Aureus
AExcellent

Vertex Pharmaceuticals Incorpor(VRTX)

A

Financial data as of Dec 31, 2025Declining · Healthcare

FCF Margin20.9%Free Cash Flow / Revenue
Cash Conversion91.9%Operating CF / Net Income
Free Cash Flow$3.2B
Revenue$12.0B
Net Cash$3.1BCash exceeds debt
Debt / FCF0.8xManageable debt load
Current Ratio2.90Adequate short-term liquidity
YoY FCF Growth-41.1%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (20.9%, 0.8x)
→
-1Significant YoY FCF decline (-41.1%)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.8x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (20.9%)
  • Net cash position ($3.1B)
  • Very low debt relative to cash flow (0.8x)
  • Strong liquidity (current ratio: 2.90)

Concerns

  • Significant YoY FCF decline (-41.1%)
SBC-adjusted FCF used — $0.7B stock-based compensation (21% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin20.9%
Net Margin32.9%
Operating CF Margin30.3%
CapEx Ratio3.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$3.1BCash exceeds debt
Debt / FCF0.8xManageable debt load
Current Ratio2.90Strong liquidity
Debt / Equity0.11Low leverage

Quarterly FCF Trend

-41.1% YoYDeclining (-41.1%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameVertex Pharmaceuticals Incorpor
SectorHealthcare
Free Cash Flow$3.2B
Revenue$12.0B
Net Income$4.0B
Operating Cash Flow$3.6B
Capital Expenditure$437.6M
FCF Margin20.9%
Cash Conversion Rate91.9%
Net Margin32.9%
Total Debt$2.0B
Total Cash$5.1B
Net Cash$3.1B
Current Ratio2.90
Debt / Equity0.11
Debt / FCF0.8x
YoY FCF Growth-41.1%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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