Vertex Pharmaceuticals Incorporated
Vertex Pharmaceuticals Incorporated Fundamental Analysis
Vertex Pharmaceuticals Incorporated (VX1.DE) shows strong financial fundamentals with a PE ratio of 28.38, profit margin of 32.84%, and ROE of 22.70%. The company generates $12.0B in annual revenue with strong year-over-year growth of 11.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze VX1.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVX1.DE demonstrates superior asset utilization.
Valuation Score
WeakVX1.DE trades at a premium to fair value.
Growth Score
ModerateVX1.DE shows steady but slowing expansion.
Financial Health Score
ExcellentVX1.DE maintains a strong and stable balance sheet.
Profitability Score
ExcellentVX1.DE achieves industry-leading margins.
Key Financial Metrics
Is VX1.DE Expensive or Cheap?
P/E Ratio
VX1.DE trades at 28.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VX1.DE's PEG of 3.06 indicates potential overvaluation.
Price to Book
The market values Vertex Pharmaceuticals Incorporated at 6.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.49 times EBITDA. This signals the market has high growth expectations.
How Well Does VX1.DE Make Money?
Net Profit Margin
For every $100 in sales, Vertex Pharmaceuticals Incorporated keeps $32.84 as profit after all expenses.
Operating Margin
Core operations generate 35.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.70 in profit for every $100 of shareholder equity.
ROA
Vertex Pharmaceuticals Incorporated generates $15.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vertex Pharmaceuticals Incorporated generates strong operating cash flow of $3.63B, reflecting robust business health.
Free Cash Flow
Vertex Pharmaceuticals Incorporated generates strong free cash flow of $3.20B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.58 in free cash annually.
FCF Yield
VX1.DE converts 2.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.010
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How VX1.DE Stacks Against Its Sector Peers
| Metric | VX1.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.38 | 28.54 | Neutral |
| ROE | 22.70% | 738.00% | Weak |
| Net Margin | 32.84% | -43982.00% (disorted) | Strong |
| Debt/Equity | 0.21 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 2.90 | 2806.01 | Strong Liquidity |
| ROA | 15.12% | -14624.00% (disorted) | Strong |
VX1.DE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vertex Pharmaceuticals Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
163.93%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-145.38%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-131.30%
Industry Style: Defensive, Growth, Innovation
Declining