NasdaqGS:VRTX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with acceptable track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-20.6%

VRTX

-0.8%

US Biotechs

-0.7%

US Market


1 Year Return

18.8%

VRTX

40.2%

US Biotechs

19.9%

US Market

Return vs Industry: VRTX underperformed the US Biotechs industry which returned 40.2% over the past year.

Return vs Market: VRTX underperformed the US Market which returned 19.9% over the past year.


Shareholder returns

VRTXIndustryMarket
7 Day-20.6%-0.8%-0.7%
30 Day-17.8%2.8%5.8%
90 Day-25.2%-3.1%8.3%
1 Year18.8%18.8%42.6%40.2%22.7%19.9%
3 Year44.4%44.4%19.6%13.6%43.5%33.9%
5 Year90.0%90.0%21.1%12.5%86.9%65.8%

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?

36.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRTX ($218.08) is trading below our estimate of fair value ($343.68)

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


Price To Earnings Ratio

PE vs Industry: VRTX's PE Ratio (27.1x) is in line with the US Biotechs industry average.

PE vs Market: VRTX is poor value based on its PE Ratio (27.1x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: VRTX is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: VRTX is overvalued based on its PB Ratio (7.5x) compared to the US Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Vertex Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRTX's forecast earnings growth (18.1% per year) is above the savings rate (2.2%).

Earnings vs Market: VRTX's earnings (18.1% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: VRTX's revenue (11.8% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: VRTX's revenue (11.8% 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 (26.1%)


Next Steps

Past Performance

How has Vertex Pharmaceuticals performed over the past 5 years?

68.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRTX has high quality earnings.

Growing Profit Margin: VRTX's current net profit margins (38.5%) are lower than last year (64.1%).


Past Earnings Growth Analysis

Earnings Trend: VRTX has become profitable over the past 5 years, growing earnings by 68.8% 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 (-6%) over the past year, making it difficult to compare to the Biotechs industry average (-3.2%).


Return on Equity

High ROE: VRTX's Return on Equity (27.7%) is considered high.


Next Steps

Financial Health

How is Vertex Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: VRTX's short term assets ($6.7B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: VRTX's short term assets ($6.7B) exceed its long term liabilities ($898.5M).


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 27.7%.

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


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 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?

3.8yrs

Average management tenure


CEO

Reshma Kewalramani (47 yo)

0.50

Tenure

US$6,816,936

Compensation

Dr. Reshma Kewalramani, M.D., FASN has been the Chief Executive Officer, President and Director of Vertex Pharmaceuticals Incorporated since April 1, 2020. Dr. Kewalramani served as the Chief Medical Offic ...


CEO Compensation Analysis

Compensation vs Market: Reshma's total compensation ($USD6.82M) is below average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Insufficient data to compare Reshma's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Leiden
Executive Chairman8.42yrsUS$18.79m0.0010%
$ 590.7k
Reshma Kewalramani
CEO, President & Director0.50yrUS$6.82m0.010%
$ 5.8m
Charles Wagner
Executive VP & CFO1.5yrsUS$3.49m0.0013%
$ 727.1k
Amit Sachdev
Executive VP & Chief Patient Officer13.25yrsUS$6.20m0.019%
$ 10.9m
Stuart Arbuckle
Executive VP & Chief Commercial Officer8.08yrsUS$6.86m0.014%
$ 7.7m
Paul Silva
Senior VP & Corporate Controller12.08yrsUS$3.20m0.0058%
$ 3.3m
David Altshuler
Executive VP of Global Research & Chief Scientific Officer5.75yrsUS$5.73m0.011%
$ 6.3m
Mike Tirozzi
SVP and Chief Information & Data Officer1.75yrsno datano data
Michael Parini
Executive VP & Chief Administrative3.75yrsUS$5.37m0.010%
$ 5.9m
Michael Partridge
Senior Vice President of Investor Relationsno datano datano data
Damian Wilmot
Senior VP3.75yrsno datano data
Nina Devlin
Senior VP & Chief Communications Officer1.75yrsno datano data

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: VRTX's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Leiden
Executive Chairman8.42yrsUS$18.79m0.0010%
$ 590.7k
Reshma Kewalramani
CEO, President & Director0.50yrUS$6.82m0.010%
$ 5.8m
Bruce Sachs
Lead Independent Director8.83yrsUS$607.88k0.0043%
$ 2.4m
Yuchun Lee
Independent Director8.08yrsUS$526.44k0.00072%
$ 409.0k
Margaret McGlynn
Independent Director9.42yrsUS$545.01k0.000070%
$ 39.8k
Terrence Kearney
Independent Director9.42yrsUS$542.60k0.0013%
$ 749.8k
Alan Garber
Independent Director3.33yrsUS$518.78k0.0020%
$ 1.1m
Lloyd Carney
Independent Director1.67yrsUS$494.53k0.00083%
$ 471.5k
Sangeeta Bhatia
Independent Director5.33yrsUS$530.10k0.00096%
$ 545.3k
Diana McKenzie
Independent Director0.33yrno data0.000080%
$ 45.4k

6.7yrs

Average Tenure

59yo

Average Age

Experienced Board: VRTX's board of directors are considered experienced (6.7 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$56.803b
  • Shares outstanding: 260.47m
  • 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 4 REP 1 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 Analysis2020/10/19 06:18
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
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.