Vertex Pharmaceuticals Inc

Health Care
Biotechnology: Pharmaceutical Preparations
www.vrtx.com

Earnings Score
Moat Score

Market Cap $119.10B
PE -248
Debt $NaN
Cash $5.25B
EV $NaN
FCF -$1.11B

Earnings

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Sales & Net Margins

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Earnings	-$479.80M
EBIT	$259.60M
ROE	-3%
ROA	1%
FCF	-$1.11B
Equity	$15.63B
Growth Stability	100%
PE	-248.23
PEG	-18.97
PB	7.62
P/FCF	-107.71
P/S	11.21
Price/Cash	0.04
Net Margins	-18%
Gross Margins	86%
Op. Margins	2%
Earnings CAGR	33%
Sales Growth YoY	12%
Sales Growth QoQ	5%
Sales CAGR	30%
FCF CAGR	28%
Equity CAGR	41%
Earnings Stability	0.34
Earnings Growth YoY	1%

Earnings Growth QoQ	-129%
Earnings CAGR 5Y	13%
Sales CAGR 5Y	19%
FCF CAGR 5Y	11%
Equity CAGR 5Y	25%
Earnings CAGR 3Y	12%
Sales CAGR 3Y	12%
FCF CAGR 3Y	8%
Equity CAGR 3Y	19%
Market Cap	$119.10B
Revenue	$10.63B
Assets	$22.24B
Cash	$5.25B
Shares Outstanding	257.74M
Earnings Score	29%
Moat Score	10%
Working Capital	5.83B
Current Ratio	2.47
Gross Profit	$9.15B
Shares Growth 3y	1%
Equity Growth QoQ	6%
Equity Growth YoY	-5%

Assets & ROA

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Stockholders Equity & ROE

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Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio for cystic fibrosis, where Vertex therapies remain the standard of care globally. In addition to its focus on cystic fibrosis, Vertex is diversifying its pipeline through gene-editing therapies such as CTX001 for beta-thalassemia and sickle-cell disease, small-molecule inhibitors targeting acute and chronic pain using non-opioid treatments, and small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.

SEC Filings

Direct access to Vertex Pharmaceuticals Inc (VRTX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Vertex Pharmaceuticals Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Vertex Pharmaceuticals Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 33%

Stability 34%

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Vertex Pharmaceuticals Inc Discounted Cash Flow

Fully customizable DCF calculator online for Vertex Pharmaceuticals Inc .

Years

Calculation mode

= -$80B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$1.1B	-$1.4B	-$1.8B	-$2.3B	-$3B	-$3.8B	-$4.9B	-$6.3B	-$8.1B	-$10B	-$13B	-$133B
DCF		-$1.3B	-$1.5B	-$1.8B	-$2B	-$2.4B	-$2.8B	-$3.2B	-$3.8B	-$4.4B	-$5.1B	-$51B
Value	-$80B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-128%	-57%	-7%	4%	68%	28%	44%	31%	37%	37%	-18%
ROA	-	-19%	0%	3%	11%	17%	27%	21%	24%	19%	1%
ROE	-	-54%	-8%	4%	47%	19%	31%	23%	24%	21%	-3%

Bad Net Margins (-17.87%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	-	-	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	78%	65%	46%	22%	37%	49%	22%	18%	11%	19%
Earnings YoY growth	-	-21%	-81%	-182%	2K%	-44%	130%	-14%	42%	9%	13%
Equity YoY growth	-	-0%	22%	53%	117%	37%	43%	16%	38%	26%	25%
FCF YoY growth	-	-27%	-144%	315%	58%	27%	100%	-20%	63%	-15%	11%