NasdaqGS:VRTX

Stock Analysis Report

Executive Summary

Vertex Pharmaceuticals Incorporated engages in developing and commercializing therapies for treating cystic fibrosis.

Snowflake

Fundamentals

Outstanding track record with flawless balance sheet.


Similar Companies

Share Price & News

How has Vertex Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.0%

NasdaqGS:VRTX

1.5%

US Biotechs

0.9%

US Market


1 Year Return

6.5%

NasdaqGS:VRTX

-7.3%

US Biotechs

0.3%

US Market

VRTX outperformed the Biotechs industry which returned -8% over the past year.

VRTX outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

VRTXIndustryMarket
7 Day4.0%1.5%0.9%
30 Day7.4%2.2%-1.9%
90 Day10.6%3.5%1.6%
1 Year6.5%6.5%-6.5%-7.3%2.6%0.3%
3 Year85.3%85.3%8.9%5.2%41.0%31.8%
5 Year103.9%103.9%6.6%1.6%55.2%38.0%

Price Volatility Vs. Market

How volatile is Vertex Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

10%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Vertex Pharmaceuticals's share price is below the future cash flow value, but not 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 Based on Earnings

Vertex Pharmaceuticals is overvalued based on earnings compared to the US Biotechs industry average.

Vertex Pharmaceuticals is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Vertex Pharmaceuticals is good value based on expected growth next year.


Price Based on Value of Assets

Vertex Pharmaceuticals is overvalued based on assets compared to the US Biotechs industry average.


Next Steps

Future Growth

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

27.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vertex Pharmaceuticals's revenue is expected to grow by 17.8% yearly, however this is not considered high growth (20% yearly).

Vertex Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.

Vertex Pharmaceuticals's revenue growth is expected to exceed the United States of America market average.

Vertex Pharmaceuticals's earnings growth is expected to exceed the United States of America market average.

Vertex Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Vertex Pharmaceuticals is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Vertex Pharmaceuticals performed over the past 5 years?

78.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (433.4% vs 78.6%)

Vertex Pharmaceuticals's earnings growth has exceeded the US Biotechs industry average in the past year (433.4% vs 78.4%).


Return on Equity

Vertex Pharmaceuticals made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Vertex Pharmaceuticals used its assets more efficiently than the US Biotechs industry average last year based on Return on Assets.


Return on Capital Employed

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).


Next Steps

Financial Health

How is Vertex Pharmaceuticals's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Vertex Pharmaceuticals has no debt.

Vertex Pharmaceuticals has no debt compared to 5 years ago when it was 0.3%.

Vertex Pharmaceuticals has no debt, it does not need to be covered by operating cash flow.

Vertex Pharmaceuticals has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Vertex Pharmaceuticals has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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 United States of America.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jeffrey Leiden (63yo)

7.5yrs

Tenure

US$18,799,147

Compensation

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 sin ...


CEO Compensation Analysis

Jeffrey's remuneration is higher than average for companies of similar size in United States of America.

Jeffrey's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

52yo

Average Age

The tenure for the Vertex Pharmaceuticals management team is about average.


Board Age and Tenure

6.1yrs

Average Tenure

60yo

Average Age

The tenure for the Vertex Pharmaceuticals board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$641,21806 Feb 19
Paul Silva
EntityIndividual
Shares3,438
Max PriceUS$188.33

Ownership Breakdown


Management Team

  • Jeffrey Leiden (63yo)

    Chairman

    • Tenure: 7.5yrs
    • Compensation: US$18.80m
  • Charlie Wagner (51yo)

    Executive VP & CFO

    • Tenure: 0.3yrs
  • Michael Partridge

    Senior Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Amit Sachdev (51yo)

    Executive VP & Chief Regulatory Officer

    • Tenure: 12.1yrs
    • Compensation: US$5.68m
  • David Altshuler (54yo)

    Executive VP of Global Research & Chief Scientific Officer

    • Tenure: 4.6yrs
    • Compensation: US$5.73m
  • Damian Wilmot (43yo)

    Senior VP

    • Tenure: 2.6yrs
  • Stuart Arbuckle (53yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 6.9yrs
    • Compensation: US$5.35m
  • Jeff Chodakewitz (63yo)

    Senior Advisor

    • Tenure: 1.3yrs
    • Compensation: US$5.70m
  • Michael Parini (44yo)

    Executive VP and Chief Legal & Administrative Officer

    • Tenure: 2.6yrs
    • Compensation: US$5.37m
  • Nina Devlin

    Senior VP & Chief Communications Officer

    • Tenure: 0.6yrs

Board Members

  • Bruce Sachs (59yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$655.32k
  • Bill Young (74yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$597.82k
  • Jeffrey Leiden (63yo)

    Chairman

    • Tenure: 7.5yrs
    • Compensation: US$18.80m
  • Yuchun Lee (54yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$600.32k
  • Margie McGlynn (60yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$595.32k
  • Terry Kearney (64yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$617.82k
  • Alan Garber (63yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$585.32k
  • Lloyd Carney (57yo)

    Independent Director

    • Tenure: 0.5yrs
  • Sangeeta Bhatia (50yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$605.32k

Company Information

Vertex Pharmaceuticals Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vertex Pharmaceuticals Incorporated
  • Ticker: VRTX
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$48.089b
  • Shares outstanding: 257.04m
  • Website: https://www.vrtx.com

Number of Employees


Location

  • Vertex Pharmaceuticals Incorporated
  • 50 Northern Avenue
  • Boston
  • Massachusetts
  • 2210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRTXNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJul 1991
VX1DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1991
VRTX *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJul 1991
VRTXSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJul 1991
0QZULSE (London Stock Exchange)YesCommon SharesGBUSDJul 1991
VRTXWBAG (Wiener Boerse AG)YesCommon SharesATEURJul 1991
VRTX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.25 COM USD0.01BRBRLMay 2019

Biography

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 cysti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 23:47
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.