Vertex Pharmaceuticals Incorporated [NASDAQ:VRTX]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Vertex Pharmaceuticals Incorporated [VRTX], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give VRTX an Outperform rating. Its stock price has been found in the range of 145.37 to 195.81. This is compared to its latest closing price of $172.00.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Vertex Pharmaceuticals Incorporated [VRTX] is sitting at 1.96. This is compared to 1 month ago, when its average rating was 1.96.
For the quarter ending in Mar-19 Vertex Pharmaceuticals Incorporated [VRTX] generated $0.86 billion in sales. That’s 0.92% higher than the average estimate of $0.85 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Wed 24 Jul (In 41 Days).
Fundamental Analysis of Vertex Pharmaceuticals Incorporated [VRTX]
Now let’s turn to look at profitability: with a current Operating Margin for Vertex Pharmaceuticals Incorporated [VRTX] sitting at +21.82 and its Gross Margin at +86.57.
This company’s Return on Total Capital is 17.33, and its Return on Invested Capital has reached 11.20%. Its Return on Equity is 64.87, and its Return on Assets is 42.82. These metrics suggest that this Vertex Pharmaceuticals Incorporated does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Vertex Pharmaceuticals Incorporated [VRTX] has generated a Total Debt to Total Equity ratio of 13.33. Similarly, its Total Debt to Total Capital is 11.76, while its Total Debt to Total Assets stands at 9.47. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 13.11, and its Long-Term Debt to Total Capital is 11.57. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 56.75 and its Total Debt to EBITDA Value is 0.80. The Enterprise Value to Sales for this firm is now 12.87, and its Total Debt to Enterprise Value stands at 0.01. Vertex Pharmaceuticals Incorporated [VRTX] has a Price to Book Ratio of 9.53, a Price to Cash Flow Ratio of 33.81 and P/E Ratio of 20.56. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Vertex Pharmaceuticals Incorporated [VRTX] earns $1,219,540 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.01 and its Total Asset Turnover is 0.62. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 3.32 and its Current Ratio is 3.43. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Vertex Pharmaceuticals Incorporated [VRTX] has 255.70M shares outstanding, amounting to a total market cap of $43.63B. Its stock price has been found in the range of 145.37 to 195.81. At its current price, it has moved by -12.86% from its 52-week high, and it has moved 17.38% from its 52-week low.
This stock’s Beta value is currently 1.41, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 48.23. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Vertex Pharmaceuticals Incorporated [VRTX] a Reliable Buy?
Vertex Pharmaceuticals Incorporated [VRTX] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.