NASDAQ · Healthcare

Vertex Pharmaceuticals Incorporated

VRTX · Biotechnology

$427.89

▲ 3.97 (0.94%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Vertex Pharmaceuticals Incorporated at $427.89.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 86.2%

Operating Margin 37.9%

Net Income Margin 32.9%

Fin. Health A

Years to Pay Off Debt 0.5 yrs

Working Capital vs Long-Term Debt $5.4B

Working Capital $7.3B

Valuation F

Margin of Safety 0.0%

Price-to-Book 5.83x

Cash Flow A

Free Cash Flow $3.2B

CapEx % of Net Income 11.1%

Owner Earnings $4.6B

2/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $108.8B

Enterprise Value $103.1B

P/E (TTM) 27.97

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 86.2%

Operating Margin 37.9%

Net Margin 32.9%

Company Info

Sector Healthcare

Industry Biotechnology

Employees 6400

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Vertex Pharmaceuticals Incorporated at $427.89.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $427.89, the stock trades at a 169% premium to its Graham Number of $159.04. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Trading at 25.8x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Vertex Pharmaceuticals Incorporated

Vertex Pharmaceuticals Incorporated operates as a biotechnology company in the United States, Europe, and internationally. The company offers transformative medicines for people with serious diseases with a focus on specialty markets, such as cystic fibrosis (CF), sickle cell disease (SCD), transfusion dependent beta thalassemia (TDT), and acute pain. It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age and older; ALYFTREK for the treatment for people with CF 6 years of age and older; SYMDEKO/SYMKEVI for treatment of patients with CF 6 years of age and older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 month or older who have CF with ivacaftor. The company also develops CASGEVY for the treatment of SCD and TDT; JOURNAVX for the treatment of acute pain in adults; VX-522, a CFTR mRNA therapeutic designed to treat the underlying cause of CF, which is in Phase 1/2 clinical trial; inaxaplin for the treatment of APOL1-mediated kidney disease, which is in single Phase 2 trial; VX-264 for treating Type 1 Diabetes; VX-670 for the treatment of myotonic dystrophy type 1; and VX-407, a small molecule corrector for the treatment of autosomal dominant polycystic kidney disease. The company sells its products primarily to specialty pharmacy and distributors, wholesalers, retail pharmacies, hospitals, and clinics. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	86.2% ▲	86.1%	87.2%	87.9%	N/A
Operating Margin %	37.9% ▲	-2.1%	38.3%	47.6%	N/A
Net Income %	32.9% ▲	-4.9%	36.7%	37.2%	N/A
Diluted EPS	15.32 ▲	-2.08	13.89	12.82	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022
Total Assets	$25.6B	$22.5B	$22.7B	$18.2B
Total Debt	$2.0B ↑	$1.7B	$808M	$900M
Working Capital	$7.3B ▲	$6.0B	$10.6B	$10.5B
Years to Pay Debt	0.51	-3.26	0.22	0.27

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$3.2B ▲	-$978M	$3.3B	$3.9B	N/A
Owner Earnings	$4.6B	$157M	$4.1B	$3.7B	N/A
CapEx % of Net Income	11.1%	N/A	7.1%	6.2%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-56,633	105	8,978	12,362
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	5,247,400	485,800	4,553,600	4,378,000
Total Unusual Items	-381,100	500	51,600	57,500
Total Unusual Items Excluding Goodwill	-381,100	500	51,600	57,500
Net Income From Continuing Operation Net Minority Interest	3,953,200	-535,600	3,619,600	3,322,000
Reconciled Depreciation	209,800	207,200	181,300	148,300
Reconciled Cost Of Revenue	1,651,300	1,530,500	1,262,200	1,080,300
EBITDA	4,866,300	486,300	4,605,200	4,435,500
EBIT	4,656,500	279,100	4,423,900	4,287,200
Net Interest Income	477,600	567,500	570,600	89,800
Interest Expense	13,300	30,600	44,100	54,800
Interest Income	490,900	598,100	614,700	144,600
Normalized Income	4,277,667	-535,995	3,576,978	3,276,862
Net Income From Continuing And Discontinued Operation	3,953,200	-535,600	3,619,600	3,322,000
Total Expenses	7,446,900	11,253,500	6,088,800	4,680,800
Total Operating Income As Reported	4,173,300	-232,900	3,832,000	4,307,400
Diluted Average Shares	258,000	257,900	260,500	259,100
Basic Average Shares	255,700	257,900	257,700	256,100
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	3,953,200	-535,600	3,619,600	3,322,000
Net Income Common Stockholders	3,953,200	-535,600	3,619,600	3,322,000
Net Income	3,953,200	-535,600	3,619,600	3,322,000
Net Income Including Noncontrolling Interests	3,953,200	-535,600	3,619,600	3,322,000
Net Income Continuous Operations	3,953,200	-535,600	3,619,600	3,322,000
Tax Provision	690,000	784,100	760,200	910,400
Pretax Income	4,643,200	248,500	4,379,800	4,232,400
Other Income Expense	-388,800	-85,600	28,800	-107,300
Other Non Operating Income Expenses	-7,700	-86,100	-22,800	-164,800
Special Income Charges	-381,100	500	51,600	57,500
Other Special Charges		4,628,400	527,100	115,500	1,113,300
Impairment Of Capital Assets	379,000	0	0
Restructuring And Mergern Acquisition	2,100	-500	-51,600	-57,500
Net Non Operating Interest Income Expense	477,600	567,500	570,600	89,800
Interest Expense Non Operating	13,300	30,600	44,100	54,800
Interest Income Non Operating	490,900	598,100	614,700	144,600
Operating Income	4,554,400	-233,400	3,780,400	4,249,900
Operating Expense	5,795,600	9,723,000	4,826,600	3,600,500
Research And Development	4,042,500	8,258,700	3,690,000	2,655,800
Selling General And Administration	1,753,100	1,464,300	1,136,600	944,700
Gross Profit	10,350,000	9,489,600	8,607,000	7,850,400
Cost Of Revenue	1,651,300	1,530,500	1,262,200	1,080,300
Total Revenue	12,001,300	11,020,100	9,869,200	8,930,700
Operating Revenue	11,970,600	11,020,100	9,869,200	8,930,700

Balance Sheet

	2025	2024	2023	2022
Ordinary Shares Number	253,991	256,940	257,695	257,012
Share Issued	253,991	256,940	257,695	257,012
Total Debt	2,030,500	1,744,300	808,400	899,700
Tangible Book Value	17,153,600	14,495,700	15,652,500	12,221,100
Invested Capital	18,665,800	16,409,600	17,580,400	13,912,700
Working Capital	7,339,800	6,031,800	10,596,800	10,492,700
Net Tangible Assets	17,153,600	14,495,700	15,652,500	12,221,100
Capital Lease Obligations	2,030,500	1,744,300	808,400	899,700
Common Stock Equity	18,665,800	16,409,600	17,580,400	13,912,700
Total Capitalization	18,665,800	16,409,600	17,580,400	13,912,700
Total Equity Gross Minority Interest	18,665,800	16,409,600	17,580,400	13,912,700
Stockholders Equity	18,665,800	16,409,600	17,580,400	13,912,700
Gains Losses Not Affecting Retained Earnings	-15,900	127,800	-14,300	800
Other Equity Adjustments	-15,900	127,800	-14,300	800
Retained Earnings	13,560,000	9,606,800	10,142,400	6,522,800
Additional Paid In Capital	5,119,200	6,672,400	7,449,700	7,386,500
Capital Stock	2,500	2,600	2,600	2,600
Common Stock	2,500	2,600	2,600	2,600
Total Liabilities Net Minority Interest	6,977,200	6,123,600	5,149,800	4,238,200
Total Non Current Liabilities Net Minority Interest	3,116,000	2,559,000	1,602,400	1,496,100
Other Non Current Liabilities	267,400	203,200	196,300	233,000
Tradeand Other Payables Non Current	895,400	698,600	681,400	452,800
Long Term Debt And Capital Lease Obligation	1,953,200	1,657,200	724,700	810,300
Long Term Capital Lease Obligation	1,953,200	1,657,200	724,700	810,300
Current Liabilities	3,861,200	3,564,600	3,547,400	2,742,100
Other Current Liabilities	127,700	36,600	50,700	62,500
Current Deferred Liabilities	171,800	206,800	170,300	159,600
Current Deferred Revenue	171,800	206,800	170,300	159,600
Current Debt And Capital Lease Obligation	77,300	87,100	83,700	89,400
Current Capital Lease Obligation	77,300	87,100	83,700	89,400
Payables And Accrued Expenses	3,484,400	3,234,100	3,242,700	2,430,600
Current Accrued Expenses	2,591,400	2,356,500	2,318,200	1,788,400
Payables	893,000	877,600	924,500	642,200
Other Payable	328,200	303,500	460,100	215,000
Total Tax Payable	103,100	161,100	99,500	123,300
Accounts Payable	461,700	413,000	364,900	303,900
Total Assets	25,643,000	22,533,200	22,730,200	18,150,900
Total Non Current Assets	14,442,000	12,936,800	8,586,000	4,916,100
Other Non Current Assets	1,236,600	999,300	895,300	409,600
Non Current Deferred Assets	2,897,900	2,331,100	1,812,100	1,246,900
Non Current Deferred Taxes Assets	2,897,900	2,331,100	1,812,100	1,246,900
Investments And Advances	5,712,300	5,107,900	2,497,800	112,200
Investmentin Financial Assets	5,712,300	5,107,900	2,497,800	112,200
Available For Sale Securities	5,712,300	5,107,900	2,497,800	112,200
Goodwill And Other Intangible Assets	1,512,200	1,913,900	1,927,900	1,691,600
Other Intangible Assets	424,200	825,900	839,900	603,600
Goodwill	1,088,000	1,088,000	1,088,000	1,088,000
Net PPE	3,083,000	2,584,600	1,452,900	1,455,800
Accumulated Depreciation	-1,204,100	-1,064,800	-1,188,900	-1,027,300
Gross PPE	4,287,100	3,649,400	2,641,800	2,483,100
Leases	1,009,300	737,600	474,600	410,900
Other Properties	1,562,700	1,356,800	293,600	347,400
Machinery Furniture Equipment	1,198,200	1,060,700	911,900	788,600
Buildings And Improvements	483,800	461,200	928,600	903,100
Land And Improvements	33,100	33,100	33,100	33,100
Current Assets	11,201,000	9,596,400	14,144,200	13,234,800
Other Current Assets	110,900	76,400	84,300	74,400
Hedging Assets Current	6,200	130,100	1,800	47,500
Prepaid Assets	736,200	459,200	537,600	431,600
Inventory	1,686,800	1,205,400	738,800	460,600
Finished Goods	230,100	184,600	135,000	161,800
Work In Process	1,196,900	768,800	525,100	260,700
Raw Materials	259,800	252,000	78,700	38,100
Receivables	2,052,800	1,609,400	1,563,400	1,442,200
Accounts Receivable	2,052,800	1,609,400	1,563,400	1,442,200
Cash Cash Equivalents And Short Term Investments	6,608,100	6,115,900	11,218,300	10,778,500
Other Short Term Investments	1,523,300	1,546,300	849,200	274,500
Cash And Cash Equivalents	5,084,800	4,569,600	10,369,100	10,504,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	3,193,800	-978,000	3,278,900	3,925,200
Repurchase Of Capital Stock	-2,387,300	-1,582,100	-653,700	-172,000
Repayment Of Debt	-5,400	-33,600	-44,900	-85,500
Issuance Of Debt			1,800	0	28,300
Capital Expenditure	-437,600	-485,400	-258,400	-204,700
Interest Paid Supplemental Data	12,400	30,500	43,100	52,300
Income Tax Paid Supplemental Data	1,566,700	1,082,100	1,677,300	1,057,800
End Cash Position	5,087,800	4,572,200	10,372,300	10,512,000
Beginning Cash Position	4,572,200	10,372,300	10,512,000	6,800,100
Effect Of Exchange Rate Changes	90,900	-42,600	26,900	-29,200
Changes In Cash	424,700	-5,757,500	-166,600	3,741,100
Financing Cash Flow	-2,261,300	-1,494,900	-562,200	-67,700
Cash Flow From Continuing Financing Activities	-2,261,300	-1,494,900	-562,200	-67,700
Net Other Financing Charges	3,700	6,200	1,800	3,500
Proceeds From Stock Option Exercised	127,700	114,600	134,600	186,300
Net Common Stock Issuance	-2,387,300	-1,582,100	-653,700	-172,000
Common Stock Payments	-2,387,300	-1,582,100	-653,700	-172,000
Net Issuance Payments Of Debt	-5,400	-33,600	-44,900	-85,500
Net Long Term Debt Issuance	-5,400	-33,600	-44,900	-85,500
Long Term Debt Payments	-5,400	-33,600	-44,900	-85,500
Long Term Debt Issuance			1,800	0	28,300
Investing Cash Flow	-945,400	-3,770,000	-3,141,700	-321,100
Cash Flow From Continuing Investing Activities	-945,400	-3,770,000	-3,141,700	-321,100
Net Other Investing Changes	-24,700	-54,000	-31,000	-47,800
Net Investment Purchase And Sale	-483,100	-3,230,600	-2,852,300	227,300
Sale Of Investment	5,913,400	4,465,600	934,200	920,000
Purchase Of Investment	-6,396,500	-7,696,200	-3,786,500	-692,700
Net Business Purchase And Sale		0	0	-295,900	0
Purchase Of Business		0	0	-295,900	0
Net Intangibles Purchase And Sale	0	-187,700	-58,000	0
Purchase Of Intangibles	0	-187,700	-58,000	0
Net PPE Purchase And Sale	-437,600	-297,700	-200,400	-204,700
Purchase Of PPE	-437,600	-297,700	-200,400	-204,700
Operating Cash Flow	3,631,400	-492,600	3,537,300	4,129,900
Cash Flow From Continuing Operating Activities	3,631,400	-492,600	3,537,300	4,129,900
Change In Working Capital	-1,199,100	-514,800	-265,700	340,800
Change In Other Current Liabilities	148,500	39,700	208,900	498,900
Change In Payables And Accrued Expense	-80,100	262,400	478,100	663,300
Change In Accrued Expense	-116,900	212,900	429,400	542,500
Change In Payable	36,800	49,500	48,700	120,800
Change In Account Payable	36,800	49,500	48,700	120,800
Change In Prepaid Assets	-396,000	-200,300	-545,700	-326,400
Change In Inventory	-524,200	-517,300	-322,900	-136,400
Change In Receivables	-347,300	-99,300	-84,100	-358,600
Changes In Account Receivables	-347,300	-99,300	-84,100	-358,600
Other Non Cash Items	113,400	900	-42,600	-45,700
Stock Based Compensation	685,900	698,500	581,200	491,300
Asset Impairment Charge	379,000	0	0
Deferred Tax	-510,800	-348,800	-536,500	-275,900
Deferred Income Tax	-510,800	-348,800	-536,500	-275,900
Depreciation Amortization Depletion	209,800	207,200	181,300	148,300
Depreciation And Amortization	209,800	207,200	181,300	148,300
Depreciation				148,300	125,600
Operating Gains Losses		57,700	600	149,100	-17,100
Gain Loss On Investment Securities		57,700	600	149,100	-17,100
Net Income From Continuing Operations	3,953,200	-535,600	3,619,600	3,322,000

These metrics estimate what Vertex Pharmaceuticals Incorporated is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$159.04

Margin of Safety

Market Cap ÷ Company Value

1.00

P/B Ratio

5.83

Warren's Owner Earnings

$4.6B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

2/7 — Speculative Investor

✅ Adequate Size

$12.0B

vs > $1.5B revenue

✅ Strong Financial Condition

2.90x

vs Current Ratio > 2.0x

❌ Earnings Stability

1 loss years (4 yrs data)

vs No negative EPS years

❌ Dividend Record

No dividend

vs Uninterrupted dividends

❌ Earnings Growth

+19.5% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

28.0x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

5.83x P/B (P/E×P/B: 163.1)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$16.61

Trading at 25.8x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$198.95

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	11.1%	N/A	7.1%	6.2%	N/A
Repurchase of Capital Stock	-$2.4B	-$1.6B	-$654M	-$172M	N/A
Free Cash Flow	$3.2B ▲	-$978M ▼	$3.3B ▼	$3.9B •	N/A •
Warren's Owner Earnings	$4.6B	$157M	$4.1B	$3.7B	N/A

Peers & Industry Comparison

Biotechnology — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
VRTX	$427.89	$108.8B	27.97	86.2%	32.9%	$12.0B
AMGN Amgen Inc.	$322.43	$174.0B	22.4	71.4%	21.0%	$37.2B
GILD Gilead Sciences, Inc.	$132.53	$164.5B	19.5	78.8%	28.9%	$29.4B
BIIB Biogen Inc.	$187.25	$27.6B	20.1	78.7%	13.8%	$9.9B
REGN Regeneron Pharmaceuticals, Inc.	$709.36	$74.4B	17.3	43.9%	29.6%	$14.9B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.21%

Low — management has little skin in the game

Return on Equity (ROE)

21.2%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

15.4%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$2.4B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+16.4% YoY

Debt is growing — management is leveraging up

Leadership Team

Jeffrey Marc Leiden , Ph.

Executive Chairman

Age 69

Reshma Kewalramani FASN,

CEO, President & Director

Age 52

Pay: $6,141,991

0.155% of net income

Charles Wagner Jr.

Executive VP, COO & CFO

Age 57

Pay: $2,990,992

0.076% of net income

Susie Lisa

Senior Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Capital World Investors	10.03%	25,510,182
Vanguard Group Inc	9.48%	24,105,823
Blackrock Inc.	9.34%	23,751,989
Capital Research Global Investors	6.81%	17,316,344
State Street Corporation	4.60%	11,689,539
JPMORGAN CHASE & CO	2.37%	6,039,481
Geode Capital Management, LLC	2.35%	5,981,905
Capital International Investors	1.86%	4,733,596

Risk Analysis

Beta (Market Risk)

0.30

Low volatility — more stable than the market

Short Interest

1.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.11x

Conservative balance sheet — low financial risk

Current Ratio