Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C . The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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Highlights from the ratings report include:
- VRTX's very impressive revenue growth greatly exceeded the industry average of 9.7%. Since the same quarter one year prior, revenues leaped by 265.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.86, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 154.76% to $118.41 million when compared to the same quarter last year. In addition, VERTEX PHARMACEUTICALS INC has also vastly surpassed the industry average cash flow growth rate of -99.38%.
- The gross profit margin for VERTEX PHARMACEUTICALS INC is currently very high, coming in at 86.40%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -15.50% is in-line with the industry average.
Vertex Pharmaceuticals Incorporated engages in discovering, developing, manufacturing, and commercializing small molecule drugs for the treatment of serious diseases worldwide. Vertex has a market cap of $10.68 billion and is part of the health care sector and drugs industry. The company has a P/E ratio of 25, above the S&P 500 P/E ratio of 17.7. Shares are up 49.1% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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