Vertex Pharmaceuticals Incorporated (VRTX) — Free Cash Flow Yield
Healthcare
Vertex Pharmaceuticals Incorporated operates as a biotechnology company in the United States, Europe, and internationally. The company offers transformative medicines for people with serious diseases with a focus on specialty markets, such as cystic fibrosis (CF), sickle cell disease (SCD), transfusion dependent beta thalassemia (TDT), and acute pain. It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age and older; ALYFTREK for the treatment for people with CF 6 years of age and older; SYMDEKO/SYMKEVI for treatment of patients with CF 6 years of age and older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 month or older who have CF with ivacaftor. The company also develops CASGEVY for the treatment of SCD and TDT; JOURNAVX for the treatment of acute pain in adults; VX-522, a CFTR mRNA therapeutic designed to treat the underlying cause of CF, which is in Phase 1/2 clinical trial; inaxaplin for the treatment of APOL1-mediated kidney disease, which is in single Phase 2 trial; VX-264 for treating Type 1 Diabetes; VX-670 for the treatment of myotonic dystrophy type 1; and VX-407, a small molecule corrector for the treatment of autosomal dominant polycystic kidney disease. In addition, the company also operates as a clinical-stage pharmaceutical company, that focuses on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. The company sells its products primarily to specialty pharmacy and distributors, wholesalers, retail pharmacies, hospitals, and clinics. Vertex Pharmaceuticals Incorporated has a strategic collaboration with AbCellera Biologics Inc. to research, develop, manufacture, and commercialize multispecific T-cell engagers (TCEs) for autoimmune diseases and other conditions. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.
| Metric | Value |
|---|---|
| FCF Yield | 2.5% |
| Healthcare Sector Avg FCF Yield | 5.2% |
| Annual Free Cash Flow | $3.2B |
| Market Cap | $127.9B |
| P/E Ratio | 29.5x |
Vertex Pharmaceuticals Incorporated's FCF yield of 2.5% is below the Healthcare sector average (5.2%).
Frequently Asked Questions
What is Vertex Pharmaceuticals Incorporated's (VRTX) free cash flow yield?
Vertex Pharmaceuticals Incorporated's (VRTX) free cash flow yield is 2.5%. That is below the Healthcare sector average (5.2%).
Is VRTX's free cash flow yield good?
At 2.5%, VRTX's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does Vertex Pharmaceuticals Incorporated generate?
Vertex Pharmaceuticals Incorporated generated $3.2B in free cash flow, against a market cap of $127.9B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →