Vertex Pharmaceuticals (VRTX) AI Stock Analysis

• Market Cap: $100.71B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.64
• Revenue Growth: 10.38%
• EPS Growth: N/A
• Country: US
• Employees: 6,100
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): 4.52
• Shares Outstanding: 256,390,660
• 10 Day Avg. Volume: 3,532,240
• 30 Day Avg. Volume: 1,933,596
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 9.67
• Enterprise Value/Gross Profit: 11.23
• Enterprise Value/Ebitda: 23.62
• 1Y Price Target: $491.78
• Price Target Upside: 25.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27

• Rating: 73 Outperform
• Price Target: $418.00 ▲(6.42% Upside)

Vertex Pharmaceuticals' strong financial performance and positive earnings call are the most significant factors contributing to its score. However, technical analysis indicates current bearish momentum, and the valuation suggests potential overvaluation. Corporate events, including a stock buyback, provide additional support to the stock's outlook.

Positive Factors

Earnings Performance

VRTX reported non-GAAP EPS of $4.52, which was above consensus estimates, showcasing strong earnings performance.

Product Revenue

Other product revenue, including the broader CF portfolio and Casgevy, reached $236 million, a notable beat of $60 million.

Revenue Performance

Vertex Pharmaceuticals reported total revenue of $3.0 billion, which is 3% above consensus.

Negative Factors

Market Valuation

Vertex shares currently trade at a premium valuation with a P/E multiple of 25.3x 2026E consensus EPS versus the mega-cap BioPharma peer average of 14.9x, maintaining a Hold rating.

Pipeline Development

The next-gen Nav1.8 candidate VX-993 failed in a Phase 2 acute pain study and will not advance as a monotherapy.

Regulatory Challenges

The FDA does not currently see a regulatory path for a broad peripheral neuropathic pain label for Journavx, creating uncertainty about future approvals.

Vertex Pharmaceuticals Business Overview & Revenue Model

Company Description

Vertex Pharmaceuticals Incorporated is a global biotechnology company focused on the discovery, development, and commercialization of innovative medicines for serious diseases. Headquartered in Boston, Massachusetts, Vertex primarily operates in the field of cystic fibrosis (CF) and has expanded its research to include other serious diseases, including sickle cell disease and beta-thalassemia. The company is known for its core products, including Trikafta, Kalydeco, and Orkambi, which are designed to treat the underlying causes of CF by targeting specific genetic mutations.

How the Company Makes Money

Vertex Pharmaceuticals generates revenue primarily through the sale of its approved drug therapies, particularly its cystic fibrosis medications, which have seen significant sales growth due to their effectiveness and the high prevalence of CF among certain populations. The company benefits from a strong pricing strategy, given the specialized nature of its therapies. Additionally, Vertex may engage in collaborations and partnerships with other pharmaceutical and biotech companies, providing potential revenue through upfront payments, milestone payments, and royalties. These collaborations often focus on research and development efforts for new therapies, which can further diversify its revenue streams. The company also invests in research to expand its product pipeline, which can lead to future sales from new drug approvals.

Vertex Pharmaceuticals Financial Statement Overview

Summary

Vertex Pharmaceuticals demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is solid with low leverage, and cash flow generation is generally strong despite some fluctuations. Attention to cash flow management is advisable.

Income Statement

Vertex Pharmaceuticals shows strong revenue growth with a consistent increase over the years, reaching $11.42 billion in TTM. The gross profit margin remains robust at 86.1%, indicating efficient cost management. However, the net profit margin has fluctuated, with a significant improvement in TTM to 31.9% from a negative margin in 2024. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.064, indicating low leverage and financial stability. The return on equity is strong at 20.0%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a strong capital structure.

Cash Flow

Vertex's cash flow statement reveals a decline in free cash flow growth, but the free cash flow to net income ratio is strong at 1.28, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is negative, highlighting potential concerns in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.42B	11.02B	9.87B	8.93B	7.57B	6.21B
Gross Profit	9.83B	9.49B	8.61B	7.85B	6.67B	5.47B
EBITDA	4.67B	486.30M	4.61B	4.44B	2.92B	3.28B
Net Income	3.64B	-535.60M	3.62B	3.32B	2.34B	2.71B
Balance Sheet
Total Assets	24.04B	22.53B	22.73B	18.15B	13.43B	11.75B
Cash, Cash Equivalents and Short-Term Investments	6.38B	6.12B	11.22B	10.78B	7.52B	6.66B
Total Debt	1.53B	1.75B	808.40M	899.70M	967.40M	931.90M
Total Liabilities	6.86B	6.12B	5.15B	4.24B	3.33B	3.06B
Stockholders Equity	17.18B	16.41B	17.58B	13.91B	10.10B	8.69B
Cash Flow
Free Cash Flow	3.50B	-790.30M	3.28B	3.93B	2.41B	2.99B
Operating Cash Flow	3.85B	-492.60M	3.54B	4.13B	2.64B	3.25B
Investing Cash Flow	-1.71B	-3.77B	-3.14B	-321.10M	-340.90M	99.39M
Financing Cash Flow	-1.81B	-1.49B	-562.20M	-67.70M	-1.48B	-505.28M

Vertex Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 392.79
• 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 392.79 is below the 20-day moving average (MA) of 425.63, below the 50-day MA of 443.80, and below the 200-day MA of 458.79, indicating a bearish trend. The MACD of -19.96 indicates Positive momentum. The RSI at 37.60 is Neutral, neither overbought nor oversold. The STOCH value of 54.30 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	$11.05B	17.01	11.62%	―	17.38%	153.58%
ARGX	74 Outperform	$39.67B	30.71	24.75%	―	89.58%	―
VRTX	73 Outperform	$100.71B	28.08	22.77%	―	10.38%	―
REGN	72 Outperform	$61.52B	14.62	15.34%	0.46%	5.38%	3.58%
BNTX	66 Neutral	$27.29B	―	-1.81%	―	7.51%	30.53%
ALNY	60 Neutral	$58.84B	―	-257.82%	―	5.01%	-330.09%
Sector *	51 Neutral	$7.69B	-0.19	-46.01%	2.25%	22.94%	-0.68%

Vertex Pharmaceuticals Corporate Events

Vertex Pharmaceuticals Reports 12% Revenue Increase in Q2 2025

Vertex Pharmaceuticals reported a 12% increase in total revenue for the second quarter of 2025, reaching $2.96 billion, driven by strong performance in cystic fibrosis therapies and new product launches. The company announced the planned retirement of Chief Scientific Officer David Altshuler in August 2026, with Mark Bunnage set to succeed him. Vertex reiterated its full-year financial guidance, highlighting continued growth in cystic fibrosis treatments and ongoing clinical advancements.

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 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.