VERTEX PHARMACEUTICALS INC / MA · Drugmakers

VRTX

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The short version

A high-quality, profitable business with growing sales. Institutions are adding.

Going well

Sales up 13% in the latest quarter vs a year ago
Profitable, keeps 33% of sales as profit
Sales growth speeding up

Money moves

No insider buying or selling in the last 30 days
Institutions added 4.5% to their holdings in the quarter ending June 2026 (866 bought, 724 sold)
Held by Ray Dalio (Bridgewater)

Facts from SEC filings, not a recommendation.

What the price means

Price as of Oct 26

$517.68-1.2% that day

Company value: $131.2B; Share price times all shares
Price vs profit (P/E): 30.2x; You pay about $30 for each $1 of yearly profit
Price vs sales: 10.4x; Company value is 10.4 times a year of sales
Cash vs value: 5%; Cash as a share of company value

From VRTX's last IEX trade and its SEC filings (profits and sales over the last four quarters). A starting point for research, not a verdict.

The business over time

Last 12 quarters, from SEC filings

Sales, Jun '26

$3.3B+12% vs a year earlier

Sep '23Tap a barJun '26

Last 12 months: $12.6B, up 10% from the 12 months before. Over 5 years, sales grew about 14% a year.

What the price assumes

Your guesses, our math

Move the sliders to your own view of VRTX. Starting points are the company's recent numbers.

Sales growth+10% a yearRecently: +10% a yearProfit margin35%Last 12 months: 35.0%P/E at the end30xToday: 30.2x. Many steady companies trade at 12x to 25xShare count change0% a yearBelow zero means buybacks; above zero means new shares (dilution)

Sales in 5 years$20.3B

Profit in 5 years$7.1B

Price these guesses point to$839.79+62% vs $517.68 todayAbout +10% a year, before dividends

What today's price needs: with a 35% margin and a 30x P/E, sales could shrink about 0.1% a year for 5 years and still match today's price.

Simple math on your guesses, not a forecast or a price target. Real results depend on many things these sliders leave out.

Price

Price chart by TradingView.

Business quality

The checklist Warren Buffett-style investors use. Annual numbers for 2025.

5/6Strong

PassReturn on equity 15%+Earns a lot on the money owners have in the business.22.5%
PassDebt under half of equityNot relying on borrowed money.No debt reported
PassNet margin 10%+Keeps at least 10 cents of profit from each dollar of sales.32.9%
MissProfitable every yearSteady profits, not one good year.8 of 10 years
PassFree cash flow positiveBrings in more cash than it spends to run and grow.$3.2B
PassShare count not growingNot diluting owners. Falling means buybacks.-0.4% in 3 years

Revenue: $12.0B; +8.9% vs prior year
5-year growth: +14.1%/yr; revenue, per year
Total debt: None; 0.00x equity
Current ratio: 2.90x; short-term assets / bills due

From annual reports filed with the SEC. Not in this company's SEC data, so not scored: gross margin 40%+. A checklist is a starting point for research, not a verdict.