tickrz reports
Vertex Pharmaceuticals Inc (VRTX)
Healthcare | Drugs
159.22  0.81%
VRTX vs DRUGS SECTOR & S&P 500
VALUATION
VRTXSECTORS&P 500
P/E RATIO201.9240.521.12
EV/EBITDA RATIO2092.98133.412.66
P/S RATIO17.226.52.25
P/B RATIO22.077.73.45
QUALITY
RETURN ON EQUITY-0.72%15.79%13.64%
RETURN ON CAPITAL-3.92%19.38%10.09%
NET MARGIN-6.58%14.46%9.73%
DIVIDEND ANALYSIS
DIVIDEND YIELD
0%
PAYOUT RATION/A
3 YR DIVIDEND GROWTHN/A
FINANCIAL STRENGTH
PIOTROSKI F SCORE
5 OUT OF 9
DEBT-TO-EQUITY2%
INTEREST COVERAGE4.7x
CURRENT RATIO3.28
GROWTH
5 YR EPS GROWTH-226.86%
5 YR SPS GROWTH3.83%
5 YR BPS GROWTH4.38%
About tickrz
Key Concepts
Great Investors
Vertex Pharmaceuticals Inc's stock has climbed 71% over the last year, earning it a strong Momentum Rank
TICKRZBOT SUMMARY
Vertex Pharmaceuticals Inc receives a D ranking in our multi-factor model that blends valuation, moat, operational performance, and financial strength. View the tickrz MFM Screener here. Here's a summary of Vertex Pharmaceuticals Inc's factor rankings that are combined together to calculate the tickrz MFM ranking:

FACTOR RANKINGSFACTOR SCREENER 
TICKRZ MFM RANK D / 419PURE VALUE RANKD / 478
DIVIDEND RANKD / NO DIVIDENDMOAT RANKD / 378
FINANCIAL STRENGTH RANKB / 139GROWTH RANKC / 362
MOMENTUM RANKA / 12
GURU ANALYSIS
Buffett Rank D / 485Peter Lynch Rank N/A
Vertex Pharmaceuticals Inc ranks 485 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a weak score, meaning it ranks poorly on combined valuation, moat, volatility, and financial strength factors. If you're looking for undervalued stocks with high moats and strong competitive advantages, Vertex Pharmaceuticals Inc is probably not for you.Unfortunately tickrzbot doesn't have enough data to calculate a Peter Lynch ranking for this stock.
Alex Roepers Rank D / 431Joel Greenblatt Rank D / 464
Alex Roepers, founder of Atlantic Investment Management, looks for stocks trading at low EV/EBITDA multiples with strong and consistent free cash flow. Vertex Pharmaceuticals Inc ranks 431 out of the S&P 500 constituents on our Roepers-inspired multi-factor model.In his best-selling The Little Book that Beats the Market, Greenblatt introduced the Magic Formula, a straightforward approach that ranks stocks on earnings yield and return on invested capital. Vertex Pharmaceuticals Inc places 464 out the S&P 500 consitituents on this ranking methodology.
FACTOR RANKINGS
Value
Pure Value Ranking D / 478
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Vertex Pharmaceuticals Inc's valuation score is comprised of a P/E ratio of 201.9x, a P/B ratio of 22.1x, a P/S ratio of 17.2x, and an EV/EBITDA ratio of 2093x. Vertex Pharmaceuticals Inc ranks 478 out of the S&P 500 constituents on valuation--a relatively weak score.

Quality
Moat D / 378Financial Strength B / 139
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Our approach concludes the company's business moat is weak. Its position within the Healthcare sector appears to be weak. Either the dynamics of its sector place it in a difficult position or management's executition is to blame for its disappointing performance.Vertex Pharmaceuticals Inc has a Piotroski F Score of 5 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 4.7x, a debt/equity ratio of 2% and a Moat Rank of 378 translate to an average Financial Strength score.


Momentum A / 12
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 71.03% over the last 12 months. This performance is strong compared to other stocks in the S&P 500, earning it a rank of 12. Vertex Pharmaceuticals Inc's strong 12 month stock performance will appeal to momentum investors.

Yield D / NO DIVIDEND
Value + Yield
Vertex Pharmaceuticals Inc currently does not pay a dividend so it ranks last among S&P 500 companies using our dividend ranking methodology. Investors looking for undervalued dividend stocks will probably want to look elsewhere.

Growth C / 362
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. The company's growth in sales, earnings, and book value places it among the bottom third of S&P500 companies. Its -226.9% 5 year annualized EPS growth, 3.8% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of 4.4% speak to its relatively poor ranking.

Vertex Pharmaceuticals Inc (VRTX)
Healthcare | Drugs
159.22  0.81%


tickrz rank
D
VALUATION RATIOS
P/E Ratio201.92x
P/B Ratio22.07x
P/S Ratio17.22x
EV/EBITDA Ratio2092.98x
DIVIDEND ANALYSIS
DIVIDEND YIELD
0%
PAYOUT RATION/A
3 YR DIVIDEND GROWTHN/A
FINANCIAL STRENGTH
PIOTROSKI F SCORE
5 OUT OF 9
DEBT-TO-EQUITY2%
INTEREST COVERAGE4.7x
CURRENT RATIO3.28
MOAT
ROE-0.72%
ROIC-3.92%
Net Margin-6.58%
GROWTH
5 YR EPS GROWTH-226.86%
5 YR SPS GROWTH3.83%
5 YR BPS GROWTH4.38%

TICKRZ RANK
Vertex Pharmaceuticals Inc receives a D ranking in our multi-factor model that blends valuation, moat, operational performance, and financial strength. View the tickrz MFM Screener here.

PURE VALUE
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Vertex Pharmaceuticals Inc's valuation score is comprised of a P/E ratio of 201.9x, a P/B ratio of 22.1x, a P/S ratio of 17.2x, and an EV/EBITDA ratio of 2093x. Vertex Pharmaceuticals Inc ranks 478 out of the S&P 500 constituents on valuation--a relatively weak score.

WARREN BUFFETT RANKING
Vertex Pharmaceuticals Inc ranks 485 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a weak score, meaning it ranks poorly on combined valuation, moat, volatility, and financial strength factors. If you're looking for undervalued stocks with high moats and strong competitive advantages, Vertex Pharmaceuticals Inc is probably not for you.

MOAT
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Our approach concludes the company's business moat is weak. Its position within the Healthcare sector appears to be weak. Either the dynamics of its sector place it in a difficult position or management's executition is to blame for its disappointing performance.

FINANCIAL STRENGTH
Vertex Pharmaceuticals Inc has a Piotroski F Score of 5 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 4.7x, a debt/equity ratio of 2% and a Moat Rank of 378 translate to an average Financial Strength score.

MOMENTUM
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 71.03% over the last 12 months. This performance is strong compared to other stocks in the S&P 500, earning it a rank of 12. Vertex Pharmaceuticals Inc's strong 12 month stock performance will appeal to momentum investors.

VALUE + YIELD
Vertex Pharmaceuticals Inc currently does not pay a dividend so it ranks last among S&P 500 companies using our dividend ranking methodology. Investors looking for undervalued dividend stocks will probably want to look elsewhere.

GROWTH
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. The company's growth in sales, earnings, and book value places it among the bottom third of S&P500 companies. Its -226.9% 5 year annualized EPS growth, 3.8% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of 4.4% speak to its relatively poor ranking.