NasdaqGS:VRTX

Stock Analysis Report

Executive Summary

Vertex Pharmaceuticals Incorporated engages in developing and commercializing therapies for the treatment of cystic fibrosis (CF).


Snowflake Analysis

Flawless balance sheet with high growth potential.


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

Stable Share Price: VRTX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.7%

VRTX

2.5%

US Biotechs

-2.0%

US Market


1 Year Return

26.2%

VRTX

-0.9%

US Biotechs

-15.1%

US Market

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.


Shareholder returns

VRTXIndustryMarket
7 Day9.7%2.5%-2.0%
30 Day0.4%-8.3%-19.7%
90 Day9.3%-4.1%-23.2%
1 Year26.2%26.2%-0.2%-0.9%-13.4%-15.1%
3 Year105.7%105.7%13.8%10.9%10.9%3.7%
5 Year85.5%85.5%-7.2%-11.6%28.4%14.4%

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 compared to its fair value and its price relative to the market?

30.4%

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).


Next Steps

Future Growth

How is Vertex Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

23.6%

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%)


Next Steps

Past Performance

How has Vertex Pharmaceuticals performed over the past 5 years?

76.0%

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.


Next Steps

Financial Health

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.


Balance Sheet

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.


Next Steps

Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Reshma Kewalramani (46yo)

no data

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Parini
Executive VP & Chief Administrative3.25yrsUS$5.37m0.010% $6.4m
Amit Sachdev
Executive VP & Chief Patient Officer12.75yrsUS$5.68m0.019% $11.9m
Stuart Arbuckle
Executive VP & Chief Commercial Officer7.58yrsUS$5.35m0.014% $8.4m
Reshma Kewalramani
Former EVP of Global Medicines Development & Medical Affairsno datano data0.010% $6.3m
Charles Wagner
Executive VP & CFO1yrno data0.0067% $4.1m
David Altshuler
Executive VP of Global Research & Chief Scientific Officer5.25yrsUS$5.73m0.011% $6.9m
Mike Tirozzi
SVP and Chief Information & Data Officer1.25yrsno datano data
Michael Partridge
Senior Vice President of Investor Relationsno datano datano data
Damian Wilmot
Senior VP3.25yrsno datano data
Nina Devlin
Senior VP & Chief Communications Officer1.25yrsno datano data

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: VRTX's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Reshma Kewalramani
Former EVP of Global Medicines Development & Medical Affairsno datano data0.010% $6.3m
Bruce Sachs
Lead Independent Directorno dataUS$655.32k0.0043% $2.7m
William Young
Independent Director5.92yrsUS$597.82k0.0027% $1.6m
Jeffrey Leiden
Executive Chairman7.92yrsUS$18.80m0.036% $22.2m
Yuchun Lee
Independent Director7.58yrsUS$600.32k0.00072% $444.9k
Margaret McGlynn
Independent Director8.92yrsUS$595.32k0.0015% $926.8k
Terrence Kearney
Independent Director8.92yrsUS$617.82k0.0013% $815.6k
Alan Garber
Independent Director2.83yrsUS$585.32k0.0015% $951.5k
Lloyd Carney
Independent Director1.17yrsno datano data
Sangeeta Bhatia
Independent Director4.83yrsUS$605.32k0.0011% $685.8k

5.9yrs

Average Tenure

59.5yo

Average Age

Experienced Board: VRTX's board of directors are considered experienced (5.9 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$61.786b
  • Shares outstanding: 259.27m
  • 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
VX1XTRA (XETRA Trading Platform)YesCommon SharesDEEURJul 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
VX1ETLX (Eurotlx)YesCommon SharesITEURJul 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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 02:33
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.