ScoreWhy is Vertex Pharmaceuticals, Inc. ?
1
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at USD 4,240.6 MM
- ROCE(HY) Highest at 24.2%
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
2
With ROE of 23.78%, it has a fair valuation with a 5.89 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 5.61%, its profits have risen by 8.9% ; the PEG ratio of the company is 2.4
3
High Institutional Holdings at 96.59%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Underperformed the market in the last 1 year
- The stock has generated a return of 5.61% in the last 1 year, much lower than market (S&P 500) returns of 22.24%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Vertex Pharmaceuticals, Inc. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Vertex Pharmaceuticals, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Vertex Pharmaceuticals, Inc.
5.61%
-0.09
34.75%
S&P 500
22.24%
1.67
13.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.23%
EBIT Growth (5y)
10.63%
EBIT to Interest (avg)
51.26
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
0.64
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
96.59%
ROCE (avg)
80.88%
ROE (avg)
19.31%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
5.89
EV to EBIT
21.74
EV to EBITDA
20.83
EV to Capital Employed
8.53
EV to Sales
8.57
PEG Ratio
2.35
Dividend Yield
NA
ROCE (Latest)
39.22%
ROE (Latest)
23.78%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 4,240.6 MM
ROCE(HY)
Highest at 24.2%
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -0.21% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.49 times
-2What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.08 times
Here's what is working for Vertex Pharmaceuticals, Inc.
Operating Cash Flow
Highest at USD 4,240.6 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debtors Turnover Ratio
Highest at 6.49 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -0.21% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 55.9 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Vertex Pharmaceuticals, Inc.
Inventory Turnover Ratio
Lowest at 1.08 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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