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VERTEX PHARMACEUTICALS INC (VRTX) Stock Fundamental Analysis

USA - NASDAQ:VRTX - US92532F1003 - Common Stock

411.315 USD
-0.91 (-0.22%)
Last: 10/15/2025, 10:44:38 AM
Fundamental Rating

7

Taking everything into account, VRTX scores 7 out of 10 in our fundamental rating. VRTX was compared to 536 industry peers in the Biotechnology industry. VRTX gets an excellent profitability rating and is at the same time showing great financial health properties. VRTX has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! With these ratings, VRTX could be worth investigating further for value and growth and quality investing!.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

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.
VRTX had a positive operating cash flow in 4 of the past 5 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

1.2 Ratios

Looking at the Return On Assets, with a value of 15.13%, VRTX belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
VRTX has a Return On Equity of 21.18%. This is amongst the best in the industry. VRTX outperforms 95.90% of its industry peers.
VRTX has a better Return On Invested Capital (17.58%) than 97.01% of its industry peers.
VRTX had an Average Return On Invested Capital over the past 3 years of 19.67%. This is above the industry average of 15.49%.
Industry RankSector 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%
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 Profit Margin of VRTX (31.86%) is better than 96.46% of its industry peers.
VRTX has a better Operating Margin (38.77%) than 98.32% of its industry peers.
In the last couple of years the Operating Margin of VRTX has grown nicely.
With an excellent Gross Margin value of 86.11%, VRTX belongs to the best of the industry, outperforming 88.81% of the companies in the same industry.
VRTX's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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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7

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.
Compared to 1 year ago, VRTX has an improved debt to assets ratio.
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

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/WACC1.87
WACC9.39%
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 2.52 indicates that VRTX has no problem at all paying its short term obligations.
VRTX's Current ratio of 2.52 is on the low side compared to the rest of the industry. VRTX is outperformed by 68.66% 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.
VRTX has a Quick ratio of 2.16. This is in the lower half of the industry: VRTX underperforms 71.27% of its industry peers.
Industry RankSector Rank
Current Ratio 2.52
Quick Ratio 2.16
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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7

3. Growth

3.1 Past

VRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 7966.67%, which is quite impressive.
Measured over the past years, VRTX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -44.14% on average per year.
VRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.46%.
The Revenue has been growing by 21.50% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)7966.67%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%135.23%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%12.06%

3.2 Future

Based on estimates for the next years, VRTX will show a very strong growth in Earnings Per Share. The EPS will grow by 150.50% on average per year.
Based on estimates for the next years, VRTX will show a quite strong growth in Revenue. The Revenue will grow by 9.58% on average per year.
EPS Next Y6246.89%
EPS Next 2Y746.68%
EPS Next 3Y328.73%
EPS Next 5Y150.5%
Revenue Next Year10.06%
Revenue Next 2Y9.8%
Revenue Next 3Y9.54%
Revenue Next 5Y9.58%

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.
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.
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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7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.28 indicates a rather expensive 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 94.40% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VRTX to the average of the S&P500 Index (27.49), we can say VRTX is valued inline with the index average.
VRTX is valuated rather expensively with a Price/Forward Earnings ratio of 19.79.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 93.28% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VRTX to the average of the S&P500 Index (22.99), we can say VRTX is valued inline with the index average.
Industry RankSector Rank
PE 24.28
Fwd PE 19.79
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 93.66% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRTX indicates a rather cheap valuation: VRTX is cheaper than 94.03% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 30.13
EV/EBITDA 21.46
VRTX Per share dataVRTX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 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 excellent profitability rating of VRTX may justify a higher PE ratio.
VRTX's earnings are expected to grow with 328.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y746.68%
EPS Next 3Y328.73%

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0

5. Dividend

5.1 Amount

VRTX does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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VERTEX PHARMACEUTICALS INC

NASDAQ:VRTX (10/15/2025, 10:44:38 AM)

411.315

-0.91 (-0.22%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)08-04 2025-08-04/amc
Earnings (Next)11-03 2025-11-03/amc
Inst Owners98.11%
Inst Owner Change0.1%
Ins Owners0.13%
Ins Owner Change1.12%
Market Cap105.46B
Analysts76.41
Price Target490.23 (19.19%)
Short Float %1.59%
Short Ratio2.1
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)-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)-4.82%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.45%
Valuation
Industry RankSector Rank
PE 24.28
Fwd PE 19.79
P/S 9.24
P/FCF 30.13
P/OCF 27.42
P/B 6.14
P/tB 6.74
EV/EBITDA 21.46
EPS(TTM)16.94
EY4.12%
EPS(NY)20.79
Fwd EY5.05%
FCF(TTM)13.65
FCFY3.32%
OCF(TTM)15
OCFY3.65%
SpS44.54
BVpS66.99
TBVpS61.05
PEG (NY)0
PEG (5Y)N/A
Profitability
Industry RankSector 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%
ROICexcg growth 3Y-29.98%
ROICexcg 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 RankSector 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 N/A
F-Score6
WACC9.39%
ROIC/WACC1.87
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)7966.67%
EPS 3Y-71.86%
EPS 5Y-44.14%
EPS Q2Q%135.23%
EPS Next Y6246.89%
EPS Next 2Y746.68%
EPS Next 3Y328.73%
EPS Next 5Y150.5%
Revenue 1Y (TTM)10.46%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%12.06%
Revenue Next Year10.06%
Revenue Next 2Y9.8%
Revenue Next 3Y9.54%
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 5Y68.38%
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