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VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis

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

439.608  -8.79 (-1.96%)

Fundamental Rating

5

VRTX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 557 industry peers in the Biotechnology industry. Both the profitability and the financial health of VRTX get a neutral evaluation. Nothing too spectacular is happening here. VRTX has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

VRTX had negative earnings in the past year.
VRTX had a negative 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

1.2 Ratios

VRTX's Return On Assets of -4.32% is amongst the best of the industry. VRTX outperforms 87.79% of its industry peers.
VRTX has a better Return On Equity (-5.99%) than 89.59% of its industry peers.
VRTX has a Return On Invested Capital of 17.41%. This is amongst the best in the industry. VRTX outperforms 97.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRTX is above the industry average of 14.78%.
Industry RankSector Rank
ROA -4.32%
ROE -5.99%
ROIC 17.41%
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

With an excellent Operating Margin value of 37.91%, VRTX belongs to the best of the industry, outperforming 98.92% of the companies in the same industry.
VRTX's Operating Margin has improved in the last couple of years.
VRTX has a better Gross Margin (86.03%) than 89.23% 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 37.91%
PM (TTM) N/A
GM 86.03%
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

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 a better debt/assets ratio than last year.
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 12.87 indicates that VRTX is not in any danger for bankruptcy at the moment.
VRTX has a better Altman-Z score (12.87) than 89.59% of its industry peers.
VRTX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
VRTX has a Debt to Equity ratio (0.01) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 12.87
ROIC/WACC1.93
WACC9.02%
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 2.65 indicates that VRTX has no problem at all paying its short term obligations.
With a Current ratio value of 2.65, VRTX is not doing good in the industry: 68.22% of the companies in the same industry are doing better.
VRTX has a Quick Ratio of 2.29. This indicates that VRTX is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of VRTX (2.29) is worse than 70.56% of its industry peers.
Industry RankSector Rank
Current Ratio 2.65
Quick Ratio 2.29
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 -102.42%.
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 8.98% in the last year.
VRTX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.50% yearly.
EPS 1Y (TTM)-102.42%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%2.96%

3.2 Future

VRTX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 152.84% yearly.
The Revenue is expected to grow by 10.19% on average over the next years. This is quite good.
EPS Next Y6198.7%
EPS Next 2Y748.83%
EPS Next 3Y329.34%
EPS Next 5Y152.84%
Revenue Next Year9.62%
Revenue Next 2Y10.15%
Revenue Next 3Y9.78%
Revenue Next 5Y10.19%

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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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for VRTX. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 21.04 indicates a rather expensive valuation of VRTX.
Based on the Price/Forward Earnings ratio, VRTX is valued cheaper than 91.92% of the companies in the same industry.
VRTX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE N/A
Fwd PE 21.04
VRTX Price Earnings VS Forward Price EarningsVRTX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400 -600 -800 -1K

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 93.90% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 24.38
VRTX Per share dataVRTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VRTX has a very decent profitability rating, which may justify a higher PE ratio.
VRTX's earnings are expected to grow with 329.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y748.83%
EPS Next 3Y329.34%

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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 (6/20/2025, 10:54:08 AM)

439.608

-8.79 (-1.96%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)05-05 2025-05-05/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners97.73%
Inst Owner Change2.49%
Ins Owners0.12%
Ins Owner Change9.33%
Market Cap112.89B
Analysts75
Price Target515.31 (17.22%)
Short Float %1.72%
Short Ratio2.49
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)0
Avg EPS beat(2)-5.13%
Min EPS beat(2)-7.2%
Max EPS beat(2)-3.07%
EPS beat(4)1
Avg EPS beat(4)-133.54%
Min EPS beat(4)-527.57%
Max EPS beat(4)3.69%
EPS beat(8)4
Avg EPS beat(8)-65%
EPS beat(12)7
Avg EPS beat(12)-42.16%
EPS beat(16)10
Avg EPS beat(16)-29.51%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-4.8%
Max Revenue beat(2)2.68%
Revenue beat(4)1
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.75%
Revenue beat(12)5
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)0.2%
PT rev (1m)-0.19%
PT rev (3m)0.66%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)-1.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.15%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 21.04
P/S 10.17
P/FCF N/A
P/OCF N/A
P/B 6.84
P/tB 7.54
EV/EBITDA 24.38
EPS(TTM)-0.41
EYN/A
EPS(NY)20.89
Fwd EY4.75%
FCF(TTM)-4.9
FCFYN/A
OCF(TTM)-3.82
OCFYN/A
SpS43.22
BVpS64.24
TBVpS58.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.32%
ROE -5.99%
ROCE 22.04%
ROIC 17.41%
ROICexc 25.78%
ROICexgc 29.25%
OM 37.91%
PM (TTM) N/A
GM 86.03%
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 0.03
Cap/Depr 137.41%
Cap/Sales 2.5%
Interest Coverage 181.38
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.65
Quick Ratio 2.29
Altman-Z 12.87
F-Score4
WACC9.02%
ROIC/WACC1.93
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)-102.42%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%-14.71%
EPS Next Y6198.7%
EPS Next 2Y748.83%
EPS Next 3Y329.34%
EPS Next 5Y152.84%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%2.96%
Revenue Next Year9.62%
Revenue Next 2Y10.15%
Revenue Next 3Y9.78%
Revenue Next 5Y10.19%
EBIT growth 1Y-1.84%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year827.23%
EBIT Next 3Y131%
EBIT Next 5Y70.83%
FCF growth 1Y-132.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-124.06%
OCF growth 3YN/A
OCF growth 5YN/A