%
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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector 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 | 11.51 |
F-Score6
WACC8.77%
ROIC/WACC2
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 1Y4.24%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year820.09%
EBIT Next 3Y129.43%
EBIT Next 5Y68.42%
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
VERTEX PHARMACEUTICALS INC / VRTX FAQ
What is the fundamental rating for VRTX stock?
ChartMill assigns a fundamental rating of 7 / 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 8 / 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.