Vertex Pharmaceuticals Incorporated
Find Ratings ReportsVERTEX PHARMACEUTICALS INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. VERTEX PHARMACEUTICALS INC is extremely liquid. Currently, the Quick Ratio is 3.60 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 26.36% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 2517.7 | 2302.7 |
EBITDA ($mil) | 1017.8 | 1099.8 |
EBIT ($mil) | 958.8 | 1061.4 |
Net Income ($mil) | 968.8 | 818.9 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 11221.5 | 10786.5 |
Total Assets ($mil) | 22730.2 | 18150.9 |
Total Debt ($mil) | 808.4 | 899.7 |
Equity ($mil) | 17580.4 | 13912.7 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 87.73 | 89.36 |
EBITDA Margin | 40.42 | 47.76 |
Operating Margin | 38.08 | 46.09 |
Sales Turnover | 0.43 | 0.49 |
Return on Assets | 15.92 | 18.3 |
Return on Equity | 20.59 | 23.88 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 3.99 | 4.83 |
Debt/Capital | 0.04 | 0.06 |
Interest Expense | 10.6 | 11.6 |
Interest Coverage | 90.45 | 91.5 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 257.7 | 257.01 |
Div / share | 0.0 | 0.0 |
EPS | 3.71 | 3.15 |
Book value / share | 68.22 | 54.13 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1358305.0 | 1382173.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a value on par with the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 5.99 indicates a premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, VERTEX PHARMACEUTICALS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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VRTX 29.43 | Peers 85.83 | VRTX 29.78 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. VRTX is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. VRTX is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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VRTX 22.56 | Peers 18.08 | VRTX 1.55 | Peers 1.16 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. VRTX is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. VRTX trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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VRTX 5.99 | Peers 19.07 | VRTX 8.26 | Peers 12.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. VRTX is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, VRTX is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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VRTX 10.67 | Peers 84.44 | VRTX 10.50 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. VRTX is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. VRTX significantly trails its peers on the basis of sales growth. |
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