Vertex PharmaceuticalsVRTX -2.24%78 3-Year ROIIC % is 5.25 as of Dec. 2025, which is 89% below its 10-year median of 46.62. GuruFocus rates VRTX with a GF Score™ of 78/100 and a GF Value™ of $504.72 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,321 Biotechnology companies, Vertex Pharmaceuticals ranks better than 58.14% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Vertex Pharmaceuticals's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 5.25%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Vertex Pharmaceuticals's 3-Year ROIIC % or its related term are showing as below:
VRTX's 3-Year ROIIC % is ranked better than 58.14% of 1321
companies
in the Biotechnology industry
Industry Median: -4.44
vs VRTX: 5.25
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Vertex Pharmaceuticals 3-Year ROIIC % Related Terms
Vertex Pharmaceuticals 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Vertex Pharmaceuticals's 3-Year ROIIC % 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.
VRTX vs REGN, ALNY, RVMD: 3-Year ROIIC % Comparison
For the Biotechnology subindustry, Vertex Pharmaceuticals's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Vertex Pharmaceuticals (VRTX) has a 3-Year ROIIC % of 5.25 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Vertex Pharmaceuticals and its competitors. This is 89% below median its historical median of 46.62. Over the past decade, Vertex Pharmaceuticals' 3-Year ROIIC % has ranged from 5.25 to 144.96. According to the industry distribution chart, Vertex Pharmaceuticals ranks #553 out of 1321 companies in the Biotechnology industry, placing it in the top 41.9%.
Is Vertex Pharmaceuticals' 3-Year ROIIC % too high?
Vertex Pharmaceuticals' current 3-Year ROIIC % of 5.25 is 89% below median its 10-year median of 46.62. Over the past 10 years, this metric has ranged from a low of 5.25 to a high of 144.96. Based on the distribution chart, Vertex Pharmaceuticals ranks #553 out of 1321 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Vertex Pharmaceuticals has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vertex Pharmaceuticals' 3-Year ROIIC % compare to REGN and ALNY?
According to the Biotechnology industry distribution chart, Vertex Pharmaceuticals ranks #553 out of 1321 companies for 3-Year ROIIC %. This puts Vertex Pharmaceuticals in the upper half of its industry. Historically, Vertex Pharmaceuticals' own 3-Year ROIIC % has ranged from 5.25 to 144.96 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Biotechnology company?
A good 3-Year ROIIC % depends on the Biotechnology industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Vertex Pharmaceuticals and its competitors. Vertex Pharmaceuticals's current 3-Year ROIIC % is 5.25, which is 89% below median its own 10-year median of 46.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vertex Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Vertex Pharmaceuticals (VRTX) is currently considered Fairly Valued. The stock's GF Value™ is $504.72, compared to a current price of $485.39 — trading 3.8% below its estimated fair value. The current 3-Year ROIIC % is 5.25, which is 89% below median its 10-year median of 46.62. Vertex Pharmaceuticals' overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Vertex Pharmaceuticals (VRTX), the current 3-Year ROIIC % is 5.25 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vertex Pharmaceuticals (VRTX) Overvalued in 2026?
Based on GuruFocus' analysis, Vertex Pharmaceuticals stock appears to be undervalued.
The current stock price of $485.39 is trading 3.8% below its estimated GF Value™ of $504.72.
GuruFocus considers Vertex Pharmaceuticals to be Fairly Valued.
Key valuation signals for VRTX:
3-Year ROIIC %: 5.25 (89% below median its 10-year median of 46.62)
GF Value™: $504.72 vs. price of $485.39 (3.8% below fair value)
No single metric tells the full story. See the VRTX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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, and Alyftrek for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex has diversified its portfolio through Casgevy, a gene-editing therapy for beta thalassemia and sickle-cell disease, and Journavx, a non-opioid pain medication approved for the treatment of moderate-to-severe acute pain in adults. Additionally, Vertex is evaluating small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.
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