VRTX Vertex Pharmaceuticals Incorporated - Fundamental Analysis
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VRTX Stock | Fundamental Analysis & Investment Insights
NASDAQ
Healthcare
Biotechnology
Current Price
Live
$441.36
Analyst Target
$500.4
+13.4%
Upside
52W High
$519.68
52W Low
$362.5
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$113.16B
P/E
31.04
ROE
22.3%
Profit margin
31.3%
Debt/Equity
0.11
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
75%
Analysis Accuracy
Vertex Pharmaceuticals has a weak Piotroski F-Score of 4/9, indicating marginal financial health, and lacks an Altman Z-Score for distress risk assessment. The company exhibits strong profitability with high margins and solid returns (ROE: 22.31%, ROA: 12.04%), but faces decelerating earnings growth (4.7% YoY) and bearish insider activity. Valuation metrics are rich (P/E: 31.04, Price/Sales: 9.65), though below sector averages, and the stock trades well above both the Graham Number ($147.71) and intrinsic value estimate ($199.79), reflecting premium pricing for growth expectations. Analysts recommend a 'buy' with a $500.40 target, yet recent price performance shows weakness over the past six months (-4.0%).
Key Strengths
Exceptional profitability with operating margin of 40.27% and net margin of 31.35%
Strong return metrics: ROE of 22.31% and ROA of 12.04% indicate efficient capital use
Low leverage with Debt/Equity ratio of 0.11, signaling conservative capital structure
Solid liquidity position: Current Ratio of 2.36 and Quick Ratio of 1.84
Revenue growth of 11.00% YoY outpaces peer average of 9.80%
Key Risks
Weak Piotroski F-Score of 4/9 suggests deteriorating financial stability and limited strength in earnings quality
Insider selling activity: $77.51M in net sales over last 6 months signals bearish sentiment from executives
Rich valuation: Current price of $441.36 is more than double the Graham Number ($147.71) and over 120% above intrinsic value ($199.79)
Earnings growth slowing: YoY EPS growth at 9.6% and recent Q/Q at 3.6%, down from prior highs
Technical trend is bearish (0/100), with 6M and 1M returns negative (-4.0%, -1.8%)
AI Fair Value Estimate
Based on comprehensive analysis
$210.0
-52.4% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
47
Moderate
42
55
60
50
30
AI Verdict
Neutral with upside risk if growth reaccelerates
Key drivers: High profitability and sector-leading margins, Rich valuation constraining margin of safety, Bearish insider activity and weak technical trend, Stable balance sheet with low debt, Analyst optimism offsetting internal skepticism
Confidence
75%
Value
42/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 21.87 is below current P/E of 31.04, suggesting earnings recovery priced in
Watchpoints
- Current P/E of 31.04 is high relative to historical norms
- Price/Sales of 9.65 indicates premium valuation
- Stock trades at 2.98x Graham Number, implying significant overvaluation on defensive criteria
Future
55/100
Ref Growth rates
Positives
- Revenue growth of 11.00% YoY exceeds sector average
- Forward P/E implies expected earnings improvement
Watchpoints
- Earnings growth slowing to 4.70% YoY
- Q/Q earnings growth at 3.60% shows deceleration
Past
60/100
Ref Historical trends
Positives
- History of consistent earnings beats: 21 out of 25 quarters beat estimates
- Strong EPS surprise track record, including multiple double-digit beats
Watchpoints
- Recent quarters show declining accuracy: only 2 of last 4 beats
- Negative surprises in 2025 Q1 and 2024 Q2
Health
50/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current and Quick Ratios indicate strong short-term liquidity
- Very low Debt/Equity ratio of 0.11 reduces solvency risk
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health
- Altman Z-Score unavailable, limiting distress risk assessment
Dividend
30/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- No dividend policy: Dividend yield and payout ratio are 0%
- Dividend Strength score of 0/100 reflects absence of income appeal
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$441.36
Analyst Target
$500.4
Upside/Downside
+13.4%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for VRTX and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
VRTX
Vertex Pharmaceuticals Incorporated
Primary
|
+90.3% | +41.5% | +5.8% | -4.0% | -1.8% | -4.8% |
|
BMY
Bristol-Myers Squibb Company
Peer
|
+2.8% | -13.4% | -2.9% | +15.8% | +1.1% | -1.1% |
|
HCA
HCA Healthcare, Inc.
Peer
|
+225.1% | +111.6% | +37.9% | +22.4% | +12.5% | -0.8% |
|
MCK
McKesson Corporation
Peer
|
+373.0% | +141.7% | +38.6% | +16.5% | +6.3% | -1.2% |
|
CVS
CVS Health Corporation
Peer
|
+22.6% | -1.4% | +57.7% | +29.3% | +0.9% | -2.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
31.04
Forward P/E
21.87
PEG Ratio
N/A
P/B Ratio
6.47
P/S Ratio
9.65
EV/Revenue
9.17
EV/EBITDA
22.82
Market Cap
$113.16B
Profitability
Profit margins and return metrics
Profit Margin
31.35%
Operating Margin
40.27%
Gross Margin
52.72%
ROE
22.31%
ROA
12.04%
Growth
Revenue and earnings growth rates
Revenue Growth
+11.0%
Earnings Growth
+4.7%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+3.6%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.11
Low debt
Current Ratio
2.36
Strong
Quick Ratio
1.84
Excellent
Cash/Share
$24.78
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-09
$N/A
2025-11-03
$4.8
+4.9% surprise
2025-08-04
$3.99
+7.3% surprise
2025-05-05
$4.06
-5.4% surprise
Healthcare Sector Comparison
Comparing VRTX against 147 companies in the Healthcare sector
(10 bullish, 55 neutral, 82 bearish)
P/E Ratio
31.04
This Stock
vs
164.56
Sector Avg
-81.1%
(Discount)
Return on Equity (ROE)
22.31%
This Stock
vs
-52.77%
Sector Avg
-142.3%
(Below Avg)
Profit Margin
31.35%
This Stock
vs
-20.78%
Sector Avg
-250.9%
(Weaker)
Debt to Equity
0.11
This Stock
vs
6.16
Sector Avg
-98.3%
(Less Debt)
Revenue Growth
11.0%
This Stock
vs
137.39%
Sector Avg
-92.0%
(Slower)
Current Ratio
2.36
This Stock
vs
3.36
Sector Avg
-29.7%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
VRTX
Vertex Pharmaceuticals Incorporated
|
NEUTRAL | $113.16B | 31.04 | 22.3% | 31.3% | $441.36 | |
|
BMY
Bristol-Myers Squibb Company
|
NEUTRAL | $111.25B | 18.46 | 33.8% | 12.6% | $54.65 | |
|
HCA
HCA Healthcare, Inc.
|
BULLISH | $108.0B | 18.28 | -% | 8.5% | $472.65 | |
|
MCK
McKesson Corporation
|
BULLISH | $104.45B | 26.32 | -% | 1.0% | $842.09 | |
|
CVS
CVS Health Corporation
|
BEARISH | $99.78B | 206.84 | 0.6% | 0.1% | $78.6 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-01-07 | TATSIS OURANIA | Officer | Sale | 4,500 | $2,137,455 |
| 2026-01-06 | WAGNER CHARLES F JR | Chief Operating Officer | Option Exercise | 9,532 | $1,805,170 |
| 2026-01-06 | WAGNER CHARLES F JR | Chief Operating Officer | Sale | 9,532 | $4,394,252 |
| 2025-12-04 | LEIDEN JEFFREY M | Officer and Director | Option Exercise | 63,782 | $5,518,423 |
| 2025-12-03 | BILLER JONATHAN PRIM | Officer | Sale | 347 | $155,803 |
| 2025-12-03 | TATSIS OURANIA | Officer | Sale | 4,500 | $2,024,955 |
| 2025-12-03 | LEIDEN JEFFREY M | Officer and Director | Sale | 63,781 | $28,650,337 |
| 2025-12-03 | WAGNER CHARLES F JR | Chief Operating Officer | Sale | 14,000 | $6,384,000 |
| 2025-11-19 | CARNEY LLOYD A | Director | Gift | 800 | - |
| 2025-11-17 | ATKINSON EDWARD MORROW III | Chief Technology Officer | Sale | 2,500 | $1,086,450 |
| 2025-11-14 | LEIDEN JEFFREY M | Officer and Director | Option Exercise | 73,292 | $6,493,083 |
| 2025-11-14 | LEIDEN JEFFREY M | Officer and Director | Sale | 73,292 | $32,292,320 |
| 2025-10-02 | BILLER JONATHAN PRIM | Officer | Sale | 694 | $280,522 |
| 2025-08-27 | BHATIA SANGEETA N | Director | Sale | 266 | $102,860 |
| 2025-08-06 | SACHS BRUCE I | Director | Purchase | 5,000 | $1,948,416 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
25 analysts
Bernstein
2026-01-12
Market Perform
Outperform
Wolfe Research
2026-01-06
Peer Perform
Outperform
Leerink Partners
2025-12-29
Outperform
Outperform
Wells Fargo
2025-12-10
Overweight
Overweight
Morgan Stanley
2025-12-05
Overweight
Overweight
Morgan Stanley
2025-12-03
Equal-Weight
Overweight
UBS
2025-11-07
Buy
Buy
RBC Capital
2025-11-04
Sector Perform
Sector Perform
Barclays
2025-11-04
Equal-Weight
Equal-Weight
Stifel
2025-11-04
Hold
Hold
Past News Coverage
Recent headlines mentioning VRTX from our newsroom.
Newest → oldest
No matching news yet.