VERTEX PHARMACEUTICALS INC (VX1.DE) Stock Fundamental Analysis
FRA:VX1 - Deutsche Boerse Ag - US92532F1003 - Common Stock - Currency: EUR
Overall VX1 gets a fundamental rating of 6 out of 10. We evaluated VX1 against 73 industry peers in the Biotechnology industry. While VX1 has a great health rating, its profitability is only average at the moment. VX1 has a decent growth rate and is not valued too expensively.
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.
VX1 had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of VX1 (-4.32%) is better than 64.38% of its industry peers.
With a decent Return On Equity value of -5.99%, VX1 is doing good in the industry, outperforming 69.86% of the companies in the same industry.
VX1 has a better Return On Invested Capital (15.51%) than 91.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VX1 is above the industry average of 13.21%.
| 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
Looking at the Operating Margin, with a value of 37.91%, VX1 belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
In the last couple of years the Operating Margin of VX1 has grown nicely.
Looking at the Gross Margin, with a value of 86.03%, VX1 belongs to the top of the industry, outperforming 83.56% of the companies in the same industry.
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 well above the Cost of Capital (WACC), so VX1 is creating value.
The number of shares outstanding for VX1 has been reduced compared to 1 year ago.
VX1 has less shares outstanding than it did 5 years ago.
VX1 has a better debt/assets ratio than last year.
2.2 Solvency
VX1 has an Altman-Z score of 12.81. This indicates that VX1 is financially healthy and has little risk of bankruptcy at the moment.
VX1 has a Altman-Z score of 12.81. This is amongst the best in the industry. VX1 outperforms 93.15% of its industry peers.
VX1 has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.01, VX1 belongs to the top of the industry, outperforming 84.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 12.81 |
ROIC/WACC1.62
WACC9.55%
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.
VX1's Current ratio of 2.65 is in line compared to the rest of the industry. VX1 outperforms 57.53% of its industry peers.
VX1 has a Quick Ratio of 2.29. This indicates that VX1 is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.29, VX1 is in the better half of the industry, outperforming 61.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
VX1 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -102.42%.
The earnings per share for VX1 have been decreasing by -44.14% on average. This is quite bad
The Revenue has grown by 8.98% 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)-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
The Earnings Per Share is expected to grow by 151.08% on average over the next years. This is a very strong growth
Based on estimates for the next years, VX1 will show a quite strong growth in Revenue. The Revenue will grow by 10.42% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
VX1 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
VX1 is valuated rather expensively with a Price/Forward Earnings ratio of 21.35.
Based on the Price/Forward Earnings ratio, VX1 is valued cheaply inside the industry as 83.56% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.20. VX1 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VX1 is valued a bit cheaper than 72.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.25 |
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 VX1 may justify a higher PE ratio.
A more expensive valuation may be justified as VX1's earnings are expected to grow with 329.34% in the coming years.
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 (5/27/2025, 7:00:00 PM)
392.9
+4.85 (+1.25%)
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 Cap100.90B
Analysts77
Price Target458.75 (16.76%)
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)-1.16%
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 | 21.35 | ||
| P/S | 10.32 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.95 | ||
| P/tB | 7.66 | ||
| EV/EBITDA | 24.25 |
EPS(TTM)-0.36
EYN/A
EPS(NY)18.4
Fwd EY4.68%
FCF(TTM)-4.31
FCFYN/A
OCF(TTM)-3.36
OCFYN/A
SpS38.06
BVpS56.57
TBVpS51.32
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 | 12.81 |
F-Score4
WACC9.55%
ROIC/WACC1.62
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