Vertex Pharmaceuticals Incorporated engages in developing and commercializing therapies for the treatment of cystic fibrosis (CF).
Flawless balance sheet with high growth potential.
Share Price & News
How has Vertex Pharmaceuticals's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VRTX has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: VRTX exceeded the US Biotechs industry which returned -1.1% over the past year.
Return vs Market: VRTX exceeded the US Market which returned -13.6% over the past year.
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
1 week ago | Simply Wall StIf You Had Bought Vertex Pharmaceuticals (NASDAQ:VRTX) Shares Three Years Ago You'd Have Made 126%
4 weeks ago | Simply Wall StDespite Its High P/E Ratio, Is Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) Still Undervalued?
1 month ago | Simply Wall StChairman Jeffrey Leiden Just Sold A Bunch Of Shares In Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Is Vertex Pharmaceuticals undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VRTX ($242.16) is trading below our estimate of fair value ($340.58)
Significantly Below Fair Value: VRTX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VRTX is poor value based on its PE Ratio (52.8x) compared to the Biotechs industry average (16x).
PE vs Market: VRTX is poor value based on its PE Ratio (52.8x) compared to the US market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: VRTX is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: VRTX is overvalued based on its PB Ratio (10.3x) compared to the US Biotechs industry average (2.7x).
How is Vertex Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VRTX's forecast earnings growth (23.6% per year) is above the savings rate (1.7%).
Earnings vs Market: VRTX's earnings (23.6% per year) are forecast to grow faster than the US market (12.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: VRTX's revenue (15.7% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: VRTX's revenue (15.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VRTX's Return on Equity is forecast to be high in 3 years time (22.5%)
How has Vertex Pharmaceuticals performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VRTX has high quality earnings.
Growing Profit Margin: VRTX's current net profit margins (28.3%) are lower than last year (68.8%).
Past Earnings Growth Analysis
Earnings Trend: VRTX has become profitable over the past 5 years, growing earnings by 76% per year.
Accelerating Growth: VRTX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: VRTX had negative earnings growth (-43.9%) over the past year, making it difficult to compare to the Biotechs industry average (22%).
Return on Equity
High ROE: VRTX's Return on Equity (19.3%) is considered low.
How is Vertex Pharmaceuticals's financial position?
Financial Position Analysis
Short Term Liabilities: VRTX's short term assets ($4.8B) exceed its short term liabilities ($1.3B).
Long Term Liabilities: VRTX's short term assets ($4.8B) exceed its long term liabilities ($898.4M).
Debt to Equity History and Analysis
Debt Level: VRTX is debt free.
Reducing Debt: VRTX has no debt compared to 5 years ago when its debt to equity ratio was 26.9%.
Debt Coverage: VRTX has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: VRTX has no debt, therefore coverage of interest payments is not a concern.
Inventory Level: VRTX has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if VRTX's debt is covered by short term assets.
What is Vertex Pharmaceuticals's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VRTX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate VRTX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VRTX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VRTX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VRTX's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Reshma Kewalramani (46yo)
Dr. Reshma Kewalramani, M.D., FASN serves as Director at Vertex Pharmaceuticals Incorporated since February 13, 2020. He is the Chief Medical Officer at Vertex Pharmaceuticals Incorporated since April 2018 ...
|Executive VP & Chief Administrative||3.25yrs||US$5.37m||0.010% $6.4m|
|Executive VP & Chief Patient Officer||12.75yrs||US$5.68m||0.019% $11.9m|
|Executive VP & Chief Commercial Officer||7.58yrs||US$5.35m||0.014% $8.4m|
|Former EVP of Global Medicines Development & Medical Affairs||no data||no data||0.010% $6.3m|
|Executive VP & CFO||1yr||no data||0.0067% $4.1m|
|Executive VP of Global Research & Chief Scientific Officer||5.25yrs||US$5.73m||0.011% $6.9m|
|SVP and Chief Information & Data Officer||1.25yrs||no data||no data|
|Senior Vice President of Investor Relations||no data||no data||no data|
|Senior VP||3.25yrs||no data||no data|
|Senior VP & Chief Communications Officer||1.25yrs||no data||no data|
Experienced Management: VRTX's management team is considered experienced (3.3 years average tenure).
|Former EVP of Global Medicines Development & Medical Affairs||no data||no data||0.010% $6.3m|
|Lead Independent Director||no data||US$655.32k||0.0043% $2.7m|
|Independent Director||5.92yrs||US$597.82k||0.0027% $1.6m|
|Executive Chairman||7.92yrs||US$18.80m||0.036% $22.2m|
|Independent Director||7.58yrs||US$600.32k||0.00072% $444.9k|
|Independent Director||8.92yrs||US$595.32k||0.0015% $926.8k|
|Independent Director||8.92yrs||US$617.82k||0.0013% $815.6k|
|Independent Director||2.83yrs||US$585.32k||0.0015% $951.5k|
|Independent Director||1.17yrs||no data||no data|
|Independent Director||4.83yrs||US$605.32k||0.0011% $685.8k|
Experienced Board: VRTX's board of directors are considered experienced (5.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VRTX insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Vertex Pharmaceuticals Incorporated's company bio, employee growth, exchange listings and data sources
- Name: Vertex Pharmaceuticals Incorporated
- Ticker: VRTX
- Exchange: NasdaqGS
- Founded: 1989
- Industry: Biotechnology
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$61.786b
- Shares outstanding: 259.27m
- Website: https://www.vrtx.com
Number of Employees
- Vertex Pharmaceuticals Incorporated
- 50 Northern Avenue
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|VRTX||NasdaqGS (Nasdaq Global Select)||Yes||Common Shares||US||USD||Jul 1991|
|VX1||XTRA (XETRA Trading Platform)||Yes||Common Shares||DE||EUR||Jul 1991|
|VX1||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jul 1991|
|VRTX *||BMV (Bolsa Mexicana de Valores)||Yes||Common Shares||MX||MXN||Jul 1991|
|VRTX||SWX (SIX Swiss Exchange)||Yes||Common Shares||CH||CHF||Jul 1991|
|0QZU||LSE (London Stock Exchange)||Yes||Common Shares||GB||USD||Jul 1991|
|VRTX||WBAG (Wiener Boerse AG)||Yes||Common Shares||AT||EUR||Jul 1991|
|VX1||ETLX (Eurotlx)||Yes||Common Shares||IT||EUR||Jul 1991|
|VRTX34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REP 0.25 COM USD0.01||BR||BRL||May 2019|
Vertex Pharmaceuticals Incorporated engages in developing and commercializing therapies for the treatment of cystic fibrosis (CF). The company markets TRIKAFTA, SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO to treat patients with CF who have specific mutations in their CF transmembrane conductance regulator gene. It is also developing VX-814, which is in Phase II clinical trial and VX-864 that is in Phase I clinical trial for the treatment of alpha-1 antitrypsin deficiency; VX-147 for treating kidney diseases; and CTX001 that is in Phase I/II clinical trial for the treatment of beta-thalassemia and sickle cell diseases. In addition, the company develops VX-150, an inhibitor that is in Phase II clinical trial for acute, neuropathic, and musculoskeletal pain; and VX-561, a potentiator that is in Phase II clinical development; as well as evaluating VX-121, an additional corrector. It 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. The company has collaborations with CRISPR Therapeutics AG; Kymera Therapeutics Inc.; Parion Sciences, Inc.; BioAxone Biosciences, Inc.; Merck KGaA; Janssen Pharmaceuticals, Inc.; Arbor Biotechnologies, Inc.; Moderna Therapeutics, Inc.; Genomics plc; X-Chem, Inc.; Molecular Templates, Inc.; and Ribometrix, Inc. The company was founded in 1989 and is headquartered in Boston, Massachusetts.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/04 02:33|
|End of Day Share Price||2020/04/03 00:00|
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.