VRTX Stock Analysis: Vertex Pharmaceuticals | NASDAQ
Biotechnology | NASDAQ, USA | Market Cap: 133.369m USD | 12M Return: 23.5% | US92532F1003 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 498M
Qual. Beats: 0
Rev. Trend: 99.9%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Vertex Pharmaceuticals (VRTX) is a large-cap U.S. biotechnology company founded in 1989 and headquartered in Boston, Massachusetts. It develops and commercializes specialty medicines targeting the underlying causes of serious diseases, with a commercial portfolio anchored by its cystic fibrosis (CF) franchise-including TRIKAFTA/KAFTRIO, ALYFTREK, SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO. The company is also expanding into adjacent specialty areas such as sickle cell disease, transfusion-dependent beta thalassemia, acute pain, and various rare genetic and endocrine disorders through both approved products (CASGEVY, JOURNAVX) and a pipeline of clinical-stage candidates in kidney disease, Type 1 diabetes, myotonic dystrophy, and polycystic kidney disease.
Vertex operates with a business model typical of high-growth specialty biotech firms: heavy investment in R&D to advance a pipeline of disease-modifying therapies, premium pricing for orphan and specialty indications, and reliance on collaborations and licensing deals to extend its scientific capabilities-an example being its strategic partnership with AbCellera Biologics to co-develop multispecific T-cell engagers for autoimmune diseases. Products are sold through specialty pharmacies, distributors, wholesalers, and institutional channels, consistent with the distribution patterns common among rare-disease biopharmaceutical companies.
- TRIKAFTA patent expiry threatens core cystic fibrosis revenue base
- CASGEVY sickle cell launch drives new franchise growth
- JOURNAVX acute pain approval expands non-CF revenue streams
| Net Income: 4.41b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA -0.72 > 1.0 |
| NWC/Revenue: 68.17% < 20% (prev 55.08%; Δ 13.09% < -1%) |
| CFO/TA 0.16 > 3% & CFO 4.29b > Net Income 4.41b |
| Net Debt (-5.87b) to EBITDA (5.39b): -1.09 < 3 |
| Current Ratio: 3.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (255.7m) vs 12m ago -1.24% < -2% |
| Gross Margin: 86.04% > 18% (prev 86.11%; Δ -0.07% > 0.5%) |
| Asset Turnover: 49.06% > 50% (prev 47.51%; Δ 1.56% > 0%) |
| Interest Coverage Ratio: 397.1 > 6 (EBIT TTM 5.28b / Interest Expense TTM 13.3m) |
| A: 0.31 (Total Current Assets 12.5b - Total Current Liabilities 3.94b) / Total Assets 27.4b |
| B: 0.57 (Retained Earnings 15.7b / Total Assets 27.4b) |
| C: 0.21 (EBIT TTM 5.28b / Avg Total Assets 25.7b) |
| D: 2.82 (Book Value of Equity 20.2b / Total Liabilities 7.18b) |
| Altman-Z'' = 8.27 = AAA |
| DSRI: 1.02 (Receivables 2.13b/1.89b, Revenue 12.6b/11.4b) |
| GMI: 1.00 (GM 86.11% / 86.04%) |
| AQI: 0.92 (AQ_t 0.42 / AQ_t-1 0.46) |
| SGI: 1.11 (Revenue 12.6b / 11.4b) |
| TATA: 0.00 (NI 4.41b - CFO 4.29b) / TA 27.4b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of October 04, 2026, the stock is trading at USD 504.73 with a total of 936,560 shares traded. Over the past week, the price has changed by -4.08%, over one month by -9.34%, over three months by -4.41% and over the past year by +23.45%.
Current recommended Stop Loss: 489.20 (which is 3.1% or 1.3 ATR below the current price).
Vertex Pharmaceuticals has received a consensus analysts rating of 3.85. Therefore, it is recommended to buy VRTX.
- StrongBuy: 14
- Buy: 4
- Hold: 14
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 570.3 | 13% |
P/E Trailing = 30.2408
P/E Forward = 24.0964
P/S = 10.5888
P/B = 6.4635
P/EG = 1.8976
Revenue TTM = 12.6b USD
EBIT TTM = 5.28b USD
EBITDA TTM = 5.39b USD
Long Term Debt = unknown (none)
Short Term Debt = 82.8m USD (from shortTermDebt, last fiscal year)
Debt = 1.98b USD (from shortLongTermDebtTotal, last quarter) (leases 1.98b already included)
Net Debt = -5.87b USD (calculated: Debt 1.98b - CCE 7.85b)
Enterprise Value = 127b USD (133b + Debt 1.98b - CCE 7.85b)
Interest Coverage Ratio = 397.1 (Ebit TTM 5.28b / Interest Expense TTM 13.3m)
EV/FCF = 33.59x (Enterprise Value 127b / FCF TTM 3.80b)
FCF Yield = 2.98% (FCF TTM 3.80b / Enterprise Value 127b)
FCF Margin = 30.07% (FCF TTM 3.80b / Revenue TTM 12.6b)
Net Margin = 34.89% (Net Income TTM 4.41b / Revenue TTM 12.6b)
Gross Margin = 86.04% ((Revenue TTM 12.6b - Cost of Revenue TTM 1.76b) / Revenue TTM)
Gross Margin QoQ = 85.33% (prev 86.85%)
Tobins Q-Ratio = 4.65 (Enterprise Value 127b / Total Assets 27.4b)
Interest Expense / Debt = 0.67% (Interest Expense 13.3m / Debt 1.98b)
Taxrate = 16.48% (869.3m / 5.27b)
NOPAT = 4.41b (EBIT 5.28b * (1 - 16.48%))
Current Ratio = 3.19 (Total Current Assets 12.5b / Total Current Liabilities 3.94b)
Debt / Equity = 0.10 (Debt 1.98b / totalStockholderEquity, last quarter 20.2b)
Debt / EBITDA = -1.09 (Net Debt -5.87b / EBITDA 5.39b)
Debt / FCF = -1.55 (Net Debt -5.87b / FCF TTM 3.80b)
Total Stockholder Equity = 18.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.12% (Net Income 4.41b / Total Assets 27.4b)
RoE = 23.31% (Net Income TTM 4.41b / Total Stockholder Equity 18.9b)
RoCE = 22.49% (EBIT 5.28b / Capital Employed (Total Assets 27.4b - Current Liab 3.94b))
RoIC = 19.23% (NOPAT 4.41b / Invested Capital 22.9b)
WACC = 6.91% (E(133b)/V(135b) * Re(7.0%) + D(1.98b)/V(135b) * Rd(0.67%) * (1-Tc(0.16)))
Discount Rate = 7.0% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -85.31 | Cagr: -0.92%
[DCF] Terminal Value 76.49% ; FCFF base≈3.68b ; Y1≈3.95b ; Y5≈4.79b
[DCF] Fair Price = 313.3 (EV 73.5b - Net Debt -5.87b = Equity 79.4b / Shares 253.5m; r=8.35% [WACC [floored]]; 5y FCF grow 8.47% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.11 | # QB: 0
Revenue Correlation: 99.86 | Revenue CAGR: 10.17% | SUE: 1.55 | # QB: 1
EPS current Quarter (2026-09-30): EPS=-1.22 | Chg30d=-124.80% | Revisions=-13% | Analysts=12
EPS current Year (2026-12-31): EPS=16.17 | Chg30d=-15.13% | Revisions=-13% | GrowthEPS=-12.1% | GrowthRev=+10.4%
EPS next Year (2027-12-31): EPS=20.10 | Chg30d=-8.60% | Revisions=+19% | GrowthEPS=+24.3% | GrowthRev=+9.8%
[Analyst] Revisions Ratio: -2% (up=18, down=19)