0.697 USD
-0.05 (-6.58%)
0.6801 USD
-0.02 (-2.42%)
We assign a fundamental rating of 3 out of 10 to VRME. VRME was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. While VRME seems to be doing ok healthwise, there are quite some concerns on its profitability. VRME does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
VRME had negative earnings in the past year.
VRME had a positive operating cash flow in the past year.
VRME had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: VRME reported negative operating cash flow in multiple years.
1.2 Ratios
VRME has a Return On Assets of -35.58%. This is in the lower half of the industry: VRME underperforms 78.23% of its industry peers.
With a Return On Equity value of -42.50%, VRME is not doing good in the industry: 73.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -35.58% | ||
| ROE | -42.5% | ||
| ROIC | N/A |
ROA(3y)-36.52%
ROA(5y)-32.04%
ROE(3y)-56.82%
ROE(5y)-44.86%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 34.94%, VRME is in line with its industry, outperforming 54.84% of the companies in the same industry.
VRME's Gross Margin has declined in the last couple of years.
VRME does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 34.94% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.64%
GM growth 5Y-15.56%
2. Health
2.1 Basic Checks
VRME does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for VRME has been increased compared to 1 year ago.
Compared to 5 years ago, VRME has more shares outstanding
The debt/assets ratio for VRME is higher compared to a year ago.
2.2 Solvency
VRME has an Altman-Z score of -5.12. This is a bad value and indicates that VRME is not financially healthy and even has some risk of bankruptcy.
VRME has a worse Altman-Z score (-5.12) than 86.29% of its industry peers.
VRME has a debt to FCF ratio of 1.96. This is a very positive value and a sign of high solvency as it would only need 1.96 years to pay back of all of its debts.
VRME's Debt to FCF ratio of 1.96 is fine compared to the rest of the industry. VRME outperforms 79.03% of its industry peers.
VRME has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
VRME has a Debt to Equity ratio (0.07) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | -5.12 |
ROIC/WACCN/A
WACC9.38%
2.3 Liquidity
VRME has a Current Ratio of 3.70. This indicates that VRME is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.70, VRME is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
A Quick Ratio of 3.69 indicates that VRME has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.69, VRME is doing good in the industry, outperforming 78.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.7 | ||
| Quick Ratio | 3.69 |
3. Growth
3.1 Past
The earnings per share for VRME have decreased strongly by -22.58% in the last year.
The Revenue for VRME has decreased by -14.21% in the past year. This is quite bad
The Revenue has been growing by 151.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-22.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-13.04%
Revenue 1Y (TTM)-14.21%
Revenue growth 3Y203.02%
Revenue growth 5Y151.62%
Sales Q2Q%-7.4%
3.2 Future
The Earnings Per Share is expected to grow by 17.04% on average over the next years. This is quite good.
VRME is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -17.34% yearly.
EPS Next Y58.92%
EPS Next 2Y26.06%
EPS Next 3Y17.04%
EPS Next 5YN/A
Revenue Next Year-23.28%
Revenue Next 2Y-5.37%
Revenue Next 3Y-17.34%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
VRME reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for VRME. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
VRME's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRME is cheaper than 79.03% of the companies in the same industry.
78.23% of the companies in the same industry are more expensive than VRME, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.7 | ||
| EV/EBITDA | 12.4 |
4.3 Compensation for Growth
VRME's earnings are expected to grow with 17.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y26.06%
EPS Next 3Y17.04%
5. Dividend
5.1 Amount
VRME does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
0.697
-0.05 (-6.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners8.11%
Inst Owner Change-23.76%
Ins Owners18.98%
Ins Owner Change-0.65%
Market Cap8.67M
Revenue(TTM)21.67M
Net Income(TTM)-4.72M
Analysts85
Price Target1.27 (82.21%)
Short Float %2.32%
Short Ratio0.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-196.3%
Min EPS beat(2)-466.45%
Max EPS beat(2)73.86%
EPS beat(4)2
Avg EPS beat(4)-100.67%
Min EPS beat(4)-466.45%
Max EPS beat(4)73.86%
EPS beat(8)5
Avg EPS beat(8)-37.18%
EPS beat(12)8
Avg EPS beat(12)-18.83%
EPS beat(16)10
Avg EPS beat(16)-31.35%
Revenue beat(2)2
Avg Revenue beat(2)6.04%
Min Revenue beat(2)5.07%
Max Revenue beat(2)7.01%
Revenue beat(4)2
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-14.21%
Max Revenue beat(4)7.01%
Revenue beat(8)3
Avg Revenue beat(8)-2.67%
Revenue beat(12)5
Avg Revenue beat(12)-1.62%
Revenue beat(16)6
Avg Revenue beat(16)-0.72%
PT rev (1m)-16.67%
PT rev (3m)-16.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)12.12%
Revenue NQ rev (1m)-27.8%
Revenue NQ rev (3m)-27.8%
Revenue NY rev (1m)-9.2%
Revenue NY rev (3m)-9.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.4 | ||
| P/FCF | 22.7 | ||
| P/OCF | 7.76 | ||
| P/B | 0.78 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 12.4 |
EPS(TTM)-0.38
EYN/A
EPS(NY)-0.15
Fwd EYN/A
FCF(TTM)0.03
FCFY4.41%
OCF(TTM)0.09
OCFY12.89%
SpS1.74
BVpS0.89
TBVpS0.47
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -35.58% | ||
| ROE | -42.5% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 34.94% | ||
| FCFM | 1.76% |
ROA(3y)-36.52%
ROA(5y)-32.04%
ROE(3y)-56.82%
ROE(5y)-44.86%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.64%
GM growth 5Y-15.56%
F-Score4
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.96 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 63.45% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 297.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.7 | ||
| Quick Ratio | 3.69 | ||
| Altman-Z | -5.12 |
F-Score4
WACC9.38%
ROIC/WACCN/A
Cap/Depr(3y)49.02%
Cap/Depr(5y)92.75%
Cap/Sales(3y)2.21%
Cap/Sales(5y)13.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-22.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-13.04%
EPS Next Y58.92%
EPS Next 2Y26.06%
EPS Next 3Y17.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.21%
Revenue growth 3Y203.02%
Revenue growth 5Y151.62%
Sales Q2Q%-7.4%
Revenue Next Year-23.28%
Revenue Next 2Y-5.37%
Revenue Next 3Y-17.34%
Revenue Next 5YN/A
EBIT growth 1Y54.73%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year121.07%
EBIT Next 3Y30.79%
EBIT Next 5YN/A
FCF growth 1Y130.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y332.92%
OCF growth 3YN/A
OCF growth 5YN/A
VERIFYME INC / VRME FAQ
Can you provide the ChartMill fundamental rating for VERIFYME INC?
ChartMill assigns a fundamental rating of 3 / 10 to VRME.
Can you provide the valuation status for VERIFYME INC?
ChartMill assigns a valuation rating of 2 / 10 to VERIFYME INC (VRME). This can be considered as Overvalued.
What is the profitability of VRME stock?
VERIFYME INC (VRME) has a profitability rating of 1 / 10.
Can you provide the expected EPS growth for VRME stock?
The Earnings per Share (EPS) of VERIFYME INC (VRME) is expected to grow by 58.92% in the next year.