Price to Operating Profit (P/OP)
since 2005
Calculation
Vertex Pharmaceuticals Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Income (loss) from operations1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 13, 2025 | — | = | 462.58 | ÷ | -0.91 | -0.91 | = | -232,900 | ÷ | 256,789,869 | |
| Feb 15, 2024 | 28.74 | = | 426.29 | ÷ | 14.84 | 14.84 | = | 3,832,000 | ÷ | 258,307,816 | |
| Feb 10, 2023 | 17.75 | = | 297.40 | ÷ | 16.75 | 16.75 | = | 4,307,400 | ÷ | 257,091,441 | |
| Feb 9, 2022 | 22.35 | = | 244.24 | ÷ | 10.93 | 10.93 | = | 2,782,100 | ÷ | 254,576,691 | |
| Feb 11, 2021 | 19.16 | = | 210.50 | ÷ | 10.99 | 10.99 | = | 2,856,290 | ÷ | 259,960,062 | |
| Feb 13, 2020 | 51.98 | = | 240.09 | ÷ | 4.62 | 4.62 | = | 1,197,566 | ÷ | 259,268,593 | |
| Feb 13, 2019 | 74.57 | = | 185.25 | ÷ | 2.48 | 2.48 | = | 635,150 | ÷ | 255,656,889 | |
| Feb 15, 2018 | 331.55 | = | 160.94 | ÷ | 0.49 | 0.49 | = | 123,243 | ÷ | 253,891,984 | |
| Feb 23, 2017 | 2,143.58 | = | 85.73 | ÷ | 0.04 | 0.04 | = | 9,936 | ÷ | 248,438,127 | |
| Feb 16, 2016 | — | = | 85.37 | ÷ | -1.89 | -1.89 | = | -466,879 | ÷ | 246,391,955 | |
| Feb 13, 2015 | — | = | 113.66 | ÷ | -2.86 | -2.86 | = | -692,412 | ÷ | 242,088,884 | |
| Feb 11, 2014 | — | = | 84.98 | ÷ | -3.83 | -3.83 | = | -903,448 | ÷ | 235,771,942 | |
| Mar 1, 2013 | 4,319.80 | = | 46.17 | ÷ | 0.01 | 0.01 | = | 2,332 | ÷ | 218,188,628 | |
| Feb 22, 2012 | 69.48 | = | 37.60 | ÷ | 0.54 | 0.54 | = | 113,820 | ÷ | 210,335,993 | |
| Feb 17, 2011 | — | = | 39.85 | ÷ | -3.41 | -3.41 | = | -696,077 | ÷ | 204,412,712 | |
| Feb 19, 2010 | — | = | 40.70 | ÷ | -3.06 | -3.06 | = | -614,012 | ÷ | 200,576,408 | |
| Feb 17, 2009 | — | = | 33.10 | ÷ | -3.04 | -3.04 | = | -462,708 | ÷ | 152,189,782 | |
| Feb 11, 2008 | — | = | 18.21 | ÷ | -3.16 | -3.16 | = | -419,792 | ÷ | 132,964,533 | |
| Mar 1, 2007 | — | = | 30.03 | ÷ | -1.81 | -1.81 | = | -229,038 | ÷ | 126,650,456 | |
| Mar 16, 2006 | — | = | 39.49 | ÷ | -1.37 | -1.37 | = | -149,872 | ÷ | 109,734,852 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Vertex Pharmaceuticals Inc. Annual Report.
The analysis of the financial data reveals several significant trends over the observed periods.
- Share Price
- The share price exhibits substantial growth over the years. Starting at $39.49 in 2006, it experienced fluctuations with some declines, notably reaching a low of $18.21 in 2008. However, from 2009 onward, there is a marked upward trajectory. The share price surged notably from $37.6 in 2012 to $160.94 in 2018, further escalating to a peak of $462.58 by 2025. This indicates strong market confidence and significant value appreciation over the long term.
- Operating Profit per Share
- The operating profit per share shows volatility and mixed performance across the timeline. For several years, the values were negative, indicating operating losses per share from 2006 through 2011. A transition occurred around 2012 when the operating profit per share briefly turned positive, but with considerable oscillation afterwards. From 2014 to 2023, there is a general improvement in operating profit per share, peaking at 16.75 US$ in 2023. Interestingly, the data for 2025 shows a return to a negative value (-0.91 US$), suggesting a potential setback in operating profitability.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio is sporadically reported but indicates significant valuations during the years provided. Extremely high ratios such as 4319.8 in 2013 and 2143.58 in 2016 suggest that the share price was very high relative to operating profits, potentially reflecting investor expectations of future growth rather than current profitability. More normalized ratios appear in later years (for example, 17.75 in 2023), consistent with improved operating profitability. However, the absence of P/OP entries for many years limits analysis of consistent valuation trends.
Overall, the data portrays a company with strong long-term share price growth and improving operating profitability after initial losses. Periodic volatility in operating profit per share and extremely high valuation ratios in some years hint at potential market exuberance or underlying operational challenges. The recent negative operating profit in 2025 may warrant further examination to understand the causes and implications for future performance.
Comparison to Competitors
Vertex Pharmaceuticals Inc., P/OP, long-term trends, comparison to competitors
| Vertex Pharmaceuticals Inc. | AbbVie Inc. | Amgen Inc. | Danaher Corp. | Gilead Sciences Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | |
|---|---|---|---|---|---|---|---|
| Feb 13, 2025 | — | 37.26 | 21.55 | 30.56 | 85.65 | 19.63 | 27.65 |
| Feb 15, 2024 | 28.74 | 24.34 | 19.69 | 35.64 | 12.05 | 25.39 | 31.16 |
| Feb 10, 2023 | 17.75 | 14.78 | 13.40 | 20.97 | 14.21 | 18.01 | 25.30 |
| Feb 9, 2022 | 22.35 | 14.21 | 16.24 | 25.14 | 7.76 | 7.55 | 21.07 |
| Feb 11, 2021 | 19.16 | 16.32 | 14.96 | 36.91 | 19.38 | 14.82 | 22.81 |
| Feb 13, 2020 | 51.98 | 10.82 | 13.84 | 34.47 | 20.66 | 19.01 | 26.84 |
| Feb 13, 2019 | 74.57 | 18.35 | 11.46 | 23.18 | 10.15 | 17.53 | 27.33 |
| Feb 15, 2018 | 331.55 | 19.63 | 12.71 | 22.48 | 7.45 | 16.71 | 28.24 |
| Feb 23, 2017 | 2,143.58 | 10.49 | 12.64 | 21.37 | 5.23 | 28.70 | 25.13 |
| Feb 16, 2016 | — | 11.61 | 13.07 | 17.27 | 5.50 | 30.74 | 22.15 |
| Feb 13, 2015 | — | 28.64 | 19.13 | 17.94 | 10.19 | 49.17 | 20.63 |
| Feb 11, 2014 | — | 14.31 | 16.19 | 16.24 | 28.54 | 42.99 | 30.40 |
| Mar 1, 2013 | 4,319.80 | 10.44 | 12.22 | 13.40 | 16.28 | 35.11 | 17.92 |
| Feb 22, 2012 | 69.48 | — | 12.48 | 14.04 | 9.02 | — | 16.64 |
| Feb 17, 2011 | — | — | 8.79 | 15.14 | 7.82 | — | 17.09 |
| Feb 19, 2010 | — | — | 10.12 | 15.63 | 12.16 | — | 19.04 |
| Feb 17, 2009 | — | — | 9.70 | 8.85 | 15.24 | — | 12.33 |
| Feb 11, 2008 | — | — | 12.44 | 13.65 | 18.80 | — | 24.03 |
| Mar 1, 2007 | — | — | 19.54 | 14.52 | — | — | 79.09 |
| Mar 16, 2006 | — | — | 17.96 | 15.18 | 25.01 | — | 21.48 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).