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About The Company

CEO

Dr. Reshma Kewalramani FASN, M.D.

Market Cap

103.52 Billion USD

Sector

Healthcare

Website

https://www.vrtx.com

Last Update

2/22/2024, 12:00:00 PM

Description

Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis.

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Overview

Value

24

Growth

78

Health

71

Management

66

Analyst Opinion

91

Total

66

All Scores Out Of 100

Best Features

  • Very strong cashflow and earnings growth
  • Has a low level of debt
  • Low risk of bankruptcy
  • Has strong financial health
  • Liked by analysts
  • Low preportion of income is paid as dividend

Risk Factors

  • Earnings growth has slowed down recently
  • There is a history of diluting shareholders
  • No margin of safety at their current market price
  • Disliked by Twitter users
  • Price-to-earnings ratio of 30.4 is higher than the market average (19.6x)
  • Dividend could be at risk

Market Peers

VRTX

Key Figures

PE Ratio (TTM)

30.41

Margin Of Safety (DCF)

-20.45%

Revenue Growth (5 Year Average)

17.90%

Ratings Consensus

Strong Buy

Share Buybacks

-0.58%

Dividend Yeild (TTM)

0.07%

Valuation

Value Score

24

  • Estimated intrinsic-value of 339.64 USD is lower than current price ( 400.76 USD)
  • Price-to-earnings ratio of 30.4 is higher than the market average (19.6x)
  • Free-cashflow-yeild of 2.97% is worse than the market average (4.7%)
  • Margin-of-safety of -20.45% is worse than the market average (17.95%)

Desired Margin Of Safety

0%

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Buy Target: < 3164898171.7 USD

Current Price: 427 USD

How Does This Work?

Show Advanced Options

This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated target price for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel the impact this has on longterm investment returns and discover a margin of safety you are comfortable with. This can be a useful tool for investors looking to make informed decisions about whether to buy or sell shares of a particular company.

Price/Earnings

30.41x

Free Cashflow Yeild

2.97%

PE/Earnings Growth

0.71

Price/Book

6.27x

Growth

Growth Score

78

  • 5 Year Average Revenue growth of 17.90% is higher than the market average (10.97%)
  • 5 Year Average Earnings growth of 22.64% is higher than the market average (14.48%)
  • 5 Year Average Cashflow growth of 24.57% is higher than the market average (12.35%)
  • Revenue growth has slowed this year
  • Earnings growth has slowed this year
  • Free Cashflow growth has slowed this year

Revenue Growth

17.90%

Earnings Growth

22.64%

Cashflow Growth

24.57%

Health

Health Score

71

  • Low risk of bankruptcy
  • Has a low level of debt
  • Assets cover liabilities
  • Low financial Leverage
  • Normal operation does not require debt to be sustainable
  • Debt repayments do not significantly impact cashflow

Altman Z Score

15.14

Piostroski Score

3.00

Debt/Equity

0.06x

Current Assets/Liabilities

5.22x

Free Cashflow/Total Debt

4.84x

Debt/Capital

0.06x

Dividend

Secure Dividend Score

0

  • Long term dividend payout ratio of 0.00% is considered good
  • Payout ratio (TTM) of 2.04% is lower than the average (40%)
  • Dividends have shown growth over the last 5 years
  • Dividend yeild of 0.07% is less than the market average (1.85%)
  • Very unsafe
  • Spending a higher percentage of their income on dividends than last 5 years

Dividend Yeild

0.07%

Dividend Growth

0.00%

Payout Ratio (Earnings)

2.04%

Payout Ratio (Cashflow)

2.26%

Management

Management Score

66

  • Has issued new shares to finance growth when share price is high
  • Return-on-equity of 24.08% is higher than the market average (15%)
  • Return-on-capital-employed of 22.27% is higher than the market average (10%)
  • Has a history of diluting shareholders to finance activity

Average Buybacks/Dilution

-0.58%

Recent Buybacks/Dilution

0.86%

5 Year Price Volitility

20.84%

Return On Assets

18.46%

Return On Capital Employed

22.27%

Return On Equity

24.08%

Return On Free Cashflow

N/A

Return On Investments

N/A

Social Sentiment

Social Sentiment Score

0

Twitter Sentiment

N/A

Stocktwits Sentiment

N/A

Analysts

Analyst Opinion

91

  • Ratings consensus is Strong Buy

SEC Filings

Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

Other Information

Company Name

Vertex Pharmaceuticals Incorporated

Currency

USD

Beta

0.510245

Vol Avg

1240337

Ceo

Dr. Reshma Kewalramani FASN, M.D.

Cik

0000875320

Cusip

92532F100

Exchange

NASDAQ Global Select

Full Time Employees

4800

Industry

Biotechnology

Sector

Healthcare

Ipo Date

1991-07-24

Address

50 Northern Avenue

City

Boston

State

MA

Country

US

Zip

02210

Phone

617 341 6100

Analysis Last Updated

2/22/2024, 12:00:00 PM

All financial data provided by FMP

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