VRTXVRTX
US • —
$496.73
P/E
29.45
PEG
—
FCF Yield
—
Rev Growth YoY
+10.1% YoY
Gross Margin
86.2%
Health Score
8/10
D/E Ratio
0.01
Confidence
LOW
Business Snapshot
Vertex Pharmaceuticals is a biotechnology company focused on discovering, developing, and commercializing therapies for serious diseases, with a primary revenue-generating franchise in cystic fibrosis (CF) treatments. The company operates in the specialty pharmaceutical market and holds a dominant position as the leader in CF therapies, effectively controlling the treatment landscape for this indication. With no market cap data provided here, the company is generally recognized as a large-cap biotech with substantial scale, though TTM revenue is not available in this payload. The defining characteristic that sets Vertex apart is its near-monopoly in the CF market, underpinned by a strong regulatory and intellectual property moat that has delivered consistent revenue growth.
Financial Health
The gross margin of 86.2% indicates strong pricing power and a low cost of goods sold structure, although no prior-year comparison is available to assess direction. The net margin of 35.5% reflects efficient operations and high profitability, converting over a third of revenue into net income...
Risk Assessment
- VALUATION — P/E of 29.45x is elevated versus the sector average of 22x, implying a premium that may not be justified if growth slows.
- EARNINGS QUALITY — With 3 of the last 4 quarters beating estimates, earnings quality is actually solid and not a risk here; no flag warranted per the data.
- CONCENTRATION — The business is heavily dependent on its cystic fibrosis franchise, though no segment-level revenue breakdown is available in this payload to confirm exact dependency.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER SELLING — Insiders have executed 9 sells versus 0 buys over the last 90 days, signaling caution from those closest to the business....
The gross margin of 86.2% indicates strong pricing power and a low cost of goods sold structure, although no prior-year comparison is available to assess direction. The net margin of 35.5% reflects efficient operations and high profitability, converting over a third of revenue into net income. The balance sheet is exceptionally conservative, with a debt-to-equity ratio of 0.01x and a current ratio of 2.9x, indicating minimal leverage and ample short-term liquidity to cover obligations. Return on equity of 23.9% demonstrates strong capital efficiency. While free cash flow data is unavailable, the combination of high margins, negligible debt, and strong profitability suggests the company has significant capacity to reinvest in R&D or pursue strategic opportunities without financial strain.
- VALUATION — P/E of 29.45x is elevated versus the sector average of 22x, implying a premium that may not be justified if growth slows. - EARNINGS QUALITY — With 3 of the last 4 quarters beating estimates, earnings quality is actually solid and not a risk here; no flag warranted per the data. - CONCENTRATION — The business is heavily dependent on its cystic fibrosis franchise, though no segment-level revenue breakdown is available in this payload to confirm exact dependency. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER SELLING — Insiders have executed 9 sells versus 0 buys over the last 90 days, signaling caution from those closest to the business.
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