VRTX Stock Analysis: Vertex Pharmaceuticals | NASDAQ
Biotechnology | NASDAQ, USA | Market Cap: 134.019m USD | 12M Return: 1.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 852M
Qual. Beats: 0
Rev. Trend: 99.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 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 (NASDAQ: VRTX) is a Boston-based biotechnology company founded in 1989 that develops and commercializes specialty medicines for serious diseases, with a primary focus on cystic fibrosis (CF). Its marketed CF portfolio includes TRIKAFTA/KAFTRIO, ALYFTREK, SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO, targeting patients across various age groups and genetic mutations.
Beyond CF, Vertex is expanding into adjacent specialty areas. It markets CASGEVY for sickle cell disease and transfusion-dependent beta thalassemia, and JOURNAVX for acute pain. Its pipeline includes candidates in mid- to early-stage trials for Type 1 Diabetes, myotonic dystrophy type 1, APOL1-mediated kidney disease, and autosomal dominant polycystic kidney disease.
As a large-cap biotech, Vertex sells its products through specialty pharmacies, distributors, wholesalers, retail pharmacies, hospitals, and clinics. Specialty biotech business models like Vertexs typically rely on high per-patient pricing for small patient populations and reinvestment of revenue into R&D to expand into new therapeutic areas.
- JOURNAVX launch expands into acute pain market
- CASGEVY adoption drives sickle cell revenue growth
- TRIKAFTA patent expiry risks long-term CF revenue
| Net Income: 4.34b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 19.51 > 1.0 |
| NWC/Revenue: 64.05% < 20% (prev 56.09%; Δ 7.96% < -1%) |
| CFO/TA 0.16 > 3% & CFO 4.24b > Net Income 4.34b |
| Net Debt (-5.26b) to EBITDA (5.39b): -0.98 < 3 |
| Current Ratio: 3.02 > 1.5 & < 3 |
| Outstanding Shares: last quarter (256.3m) vs 12m ago -1.23% < -2% |
| Gross Margin: 86.28% > 18% (prev 86.03%; Δ 0.25% > 0.5%) |
| Asset Turnover: 49.65% > 50% (prev 48.51%; Δ 1.14% > 0%) |
| Interest Coverage Ratio: 389.2 > 6 (EBIT TTM 5.18b / Interest Expense TTM 13.3m) |
| A: 0.30 (Total Current Assets 11.7b - Total Current Liabilities 3.88b) / Total Assets 26.5b |
| B: 0.55 (Retained Earnings 14.6b / Total Assets 26.5b) |
| C: 0.21 (EBIT TTM 5.18b / Avg Total Assets 24.7b) |
| D: 2.72 (Book Value of Equity 19.4b / Total Liabilities 7.12b) |
| Altman-Z'' = 8.00 = AAA |
| DSRI: 1.00 (Receivables 2.00b/1.81b, Revenue 12.3b/11.1b) |
| GMI: 1.00 (GM 86.03% / 86.28%) |
| AQI: 1.11 (AQ_t 0.50 / AQ_t-1 0.45) |
| SGI: 1.10 (Revenue 12.3b / 11.1b) |
| TATA: 0.00 (NI 4.34b - CFO 4.24b) / TA 26.5b) |
| Beneish M = -2.89 (Cap -4..+1) = A |
As of July 12, 2026, the stock is trading at USD 485.39 with a total of 1,423,110 shares traded. Over the past week, the price has changed by -8.08%, over one month by +11.40%, over three months by +11.26% and over the past year by +1.22%.
Current recommended Stop Loss: 444.00 (which is 8.5% or 2.7 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 | 548.7 | 13% |
P/E Trailing = 31.3563
P/E Forward = 27.7008
P/S = 10.969
P/B = 6.9218
P/EG = 1.9589
Revenue TTM = 12.3b USD
EBIT TTM = 5.18b USD
EBITDA TTM = 5.39b USD
Long Term Debt = unknown (none)
Short Term Debt = 82.8m USD (from shortTermDebt, last fiscal year)
Debt = 1.99b USD (from shortLongTermDebtTotal, last quarter) (leases 1.99b already included)
Net Debt = -5.26b USD (calculated: Debt 1.99b - CCE 7.25b)
Enterprise Value = 129b USD (134b + Debt 1.99b - CCE 7.25b)
Interest Coverage Ratio = 389.2 (Ebit TTM 5.18b / Interest Expense TTM 13.3m)
EV/FCF = 34.70x (Enterprise Value 129b / FCF TTM 3.71b)
FCF Yield = 2.88% (FCF TTM 3.71b / Enterprise Value 129b)
FCF Margin = 30.28% (FCF TTM 3.71b / Revenue TTM 12.3b)
Net Margin = 35.40% (Net Income TTM 4.34b / Revenue TTM 12.3b)
Gross Margin = 86.28% ((Revenue TTM 12.3b - Cost of Revenue TTM 1.68b) / Revenue TTM)
Gross Margin QoQ = 86.85% (prev 85.56%)
Tobins Q-Ratio = 4.86 (Enterprise Value 129b / Total Assets 26.5b)
Interest Expense / Debt = 0.67% (Interest Expense 13.3m / Debt 1.99b)
Taxrate = 16.02% (827.4m / 5.17b)
NOPAT = 4.35b (EBIT 5.18b * (1 - 16.02%))
Current Ratio = 3.02 (Total Current Assets 11.7b / Total Current Liabilities 3.88b)
Debt / Equity = 0.10 (Debt 1.99b / totalStockholderEquity, last quarter 19.4b)
Debt / EBITDA = -0.98 (Net Debt -5.26b / EBITDA 5.39b)
Debt / FCF = -1.42 (Net Debt -5.26b / FCF TTM 3.71b)
Total Stockholder Equity = 18.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.58% (Net Income 4.34b / Total Assets 26.5b)
RoE = 23.93% (Net Income TTM 4.34b / Total Stockholder Equity 18.1b)
RoCE = 22.90% (EBIT 5.18b / Capital Employed (Total Assets 26.5b - Current Liab 3.88b))
RoIC = 19.69% (NOPAT 4.35b / Invested Capital 22.1b)
WACC = 7.31% (E(134b)/V(136b) * Re(7.41%) + D(1.99b)/V(136b) * Rd(0.67%) * (1-Tc(0.16)))
Discount Rate = 7.41% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -68.89 | Cagr: -0.79%
[DCF] Terminal Value 75.44% ; FCFF base≈3.71b ; Y1≈3.73b ; Y5≈3.95b
[DCF] Fair Price = 262.6 (EV 61.4b - Net Debt -5.26b = Equity 66.6b / Shares 253.8m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.24 | # QB: 0
Revenue Correlation: 99.83 | Revenue CAGR: 9.99% | SUE: -0.15 | # QB: 0
EPS current Quarter (2026-06-30): EPS=4.73 | Chg30d=+0.00% | Revisions=+0% | Analysts=24
EPS next Quarter (2026-09-30): EPS=4.95 | Chg30d=+0.00% | Revisions=-15% | Analysts=23
EPS current Year (2026-12-31): EPS=19.15 | Chg30d=-0.00% | Revisions=+15% | GrowthEPS=+4.0% | GrowthRev=+8.6%
EPS next Year (2027-12-31): EPS=21.47 | Chg30d=-0.00% | Revisions=-24% | GrowthEPS=+12.2% | GrowthRev=+9.4%
[Analyst] Revisions Ratio: -6% (up=38, down=43)