Stock Analysis
Vertex Pharmaceuticals IncVRTX
P/E 28.75×· 5Y range 21.22–35.04×· 67th percentile of history
Sector: Healthcare · Industry: Biotechnology
AnalystsStrong Buy36 analystsP/E 28.8× sits at the 67th percentile of its 5.086926762491444-year history.
PMP Verdict
High quality, fairly valued
Strengths
- Profitability95
- Financial Health75
Strong fundamentals at a reasonable valuation.
Bull Case
- ✓Altman Z 13.4 — safe-zone balance sheet
- ✓ROE 23.6% — efficient capital deployment
- ✓Revenue CAGR 12.2% — durable top-line growth
- ✓Interest coverage 49.1× — debt well covered
What's happening with VRTX
Profile
Strong profitability and financial health; valuation lags behind.
How is each axis scored?
- Valuation25/100 · Weak
- P/E vs own history (67th pct)5/25
- FCF yield (3.0%)5/25
- P/S (10.1x)5/25
- EV/EBIT (n/a)10/25
- Growth72/100 · Moderate
- Revenue CAGR (12.2%)20/25
- Net income CAGR (14.0%)20/25
- EPS CAGR 5Y (14.2%)20/25
- Fwd implied growth (14.7%)12/25
- Profitability95/100 · Strong
- ROIC (31.3%)25/25
- ROE (23.6%)20/25
- Net margin (35.0%)25/25
- Operating margin (38.0%)25/25
- Financial Health75/100 · Strong
- Altman Z (13.38)25/25
- Current ratio (2.90)25/25
- Interest coverage (49.1x)25/25
- Net cash / debt (n/a)0/25
- Quality55/100 · Moderate
- Piotroski F (6/9)15/25
- Beneish M (-2.21)12/25
- FCF conversion (86%)22/25
- Margin stability (σ 20.7%)6/25
- Moat63/100 · Moderate
- ROIC >12% years (8/9 yrs)20/25
- Median gross margin (87.5%)25/25
- FCF-positive years (9/10 yrs)18/25
- Worst-year net margin (worst -6.6%)0/25
Risk Flags
- ⚠SBC 5.5% of revenue — real dilution cost
- ⚠2 loss-making years in recent history
About Vertex Pharmaceuticals Inc
Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Show more
Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio, and Alyftrek for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex has diversified its portfolio through Casgevy, a gene-editing therapy for beta thalassemia and sickle-cell disease, and Journavx, a non-opioid pain medication approved for the treatment of moderate-to-severe acute pain in adults. Additionally, Vertex is evaluating small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.
Headquarters: BOSTON, MA · Employees: 6,400 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
25EP/E (TTM)28.9xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 21.2x–35.0x · 67th pct
P/FCF34.0xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield3.0%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -1.1%–5.4% · 34th pct
P/S (TTM)10.11xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 6.5x–12.6x · 60th pct
EV/EBITDA24.3xC
Grade C: ExpensiveEnterprise value / EBITDA (Finnhub) — capital-structure neutral
EV/Sales9.6xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E25.2xC
Grade C: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio6.82xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.50C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
95A+ROIC31.3%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE23.6%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA16.9%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin35.0%A
Grade A: HighNet Income / Revenue
Operating Margin38.0%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin86.0%A
Grade A: PremiumGross Profit / Revenue
FCF Margin30.2%A
Grade A: HighFCF / Revenue
True FCF Margin24.7%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
72B+Revenue CAGR12.2%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR14.0%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)14.2%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth14.7%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-3.1%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income15.6%C
Grade C: MedStock-based comp/Net income. >30% = dilution risk
SBC / Revenue5.5%C
Grade C: MedTTM stock-based comp / TTM Revenue
Financial Health
75B+Altman Z-Score13.38A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio2.90xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio2.55xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage49.1xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment—
Years to repay net debt via FCF
Net Debt/EBIT—
Leverage. <2x Low, >4x High
Debt/Equity0.00xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt—
Cash covers how much of total debt. >1 = could repay all debt from cash
Quality
55CPiotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.21C
Grade C: Gray zoneEarnings manipulation risk. < -2.22 Safe
FCF Conversion86.2%A
Grade A: StrongFCF / Net Income
Margin Stability20.7%D
Grade D: VolatileEBIT margin std deviation. Lower = stable
Capex / Revenue3.9%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.48xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
van Grunsven Jasper Filed | van Grunsven Jasper | Grant / award | +8.7K | |
Ambrose Kristen Filed | Ambrose Kristen | Grant / award | +5.0K | |
SACHS BRUCE I Filed | SACHS BRUCE I | Gift | -6000 | |
Tatsis Ourania Filed | Tatsis Ourania | Grant / award | +8.3K | |
Sachdev Amit Filed | Sachdev Amit | Grant / award | +8.3K |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Garber Alan M Filed | Garber Alan M | Grant / award | +32 | |
SACHS BRUCE I Filed | SACHS BRUCE I | Grant / award | +100 | |
McKechnie Duncan Filed | McKechnie Duncan | SellOpen market sale | -1541 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
63BROIC >12% Years8/9 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)87.5%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years9/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor-6.6%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$17.38
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$30.99
Cash & short-term investments per share (Finnhub)
Book Value / Share$79.92
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt—
Total debt obligations (short + long term)
Cash & Equiv.$6.61B
Cash and short-term investments
Net Debt—
Total Debt minus Cash. Negative = Net Cash position
Total Equity$18.67B
Shareholders' equity (book value)
Asset / Liability3.68xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$127.24B
Current Market Capitalization
Beta0.28B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 16, 2026
Key Insights: Vertex Pharmaceuticals Inc (VRTX)
VRTX is down 1.77% at the last close. Piotroski F-Score of 6/9 indicates mixed fundamentals for Vertex Pharmaceuticals Inc. Altman Z-Score of 13.38 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Vertex Pharmaceuticals Inc converts about 30% of revenue into free cash flow — strong cash generation.
- Vertex Pharmaceuticals Inc posted a net loss in 2 of 10 available completed fiscal years (2016–2025).
- At a valuation score of 25/100, VRTX trades at a premium to its historical multiples (P/E 28.9).
- Return on equity of 23.6% is well above the market average.
See how VRTX ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all VRTX moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 14 | Regular | 499.86 | +3.02% | 2.37 |
| Oct 14 | After-hours | 501.01 | +3.25% | 2.54 |
| Oct 13 | Regular | 487.61 | -3.82% | -3.84 |
| Oct 13 | After-hours | 486.20 | -4.10% | -4.13 |
| Oct 1 | Regular | 506.49 | -3.12% | -2.52 |
Frequently Asked Questions about VRTX
What is the current Vertex Pharmaceuticals Inc (VRTX) stock price?
VRTX is trading at $499.74 at the last market close, down 1.77% on the session. PreMarketPrice tracks VRTX pre-market, intraday and after-hours prices.
Is VRTX stock a buy right now?
PreMarketPrice's quantitative model rates Vertex Pharmaceuticals Inc's financial health at 75/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is VRTX stock overvalued?
Vertex Pharmaceuticals Inc trades at a trailing P/E of 28.9 and our valuation score rates it 25/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Vertex Pharmaceuticals Inc report earnings?
No confirmed earnings date is currently scheduled for VRTX. The Earnings section lists recent reports and updates as dates are announced.
What sector does Vertex Pharmaceuticals Inc operate in?
Vertex Pharmaceuticals Inc operates in the Healthcare sector, within the Biotechnology industry. The Related Stocks section lists sector peers for comparison.
What does Vertex Pharmaceuticals Inc do?
Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases.
About Vertex Pharmaceuticals Inc (VRTX) Stock
Vertex Pharmaceuticals Inc (VRTX) is a US-listed stock operating in the Healthcare sector, specifically the Biotechnology industry. As of the latest update, Vertex Pharmaceuticals Inc is trading at $499.74, down 1.77% on the day with a market capitalization of $127.2 billion. The financial health score for VRTX is 75/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for VRTX stock.
VRTX Stock Analysis & Key Metrics
On PreMarketPrice, you can track Vertex Pharmaceuticals Inc (VRTX) across multiple dimensions:
- Pre-market price & movement: Real-time VRTX stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for VRTX with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Vertex Pharmaceuticals Inc across multiple reporting periods.
- Financial health score: A composite score of 75/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for VRTX.
- Sector peers: Compare VRTX against 6 other healthcare stocks on key financial metrics.
Is VRTX a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Vertex Pharmaceuticals Inc (VRTX) as an investment. The financial health score of 75/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Vertex Pharmaceuticals Inc (VRTX) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.