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Vertex Pharmaceuticals

WBAG:VRTX
Snowflake Description

Outstanding track record with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VRTX
WBAG
$45B
Market Cap
  1. Home
  2. AT
  3. Pharmaceuticals & Biotech
Company description

Vertex Pharmaceuticals Incorporated engages in developing and commercializing therapies for treating cystic fibrosis. The last earnings update was 77 days ago. More info.


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VRTX Share Price and Events
7 Day Returns
1.1%
WBAG:VRTX
2.5%
Europe Biotechs
0.8%
AT Market
1 Year Returns
1.8%
WBAG:VRTX
12.1%
Europe Biotechs
-4.8%
AT Market
VRTX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vertex Pharmaceuticals (VRTX) 1.1% 3% 6.5% 1.8% - -
Europe Biotechs 2.5% 7.3% 7.2% 12.1% 21.2% 66.9%
AT Market 0.8% 2% -6.2% -4.8% 40.9% 27.5%
1 Year Return vs Industry and Market
  • VRTX underperformed the Biotechs industry which returned 12.1% over the past year.
  • VRTX outperformed the Market in Austria which returned -4.8% over the past year.
Price Volatility
VRTX
Industry
5yr Volatility vs Market

VRTX Value

 Is Vertex Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vertex Pharmaceuticals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vertex Pharmaceuticals.

WBAG:VRTX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year AT Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WBAG:VRTX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AT Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.325 (1 + (1- 21%) (1.48%))
1.228
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.51% + (1.228 * 5.96%)
7.83%

Discounted Cash Flow Calculation for WBAG:VRTX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vertex Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

WBAG:VRTX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.83%)
2020 1,863.12 Analyst x5 1,727.83
2021 2,697.30 Analyst x4 2,319.79
2022 3,354.05 Analyst x4 2,675.16
2023 3,809.28 Analyst x4 2,817.62
2024 4,154.24 Est @ 9.06% 2,849.65
2025 4,423.93 Est @ 6.49% 2,814.29
2026 4,631.74 Est @ 4.7% 2,732.53
2027 4,791.13 Est @ 3.44% 2,621.31
2028 4,913.87 Est @ 2.56% 2,493.24
2029 5,009.51 Est @ 1.95% 2,357.19
Present value of next 10 years cash flows $25,408.60
WBAG:VRTX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $5,009.51 × (1 + 0.51%) ÷ (7.83% – 0.51%)
$68,784.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $68,784.00 ÷ (1 + 7.83%)10
$32,365.85
WBAG:VRTX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $25,408.60 + $32,365.85
$57,774.45
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $57,774.45 / 256.12
$225.57
WBAG:VRTX Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in WBAG:VRTX represents 0.89562x of NasdaqGS:VRTX
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89562x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 225.57 x 0.89562
€202.03
Value per share (EUR) From above. €202.03
Current discount Discount to share price of €158.65
= -1 x (€158.65 - €202.03) / €202.03
21.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vertex Pharmaceuticals is available for.
Intrinsic value
21%
Share price is €158.65 vs Future cash flow value of €202.03
Current Discount Checks
For Vertex Pharmaceuticals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vertex Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Vertex Pharmaceuticals's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vertex Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vertex Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WBAG:VRTX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $8.45
NasdaqGS:VRTX Share Price ** NasdaqGS (2019-07-17) in USD $177.14
Europe Biotechs Industry PE Ratio Median Figure of 28 Publicly-Listed Biotechs Companies 26.02x
Austria Market PE Ratio Median Figure of 54 Publicly-Listed Companies 14.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vertex Pharmaceuticals.

WBAG:VRTX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:VRTX Share Price ÷ EPS (both in USD)

= 177.14 ÷ 8.45

20.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vertex Pharmaceuticals is good value based on earnings compared to the Europe Biotechs industry average.
  • Vertex Pharmaceuticals is overvalued based on earnings compared to the Austria market.
Price based on expected Growth
Does Vertex Pharmaceuticals's expected growth come at a high price?
Raw Data
WBAG:VRTX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
27.6%per year
Europe Biotechs Industry PEG Ratio Median Figure of 22 Publicly-Listed Biotechs Companies 1.11x
Austria Market PEG Ratio Median Figure of 33 Publicly-Listed Companies 1.33x

*Line of best fit is calculated by linear regression .

WBAG:VRTX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.95x ÷ 27.6%

0.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vertex Pharmaceuticals is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Vertex Pharmaceuticals's assets?
Raw Data
WBAG:VRTX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $18.43
NasdaqGS:VRTX Share Price * NasdaqGS (2019-07-17) in USD $177.14
Europe Biotechs Industry PB Ratio Median Figure of 162 Publicly-Listed Biotechs Companies 3.48x
Austria Market PB Ratio Median Figure of 62 Publicly-Listed Companies 1.22x
WBAG:VRTX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:VRTX Share Price ÷ Book Value per Share (both in USD)

= 177.14 ÷ 18.43

9.61x

* Primary Listing of Vertex Pharmaceuticals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vertex Pharmaceuticals is overvalued based on assets compared to the Europe Biotechs industry average.
X
Value checks
We assess Vertex Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Vertex Pharmaceuticals has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VRTX Future Performance

 How is Vertex Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vertex Pharmaceuticals expected to grow at an attractive rate?
  • Vertex Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Vertex Pharmaceuticals's earnings growth is expected to exceed the Austria market average.
  • Vertex Pharmaceuticals's revenue growth is expected to exceed the Austria market average.
Annual Growth Rates Comparison
Raw Data
WBAG:VRTX Future Growth Rates Data Sources
Data Point Source Value (per year)
WBAG:VRTX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 27.6%
WBAG:VRTX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 18.7%
Europe Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 19.2%
Europe Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 15.4%
Austria Market Earnings Growth Rate Market Cap Weighted Average 8.6%
Austria Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WBAG:VRTX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WBAG:VRTX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,408 3,394 3,330 6
2022-12-31 6,355 2,914 2,579 9
2021-12-31 5,412 2,423 1,922 10
2020-12-31 4,405 1,807 1,264 16
2019-12-31 3,560 1,253 850 18
WBAG:VRTX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 3,265 1,342 2,155
2018-12-31 3,048 1,270 2,096
2018-09-30 2,829 1,183 647
2018-06-30 2,623 972 415
2018-03-31 2,415 832 226
2017-12-31 2,489 845 263
2017-09-30 2,296 762 196
2017-06-30 2,131 658 259
2017-03-31 2,019 517 177
2016-12-31 1,702 236 -112
2016-09-30 1,661 121 -219
2016-06-30 1,557 -7 -275

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vertex Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
  • Vertex Pharmaceuticals's revenue is expected to grow by 18.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WBAG:VRTX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Vertex Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:VRTX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 11.55 13.58 10.11 5.00
2022-12-31 9.43 11.00 8.16 8.00
2021-12-31 7.34 8.19 6.34 10.00
2020-12-31 4.79 5.46 3.96 13.00
2019-12-31 3.23 3.43 2.84 13.00
WBAG:VRTX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 8.45
2018-12-31 8.24
2018-09-30 2.55
2018-06-30 1.65
2018-03-31 0.90
2017-12-31 1.06
2017-09-30 0.79
2017-06-30 1.05
2017-03-31 0.72
2016-12-31 -0.46
2016-09-30 -0.90
2016-06-30 -1.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Vertex Pharmaceuticals is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Vertex Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vertex Pharmaceuticals has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VRTX Past Performance

  How has Vertex Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vertex Pharmaceuticals's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Vertex Pharmaceuticals has delivered over 20% year on year earnings growth in the past 5 years.
  • Vertex Pharmaceuticals's 1-year earnings growth exceeds its 5-year average (853.5% vs 75%)
  • Vertex Pharmaceuticals's earnings growth has exceeded the Europe Biotechs industry average in the past year (853.5% vs 14.7%).
Earnings and Revenue History
Vertex Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vertex Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:VRTX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,265.23 2,154.86 574.85
2018-12-31 3,047.60 2,096.40 557.62
2018-09-30 2,829.13 646.80 539.20
2018-06-30 2,622.76 415.29 522.62
2018-03-31 2,414.73 226.01 512.56
2017-12-31 2,488.65 263.19 496.08
2017-09-30 2,295.72 195.54 471.19
2017-06-30 2,131.34 259.47 456.54
2017-03-31 2,018.82 176.93 440.94
2016-12-31 1,702.18 -112.05 432.83
2016-09-30 1,661.41 -218.73 419.47
2016-06-30 1,557.44 -275.04 413.19
2016-03-31 1,291.91 -399.36 395.93
2015-12-31 1,032.34 -556.33 376.58
2015-09-30 758.96 -659.05 358.55
2015-06-30 628.13 -733.90 334.01
2015-03-31 600.47 -704.14 317.06
2014-12-31 580.42 -737.64 305.41
2014-09-30 787.02 -582.12 299.94
2014-06-30 829.73 -529.64 308.45
2014-03-31 1,002.06 -427.72 337.52
2013-12-31 1,211.98 -503.62 356.19
2013-09-30 1,194.81 -558.85 393.59
2013-06-30 1,309.12 -498.61 407.54
2013-03-31 1,416.67 -505.73 418.53
2012-12-31 1,527.04 32.27 432.68
2012-09-30 1,756.39 127.45 448.23 150.44

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Vertex Pharmaceuticals made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Vertex Pharmaceuticals used its assets more efficiently than the Europe Biotechs industry average last year based on Return on Assets.
  • Vertex Pharmaceuticals has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Vertex Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vertex Pharmaceuticals has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VRTX Health

 How is Vertex Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vertex Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vertex Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Vertex Pharmaceuticals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Vertex Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vertex Pharmaceuticals Company Filings, last reported 3 months ago.

WBAG:VRTX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 4,723.31 0.00 3,478.04
2018-12-31 4,435.20 0.00 3,168.24
2018-09-30 2,934.48 0.00 3,055.89
2018-06-30 2,714.88 0.00 2,767.76
2018-03-31 2,430.82 0.00 2,477.02
2017-12-31 2,042.31 0.00 2,088.67
2017-09-30 1,803.24 0.00 1,812.25
2017-06-30 1,867.23 0.00 1,668.65
2017-03-31 1,682.79 0.00 1,408.78
2016-12-31 1,338.19 300.00 1,434.56
2016-09-30 1,208.34 297.75 1,128.44
2016-06-30 1,168.85 296.50 1,071.44
2016-03-31 1,116.20 295.82 1,025.62
2015-12-31 1,093.63 295.16 1,042.46
2015-09-30 1,076.73 294.83 1,005.83
2015-06-30 1,048.22 294.81 1,016.45
2015-03-31 997.54 294.79 1,181.13
2014-12-31 1,096.18 294.78 1,387.11
2014-09-30 1,155.91 294.74 1,477.74
2014-06-30 1,172.27 0.00 1,219.16
2014-03-31 1,230.88 0.00 1,324.20
2013-12-31 1,356.41 0.00 1,465.08
2013-09-30 1,486.68 0.00 1,422.65
2013-06-30 1,548.66 0.00 1,430.70
2013-03-31 976.83 400.00 1,239.35
2012-12-31 1,234.38 400.00 1,321.22
2012-09-30 1,264.75 615.96 1,298.54
  • Vertex Pharmaceuticals's level of debt (12.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (44% vs 12.6% today).
  • Debt is well covered by operating cash flow (225.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 36.5x coverage).
X
Financial health checks
We assess Vertex Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vertex Pharmaceuticals has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VRTX Dividends

 What is Vertex Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Vertex Pharmaceuticals dividends. Estimated to be 0% next year.
If you bought €2,000 of Vertex Pharmaceuticals shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Vertex Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Vertex Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WBAG:VRTX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
Europe Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 0.8%
Austria Market Average Dividend Yield Market Cap Weighted Average of 51 Stocks 3.5%
Austria Minimum Threshold Dividend Yield 10th Percentile 1%
Austria Bottom 25% Dividend Yield 25th Percentile 1.4%
Austria Top 25% Dividend Yield 75th Percentile 4.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WBAG:VRTX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 4.00
2020-12-31 0.00 4.00
2019-12-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Vertex Pharmaceuticals has not reported any payouts.
  • Unable to verify if Vertex Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Vertex Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Vertex Pharmaceuticals has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Vertex Pharmaceuticals's dividends in 3 years as they are not expected to pay a notable one for Austria.
X
Income/ dividend checks
We assess Vertex Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vertex Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vertex Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VRTX Management

 What is the CEO of Vertex Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeffrey Leiden
COMPENSATION $18,799,147
AGE 63
TENURE AS CEO 7.4 years
CEO Bio

Dr. Jeffrey Marc Leiden, also known as Jeff, M.D., Ph.D. has been the Chairman of Vertex Pharmaceuticals Incorporated since May 2012 and has been its Chief Executive Officer and has also been President since February 1, 2012. He was a senior advisor to Clarus Ventures. He has several years of scientific, commercial and financial experience in the pharmaceutical and biotechnology industries as well as clinical and scientific experience in academia as a practicing cardiologist and molecular biologist. Prior to joining Vertex, he served as Managing Director of Clarus Ventures from 2006 to January 2012. He joined Clarus Ventures in November 1, 2006 as a Partner. He served as the President and Chief Operating Officer at Abbott Laboratories Pharmaceutical Products Group from 2000 to 2006. Dr. Leiden began his career in academia as a practicing Cardiologist and Molecular Biologist. He was the Founder of Vical Incorporated and a Co-Founder of Cardiogene Therapeutics Inc. He served as the Chief Scientific Officer and Executive Vice President of Pharmaceuticals at Abbott Laboratories from 2000 to 2001. From 1987 to 2000, he served the Chief of Cardiology and Director of the Cardiovascular Research Institute at the University of Chicago at University of Chicago School of Medicine. From July 1999 to July 2000, he served as an Elkan R. Blout Professor of Biological Sciences, Harvard School of Public Health and Professor of Medicine at Harvard Medical School. From 1992 to July 1999, he was the Frederick H. Rawson Professor of Medicine and Pathology. From 1987 to 1992, he served as the Attending Physician and Assistant Investigator of the Howard Hughes Medical Institute at the University of Michigan in Ann Arbor, MI. Dr. Leiden also serves as the Chairman at the Perelman School of Medicine at the University of Pennsylvania. He serves as a Co-Chairman of Massachusetts Governor Deval Patrick's Science, Technology, Engineering and Math (STEM) Advisory Council. He is the chair of the Scientific Advisory Board of Brigham and Women's Hospital. He also serves as a Co-Chairman of the Advisory Council for Harvard Immunology. He served as the Chairman of the Board of Variation Biotechnologies Inc. and VBI Vaccines. He served as the Chairman and Director of Lycera Corp. He served as the Chairman of TYRX, Inc. since February 28, 2008. Dr. Leiden was a Director and the non-executive Vice Chairman of the board of Shire plc, a specialty biopharmaceutical company, from 2006 to January 2012. Dr. Leiden has been a Director of Vertex Pharmaceuticals Incorporated, since July 7, 2009, Massachusetts Mutual Life Insurance Company since February 10, 2015 and served as Director of Quest Diagnostics Incorporated since December 01, 2014 until May 15, 2019. He also serves on the Board of Directors for the Massachusetts Competitive Partnership (MACP) and the Boston Private Industry Council. He serves as a Trustee of the Brigham and Women’s hospital and a Member of the Scientific Advisory Board of Boston Children’s Hospital. He serves as a Member of the Board of Trustees at Ravinia Festival Association. He serves as Trustee of Museum of Science and Industry, the Keystone Symposia and the Perelman School of Medicine at the University of Pennsylvania. Dr. Leiden served as a Director of Biolex Therapeutics, Inc. since October 2008. He served as a Director of Abbott Laboratories and TAP from 1999 to March 2006. He served as Director of Catabasis Pharmaceuticals. He served as a Director of TYRX, Inc. since February 2008. Dr. Leiden served as an Independent Director of Millennium Pharmaceuticals, Inc. since October 4, 2007. He served as a Director of TAP Pharmaceutical Products Inc from 2001 to 2006. He served as a Member of the Scientific Advisory Board at Massachusetts Life Sciences Center until September 30, 2011. In 2001, he was elected a fellow of the American Academy of Arts and Sciences and Member of the Institute of Medicine of the National Academy of Sciences. During his 14 year career in academia, he published more than 130 peer reviewed papers. He earned B.A., M.D. and a Ph.D. from the University of Chicago. Dr. Leiden has also received an honorary M.A. from Harvard University. He served as lead independent director of Vertex Pharmaceuticals Incorporated from October 2010 to December 2011.

CEO Compensation
  • Jeffrey's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Jeffrey to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Vertex Pharmaceuticals management team in years:

2.5
Average Tenure
52
Average Age
  • The tenure for the Vertex Pharmaceuticals management team is about average.
Management Team

Jeffrey Leiden

TITLE
Chairman
COMPENSATION
$19M
AGE
63
TENURE
7.4 yrs

Michael Parini

TITLE
Executive VP and Chief Legal & Administrative Officer
COMPENSATION
$5M
AGE
44
TENURE
2.5 yrs

Amit Sachdev

TITLE
Executive VP & Chief Regulatory Officer
COMPENSATION
$6M
AGE
51
TENURE
12 yrs

Stuart Arbuckle

TITLE
Executive VP & Chief Commercial Officer
COMPENSATION
$5M
AGE
53
TENURE
6.8 yrs

Jeff Chodakewitz

TITLE
Senior Advisor
COMPENSATION
$6M
AGE
63
TENURE
1.3 yrs

Charlie Wagner

TITLE
Executive VP & CFO
AGE
51
TENURE
0.3 yrs

David Altshuler

TITLE
Executive VP of Global Research & Chief Scientific Officer
COMPENSATION
$6M
AGE
54
TENURE
4.5 yrs

Michael Partridge

TITLE
Senior Vice President of Investor Relations

Damian Wilmot

TITLE
Senior VP
AGE
43
TENURE
2.5 yrs

Nina Devlin

TITLE
Senior VP & Chief Communications Officer
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Vertex Pharmaceuticals board of directors in years:

6
Average Tenure
60
Average Age
  • The tenure for the Vertex Pharmaceuticals board of directors is about average.
Board of Directors

Bruce Sachs

TITLE
Co-Lead Independent Director
COMPENSATION
$655K
AGE
59

Jeffrey Leiden

TITLE
Chairman
COMPENSATION
$19M
AGE
63
TENURE
7.2 yrs

Terry Kearney

TITLE
Independent Director
COMPENSATION
$618K
AGE
64
TENURE
8.2 yrs

Sangeeta Bhatia

TITLE
Independent Director
COMPENSATION
$605K
AGE
50
TENURE
4.1 yrs

Margie McGlynn

TITLE
Independent Director
COMPENSATION
$595K
AGE
60
TENURE
8.2 yrs

Yuchun Lee

TITLE
Independent Director
COMPENSATION
$600K
AGE
54
TENURE
6.8 yrs

Bill Young

TITLE
Independent Director
COMPENSATION
$598K
AGE
74
TENURE
5.2 yrs

Alan Garber

TITLE
Independent Director
COMPENSATION
$585K
AGE
63
TENURE
2.1 yrs

Lloyd Carney

TITLE
Independent Director
AGE
57
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
06. Feb 19 Sell Paul Silva Individual 04. Feb 19 04. Feb 19 -3,438 €164.77 €-561,002
X
Management checks
We assess Vertex Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vertex Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VRTX News

Simply Wall St News

VRTX Company Info

Description

Vertex Pharmaceuticals Incorporated engages in developing and commercializing therapies for treating cystic fibrosis. The company markets SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO to treat patients with cystic fibrosis who have specific mutations in their cystic fibrosis transmembrane conductance regulator gene. It is also developing VX-659 and VX-445 that are Phase III clinical trials; VX-121, a cystic fibrosis transmembrane conductance regulator corrector that is in Phase I/II clinical trial; VX-150, an inhibitor that is in Phase IIb clinical trial for acute pain; CTX001 that is in Phase I/II clinical trial for the treatment of beta-thalassemia and sickle cell diseases; and a novel drug candidate, which is in Phase I clinical trial for the treatment for alpha-1 antitrypsin deficiency. The company sells its products primarily to specialty pharmacy and specialty distributors in the United States, as well as specialty distributors and retail chains, and hospitals and clinics internationally. Vertex Pharmaceuticals Incorporated has collaborations with CRISPR Therapeutics AG; Arbor Biotechnologies, Inc.; Moderna Therapeutics, Inc.; Genomics plc; Merck KGaA; Darmstadt, Germany; X-Chem, Inc.; Janssen Pharmaceuticals, Inc.; Merck KGaA; and Kymera Therapeutics. The company was founded in 1989 and is headquartered in Boston, Massachusetts.

Details
Name: Vertex Pharmaceuticals Incorporated
VRTX
Exchange: WBAG
Founded: 1989
$40,195,928,016
256,121,360
Website: http://www.vrtx.com
Address: Vertex Pharmaceuticals Incorporated
50 Northern Avenue,
Boston,
Massachusetts, 02210,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS VRTX Common Shares Nasdaq Global Select US USD 24. Jul 1991
DB VX1 Common Shares Deutsche Boerse AG DE EUR 24. Jul 1991
LSE 0QZU Common Shares London Stock Exchange GB USD 24. Jul 1991
SWX VRTX Common Shares SIX Swiss Exchange CH CHF 24. Jul 1991
WBAG VRTX Common Shares Wiener Boerse AG AT EUR 24. Jul 1991
BMV VRTX * Common Shares Bolsa Mexicana de Valores MX MXN 24. Jul 1991
BOVESPA VRTX34 BDR EACH 1 REP 0.25 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 20. May 2019
Number of employees
Current staff
Staff numbers
2,500
Vertex Pharmaceuticals employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 22:20
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.