Vertex Pharmaceuticals (VRTX) AI Stock Analysis

• Market Cap: $115.95B
• Dividend Yield: N/A
• Average Volume (3M): 1.83M
• 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: 55
• Industry: Biotechnology
• EPS (TTM): 4.06
• Shares Outstanding: 256,797,180
• 10 Day Avg. Volume: 1,274,456
• 30 Day Avg. Volume: 1,825,560
• PEG Ratio: 0.52
• Price to Book (P/B): 5.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.84
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 46.01
• 1Y Price Target: $513.67
• Price Target Upside: 11.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

• Rating: 58 Neutral
• Price Target: $453.00 ▼(-1.53%Downside)

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

Market Expansion

The launch of Alyftrek in cystic fibrosis is expected to see a majority of patients, particularly those who were previously ineligible, switch to this new treatment.

Pipeline Expansion

Povetacicept in IgAN is being considered for accelerated approval, representing an important development in their product pipeline.

Product Development

Nine of the 12 treated patients were off insulin completely and maintaining normal blood sugar, and two others had reduced insulin or were in the process of stopping.

Negative Factors

Prescription Trends

NRx saw a 10% decrease, attributed to the holiday week's impact on script trends.

Regulatory Challenges

There is a requirement for chronic immunosuppression, which makes the uptake assumptions conservative.

Sales Performance

TRx decreased by 9% due to the long weekend, indicating a temporary softness in the script data.

Vertex Pharmaceuticals Business Overview & Revenue Model

Company Description

Vertex Pharmaceuticals Incorporated (VRTX) is a global biotechnology company that discovers, develops, and commercializes innovative therapies for serious diseases. Founded in 1989 and headquartered in Boston, Massachusetts, Vertex is renowned for its ground-breaking work in the treatment of cystic fibrosis (CF). The company's core products include a portfolio of CF therapies, with medicines such as Trikafta, Symdeko, Orkambi, and Kalydeco, which have transformed the treatment landscape for CF patients worldwide. Vertex also invests in research and development to expand its pipeline into other areas such as pain, sickle cell disease, beta-thalassemia, and more.

How the Company Makes Money

Vertex Pharmaceuticals generates revenue primarily through the sale of its cystic fibrosis (CF) medications. The company earns money by commercializing its approved drugs, which are predominantly sold in the United States, Europe, and other international markets. Trikafta, Vertex's flagship CF therapy, is the largest contributor to its revenue, given its efficacy and broad applicability to a large segment of the CF population. Additionally, Vertex invests heavily in research and development to expand its drug pipeline, which may lead to future revenue streams through new product launches. Strategic partnerships and collaborations also play a role in Vertex's financial performance, allowing the company to leverage external expertise and resources to enhance its product offerings and market reach.

Vertex Pharmaceuticals Financial Statement Overview

Summary

Vertex Pharmaceuticals exhibits strong historical revenue growth and a solid balance sheet, but faces short-term profitability and cash flow challenges due to decreased operational performance in the TTM period. The healthy equity position provides some financial stability, although the recent increase in total debt and negative cash flow are concerning.

Income Statement

The company's income statement reflects strong historical revenue growth, with a notable increase from 2021 to 2023. However, the TTM period shows a significant decline in EBIT and EBITDA, resulting in negative margins and net income, which raises concerns about profitability. Despite the challenges in the TTM period, the company has demonstrated resilience in revenue growth over the years.

Balance Sheet

Vertex Pharmaceuticals exhibits a strong balance sheet with a low debt-to-equity ratio, indicating prudent financial management. The equity ratio remains healthy, and the substantial stockholders' equity suggests financial stability. However, the increase in total debt in the latest period warrants monitoring, despite the overall positive equity position.

Cash Flow

Cash flow analysis shows volatility, with a significant decline in free cash flow in the TTM period. Although previous years demonstrated positive operating cash flow and free cash flow, the current period reflects negative values, impacting the cash flow to net income ratios. This suggests operational challenges in generating cash, which could affect short-term liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.10B	11.02B	9.87B	8.93B	7.57B	6.21B
	Gross Profit
9.55B	9.49B	8.61B	7.85B	6.67B	5.47B
	EBIT
-742.30M	-232.90M	3.83B	4.31B	2.78B	2.86B
	EBITDA
-76.30M	486.30M	4.61B	4.44B	2.92B	3.28B
	Net Income Common Stockholders
-988.90M	-535.60M	3.62B	3.32B	2.34B	2.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.20B	6.12B	11.22B	10.78B	7.52B	6.66B
	Total Assets
22.88B	22.53B	22.73B	18.15B	13.43B	11.75B
	Total Debt
1.65B	1.75B	808.40M	899.70M	967.40M	931.90M
	Net Debt
1.65B	-2.82B	-9.56B	-9.60B	-5.83B	-5.06B
	Total Liabilities
6.38B	6.12B	5.15B	4.24B	3.33B	3.06B
	Stockholders Equity
16.50B	16.41B	17.58B	13.91B	10.10B	8.69B
Cash Flow		Free Cash Flow
-1.26B	-790.30M	3.28B	3.93B	2.41B	2.99B
	Operating Cash Flow
-980.30M	-492.60M	3.54B	4.13B	2.64B	3.25B
	Investing Cash Flow
-1.69B	-3.77B	-3.14B	-321.10M	-340.90M	99.39M
	Financing Cash Flow
-1.82B	-1.49B	-562.20M	-67.70M	-1.48B	-505.28M

Vertex Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 460.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRTX, the sentiment is Neutral. The current price of 460.06 is above the 20-day moving average (MA) of 444.44, below the 50-day MA of 463.59, and below the 200-day MA of 465.84, indicating a neutral trend. The MACD of -2.04 indicates Negative momentum. The RSI at 56.09 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VRTX.

Vertex Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMRN	71 Outperform	$10.96B	21.25	9.64%	―	17.99%	152.10%
ARGX	70 Outperform	$35.73B	41.39	17.33%	―	78.01%	―
REGN	67 Neutral	$56.52B	13.33	15.96%	0.68%	7.52%	15.65%
ALNY	64 Neutral	$39.44B	―	-414.62%	―	17.21%	21.16%
BNTX	61 Neutral	$25.35B	―	-3.87%	―	0.58%	-764.64%
VRTX	58 Neutral	$115.95B	―	-5.64%	―	8.55%	-124.45%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%

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.