VERTEX PHARMACEUTICALS INC / MA (VRTX) Stock Analysis

Analysis from 10-Q filed 2025-11-04. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 22.1%. FCF margin 30.4%. D/E 0.0x. Source: 10-Q filed 2025-11-04.

Metric	Value	Context
ROIC	22.1%	Above industry average
FCF Margin	30.4%	Strong cash generation
Debt/Equity	0.0x	Conservative leverage

ROIC 22.1% — Top 25% of sector peers. FCF margin 30.4% — Top 5%.

Explore VERTEX PHARMACEUTICALS INC / MA: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for VRTX: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: VERTEX PHARMACEUTICALS INC / MA earns 22.1% ROIC, Top 25% in Healthcare

ROIC TTM 22.1%, sector median -2.6%, Top 25%. DuPont: NOPAT margin 32.2% × asset turnover 0.5x. Gross margin 86.2%. Operating margin 38.3%. Source: 10-Q filed 2025-11-04.

Metric	VRTX	Rating	Context
Return on Invested Capital (ROIC)	22.1%	Excellent	Above sector median of -2.6%
Return on Equity (ROE)	24.4%	Excellent	Efficient use of shareholder equity
Gross Margin	86.2%	Excellent	Strong pricing power
Operating Margin	38.3%	Excellent	Efficient operations

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Cash Flow: VERTEX PHARMACEUTICALS INC / MA generates $3.7B FCF at 30.4% margin, positive NaN/8 quarters

FCF TTM $3.7B. FCF margin 30.4%, Top 5%. OCF/Net income 1.0x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-04.

Metric	VRTX	Rating	Context
Free Cash Flow Margin	30.4%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$3.7B	Good	Positive cash generation
OCF/Net Income	1.0x	Good	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: VERTEX PHARMACEUTICALS INC / MA at 0.0x leverage

Debt/Equity 0.0x. Source: 10-Q filed 2025-11-04.

Metric	VRTX	Rating	Context
Debt to Equity	0.0x	Excellent	Conservative capital structure

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Valuation: VERTEX PHARMACEUTICALS INC / MA trades at 26.2x earnings

P/E 26.2x. EV/Sales 8.8x. FCF yield 3.3%. Source: 10-Q filed 2025-11-04.

Metric	VRTX	Rating	Context
P/E Ratio	26.2x	Adequate	Premium valuation
EV/Sales	8.8x	Adequate	Growth premium priced in
FCF Yield	3.3%	Adequate	Lower cash yield

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Capital Allocation: VERTEX PHARMACEUTICALS INC / MA returns 1.7% shareholder yield

Total shareholder yield 1.7% (buyback 1.7%). Capital returned $1.9B TTM. Source: 10-Q filed 2025-11-04.

Metric	VRTX	Rating	Context
Total Shareholder Yield	1.7%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.7%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$1.9B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	22.1%	Top 25%	-
Free Cash Flow Margin	30.4%	Top 5%	-
Gross Margin	86.2%	Top 25%	1.4x above
Operating Margin	38.3%	Top 10%	14.3x above
Return on Equity (ROE)	24.4%	Top 25%	-
P/E Ratio	26.2x	N/A	-

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Financial Scorecard

Metric	VRTX	Rating	Sector Context
Return on Invested Capital (ROIC)	22.1%	Excellent	Top 25% of sector (median: -2.6%)
Free Cash Flow Margin	30.4%	Excellent	Top 5% of sector (median: 0.0%)
Gross Margin	86.2%	Excellent	Top 25% of sector (median: 63.8%)
Debt to Equity Ratio	0.0%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	26.2x	Adequate	Growth premium
Free Cash Flow Yield	3.3%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is VERTEX PHARMACEUTICALS INC / MA's Return on Invested Capital (ROIC)?

VERTEX PHARMACEUTICALS INC / MA (VRTX) has a trailing twelve-month Return on Invested Capital (ROIC) of 22.1%. Sector median -2.6%. Source: 10-Q filed 2025-11-04.

Q: What is VERTEX PHARMACEUTICALS INC / MA's Free Cash Flow Margin?

VERTEX PHARMACEUTICALS INC / MA (VRTX) has a free cash flow margin of 30.4%, generating $3.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-04.

Q: What is VERTEX PHARMACEUTICALS INC / MA's P/E ratio and how does it compare to peers?

VERTEX PHARMACEUTICALS INC / MA (VRTX) trades at a P/E ratio of 26.2x, which is above the sector median of N/A. EV/Sales 8.8x. FCF yield 3.3%. Source: 10-Q filed 2025-11-04.

Q: What is VERTEX PHARMACEUTICALS INC / MA's revenue and earnings growth?

VERTEX PHARMACEUTICALS INC / MA (VRTX) grew revenue by 10.1% year-over-year. Source: 10-Q filed 2025-11-04.

Q: Is VERTEX PHARMACEUTICALS INC / MA buying back stock?

VERTEX PHARMACEUTICALS INC / MA (VRTX) repurchased $1.9 billion of stock over the trailing twelve months. This represents a buyback yield of 1.7%. Source: 10-Q filed 2025-11-04.

Q: How does VERTEX PHARMACEUTICALS INC / MA compare to competitors in Healthcare?

Compared to other companies in Healthcare, VERTEX PHARMACEUTICALS INC / MA (VRTX) shows: ROIC 22.1%, sector median -2.6% (Top 25%). FCF margin 30.4%, sector median 0.0% (Top 5%). Gross margin 86.2%, 22.4pp above sector median. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.

Q: What warning signs should I watch for with VERTEX PHARMACEUTICALS INC / MA?

No quantitative warning flags fired for VERTEX PHARMACEUTICALS INC / MA (VRTX) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-11-04.

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Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.