Vertex Pharmaceuticals Incorporated (VRTX)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-26 close of $517.49, Vertex is a high-quality specialty biotech priced for continued success. The business sells transformative medicines in cystic fibrosis, sickle cell disease, beta thalassemia, and acute pain, and its latest filed quarter—fiscal Q2 2026, ended 2026-06-30—showed revenue of $3.3B, net income of $1.1B, and diluted EPS of $4.31. Fiscal Q1 2026, ended 2026-03-31, had revenue of $3.0B, net income of $1.0B, and diluted EPS of $4.02. For full-year fiscal 2025, revenue was $12.0B, net income $4.0B, and diluted EPS $15.32, a sharp recovery from fiscal 2024’s net loss of $535.6M on revenue of $11.0B. That fits FairStock’s computed Lynch category of TURNAROUND—returned to profit after a loss within the last three years. The balance sheet looks strong: debt/equity 0.10, Altman Z 12.56, Piotroski 8/9, and trailing FCF $3.8B. FairStock calculations show ROE 23.54% and ROCE 11.93%, consistent with a durable specialty-medicine franchise. But price is the weak link for a Graham-style buyer: FairStock calculations show P/E 30.12, P/B 6.48, EV/EBITDA 24.43, FCF yield 2.9%, and a Graham Number of $175.76, leaving a -198.09% margin of safety. PEG 0.51 suggests expected growth is doing much of the work. I admire the business, but at this price I see fair-to-demanding valuation rather than bargain.

In plain English: Vertex Pharmaceuticals makes medicines for serious diseases such as cystic fibrosis, sickle cell disease, and acute pain. The business looks strong: sales and profit are growing, and it carries little debt. At the recent price, however, the shares look expensive compared with the company’s accounting value and cash flow.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer