VERTEX PHARMACEUTICALS INC (VX1.DE) Stock Fundamental Analysis
FRA:VX1 - Deutsche Boerse Ag - US92532F1003 - Common Stock - Currency: EUR
VX1 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 industry peers in the Biotechnology industry. VX1 has an excellent financial health rating, but there are some minor concerns on its profitability. VX1 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VX1 has reported negative net income.
VX1 had a negative operating cash flow in the past year.
Of the past 5 years VX1 4 years were profitable.
Of the past 5 years VX1 4 years had a positive operating cash flow.
1.2 Ratios
VX1's Return On Assets of -4.32% is fine compared to the rest of the industry. VX1 outperforms 63.38% of its industry peers.
With a decent Return On Equity value of -5.99%, VX1 is doing good in the industry, outperforming 67.61% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.51%, VX1 belongs to the best of the industry, outperforming 91.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VX1 is significantly above the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.32% | ||
| ROE | -5.99% | ||
| ROIC | 15.51% |
ROA(3y)10.62%
ROA(5y)14.47%
ROE(3y)13.73%
ROE(5y)19.12%
ROIC(3y)17.35%
ROIC(5y)17.95%
1.3 Margins
VX1's Operating Margin of 37.91% is amongst the best of the industry. VX1 outperforms 92.96% of its industry peers.
In the last couple of years the Operating Margin of VX1 has grown nicely.
VX1 has a Gross Margin of 86.03%. This is amongst the best in the industry. VX1 outperforms 83.10% of its industry peers.
In the last couple of years the Gross Margin of VX1 has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VX1 is still creating some value.
Compared to 1 year ago, VX1 has less shares outstanding
The number of shares outstanding for VX1 has been reduced compared to 5 years ago.
Compared to 1 year ago, VX1 has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.79 indicates that VX1 is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.79, VX1 belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that VX1 is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, VX1 belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 12.79 |
ROIC/WACC1.57
WACC9.85%
2.3 Liquidity
VX1 has a Current Ratio of 2.65. This indicates that VX1 is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.65, VX1 is in the better half of the industry, outperforming 63.38% of the companies in the same industry.
A Quick Ratio of 2.29 indicates that VX1 has no problem at all paying its short term obligations.
VX1 has a better Quick ratio (2.29) than 64.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
The earnings per share for VX1 have decreased strongly by -102.42% in the last year.
VX1 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -44.14% yearly.
Looking at the last year, VX1 shows a quite strong growth in Revenue. The Revenue has grown by 8.98% in the last year.
The Revenue has been growing by 21.50% on average over the past years. This is a very strong growth!
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
VX1 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 151.08% yearly.
The Revenue is expected to grow by 10.42% on average over the next years. This is quite good.
EPS Next Y6198.7%
EPS Next 2Y748.83%
EPS Next 3Y329.34%
EPS Next 5Y151.08%
Revenue Next Year9.5%
Revenue Next 2Y10.05%
Revenue Next 3Y9.67%
Revenue Next 5Y10.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for VX1. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 21.49, the valuation of VX1 can be described as rather expensive.
VX1's Price/Forward Earnings ratio is rather cheap when compared to the industry. VX1 is cheaper than 84.51% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.25, VX1 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VX1 is valued a bit cheaper than 76.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.18 |
4.3 Compensation for Growth
VX1's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VX1 has a very decent profitability rating, which may justify a higher PE ratio.
VX1'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%
5. Dividend
5.1 Amount
VX1 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:VX1 (6/6/2025, 7:00:00 PM)
393.1
+3.55 (+0.91%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners96.16%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap100.95B
Analysts77
Price Target458.75 (16.7%)
Short Float %N/A
Short RatioN/A
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)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)2.5%
PT rev (3m)-3.82%
EPS NQ rev (1m)-1.55%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)-1.04%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.49 | ||
| P/S | 10.39 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.99 | ||
| P/tB | 7.7 | ||
| EV/EBITDA | 24.18 |
EPS(TTM)-0.36
EYN/A
EPS(NY)18.29
Fwd EY4.65%
FCF(TTM)-4.29
FCFYN/A
OCF(TTM)-3.34
OCFYN/A
SpS37.84
BVpS56.24
TBVpS51.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.32% | ||
| ROE | -5.99% | ||
| ROCE | 22.04% | ||
| ROIC | 15.51% | ||
| ROICexc | 22.97% | ||
| ROICexgc | 26.06% | ||
| 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)17.35%
ROIC(5y)17.95%
ROICexc(3y)45.4%
ROICexc(5y)50.15%
ROICexgc(3y)65.51%
ROICexgc(5y)78.06%
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 Rank | Sector 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 | 12.79 |
F-Score4
WACC9.85%
ROIC/WACC1.57
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 5Y151.08%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y13.31%
Revenue growth 5Y21.5%
Sales Q2Q%2.96%
Revenue Next Year9.5%
Revenue Next 2Y10.05%
Revenue Next 3Y9.67%
Revenue Next 5Y10.42%
EBIT growth 1Y-1.84%
EBIT growth 3Y16.47%
EBIT growth 5Y29.7%
EBIT Next Year827.23%
EBIT Next 3Y131%
EBIT Next 5Y70.46%
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