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Vertex Pharmaceuticals Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Vertex Pharmaceuticals has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Vertex Pharmaceuticals's Piotroski F-Score or its related term are showing as below:

VRTX' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 4   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of Vertex Pharmaceuticals was 8. The lowest was 1. And the median was 4.


Vertex Pharmaceuticals Piotroski F-Score Historical Data

The historical data trend for Vertex Pharmaceuticals's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Vertex Pharmaceuticals Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 6.00 6.00 8.00 6.00

Vertex Pharmaceuticals Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 4.00 6.00 6.00 8.00

Competitive Comparison

For the Biotechnology subindustry, Vertex Pharmaceuticals's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Vertex Pharmaceuticals Piotroski F-Score Distribution

For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Vertex Pharmaceuticals's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 851.928 + 770.11 + 762.1 + 810.5 = $3,195 Mil.
Cash Flow from Operations was 927.207 + 994.993 + 956.2 + 1139.8 = $4,018 Mil.
Revenue was 1984.164 + 2072.561 + 2097.5 + 2196.2 = $8,350 Mil.
Gross Profit was 1747.652 + 1825.174 + 1851.7 + 1934.4 = $7,359 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(12221.686 + 12618.745 + 13432.5 + 14256.1 + 15582.2) / 5 = $13622.2462 Mil.
Total Assets at the begining of this year (Jun21) was $12,222 Mil.
Long-Term Debt & Capital Lease Obligation was $847 Mil.
Total Current Assets was $11,504 Mil.
Total Current Liabilities was $2,556 Mil.
Net Income was 667.434 + 604.243 + 653.1 + 67 = $1,992 Mil.

Revenue was 1538.271 + 1627.837 + 1724.3 + 1793.4 = $6,684 Mil.
Gross Profit was 1352.089 + 1424.736 + 1532 + 1565.4 = $5,874 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(10216.367 + 11301.633 + 11751.8 + 12115.059 + 12221.686) / 5 = $11521.309 Mil.
Total Assets at the begining of last year (Jun20) was $10,216 Mil.
Long-Term Debt & Capital Lease Obligation was $894 Mil.
Total Current Assets was $8,458 Mil.
Total Current Liabilities was $1,836 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Vertex Pharmaceuticals's current Net Income (TTM) was 3,195. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Vertex Pharmaceuticals's current Cash Flow from Operations (TTM) was 4,018. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=3194.638/12221.686
=0.26139094

ROA (Last Year)=Net Income/Total Assets (Jun20)
=1991.777/10216.367
=0.19495942

Vertex Pharmaceuticals's return on assets of this year was 0.26139094. Vertex Pharmaceuticals's return on assets of last year was 0.19495942. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Vertex Pharmaceuticals's current Net Income (TTM) was 3,195. Vertex Pharmaceuticals's current Cash Flow from Operations (TTM) was 4,018. ==> 4,018 > 3,195 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=847.3/13622.2462
=0.06219973

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=893.849/11521.309
=0.07758224

Vertex Pharmaceuticals's gearing of this year was 0.06219973. Vertex Pharmaceuticals's gearing of last year was 0.07758224. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=11503.5/2556.2
=4.50023472

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=8457.514/1836.448
=4.60536536

Vertex Pharmaceuticals's current ratio of this year was 4.50023472. Vertex Pharmaceuticals's current ratio of last year was 4.60536536. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Vertex Pharmaceuticals's number of shares in issue this year was 258.7. Vertex Pharmaceuticals's number of shares in issue last year was 261. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=7358.926/8350.425
=0.88126365

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5874.225/6683.808
=0.87887399

Vertex Pharmaceuticals's gross margin of this year was 0.88126365. Vertex Pharmaceuticals's gross margin of last year was 0.87887399. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=8350.425/12221.686
=0.68324657

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=6683.808/10216.367
=0.65422552

Vertex Pharmaceuticals's asset turnover of this year was 0.68324657. Vertex Pharmaceuticals's asset turnover of last year was 0.65422552. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Vertex Pharmaceuticals has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Vertex Pharmaceuticals  (NAS:VRTX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Vertex Pharmaceuticals Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Vertex Pharmaceuticals's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Vertex Pharmaceuticals Business Description

Vertex Pharmaceuticals logo
Address
50 Northern Avenue, Boston, MA, USA, 02210
Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio for cystic fibrosis, where Vertex therapies remain the standard of care globally. In addition to its focus on cystic fibrosis, Vertex is diversifying its pipeline through gene-editing therapies such as CTX001 for beta-thalassemia and sickle-cell disease, small-molecule inhibitors targeting acute and chronic pain using non-opioid treatments, and small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.
Executives
Upadhyay Suketu director 345 E. MAIN STREET WARSAW IN 46580
Garber Alan M director 3355 MILTON COURT MOUNTAIN VIEW CA 94040
Kearney Terrence C director IN CARE OF HOSPIRA, INC. 275 NORTH FIELD DRIVE LAKE FOREST IL 60045
Carney Lloyd director C/O MICROMUSE INC 139 TOWNSEND ST SAN FRANCISCO CA 94107
Mckenzie Diana director METLIFE 200 PARK AVENUE NEW YORK NY 10166
Bhatia Sangeeta N. director C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Lee Yuchun director 170 TRACER LA. WALTHAM MA 02451
Ambrose Kristen officer: SVP & Chief Accounting Officer C/O VERTEX PHARMACEUTICALS INCORPORATED 50 NORTHERN AVENUE BOSTON MA 02210
Mcglynn Margaret G director C/O MERCK & CO INC ONE MERCK DRIVE PO BOX 100 WHITEHOUSE STATION NJ 08889-0100
Liu Joy officer: SVP, General Counsel C/O VERTEX PHARMACEUTICALS INCORPORATED 50 NORTHERN AVENUE BOSTON MA 02210
Tatsis Ourania officer: EVP, Chief Reg. & Quality Off. C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Bozic Carmen officer: EVP and CMO C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Wagner Charles F Jr officer: EVP & Chief Financial Officer C/O MILLIPORE CORP BILLERICA MA 01820
Arbuckle Stuart A officer: EVP, COO VERTEX PHARMACEUTICALS INCORPORATED 130 WAVERLY ST. CAMBRIDGE MA 02139
Kewalramani Reshma director, officer: CEO & President C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210

Vertex Pharmaceuticals Headlines

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