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VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis

NASDAQ:VRTX - Nasdaq - US92532F1003 - Common Stock - Currency: USD

501.15  +2.29 (+0.46%)

After market: 501.8 +0.65 (+0.13%)

Fundamental Rating

6

VRTX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 567 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

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7

1. Profitability

1.1 Basic Checks

In the past year VRTX was profitable.
VRTX had a negative operating cash flow in the past year.
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.
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 better Return On Assets (-2.38%) than 89.42% of its industry peers.
The Return On Equity of VRTX (-3.26%) is better than 90.65% of its industry peers.
VRTX has a Return On Invested Capital of 18.31%. This is amongst the best in the industry. VRTX outperforms 97.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRTX is significantly above the industry average of 14.24%.
Industry RankSector Rank
ROA -2.38%
ROE -3.26%
ROIC 18.31%
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)19.47%
ROIC(5y)20.15%
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

The Operating Margin of VRTX (39.89%) is better than 99.47% of its industry peers.
In the last couple of years the Operating Margin of VRTX has grown nicely.
The Gross Margin of VRTX (86.11%) is better than 88.36% 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 39.89%
PM (TTM) N/A
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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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRTX is creating value.
Compared to 1 year ago, VRTX has less shares outstanding
The number of shares outstanding for VRTX has been reduced compared to 5 years ago.
The debt/assets ratio for VRTX has been reduced compared to a year ago.
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

An Altman-Z score of 14.67 indicates that VRTX is not in any danger for bankruptcy at the moment.
VRTX has a Altman-Z score of 14.67. This is amongst the best in the industry. VRTX outperforms 91.36% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that VRTX is not too dependend on debt financing.
The Debt to Equity ratio of VRTX (0.01) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 14.67
ROIC/WACC1.82
WACC10.05%
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

A Current Ratio of 2.69 indicates that VRTX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.69, VRTX is doing worse than 68.25% of the companies in the same industry.
A Quick Ratio of 2.35 indicates that VRTX has no problem at all paying its short term obligations.
The Quick ratio of VRTX (2.35) is worse than 70.19% of its industry peers.
Industry RankSector Rank
Current Ratio 2.69
Quick Ratio 2.35
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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6

3. Growth

3.1 Past

VRTX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -98.09%.
The earnings per share for VRTX have been decreasing by -44.14% on average. This is quite bad
Looking at the last year, VRTX shows a quite strong growth in Revenue. The Revenue has grown by 11.66% 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)-98.09%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%-5.24%
Revenue 1Y (TTM)11.66%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%15.66%

3.2 Future

The Earnings Per Share is expected to grow by 151.08% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.42% on average over the next years. This is quite good.
EPS Next Y6264.9%
EPS Next 2Y750.73%
EPS Next 3Y332.22%
EPS Next 5Y151.08%
Revenue Next Year9.91%
Revenue Next 2Y9.83%
Revenue Next 3Y9.49%
Revenue Next 5Y10.42%

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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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 1728.10, which means the current valuation is very expensive for VRTX.
Compared to the rest of the industry, the Price/Earnings ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 91.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VRTX to the average of the S&P500 Index (28.22), we can say VRTX is valued expensively.
Based on the Price/Forward Earnings ratio of 27.15, the valuation of VRTX can be described as expensive.
92.42% of the companies in the same industry are more expensive than VRTX, based on the Price/Forward Earnings ratio.
VRTX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 1728.1
Fwd PE 27.15
VRTX Price Earnings VS Forward Price EarningsVRTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 500 1K 1.5K

4.2 Price Multiples

VRTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRTX is cheaper than 94.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 26.02
VRTX Per share dataVRTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 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 decent 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 332.22% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y750.73%
EPS Next 3Y332.22%

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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 (5/2/2025, 8:28:06 PM)

After market: 501.8 +0.65 (+0.13%)

501.15

+2.29 (+0.46%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-10 2025-02-10/amc
Earnings (Next)05-05 2025-05-05/amc
Inst Owners96.16%
Inst Owner Change0.64%
Ins Owners0.15%
Ins Owner Change5.3%
Market Cap128.84B
Analysts77
Price Target513.38 (2.44%)
Short Float %1.7%
Short Ratio2.92
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)0.31%
Min EPS beat(2)-3.07%
Max EPS beat(2)3.69%
EPS beat(4)2
Avg EPS beat(4)-128.02%
Min EPS beat(4)-527.57%
Max EPS beat(4)14.85%
EPS beat(8)4
Avg EPS beat(8)-64.13%
EPS beat(12)7
Avg EPS beat(12)-41.66%
EPS beat(16)11
Avg EPS beat(16)-28.52%
Revenue beat(2)1
Avg Revenue beat(2)1.23%
Min Revenue beat(2)-0.22%
Max Revenue beat(2)2.68%
Revenue beat(4)2
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.06%
Revenue beat(16)9
Avg Revenue beat(16)0.62%
PT rev (1m)0.27%
PT rev (3m)1.93%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-2.93%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.54%
Valuation
Industry RankSector Rank
PE 1728.1
Fwd PE 27.15
P/S 11.69
P/FCF N/A
P/OCF N/A
P/B 7.85
P/tB 8.89
EV/EBITDA 26.02
EPS(TTM)0.29
EY0.06%
EPS(NY)18.46
Fwd EY3.68%
FCF(TTM)-3.8
FCFYN/A
OCF(TTM)-1.92
OCFYN/A
SpS42.87
BVpS63.83
TBVpS56.39
PEG (NY)0.28
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.38%
ROE -3.26%
ROCE 23.17%
ROIC 18.31%
ROICexc 30.71%
ROICexgc 36.97%
OM 39.89%
PM (TTM) N/A
GM 86.11%
FCFM N/A
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)19.47%
ROIC(5y)20.15%
ROICexc(3y)50.94%
ROICexc(5y)56.27%
ROICexgc(3y)73.51%
ROICexgc(5y)87.59%
ROCE(3y)24.64%
ROCE(5y)25.5%
ROICexcg growth 3Y-26.3%
ROICexcg growth 5Y-6.95%
ROICexc growth 3Y-19.26%
ROICexc growth 5Y0.61%
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-Score4
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Debt/EBITDA 0.02
Cap/Depr 234.27%
Cap/Sales 4.4%
Interest Coverage 144.12
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.69
Quick Ratio 2.35
Altman-Z 14.67
F-Score4
WACC10.05%
ROIC/WACC1.82
Cap/Depr(3y)171.61%
Cap/Depr(5y)187.84%
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)-98.09%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%-5.24%
EPS Next Y6264.9%
EPS Next 2Y750.73%
EPS Next 3Y332.22%
EPS Next 5Y151.08%
Revenue 1Y (TTM)11.66%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%15.66%
Revenue Next Year9.91%
Revenue Next 2Y9.83%
Revenue Next 3Y9.49%
Revenue Next 5Y10.42%
EBIT growth 1Y14.17%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year832.87%
EBIT Next 3Y131.69%
EBIT Next 5Y70.46%
FCF growth 1Y-129.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-113.93%
OCF growth 3YN/A
OCF growth 5YN/A