VERTEX PHARMACEUTICALS INC (VRTX) Fundamental Analysis & Valuation

NASDAQ:VRTX • US92532F1003

Current stock price

430.29 USD
-4.81 (-1.11%)
At close:
430.29 USD
0 (0%)
After Hours:

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

7

1. VRTX Profitability Analysis

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.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 15.42%, VRTX belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
  • VRTX has a better Return On Equity (21.18%) than 95.35% of its industry peers.
  • The Return On Invested Capital of VRTX (16.99%) is better than 96.71% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for VRTX is significantly below the industry average of 27.75%.
Industry RankSector Rank
ROA 15.42%
ROE 21.18%
ROIC 16.99%
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 32.94%, VRTX belongs to the best of the industry, outperforming 95.35% 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 39.04%. This is amongst the best in the industry. VRTX outperforms 97.48% of its industry peers.
  • In the last couple of years the Operating Margin of VRTX has declined.
  • VRTX has a better Gross Margin (86.24%) than 87.40% 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 39.04%
PM (TTM) 32.94%
GM 86.24%
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

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. VRTX Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRTX is creating value.
  • VRTX has less shares outstanding than it did 1 year ago.
  • VRTX has less shares outstanding than it did 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 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

  • An Altman-Z score of 11.57 indicates that VRTX is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 11.57, VRTX belongs to the top of the industry, outperforming 82.95% of the companies in the same industry.
  • The Debt to FCF ratio of VRTX is 0.03, which is an excellent value as it means it would take VRTX, only 0.03 years of fcf income to pay off all of its debts.
  • VRTX has a Debt to FCF ratio of 0.03. This is amongst the best in the industry. VRTX outperforms 96.32% of its industry peers.
  • A Debt/Equity ratio of 0.01 indicates that VRTX is not too dependend on debt financing.
  • VRTX's Debt to Equity ratio of 0.01 is in line compared to the rest of the industry. VRTX outperforms 46.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.03
Altman-Z 11.57
ROIC/WACC1.78
WACC9.55%
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 2.90. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of VRTX (2.90) is worse than 63.95% of its industry peers.
  • VRTX has a Quick Ratio of 2.46. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
  • VRTX has a Quick ratio of 2.46. This is in the lower half of the industry: VRTX underperforms 68.22% of its industry peers.
Industry RankSector Rank
Current Ratio 2.9
Quick Ratio 2.46
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

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

7

3. VRTX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 6248.28% over the past year.
  • VRTX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.27% yearly.
  • The Revenue has grown by 8.90% in the past year. This is quite good.
  • 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

  • The Earnings Per Share is expected to grow by 12.77% on average over the next years. This is quite good.
  • Based on estimates for the next years, VRTX will show a quite strong growth in Revenue. The Revenue will grow by 10.51% on average per year.
EPS Next Y5.79%
EPS Next 2Y10.09%
EPS Next 3Y12.27%
EPS Next 5Y12.77%
Revenue Next Year8.79%
Revenue Next 2Y9.63%
Revenue Next 3Y10.51%
Revenue Next 5Y10.51%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • 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 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

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Find the best growth stocksShow best growing peers

5

4. VRTX Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.37, the valuation of VRTX can be described as rather expensive.
  • Based on the Price/Earnings ratio, VRTX is valued cheaper than 92.64% of the companies in the same industry.
  • VRTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 22.09 indicates a rather expensive valuation of VRTX.
  • VRTX's Price/Forward Earnings ratio is rather cheap when compared to the industry. VRTX is cheaper than 94.19% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of VRTX to the average of the S&P500 Index (22.24), we can say VRTX is valued inline with the index average.
Industry RankSector Rank
PE 23.37
Fwd PE 22.09
VRTX Price Earnings VS Forward Price EarningsVRTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, VRTX is valued cheaper than 92.64% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, VRTX is valued cheaper than 93.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 34.27
EV/EBITDA 20.41
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.
  • A more expensive valuation may be justified as VRTX's earnings are expected to grow with 12.27% in the coming years.
PEG (NY)4.03
PEG (5Y)1.9
EPS Next 2Y10.09%
EPS Next 3Y12.27%

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 (4/24/2026, 7:11:52 PM)

After market: 430.29 0 (0%)

430.29

-4.81 (-1.11%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners97.83%
Inst Owner Change0%
Ins Owners0.14%
Ins Owner Change0.97%
Market Cap109.45B
Revenue(TTM)12.00B
Net Income(TTM)3.95B
Analysts82
Price Target557.95 (29.67%)
Short Float %1.58%
Short Ratio2.8
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)1
Avg EPS beat(2)0.17%
Min EPS beat(2)-2.79%
Max EPS beat(2)3.12%
EPS beat(4)2
Avg EPS beat(4)-0.85%
Min EPS beat(4)-7.2%
Max EPS beat(4)3.45%
EPS beat(8)4
Avg EPS beat(8)-64.44%
EPS beat(12)6
Avg EPS beat(12)-43.04%
EPS beat(16)9
Avg EPS beat(16)-31.46%
Revenue beat(2)0
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)-1.21%
Revenue beat(4)1
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)0.06%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)4
Avg Revenue beat(12)-0.75%
Revenue beat(16)6
Avg Revenue beat(16)-0.51%
PT rev (1m)3.15%
PT rev (3m)9.92%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)-10.41%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-4.32%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-2.95%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.2%
Valuation
Industry RankSector Rank
PE 23.37
Fwd PE 22.09
P/S 9.12
P/FCF 34.27
P/OCF 30.14
P/B 5.86
P/tB 6.38
EV/EBITDA 20.41
EPS(TTM)18.41
EY4.28%
EPS(NY)19.48
Fwd EY4.53%
FCF(TTM)12.56
FCFY2.92%
OCF(TTM)14.28
OCFY3.32%
SpS47.18
BVpS73.38
TBVpS67.44
PEG (NY)4.03
PEG (5Y)1.9
Graham Number174.348 (-59.48%)
Profitability
Industry RankSector Rank
ROA 15.42%
ROE 21.18%
ROCE 21.51%
ROIC 16.99%
ROICexc 27.12%
ROICexgc 30.49%
OM 39.04%
PM (TTM) 32.94%
GM 86.24%
FCFM 26.61%
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)32.46%
ROICexc(5y)46.28%
ROICexgc(3y)40.07%
ROICexgc(5y)66.49%
ROCE(3y)22.47%
ROCE(5y)24.17%
ROICexgc growth 3Y-36.41%
ROICexgc growth 5Y-24.43%
ROICexc growth 3Y-28.98%
ROICexc growth 5Y-17.32%
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 0.01
Debt/FCF 0.03
Debt/EBITDA 0.02
Cap/Depr 208.58%
Cap/Sales 3.65%
Interest Coverage 377.85
Cash Conversion 74.18%
Profit Quality 80.79%
Current Ratio 2.9
Quick Ratio 2.46
Altman-Z 11.57
F-Score7
WACC9.55%
ROIC/WACC1.78
Cap/Depr(3y)195.12%
Cap/Depr(5y)182.1%
Cap/Sales(3y)3.56%
Cap/Sales(5y)3.21%
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 Y5.79%
EPS Next 2Y10.09%
EPS Next 3Y12.27%
EPS Next 5Y12.77%
Revenue 1Y (TTM)8.9%
Revenue growth 3Y10.35%
Revenue growth 5Y14.1%
Sales Q2Q%9.55%
Revenue Next Year8.79%
Revenue Next 2Y9.63%
Revenue Next 3Y10.51%
Revenue Next 5Y10.51%
EBIT growth 1Y6.59%
EBIT growth 3Y1.84%
EBIT growth 5Y10.4%
EBIT Next Year7.63%
EBIT Next 3Y14.56%
EBIT Next 5Y11.96%
FCF growth 1Y426.56%
FCF growth 3Y-6.64%
FCF growth 5Y1.3%
OCF growth 1Y837.19%
OCF growth 3Y-4.2%
OCF growth 5Y2.22%

VERTEX PHARMACEUTICALS INC / VRTX Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for VERTEX PHARMACEUTICALS INC?

ChartMill assigns a fundamental rating of 7 / 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.


How profitable is VERTEX PHARMACEUTICALS INC (VRTX) stock?

VERTEX PHARMACEUTICALS INC (VRTX) has a profitability rating of 7 / 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 5.79% in the next year.