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Market Cap

US$55.7b

Last Updated

2021/05/10 00:20 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: VRTX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: VRTX's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

VRTX

-4.8%

US Biotechs

-1.2%

US Market


1 Year Return

-20.8%

VRTX

19.3%

US Biotechs

48.3%

US Market

Return vs Industry: VRTX underperformed the US Biotechs industry which returned 24.4% over the past year.

Return vs Market: VRTX underperformed the US Market which returned 49.9% over the past year.


Shareholder returns

VRTXIndustryMarket
7 Day-1.5%-4.8%-1.2%
30 Day0.8%0.9%0.2%
90 Day0.3%-13.0%1.6%
1 Year-20.8%-20.8%21.1%19.3%50.8%48.3%
3 Year37.9%37.9%24.2%17.8%62.0%51.9%
5 Year164.2%164.2%50.2%38.5%126.9%101.7%

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

Valuation

Is Vertex Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

49.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRTX ($215.01) is trading below our estimate of fair value ($421.49)

Significantly Below Fair Value: VRTX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VRTX is good value based on its PE Ratio (20.2x) compared to the US Biotechs industry average (29.9x).

PE vs Market: VRTX's PE Ratio (20.2x) is in line with the US market.


Price to Earnings Growth Ratio

PEG Ratio: VRTX is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: VRTX is overvalued based on its PB Ratio (6.2x) compared to the US Biotechs industry average (3.4x).


Future Growth

How is Vertex Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRTX's forecast earnings growth (18.9% per year) is above the savings rate (2%).

Earnings vs Market: VRTX's earnings (18.9% per year) are forecast to grow faster than the US market (15.1% per year).

High Growth Earnings: VRTX's earnings are forecast to grow, but not significantly.

Revenue vs Market: VRTX's revenue (9.6% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: VRTX's revenue (9.6% 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 (23.3%)


Past Performance

How has Vertex Pharmaceuticals performed over the past 5 years?

56.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRTX has high quality earnings.

Growing Profit Margin: VRTX's current net profit margins (43.1%) are higher than last year (31.4%).


Past Earnings Growth Analysis

Earnings Trend: VRTX has become profitable over the past 5 years, growing earnings by 56.9% per year.

Accelerating Growth: VRTX's earnings growth over the past year (82.8%) exceeds its 5-year average (56.9% per year).

Earnings vs Industry: VRTX earnings growth over the past year (82.8%) exceeded the Biotechs industry -11.6%.


Return on Equity

High ROE: VRTX's Return on Equity (30.8%) is considered high.


Financial Health

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 ($1.9B).

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 26.6%.

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


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 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.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Reshma Kewalramani (47 yo)

1.08yrs

Tenure

US$9,111,359

Compensation

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 ($USD9.11M) is about average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Reshma's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: VRTX's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: VRTX's board of directors are considered experienced (7.3 years average tenure).


Ownership

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

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$55.659b
  • Shares outstanding: 258.87m
  • Website: https://www.vrtx.com

Number of Employees


Location

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

Listings


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 Analysis2021/05/10 00:20
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.