Vertex Fundamentals

VRTX
 Stock
  

USD 294.52  2.36  0.81%   

Vertex Pharmaceutic fundamentals help investors to digest information that contributes to Vertex Pharmaceutic's financial success or failures. It also enables traders to predict the movement of Vertex Stock. The fundamental analysis module provides a way to measure Vertex Pharmaceutic's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Vertex Pharmaceutic stock.
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Vertex Pharmaceutic Selling General and Administrative Expense is fairly stable at the moment as compared to the past year. Vertex Pharmaceutic reported Selling General and Administrative Expense of 389.55 Million in 2021. Income Tax Expense is likely to rise to about 16.2 M in 2022, whereas Consolidated Income is likely to drop (104.3 M) in 2022.

Vertex Operating Margin Analysis

Vertex Pharmaceutic's Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Vertex Pharmaceutic Operating Margin

39.63

Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
More About Operating Margin | All Equity Analysis

Current Vertex Pharmaceutic Operating Margin

    
  38.52 %  
Most of Vertex Pharmaceutic's fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Vertex Pharmaceutic is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Vertex Operating Margin Historical Pattern

Today, most investors in Vertex Pharmaceutic Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Vertex Pharmaceutic's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's operating margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Vertex Pharmaceutic operating margin as a starting point in their analysis.
   Vertex Pharmaceutic Operating Margin   
Share
       Timeline  
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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Vertex Operating Margin

Operating Margin

39.63

Vertex Pharmaceutic Operating Margin is fairly stable at the moment as compared to the past year. Vertex Pharmaceutic reported Operating Margin of 36.73 in 2021
Based on the recorded statements, Vertex Pharmaceutic has an Operating Margin of 38.52%. This is 209.81% lower than that of the Healthcare sector and 134.37% lower than that of the Biotechnology industry. The operating margin for all United States stocks is notably lower than that of the firm.

Vertex Pharmaceutic Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Vertex Pharmaceutic's current stock value. Our valuation model uses many indicators to compare Vertex Pharmaceutic value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Vertex Pharmaceutic competition to find correlations between indicators driving Vertex Pharmaceutic's intrinsic value. More Info.
Vertex Pharmaceutic is rated first in current asset category among related companies. It is rated first in operating margin category among related companies . The ratio of Current Asset to Operating Margin for Vertex Pharmaceutic is about  36,530,452 . Vertex Pharmaceutic Operating Margin is fairly stable at the moment as compared to the past year. Vertex Pharmaceutic reported Operating Margin of 36.73 in 2021. Comparative valuation analysis is a catch-all model that can be used if you cannot value Vertex Pharmaceutic by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Vertex Pharmaceutic's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Vertex Pharmaceutic's earnings, one of the primary drivers of an investment's value.

Vertex Price to Earnings To Growth Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Vertex Pharmaceutic's direct or indirect competition against its Price to Earnings To Growth to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Vertex Pharmaceutic could also be used in its relative valuation, which is a method of valuing Vertex Pharmaceutic by comparing valuation metrics of similar companies.
Vertex Pharmaceutic is currently under evaluation in price to earnings to growth category among related companies.

Vertex Pharmaceutic Current Valuation Drivers

We derive many important indicators used in calculating different scores of Vertex Pharmaceutic from analyzing Vertex Pharmaceutic's financial statements. These drivers represent accounts that assess Vertex Pharmaceutic's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Vertex Pharmaceutic's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee114.56 K838.76 K392.27 K795.36 K600.54 K647.95 K
Revenue Per Employee1.08 M1.22 M1.39 M1.82 M1.94 M2.1 M
Earnings Before Interest Taxes and Depreciation Amortization EBITDA103.26 M706.76 M1.5 B3.26 B2.91 B3.14 B

Vertex Pharmaceutic ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Vertex Pharmaceutic's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Vertex Pharmaceutic's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Vertex Fundamentals

About Vertex Pharmaceutic Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Vertex Pharmaceutic's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Vertex Pharmaceutic using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Vertex Pharmaceutic based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Deferred Revenue14.5 M14.9 M
Cost of Revenue189.4 M204.4 M
Revenues7.6 B8.2 B
Revenue to Assets 0.56  0.50 
Revenue Per Employee1.9 M2.1 M
Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts. Vertex Pharmaceutic operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 00 people.

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Our tools can tell you how much better you can do entering a position in Vertex Pharmaceutic without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Also, please take a look at Vertex Pharmaceutic Piotroski F Score and Vertex Pharmaceutic Altman Z Score analysis. Note that the Vertex Pharmaceutic information on this page should be used as a complementary analysis to other Vertex Pharmaceutic's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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Is Vertex Pharmaceutic's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vertex Pharmaceutic. If investors know Vertex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vertex Pharmaceutic listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
11.1
Market Capitalization
75.5 B
Quarterly Revenue Growth YOY
0.23
Return On Assets
0.14
Return On Equity
0.3
The market value of Vertex Pharmaceutic is measured differently than its book value, which is the value of Vertex that is recorded on the company's balance sheet. Investors also form their own opinion of Vertex Pharmaceutic's value that differs from its market value or its book value, called intrinsic value, which is Vertex Pharmaceutic's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vertex Pharmaceutic's market value can be influenced by many factors that don't directly affect Vertex Pharmaceutic's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vertex Pharmaceutic's value and its price as these two are different measures arrived at by different means. Investors typically determine Vertex Pharmaceutic value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vertex Pharmaceutic's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.