Vertex Pharmaceuticals (VRTX) Stock Analysis
This is a peer-relative look at Vertex Pharmaceuticals (VRTX): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | VRTX |
|---|---|
| Name | Vertex Pharmaceuticals Incorporated Common Stock |
| Country/Region | United States |
| GICS Sector | Health Care |
| GICS Industry Group | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Biotechnology |
| GICS Sub-Industry | Biotechnology |
| Market Capitalization | 138.71 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | July 24, 1991 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: VRTX | Industry group median |
|---|---|---|
| Total Return (1Y) | 34.89% | 24.62% |
| Total Return (3Y, Annualized) | 14.44% | 20.37% |
| Total Return (5Y, Annualized) | 23.65% | -4.02% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: VRTX | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 29.73% | 66.36% |
| Beta (5Y) | 0.29 | 0.93 |
| Max Drawdown (5Y) | -29.07% | -80.19% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: VRTX | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 1.03 | 0.36 |
| Sortino Ratio (1Y) | 1.68 | 0.58 |
Profitability
ROE (TTM)
Vertex Pharmaceuticals (VRTX) posts ROE of 20.80%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
20.80%
Group distribution
- Max
- 109.18%
- VRTX
- 20.80%
- Q3
- 6.23%
- Median
- -26.66%
- Q1
- -64.05%
- Min
- -167.77%
Largest peers
- LLY
- 86.02%
- NVS
- 24.33%
- AZN
- 22.57%
- VRTX
- 20.80%
- JNJ
- 20.02%
- MRK
- 5.06%
- ABBV
- --
Net Margin (TTM)
Vertex Pharmaceuticals (VRTX) keeps 30.70% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
30.70%
Group distribution
- VRTX
- 30.70%
- Max
- 18.05%
- Q3
- 4.78%
- Median
- 0.00%
- Q1
- -4.14%
- Min
- -17.05%
Largest peers
- LLY
- 31.90%
- VRTX
- 30.70%
- AZN
- 17.68%
- NVS
- 17.49%
- JNJ
- 16.20%
- ABBV
- 15.67%
- MRK
- 3.64%
Operating Margin (TTM)
Vertex Pharmaceuticals (VRTX) turns 35.57% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
35.57%
Group distribution
- Max
- 83.12%
- VRTX
- 35.57%
- Q3
- 14.77%
- Median
- 0.00%
- Q1
- -78.82%
- Min
- -207.40%
Largest peers
- LLY
- 53.66%
- ABBV
- 39.59%
- VRTX
- 35.57%
- MRK
- 35.22%
- NVS
- 34.27%
- AZN
- 29.57%
- JNJ
- 25.74%
Profitability Metrics
| Metric | Current stock: VRTX | Industry group median |
|---|---|---|
| ROE (TTM) | 20.80% | -26.66% |
| ROA (TTM) | 10.62% | -12.50% |
| Net Margin (TTM) | 30.70% | 0.00% |
| Operating Margin (TTM) | 35.57% | 0.00% |
| Gross Margin (TTM) | 54.81% | 37.87% |
Growth
Revenue Growth
Vertex Pharmaceuticals (VRTX) grew revenue 8.90%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
No usable EPS growth is available for Vertex Pharmaceuticals (VRTX) this period, so the earnings-momentum read is skipped.
Growth Metrics
| Metric | Current stock: VRTX | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 8.90% | 11.45% |
| Revenue Growth (3Y CAGR) | 10.35% | 9.94% |
| EPS Growth (YoY) | -- | 4.28% |
| EPS Growth (3Y CAGR) | 6.12% | 4.17% |
Financial Strength
Current Ratio (MRQ)
Vertex Pharmaceuticals (VRTX) has current ratio of 2.34, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
2.34
Group distribution
- Max
- 25.13
- Q3
- 12.13
- Median
- 5.52
- Q1
- 2.47
- VRTX
- 2.34
- Min
- 0.10
Largest peers
- VRTX
- 2.34
- LLY
- 1.39
- MRK
- 1.35
- JNJ
- 1.02
- AZN
- 1.01
- NVS
- 0.88
- ABBV
- 0.87
Debt / Equity (MRQ)
Vertex Pharmaceuticals (VRTX) has debt-to-equity ratio of 0.31, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.31
Group distribution
- Max
- 1.42
- Q3
- 0.65
- VRTX
- 0.31
- Median
- 0.15
- Q1
- 0.02
- Min
- 0.00
Largest peers
- NVS
- 1.29
- LLY
- 1.23
- MRK
- 1.20
- AZN
- 0.66
- JNJ
- 0.55
- VRTX
- 0.31
- ABBV
- --
Financial Strength Metrics
| Metric | Current stock: VRTX | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.34 | 5.52 |
| Debt / Equity (MRQ) | 0.31 | 0.15 |
| Net Debt / EBITDA | 0.03 | 1.08 |
Dividends
Dividend Yield (TTM)
Vertex Pharmaceuticals (VRTX) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.00%
Group distribution
- VRTX
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- NVS
- 2.88%
- ABBV
- 2.40%
- MRK
- 2.29%
- JNJ
- 1.94%
- AZN
- 1.73%
- LLY
- 0.49%
- VRTX
- 0.00%
Dividend Payout Ratio (TTM)
Vertex Pharmaceuticals (VRTX) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.00%
Group distribution
- VRTX
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MRK
- 343.43%
- ABBV
- 117.35%
- NVS
- 90.46%
- JNJ
- 80.12%
- AZN
- 45.38%
- LLY
- 21.71%
- VRTX
- 0.00%
Dividend Metrics
| Metric | Current stock: VRTX | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Vertex Pharmaceuticals (VRTX) trades at P/E ratio of 35.21, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
35.21
Group distribution
- Max
- 85.34
- Q3
- 43.46
- VRTX
- 35.21
- Median
- 26.69
- Q1
- 13.30
- Min
- 0.07
Largest peers
- MRK
- 148.21
- ABBV
- 50.05
- LLY
- 43.95
- JNJ
- 41.92
- VRTX
- 35.21
- NVS
- 31.02
- AZN
- 26.37
P/S Ratio (TTM)
Vertex Pharmaceuticals (VRTX) trades at 10.71 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
10.71
Group distribution
- Max
- 58.18
- Q3
- 25.77
- VRTX
- 10.71
- Median
- 7.30
- Q1
- 3.01
- Min
- 0.01
Largest peers
- LLY
- 13.95
- VRTX
- 10.71
- ABBV
- 7.80
- JNJ
- 6.69
- MRK
- 5.37
- NVS
- 5.35
- AZN
- 4.63
P/B Ratio (MRQ)
Vertex Pharmaceuticals (VRTX) trades at 6.63 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
VRTX
Pharmaceuticals, Biotechnology & Life Sciences industry group
6.63
Group distribution
- Max
- 13.53
- VRTX
- 6.63
- Q3
- 6.54
- Median
- 3.25
- Q1
- 1.69
- Min
- -5.59
Largest peers
- LLY
- 29.96
- NVS
- 8.25
- JNJ
- 8.16
- MRK
- 8.06
- VRTX
- 6.63
- AZN
- 5.59
- ABBV
- -112.34
Valuation Metrics
| Metric | Current stock: VRTX | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 35.21 | 26.69 |
| P/S Ratio (TTM) | 10.71 | 7.30 |
| P/B Ratio (MRQ) | 6.63 | 3.25 |
| Free Cash Flow Yield (TTM) | 1.69% | -1.66% |