Vertex Pharmaceuticals (VRTX) AI Stock Analysis

• Market Cap: $114.83B
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 8.55%
• EPS Growth: -124.45%
• Country: US
• Employees: 6,100
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): 4.06
• Shares Outstanding: 256,797,180
• 10 Day Avg. Volume: 2,151,498
• 30 Day Avg. Volume: 1,978,719
• PEG Ratio: 1.31
• Price to Book (P/B): 4.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -138.09
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 2.63
• Enterprise Value/Gross Profit: 11.69
• Enterprise Value/Ebitda: 17.11
• 1Y Price Target: $512.95
• Price Target Upside: 17.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

• Rating: 58 Neutral
• Price Target: $453.00 ▲( 4.06% Upside)

Vertex Pharmaceuticals' strong revenue growth and product launches are positive, but the score is impacted by short-term profitability issues, weak technical indicators, and valuation concerns due to a negative P/E ratio. Confidence in future growth, supported by a solid balance sheet and strategic initiatives like the stock buyback, provides some balance.

Positive Factors

Pipeline Expansion

Recent updates in VX-548 and VX-147 have been encouraging, reinforcing confidence in other earlier-staged pipeline prospects.

Product Launch

Vertex management is actively working to ensure a successful product launch by securing broad coverage and strong physician awareness.

Negative Factors

Revenue Impact

Vertex reported results with revenue impacted by intellectual property violations in Russia, which had an estimated $100M impact on revenue.

Vertex Pharmaceuticals Business Overview & Revenue Model

Company Description

Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis. The company markets SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO to treat patients with cystic fibrosis who have specific mutations in their cystic fibrosis transmembrane conductance regulator gene; and TRIKAFTA for the treatment of patients with CF 6 years of age or older who have at least one F508del mutation. Its pipeline includes VX-864 for the treatment of AAT deficiency, which is in Phase 2 clinical trial; VX-147 for the treatment of APOL1-mediated focal segmental glomerulosclerosis, or FSGS, and other serious kidney diseases which is in Phase 2 clinical trial; VX- 880, treatment for Type 1 Diabetes which is in Phase 1/2 clinical trial; VX-548, a NaV1.8 inhibitor for treatments of acute, neuropathic, musculoskeletal pain which is in Phase 2 clinical trial; and CTX001 for the treatment severe SCD and TDT which is in Phase 3 clinical trial. The company sells its products primarily to specialty pharmacy and specialty distributors in the United States, as well as specialty distributors and retail chains, and hospitals and clinics internationally. It has collaborations with Affinia Therapeutics, Inc.; Arbor Biotechnologies, Inc.; CRISPR Therapeutics AG.; Kymera Therapeutics, Inc.; Mammoth Biosciences, Inc.; Moderna, Inc.; Obsidian Therapeutics, Inc.; and Skyhawk Therapeutics, Inc.; as well as Ribometrix, Inc.; Genomics plc; Merck KGaA; Darmstadt, Germany, and X-Chem, Inc. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Vertex Pharmaceuticals generates revenue mainly through the sale of its cystic fibrosis medications, which are its flagship products. The company's CF drugs, such as Trikafta, Symdeko, Orkambi, and Kalydeco, are approved in multiple countries, including the United States and the European Union, and are prescribed to a broad patient population. These drugs address different mutations of the CF gene, expanding the number of patients who can benefit from treatment. Besides direct sales, Vertex also engages in strategic partnerships and collaborations to advance its research and development pipeline. The company invests significantly in R&D to discover and develop new treatments for other diseases, which can potentially lead to new revenue streams in the future. Revenue from licensing agreements and milestone payments from partners also contribute to its earnings, though the majority of its income is derived from its commercialized CF therapies.

Vertex Pharmaceuticals Financial Statement Overview

Summary

Vertex Pharmaceuticals has shown strong revenue growth but faces challenges in profitability and cash flow. The balance sheet remains robust with low leverage, but the recent financial period's negative profitability and cash flow issues are concerns.

Income Statement

Vertex Pharmaceuticals has shown remarkable revenue growth over the years, with a significant increase from 2019 to 2023. However, the most recent year saw a decline in profitability with a negative EBIT and net income, leading to negative profit margins. This indicates potential operational challenges or increased expenses impacting the bottom line.

Balance Sheet

The company's balance sheet remains robust with a strong equity base and a low debt-to-equity ratio, indicating financial stability and low leverage. The equity ratio is healthy, suggesting sound asset financing through shareholders’ equity. However, the recent increase in liabilities should be monitored for any potential risks.

Cash Flow

Vertex Pharmaceuticals experienced a significant downturn in free cash flow and operating cash flow in the latest year, resulting in negative cash flow figures. This could be a concern if it continues, although historically, the company has maintained strong cash flow generation. The Free Cash Flow to Net Income ratio is negative, reflecting recent profitability challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.02B	9.87B	8.93B	7.57B	6.21B
	Gross Profit
9.49B	8.61B	7.85B	6.67B	5.47B
	EBIT
-232.90M	4.31B	4.31B	2.78B	2.86B
	EBITDA
484.90M	4.61B	4.44B	2.92B	3.28B
	Net Income Common Stockholders
-535.60M	3.62B	3.32B	2.34B	2.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.12B	11.22B	10.78B	7.52B	6.66B
	Total Assets
22.53B	22.73B	18.15B	13.43B	11.75B
	Total Debt
1.75B	808.40M	561.00M	556.70M	581.48M
	Net Debt
-2.82B	-9.56B	-9.94B	-6.24B	-5.41B
	Total Liabilities
6.12B	5.15B	4.24B	3.33B	3.06B
	Stockholders Equity
16.41B	17.58B	13.91B	10.10B	8.69B
Cash Flow		Free Cash Flow
-790.30M	3.28B	3.93B	2.41B	2.99B
	Operating Cash Flow
-492.60M	3.54B	4.13B	2.64B	3.25B
	Investing Cash Flow
-3.77B	-3.14B	-321.10M	-340.90M	99.39M
	Financing Cash Flow
-1.49B	-562.20M	-67.70M	-1.48B	-505.28M

Vertex Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 435.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRTX, the sentiment is Negative. The current price of 435.32 is below the 20-day moving average (MA) of 461.21, below the 50-day MA of 480.56, and below the 200-day MA of 468.01, indicating a bearish trend. The MACD of -14.00 indicates Positive momentum. The RSI at 39.12 is Neutral, neither overbought nor oversold. The STOCH value of 77.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRTX.

Vertex Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMRN	76 Outperform	$11.49B	21.70	9.64%	―	17.99%	152.10%
REGN	75 Outperform	$64.41B	15.18	15.96%	0.14%	7.52%	15.65%
ARGX	69 Neutral	$35.56B	42.11	17.33%	―	78.01%	―
ALNY	62 Neutral	$38.03B	―	-414.62%	―	17.21%	21.16%
VRTX	58 Neutral	$114.83B	―	-5.64%	―	8.55%	-124.45%
BNTX	55 Neutral	$24.45B	―	-3.87%	―	0.58%	-764.64%
Sector *	53 Neutral	$5.24B	3.07	-43.58%	2.80%	16.87%	-0.11%

Vertex Pharmaceuticals Corporate Events

Vertex Pharmaceuticals Launches $4 Billion Stock Buyback

Vertex Pharmaceuticals has announced a new stock repurchase program, authorizing up to $4.0 billion in buybacks without an expiration date. This initiative, combined with the existing 2023 program, allows the company to repurchase up to $4.775 billion in total, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (VRTX) stock is a Sell with a $325.00 price target. To see the full list of analyst forecasts on Vertex Pharmaceuticals stock, see the VRTX Stock Forecast page.

Vertex Pharmaceuticals Holds Annual Shareholder Meeting

On May 14, 2025, Vertex Pharmaceuticals held its annual shareholder meeting where several key decisions were made. The shareholders elected a new board of directors, ratified the appointment of Ernst & Young LLP as the independent accounting firm for 2025, and approved the 2024 executive compensation program. However, a proposal concerning excessive golden parachutes was not approved.

The most recent analyst rating on (VRTX) stock is a Sell with a $325.00 price target. To see the full list of analyst forecasts on Vertex Pharmaceuticals stock, see the VRTX Stock Forecast page.