Vertex Pharmaceuticals Incorporated engages in developing and commercializing therapies for treating cystic fibrosis. More Details
No risks detected for VRTX from our risk checks.
Flawless balance sheet with acceptable track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: VRTX's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: VRTX underperformed the US Biotechs industry which returned 21.4% over the past year.
Return vs Market: VRTX underperformed the US Market which returned 34.4% over the past year.
Long-Term 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
2 weeks ago | Simply Wall StVertex Pharmaceuticals Incorporated's (NASDAQ:VRTX) Relatively low PE may be Offering Investors an Opportunity
3 weeks ago | Simply Wall StVertex Pharmaceuticals Incorporated's (NASDAQ:VRTX) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
1 month ago | Simply Wall StNeed To Know: Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) Insiders Have Been Buying Shares
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 ($200.05) is trading below our estimate of fair value ($375.45)
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 (26.1x) compared to the US Biotechs industry average (22.3x).
PE vs Market: VRTX is poor value based on its PE Ratio (26.1x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: VRTX is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: VRTX is overvalued based on its PB Ratio (5.6x) compared to the US Biotechs industry average (2.8x).
How is Vertex Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VRTX's forecast earnings growth (18.4% per year) is above the savings rate (2%).
Earnings vs Market: VRTX's earnings (18.4% per year) are forecast to grow faster than the US market (15% per year).
High Growth Earnings: VRTX's earnings are forecast to grow, but not significantly.
Revenue vs Market: VRTX's revenue (8.8% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: VRTX's revenue (8.8% 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 (22.9%)
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 (29.8%) are lower than last year (38.5%).
Past Earnings Growth Analysis
Earnings Trend: VRTX has become profitable over the past 5 years, growing earnings by 50.4% 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 (-4.3%) over the past year, making it difficult to compare to the Biotechs industry average (32.6%).
Return on Equity
High ROE: VRTX's Return on Equity (21.7%) is considered high.
How is Vertex Pharmaceuticals's financial position?
Financial Position Analysis
Short Term Liabilities: VRTX's short term assets ($8.5B) exceed its short term liabilities ($1.8B).
Long Term Liabilities: VRTX's short term assets ($8.5B) exceed its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: VRTX is debt free.
Reducing Debt: VRTX has no debt compared to 5 years ago when its debt to equity ratio was 25.5%.
Debt Coverage: VRTX has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: VRTX has no debt, therefore coverage of interest payments is not a concern.
What is Vertex Pharmaceuticals's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VRTX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VRTX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VRTX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VRTX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VRTX's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Reshma Kewalramani (48 yo)
Dr. Reshma Kewalramani, M.D., FASN has been the Chief Executive Officer and President of Vertex Pharmaceuticals Incorporated since April 1, 2020 and serves as its Director since February 13, 2020. Dr. Kewa...
CEO Compensation Analysis
Compensation vs Market: Reshma's total compensation ($USD9.11M) is about average for companies of similar size in the US market ($USD11.16M).
Compensation vs Earnings: Reshma's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: VRTX's management team is considered experienced (2.3 years average tenure).
Experienced Board: VRTX's board of directors are considered experienced (7.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$51.899b
- Shares outstanding: 259.43m
- Website: https://www.vrtx.com
Number of Employees
- Vertex Pharmaceuticals Incorporated
- 50 Northern Avenue
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/03 23:43|
|End of Day Share Price||2021/08/03 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.