Vertex Piotroski F Score

VRTX
 Stock
  

USD 312.98  3.18  1.01%   

This module uses fundamental data of Vertex Pharmaceutic to approximate its Piotroski F score. Vertex Pharmaceutic F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Vertex Pharmaceutic. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Vertex Pharmaceutic financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Also, please take a look at Vertex Pharmaceutic Altman Z Score, Vertex Pharmaceutic Correlation, Vertex Pharmaceutic Valuation, as well as analyze Vertex Pharmaceutic Alpha and Beta and Vertex Pharmaceutic Hype Analysis.
  
Vertex Pharmaceutic Total Debt is fairly stable at the moment as compared to the past year. Vertex Pharmaceutic reported Total Debt of 756.68 Million in 2021. Debt Current is likely to rise to about 310.2 M in 2022, whereas Debt Non Current is likely to drop slightly above 415.6 M in 2022. Vertex Pharmaceutic Total Assets Per Share are fairly stable at the moment as compared to the past year. Vertex Pharmaceutic reported Total Assets Per Share of 52.78 in 2021. Debt to Equity Ratio is likely to rise to 0.05 in 2022, whereas Inventory Turnover is likely to drop 2.81 in 2022.
At this time, it appears that Vertex Pharmaceutic's Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
5.0
Piotroski F Score - Healthy
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)DecreasingFocus
5
Asset Turnover GrowthDecreaseFocus
6
Current Ratio ChangeDecreaseFocus
7
Long Term Debt Over Assets ChangeHigher LeverageFocus
8
Change In Outstending SharesDecreaseFocus
9
Change in Gross MarginIncreaseFocus

Vertex Pharmaceutic Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Vertex Pharmaceutic is to make sure Vertex is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Vertex Pharmaceutic's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Vertex Pharmaceutic's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares Diluted237.3 M259.9 M
Significantly Down
Increasing
Slightly volatile
Weighted Average Shares235.3 M257.7 M
Significantly Down
Increasing
Slightly volatile
Return on Average Assets20.0718.5997
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations2.9 B2.6 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities2.3 B2.1 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities3.6 B3.3 B
Significantly Up
Increasing
Slightly volatile
Gross Margin97.9888.0624
Moderately Up
Decreasing
Stable
Total Debt816.4 M756.7 M
Significantly Up
Increasing
Slightly volatile
Asset Turnover0.540.6015
Moderately Down
Increasing
Slightly volatile
Current Assets10.3 B9.6 B
Significantly Up
Increasing
Slightly volatile
Total Assets14.5 B13.4 B
Significantly Up
Increasing
Slightly volatile

Vertex Pharmaceutic F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Vertex Pharmaceutic's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Vertex Pharmaceutic in a much-optimized way.

About Vertex Pharmaceutic Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value per Share

4.25

Vertex Pharmaceutic Book Value per Share is fairly stable at the moment as compared to the past year. Vertex Pharmaceutic reported Book Value per Share of 4.91 in 2021

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

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.
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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Also, please take a look at Vertex Pharmaceutic Altman Z Score, Vertex Pharmaceutic Correlation, Vertex Pharmaceutic Valuation, as well as analyze Vertex Pharmaceutic Alpha and Beta and Vertex Pharmaceutic Hype Analysis. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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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
0.095
Market Capitalization
81.7 B
Quarterly Revenue Growth YOY
0.18
Return On Assets
0.14
Return On Equity
0.29
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.