Recent News
On August 4th Vertex reported Q2 results that beat expectations, citing revenue near $2.96 billion and EPS of $4.52; the same day the company announced it would discontinue development of its mid‑stage pain candidate following a non‑statistically significant result in that study. Additional media coverage through September noted continued institutional stake adjustments and commentary on product launches and regulatory activity.
Technical Analysis
Directional indicators present a bullish tilt inside an emerging trend: ADX at 22.89 signals an emerging trend, DI+ at 15.10 shows a dip-and-reversal (bullish), and DI− at 24.09 shows a peak-and-reversal (bullish). Together these dynamics imply directional strength building toward the upside while trend strength remains moderate.
MACD sits negative at −$6.58 but recently crossed above its signal line (signal −$7.09), a bullish momentum signal that suggests momentum has shifted toward buyers despite the negative absolute MACD level; this supports short-term upward pressure against the prevailing valuation backdrop.
MRO at −27.14 indicates price below target and therefore potential for an increase; the negative oscillator complements the MACD cross and directional indicators by implying mean reversion toward model targets.
RSI at 43.0 with a dip-and-reversal indicates renewed upward pressure from lower readings, consistent with the MACD and MRO setup for a near-term recovery in price momentum.
Price sits at $385.74 under the 20‑day average $387.57, the 50‑day $407.37 and the 200‑day $447.22; the 12‑day EMA shows a dip-and-reversal. Bollinger upper bands lie near $394.71–$401.84 while the super trend upper level appears at $395.63. Those band and average levels identify resistance bands that the current momentum would need to overcome to extend gains, creating a scenario where short-term rallies could seek the $388–$396 zone before meeting heavier selling pressure given the valuation profile.
Fundamental Analysis
Revenue totaled $2,964,700,000 with revenue growth at 7.02%. YoY revenue growth value shows −519.92% and QoQ revenue growth shows −244.17% as reported. Total gross profit registered $2,557,200,000 with a gross margin of 86.26%, and operating margin at 38.93%.
EPS came in at $4.52 versus an estimate of $4.25, an EPS surprise of 6.35%, and forward EPS of $4.69. EBIT reached $1,286,700,000 with an EBIT margin of 43.40%, which sits above the industry peer mean of −89.06% and above the industry peer median of 23.76%.
Cash and short‑term investments total $6,382,800,000 with cash $4,972,200,000; the cash ratio measures 154.23% and the current ratio 251.98%, supporting liquidity. Total debt stands at $1,527,400,000, debt to assets 6.35%, and debt to EBITDA 1.14x, indicating modest leverage relative to capital structure.
Free cash flow reached $927,400,000 with a free cash flow yield of 0.85% and free cash growth of 19.17%. Return on equity equals 6.01% and return on assets 4.40%, while operating leverage reads 10.75.
Valuation metrics show elevated multiples: a trailing P/E of 102.08, forward P/E of 97.34, price-to-book 6.38 and price‑to‑sales 36.96. WMDST values the stock as over‑valued given these premium multiples alongside current cash flow yields and profitability metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-04 |
| NEXT REPORT DATE: | 2025-11-03 |
| CASH FLOW | Begin Period Cash Flow | $ 4.7 B |
| Operating Cash Flow | $ 1.1 B | |
| Capital Expenditures | $ -145.70 M | |
| Change In Working Capital | $ -132.40 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 296.6 M | |
| End Period Cash Flow | $ 5.0 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 3.0 B | |
| Forward Revenue | $ 863.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 407.5 M | |
| Depreciation | $ 51.7 M | |
| Depreciation and Amortization | $ 51.7 M | |
| Research and Development | $ 978.4 M | |
| Total Operating Expenses | $ 1.8 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.6 B | |
| EBITDA | $ 1.3 B | |
| EBIT | $ 1.3 B | |
| Operating Income | $ 1.2 B | |
| Interest Income | $ 122.4 M | |
| Interest Expense | $ 3.7 M | |
| Net Interest Income | $ 118.7 M | |
| Income Before Tax | $ 1.3 B | |
| Tax Provision | $ 250.1 M | |
| Tax Rate | 19.493 % | |
| Net Income | $ 1.0 B | |
| Net Income From Continuing Operations | $ 1.0 B | |
| EARNINGS | ||
| EPS Estimate | $ 4.25 | |
| EPS Actual | $ 4.52 | |
| EPS Difference | $ 0.27 | |
| EPS Surprise | 6.353 % | |
| Forward EPS | $ 4.69 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 24.0 B | |
| Intangible Assets | $ 1.5 B | |
| Net Tangible Assets | $ 15.7 B | |
| Total Current Assets | $ 10.4 B | |
| Cash and Short-Term Investments | $ 6.4 B | |
| Cash | $ 5.0 B | |
| Net Receivables | $ 1.9 B | |
| Inventory | $ 1.5 B | |
| Long-Term Investments | $ 1.1 B | |
| LIABILITIES | ||
| Accounts Payable | $ 442.3 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 4.1 B | |
| Net Debt | — | |
| Total Debt | $ 1.5 B | |
| Total Liabilities | $ 6.9 B | |
| EQUITY | ||
| Total Equity | $ 17.2 B | |
| Retained Earnings | $ 11.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 67.01 | |
| Shares Outstanding | 256.293 M | |
| Revenue Per-Share | $ 11.57 | |
| VALUATION | Market Capitalization | $ 109.6 B |
| Enterprise Value | $ 104.7 B | |
| Enterprise Multiple | 78.246 | |
| Enterprise Multiple QoQ | -48.969 % | |
| Enterprise Multiple YoY | -324.847 % | |
| Enterprise Multiple IPRWA | VRTX: 78.246 high: 47.216 median: 14.143 mean: 5.404 low: -68.907 |
|
| EV/R | 35.324 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.399 | |
| Asset To Liability | 3.503 | |
| Debt To Capital | 0.082 | |
| Debt To Assets | 0.064 | |
| Debt To Assets QoQ | -11.836 % | |
| Debt To Assets YoY | 37.058 % | |
| Debt To Assets IPRWA | high: 0.995 mean: 0.204 median: 0.07 VRTX: 0.064 low: 0.0 |
|
| Debt To Equity | 0.089 | |
| Debt To Equity QoQ | -11.043 % | |
| Debt To Equity YoY | 40.757 % | |
| Debt To Equity IPRWA | high: 1.577 mean: 0.27 VRTX: 0.089 median: 0.057 low: -1.039 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.38 | |
| Price To Book QoQ | -15.414 % | |
| Price To Book YoY | -21.871 % | |
| Price To Book IPRWA | high: 16.592 VRTX: 6.38 mean: 5.102 median: 4.07 low: -10.064 |
|
| Price To Earnings (P/E) | 102.075 | |
| Price To Earnings QoQ | -14.412 % | |
| Price To Earnings YoY | -380.067 % | |
| Price To Earnings IPRWA | VRTX: 102.075 high: 44.732 mean: -11.195 median: -19.0 low: -73.374 |
|
| PE/G Ratio | 9.009 | |
| Price To Sales (P/S) | 36.961 | |
| Price To Sales QoQ | -17.71 % | |
| Price To Sales YoY | -18.952 % | |
| Price To Sales IPRWA | high: 517.227 mean: 58.723 VRTX: 36.961 median: 19.711 low: 0.25 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 97.336 | |
| Forward PE/G | 8.591 | |
| Forward P/S | 126.977 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.745 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.126 | |
| Asset Turnover Ratio QoQ | 3.59 % | |
| Asset Turnover Ratio YoY | 5.211 % | |
| Asset Turnover Ratio IPRWA | high: 0.388 VRTX: 0.126 mean: 0.114 median: 0.104 low: -0.001 |
|
| Receivables Turnover | 1.603 | |
| Receivables Turnover Ratio QoQ | -1.199 % | |
| Receivables Turnover Ratio YoY | 4.509 % | |
| Receivables Turnover Ratio IPRWA | high: 7.487 VRTX: 1.603 median: 1.422 mean: 1.383 low: 0.012 |
|
| Inventory Turnover | 0.285 | |
| Inventory Turnover Ratio QoQ | 0.717 % | |
| Inventory Turnover Ratio YoY | -33.786 % | |
| Inventory Turnover Ratio IPRWA | high: 2.946 mean: 0.649 median: 0.415 VRTX: 0.285 low: 0.006 |
|
| Days Sales Outstanding (DSO) | 56.919 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 304.74 | |
| Cash Conversion Cycle Days QoQ | 26.874 % | |
| Cash Conversion Cycle Days YoY | 53.056 % | |
| Cash Conversion Cycle Days IPRWA | high: 1258.184 VRTX: 304.74 mean: 188.019 median: 126.183 low: -1350.846 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.471 | |
| CapEx To Revenue | -0.049 | |
| CapEx To Depreciation | -2.818 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 17.2 B | |
| Net Invested Capital | $ 17.2 B | |
| Invested Capital | $ 17.2 B | |
| Net Tangible Assets | $ 15.7 B | |
| Net Working Capital | $ 6.3 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.542 | |
| Current Ratio | 2.52 | |
| Current Ratio QoQ | -4.755 % | |
| Current Ratio YoY | -0.038 % | |
| Current Ratio IPRWA | high: 25.128 mean: 4.044 VRTX: 2.52 median: 2.092 low: 0.021 |
|
| Quick Ratio | 2.158 | |
| Quick Ratio QoQ | -5.629 % | |
| Quick Ratio YoY | -4.658 % | |
| Quick Ratio IPRWA | high: 14.041 mean: 3.054 VRTX: 2.158 median: 1.788 low: 0.021 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.141 | |
| Cost Of Debt | 0.188 % | |
| Interest Coverage Ratio | 347.757 | |
| Interest Coverage Ratio QoQ | 42.251 % | |
| Interest Coverage Ratio YoY | -201.819 % | |
| Interest Coverage Ratio IPRWA | high: 940.414 VRTX: 347.757 mean: 19.322 median: 0.121 low: -1465.352 |
|
| Operating Cash Flow Ratio | 0.206 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 111.524 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.053 % | |
| Revenue Growth | 7.021 % | |
| Revenue Growth QoQ | -244.168 % | |
| Revenue Growth YoY | -519.916 % | |
| Revenue Growth IPRWA | high: 303.4 % mean: 22.048 % median: 12.272 % VRTX: 7.021 % low: -259.856 % |
|
| Earnings Growth | 11.33 % | |
| Earnings Growth QoQ | 463.682 % | |
| Earnings Growth YoY | -103.066 % | |
| Earnings Growth IPRWA | high: 155.0 % VRTX: 11.33 % median: 11.05 % mean: 1.352 % low: -181.25 % |
|
| MARGINS | ||
| Gross Margin | 86.255 % | |
| Gross Margin QoQ | -0.738 % | |
| Gross Margin YoY | 0.363 % | |
| Gross Margin IPRWA | high: 100.0 % VRTX: 86.255 % median: 77.498 % mean: 76.788 % low: -77.751 % |
|
| EBIT Margin | 43.401 % | |
| EBIT Margin QoQ | 63.932 % | |
| EBIT Margin YoY | -133.958 % | |
| EBIT Margin IPRWA | high: 338.783 % VRTX: 43.401 % median: 23.755 % mean: -89.061 % low: -5123.44 % |
|
| Return On Sales (ROS) | 38.931 % | |
| Return On Sales QoQ | 47.048 % | |
| Return On Sales YoY | -130.461 % | |
| Return On Sales IPRWA | high: 89.247 % VRTX: 38.931 % median: 23.652 % mean: -92.797 % low: -5698.0 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 927.4 M | |
| Free Cash Flow Yield | 0.846 % | |
| Free Cash Flow Yield QoQ | 35.36 % | |
| Free Cash Flow Yield YoY | -126.646 % | |
| Free Cash Flow Yield IPRWA | high: 36.371 % VRTX: 0.846 % median: 0.284 % mean: -0.462 % low: -74.318 % |
|
| Free Cash Growth | 19.172 % | |
| Free Cash Growth QoQ | -67.042 % | |
| Free Cash Growth YoY | -104.15 % | |
| Free Cash Growth IPRWA | high: 165.621 % VRTX: 19.172 % mean: 2.257 % median: 0.941 % low: -193.262 % |
|
| Free Cash To Net Income | 0.898 | |
| Cash Flow Margin | 28.802 % | |
| Cash Flow To Earnings | 0.827 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 4.403 % | |
| Return On Assets QoQ | 54.708 % | |
| Return On Assets YoY | -126.986 % | |
| Return On Assets IPRWA | high: 36.544 % VRTX: 4.403 % median: 1.616 % mean: -1.961 % low: -68.545 % |
|
| Return On Capital Employed (ROCE) | 6.466 % | |
| Return On Equity (ROE) | 0.06 | |
| Return On Equity QoQ | 53.497 % | |
| Return On Equity YoY | -124.726 % | |
| Return On Equity IPRWA | high: 1.117 VRTX: 0.06 median: 0.04 mean: 0.003 low: -1.572 |
|
| DuPont ROE | 6.135 % | |
| Return On Invested Capital (ROIC) | 6.031 % | |
| Return On Invested Capital QoQ | 53.305 % | |
| Return On Invested Capital YoY | -89.023 % | |
| Return On Invested Capital IPRWA | high: 53.785 % VRTX: 6.031 % median: 3.175 % mean: 0.903 % low: -71.959 % |
|