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Vertex Pharmaceuticals Incorporated

VRTX
73
Biotechnology · Healthcare
Also trades as: 0QZU.L GBP 5.36 (+2.87%)
Price
$535.17
+10.65 (+2.03%)
Market Cap
$135.64B
Exchange
NASDAQ
Winston Score
73
Winston is happy
A high-quality business with solid fundamentals.
Data as of Oct 22, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Exceptional
29/30
Growth
Strong
14/20
Cash Flow
Exceptional
9/10
Stability
Exceptional
10/10
Valuation
Good
6/10
Ownership
Weak
1/15
Dividends
Not counted
n/a

69 of 95 counted points = Winston Score 73. Pillars marked n/a do not apply to this company and are left out of the total.

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§Winston Score History

The full picture

Vertex Pharmaceuticals is a biotechnology company that makes medicines for serious genetic diseases. Its most important products are cystic fibrosis (CF) drugs — including Trikafta, which treats the underlying cause of CF rather than just the symptoms. Vertex is the dominant player in CF treatment and sells to patients, hospitals, and healthcare systems primarily in the US and Europe.

Vertex earns money by selling its CF medicines directly to specialty pharmacies and distributors, who then supply patients. The company generates most of its revenue from the US, though international sales are growing. Its moat comes from years of scientific expertise in CF and strong patent protection on its drug combinations, making it very hard for competitors to enter. Vertex is working to expand beyond CF into other genetic diseases like sickle cell disease — it already won approval for Casgevy, a gene-editing therapy — but heavy research spending and the challenge of replicating its CF success in new areas remain key risks.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+7.7% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$3.8B/ year

→ Flat (+3% vs prior year)

31.1% of revenue

1.7x the sector average (18%)

Steady R&D investment year-over-year

Insider Activity

0.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$13.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Vertex Pharmaceuticals Incorporated is a rare growth stock that's already generating positive cash flow while growing at 12%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.7% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 259.9M (2021) → 258.0M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
85.3%
Premium pricing power — 85.3% gross margin
Profit after running costs
Operating Margin
37.4%
Excellent — 37.4% operating margin
Return on the money invested
ROCE
24.1%
Exceptional — 24.1% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+10.6%
Steady sales growth (+10.6% YoY)
Profit growth
EPS YoY
+22.5%
Earnings growing fast (+22.5% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
97%
Turns 97% of profit into real cash
Spare cash per sale
FCF Margin
30.1%
Converts sales into free cash efficiently (30.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.10
Conservative — low debt load (0.10)
Covers its interest
Interest Cover
738.18x
Comfortably covers interest (738.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
30.9x
Pricey — P/E 30.9

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+10.8
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (30.9 → 20.1)

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Dividends

Not applicable for this business.
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