Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Vertex Pharmaceuticals Inc / Ma

VRTX · Nasdaq · Healthcare

Fundamental quality

ATTRACTIVE

84

out of 100

Vertex Pharmaceuticals Inc / Ma fits the profile of a quality compounder: it pairs high return on capital (ROE 22.4%) with wide margins (net margin 35.5%) and a business that keeps growing (13.8% a year). On fundamental quality it scores 84 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +13.8%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Vertex Pharmaceuticals is a biotech focused on serious diseases with few treatment options. It almost single-handedly dominates the cystic fibrosis market, whose drugs generate nearly all its revenue, and aims to repeat the formula in areas like pain and kidney disease.

What will shape its future

  • Its de facto monopoly in cystic fibrosis: it delivers exceptional margins and cash, but concentrates risk in a single franchise.
  • The success (or failure) of its pipeline to diversify beyond cystic fibrosis.
  • Pricing pressure from health systems on very expensive therapies for rare diseases.

Breakdown by area

I.Growth
66

EPS growth: 9.9% · Revenue growth: 13.8%

II.Profitability
91

Net margin: 35.5% · ROE: 22.4% · ROIC: 28.3%

III.Financial health
95

Net debt/EBITDA: -1.12x · FCF: 30.4%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 100%
ROEbeats 73%
Growthbeats 81%
Cash generationbeats 94%
Less debtbeats 93%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Vertex Pharmaceuticals Inc / Ma strengths

  • Excellent free-cash-flow generation (FCF margin of 30.4%): profit turns into real cash.
  • Exceptional net margin (35.5%), high even for its sector: the business is clearly profitable.
  • Strong return on equity (ROE of 22.4%): it puts shareholder capital to good use.
  • Revenue growing (13.8% annualized).

Vertex Pharmaceuticals Inc / Ma risks and weaknesses

  • Shrinking margins: net margin has fallen from 44% to 33% in recent years.

Vertex Pharmaceuticals Inc / Ma historical evolution

YearRevenueNet incomeFree cash flowNet debt
20206,2062,7122,994-5,988
20217,5742,3422,409-6,795
20228,9313,3223,925-10,504
20239,8693,6203,337-10,369
202411,020-536-790-4,570
202512,0013,9533,194-5,085

Between 2020 and 2025, revenue went from $6,206M to $12,001M (+93%) and net income went from $2,712M to $3,953M (+46%). Meanwhile, its margins have narrowed (from 44% to 33%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+7.8%
  • Net income+59.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Vertex Pharmaceuticals Inc / Ma cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Vertex Pharmaceuticals Inc / Ma a good company to invest in?

In terms of business quality, Vertex Pharmaceuticals Inc / Ma scores 84 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Vertex Pharmaceuticals Inc / Ma a profitable company?

Very. Vertex Pharmaceuticals Inc / Ma shows a net margin of 35.5% and an ROE of 22.4%, typical of a highly profitable business.

Does Vertex Pharmaceuticals Inc / Ma have a lot of debt?

No. Vertex Pharmaceuticals Inc / Ma has a net cash position: more cash than debt.

Is Vertex Pharmaceuticals Inc / Ma growing?

Its revenue has grown 13.8% annualized in recent years and its earnings per share 9.9%, and without interruption since 2020.

Does Vertex Pharmaceuticals Inc / Ma generate cash?

Yes. It converts about 30.4% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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