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Vertex Pharmaceuticals Incorporated

VX1.DE
67
Biotechnology · Healthcare
Price
€472.05
+3.55 (+0.76%)
Market Cap
€119.81B
Exchange
Frankfurt Stock Exchange
Winston Score
67
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Exceptional
Growth
Strong
Cash Flow
Exceptional
Stability
Good
Valuation
Good

Winston Score History

The full picture

Vertex Pharmaceuticals is a biotech company that makes medicines for serious genetic diseases. Its main products are pills that treat cystic fibrosis, a rare lung disease affecting roughly 160,000 people worldwide. Vertex dominates this market — its drug combination Trikafta is used by the vast majority of eligible cystic fibrosis patients in the United States and Europe.

Vertex makes money by selling prescription drugs directly to patients through insurers and healthcare systems. It operates primarily in the US and Europe, generating over $9 billion in annual revenue. Its grip on the cystic fibrosis market is strong because developing these medicines took decades of research and competitors have struggled to match its results. The key risk is that cystic fibrosis is a relatively small patient population, so Vertex is working to expand into new diseases — including pain management and kidney disease — to sustain long-term growth.

Growth Profile

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

Revenue Growth

+12.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+8.0% 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

0.3%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 13%. 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

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Quality

Profit per sale
Gross Margin
85.5%
Premium pricing power — 85.5% gross margin
Profit after running costs
Operating Margin
38.1%
Excellent — 38.1% 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
+10.5%
Steady sales growth (+10.5% 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
N/A
Data not available
Covers its interest
Interest Cover
741.04x
Comfortably covers interest (741.0x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
27.3x
Growth-priced — P/E 27.3

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

Cheaper or dearer next year
P/E vs Forward
+5.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (27.3 → 22.0)

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Dividends

Not applicable for this business.
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