426.76 USD
+4.44 (+1.05%)
426.76 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VRTX. VRTX was compared to 535 industry peers in the Biotechnology industry. VRTX has an excellent profitability rating, but there are some minor concerns on its financial health. VRTX has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes VRTX very considerable for value and growth 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.
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.
1.2 Ratios
With an excellent Return On Assets value of 14.78%, VRTX belongs to the best of the industry, outperforming 95.68% of the companies in the same industry.
VRTX's Return On Equity of 21.22% is amongst the best of the industry. VRTX outperforms 96.25% 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.
VRTX had an Average Return On Invested Capital over the past 3 years of 19.67%. This is in line with the industry average of 19.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.78% | ||
| ROE | 21.22% | ||
| 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
VRTX has a better Profit Margin (31.35%) than 96.06% of its industry peers.
The Operating Margin of VRTX (38.70%) is better than 98.12% of its industry peers.
In the last couple of years the Operating Margin of VRTX has grown nicely.
VRTX's Gross Margin of 86.28% is amongst the best of the industry. VRTX outperforms 88.56% 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 | 38.7% | ||
| PM (TTM) | 31.35% | ||
| GM | 86.28% |
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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC2.02
WACC8.7%
2.3 Liquidity
A Current Ratio of 2.36 indicates that VRTX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.36, VRTX is doing worse than 70.54% of the companies in the same industry.
VRTX has a Quick Ratio of 2.00. This is a normal value and indicates that VRTX is financially healthy and should not expect problems in meeting its short term obligations.
VRTX has a worse Quick ratio (2.00) than 73.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
VRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 3303.92%, 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.
The Revenue has grown by 10.33% in the past year. This is quite good.
The Revenue has been growing by 21.50% on average over the past years. This is a very strong growth!
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
A Price/Earnings ratio of 24.58 indicates a rather expensive valuation of VRTX.
VRTX's Price/Earnings ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.06% of the companies in the same industry.
VRTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
Based on the Price/Forward Earnings ratio of 20.65, the valuation of VRTX can be described as rather expensive.
VRTX's Price/Forward Earnings ratio is rather cheap when compared to the industry. VRTX is cheaper than 92.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. VRTX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.58 | ||
| Fwd PE | 20.65 |
4.2 Price Multiples
VRTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRTX is cheaper than 93.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRTX is valued cheaper than 93.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.79 | ||
| EV/EBITDA | 21.77 |
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.
The decent profitability rating of VRTX 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 |
426.76
+4.44 (+1.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change-2.29%
Ins Owners0.13%
Ins Owner Change-3.99%
Market Cap109.42B
Revenue(TTM)11.72B
Net Income(TTM)3.68B
Analysts76.41
Price Target495.66 (16.14%)
Short Float %1.62%
Short Ratio2.74
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)2
Avg EPS beat(2)3.29%
Min EPS beat(2)3.12%
Max EPS beat(2)3.45%
EPS beat(4)2
Avg EPS beat(4)-0.92%
Min EPS beat(4)-7.2%
Max EPS beat(4)3.45%
EPS beat(8)5
Avg EPS beat(8)-64.05%
EPS beat(12)7
Avg EPS beat(12)-42.39%
EPS beat(16)10
Avg EPS beat(16)-31.28%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)2.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)4
Avg Revenue beat(12)-0.78%
Revenue beat(16)7
Avg Revenue beat(16)-0.32%
PT rev (1m)1.11%
PT rev (3m)0.8%
EPS NQ rev (1m)3.56%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.58 | ||
| Fwd PE | 20.65 | ||
| P/S | 9.33 | ||
| P/FCF | 32.79 | ||
| P/OCF | 29.43 | ||
| P/B | 6.32 | ||
| P/tB | 6.92 | ||
| EV/EBITDA | 21.77 |
EPS(TTM)17.36
EY4.07%
EPS(NY)20.66
Fwd EY4.84%
FCF(TTM)13.02
FCFY3.05%
OCF(TTM)14.5
OCFY3.4%
SpS45.72
BVpS67.55
TBVpS61.63
PEG (NY)0
PEG (5Y)N/A
Graham Number162.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.78% | ||
| ROE | 21.22% | ||
| ROCE | 22.25% | ||
| ROIC | 17.58% | ||
| ROICexc | 25.42% | ||
| ROICexgc | 28.48% | ||
| OM | 38.7% | ||
| PM (TTM) | 31.35% | ||
| GM | 86.28% | ||
| FCFM | 28.47% |
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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 189.83% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 374.91 | ||
| Cash Conversion | 78.49% | ||
| Profit Quality | 90.81% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2 | ||
| Altman-Z | N/A |
F-Score7
WACC8.7%
ROIC/WACC2.02
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 1Y5.79%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year820.09%
EBIT Next 3Y129.43%
EBIT Next 5Y68.42%
FCF growth 1Y-20.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-15.14%
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 6 / 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 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 6237.82% in the next year.