Stock · VRTX · Healthcare

Vertex Pharmaceuticals Inc

United States · Large Cap · listed since 1991 · Revenue 12 mo. $12.6B

Price as of 11/06/2026

StockScorer score
5.5
of 10 6 of 11 points Medium Match To the score
Price
$547.09
1 Y +21.8%
Market cap
$140.1B
Phase
Scaling
revenue growing, core business only recently profitable
Revenue +10.6% a year (3 years)EBIT margin 39.4%Payout 55.6% of operating cash flow

Vertex Pharmaceuticals Incorporated operates as a biotechnology company in the United States, Europe, and internationally.

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Vertex Pharmaceuticals Incorporated operates as a biotechnology company in the United States, Europe, and internationally. The company offers transformative medicines for people with serious diseases with a focus on specialty markets, such as cystic fibrosis (CF), sickle cell disease (SCD), transfusion dependent beta thalassemia (TDT), and acute pain. It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age and older; ALYFTREK for the treatment for people with CF 6 years of age and older; SYMDEKO/SYMKEVI for treatment of patients with CF 6 years of age and older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 month or older who have CF with ivacaftor. The company also develops CASGEVY for the treatment of SCD and TDT; JOURNAVX for the treatment of acute pain in adults; VX-522, a CFTR mRNA therapeutic designed to treat the underlying cause of CF, which is in Phase 1/2 clinical trial; inaxaplin for the treatment of APOL1-mediated kidney disease, which is in single Phase 2 trial; VX-264 for treating Type 1 Diabetes; VX-670 for the treatment of myotonic dystrophy type 1; and VX-407, a small molecule corrector for the treatment of autosomal dominant polycystic kidney disease. In addition, the company also operates as a clinical-stage pharmaceutical company, that focuses on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. The company sells its products primarily to specialty pharmacy and distributors, wholesalers, retail pharmacies, hospitals, and clinics. Vertex Pharmaceuticals Incorporated has a strategic collaboration with AbCellera Biologics Inc. to research, develop, manufacture, and commercialize multispecific T-cell engagers (TCEs) for autoimmune diseases and other conditions. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.

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Summary

Vertex Pharmaceuticals Inc is around the middle of the Healthcare sector overall

55.3 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 19.1% FCF growth a year: more than over the last 5 years, less than over the last 10 years.

If free cash flow stays at €2.9B (2025), it supports €31.8B. The remaining €93.9B of the market value assume it grows 19.1% a year for 10 years and not at all afterwards.

Required FCF growth per year

19.1%

no growth afterwards

Market value breakdown€125.7B market value, price as of 11/06/2026

€31.8B without growth
€93.9B priced-in growth
  • 5 yrs achieved −15.2%
  • 10 yrs achieved 41.5%
  • priced in 19.1%

Valuation against its own history

Price to operating cash flow 32.6×, above its usual range.

Middle half of 16 quarters: 20.5× to 28.2×, median 23.8×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

2 signs support the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

  • High, stable gross margin median 87.4%, range 3.9 pp (10 years)
  • Low capital needs capex median 3.1% of revenue (10 years)

What speaks against it

with respect to the priced-in expectation

  • Volatile earnings 4 drops or sign changes in up to 10 years

Since the last quarter

Q1 → Q2 2026

Mostly better than the previous quarter: 1 of 1 change for the better.

  • Net debt−$3.5B → −$4.2B−18.8%better

7 more unchanged: Revenue, 12 mo., FCF, 12 mo., Gross margin, EBIT margin, FCF margin, Shares outstanding, Return on equity

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability83.6above the middleEarns more than the sector: EBIT margin 39.43%, sector 18.31%.
MetricStockSector medianPosition in sector
Return on equity21.18%11.52%Rank 80
Return on capital (Greenblatt)45.68%32.55%Rank 66
EBIT margin39.43%18.31%Rank 94
FCF margin26.45%14.12%Rank 87
Gross margin85.03%60.99%Rank 92
Growth53.9around the middleGrows about as fast as the sector.
MetricStockSector medianPosition in sector
Revenue growth, 1 year9.57%8.04%Rank 59
Earnings growth, 3 years per year6.12%5.44%Rank 53
Earnings growth, 5 years per year8.28%7.00%Rank 55
Sustainable growth (ROE × retained earnings)3.62%3.66%Rank 49
Valuation28.8below the middleValued higher than the sector: EV/sales 11.38, sector 4.03.
MetricStockSector medianPosition in sector
Earnings yield2.80%2.90%Rank 46
FCF yield2.28%3.63%Rank 26
EV/saleslower is better11.384.03Rank 12
EV/EBITlower is better28.8621.73Rank 31
Momentum63.1above the middleShare price doing better than the sector: Distance from 52-week high −2.11%, sector −7.35%.
MetricStockSector medianPosition in sector
Share price, 1 year21.83%8.66%Rank 69
Share price, 6 months27.77%24.27%Rank 59
Share price, 3 months15.42%15.42%Rank 50
Distance from 52-week high−2.11%−7.35%Rank 74
Quality28.9below the middleQuality below the sector: Dividend streak in years –, sector 10.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better5.21%0.30%Rank 18
Change in share countlower is better0.04%0.00%Rank 35
Dividend streak in years–10Rank 13
Price reaction to results, market-adjusted0.05%0.05%Rank 50
Balance sheet & risk73.6above the middleLess risk than the sector: Equity ratio 71.40%, sector 48.40%.
MetricStockSector medianPosition in sector
Equity ratio71.40%48.40%Rank 81
Net debt/EBITDAlower is better−0.561.11Rank 78
Debt to equitylower is better0.210.48Rank 71
Volatility, 1 yearlower is better29.34%31.42%Rank 65

Ten years in figures

Revenue from $1.7B (2016) to $12.1B (2025), 24.3% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCFSharesNet debt
20161.70.6%$179.5M245M−$345.7M
20172.55.0%$585.5M253M−$1.1B
20183.020.8%$1.2B259M−$2.1B
20194.228.8%$1.5B261M−$2.4B
20206.246.0%$3.0B263M−$5.1B
20217.636.7%$2.4B260M−$5.8B
20228.948.2%$3.9B259M−$9.6B
20239.938.8%$3.3B261M−$9.6B
202411.0−2.1%−$790.3M258M−$2.8B
202512.139.4%$3.2B258M−$1.2B
5.5 / 10Medium MatchStockScorer score6 of 11 points

4 of 7 StockScorer Score rules met · How the score is built

Vertex Pharmaceuticals Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 100%This stock · Growth: 0%This stock · Valuation: 0%This stock · Momentum: 100%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Vertex Pharmaceuticals Inc's score is built

Vertex Pharmaceuticals Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

4 of 7 rules met

6 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.not met0 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketmet1 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Vertex Pharmaceuticals Inc stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Earnings Quality: Accrual Check (Sloan)
  • Levermann Strategy (13 Criteria)
  • Magic Formula: Value + Quality
  • Defensive: Low Volatility
  • Undervalued Stocks: Multi-Factor Check
  • High-Growth / Rule of 40
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Dividend Aristocrats & Continuity
  • Dividend Quality: 4 Factors
  • Balanced GARP
  • PEG Strategy (inspired by Peter Lynch)
  • Trending Value: Value + Momentum

Vertex Pharmaceuticals Inc key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Vertex Pharmaceuticals Inc.

MetricStockSector
P/E ratio35.730.0
P/B ratio7.64.8
Return on equity (ROE)21.2%11.5%
Equity ratio71.4%48.4%
Debt-to-equity (D/E)0.210.48
Dividend yield0.0%1.3%

Similar stocks in Healthcare

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
VRTXVertex Pharmaceuticals Incthis page
MRNAModerna IncLow0.9
REGNRegeneron Pharmaceuticals IncMedium5.5
RVMDRevolution Medicines Inclocked
RPRXRoyalty Pharma Plclocked
CSL.AXCSL Ltdlocked

Frequently asked questions about Vertex Pharmaceuticals Inc stock

How does Vertex Pharmaceuticals Inc stock (VRTX) score in the StockScorer model?
Vertex Pharmaceuticals Inc stock reaches a StockScorer score of 5.5 out of 10, which is a medium match with the rule-based strategies. 4 out of 7 flagship profile rules are met.
What is Vertex Pharmaceuticals Inc's P/E ratio?
Vertex Pharmaceuticals Inc's P/E ratio is 35.7. The Healthcare sector median is 30.0.
What sector is Vertex Pharmaceuticals Inc in?
Vertex Pharmaceuticals Inc is assigned to the Healthcare sector. Its rank within the sector is 55.3 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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