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VERIFYME INC (VRME) Stock Fundamental Analysis

NASDAQ:VRME - Nasdaq - US92346X2062 - Common Stock - Currency: USD

0.9565  -0.04 (-4.35%)

Premarket: 0.95 -0.01 (-0.68%)

Fundamental Rating

2

Overall VRME gets a fundamental rating of 2 out of 10. We evaluated VRME against 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and financial health of VRME have multiple concerns. VRME is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

VRME had negative earnings in the past year.
In the past year VRME had a positive cash flow from operations.
VRME had negative earnings in 4 of the past 5 years.
VRME had negative operating cash flow in 4 of the past 5 years.
VRME Yearly Net Income VS EBIT VS OCF VS FCFVRME Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -5M -10M

1.2 Ratios

VRME has a worse Return On Assets (-22.40%) than 76.67% of its industry peers.
The Return On Equity of VRME (-32.31%) is worse than 74.17% of its industry peers.
Industry RankSector Rank
ROA -22.4%
ROE -32.31%
ROIC N/A
ROA(3y)-23.04%
ROA(5y)-80.68%
ROE(3y)-38.65%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
VRME Yearly ROA, ROE, ROICVRME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1K 2K 3K

1.3 Margins

With a decent Gross Margin value of 37.14%, VRME is doing good in the industry, outperforming 64.17% of the companies in the same industry.
VRME's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for VRME so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 37.14%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-24.41%
GM growth 5Y-13.02%
VRME Yearly Profit, Operating, Gross MarginsVRME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -2K -4K -6K -8K

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3

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.
The number of shares outstanding for VRME has been increased compared to 5 years ago.
Compared to 1 year ago, VRME has a worse debt to assets ratio.
VRME Yearly Shares OutstandingVRME Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M 10M
VRME Yearly Total Debt VS Total AssetsVRME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M

2.2 Solvency

VRME has an Altman-Z score of -5.23. This is a bad value and indicates that VRME is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -5.23, VRME is not doing good in the industry: 88.33% of the companies in the same industry are doing better.
VRME has a debt to FCF ratio of 3.10. This is a good value and a sign of high solvency as VRME would need 3.10 years to pay back of all of its debts.
The Debt to FCF ratio of VRME (3.10) is better than 63.33% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that VRME is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.16, VRME is in line with its industry, outperforming 52.50% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 3.1
Altman-Z -5.23
ROIC/WACCN/A
WACC8.77%
VRME Yearly LT Debt VS Equity VS FCFVRME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5M 10M 15M 20M

2.3 Liquidity

VRME has a Current Ratio of 1.74. This is a normal value and indicates that VRME is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.74, VRME is doing worse than 67.50% of the companies in the same industry.
VRME has a Quick Ratio of 1.74. This is a normal value and indicates that VRME is financially healthy and should not expect problems in meeting its short term obligations.
VRME has a Quick ratio of 1.74. This is comparable to the rest of the industry: VRME outperforms 51.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.74
Quick Ratio 1.74
VRME Yearly Current Assets VS Current LiabilitesVRME Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M 10M

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4

3. Growth

3.1 Past

VRME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.82%, which is quite good.
The Revenue has decreased by -3.96% in the past year.
The Revenue has been growing by 224.82% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)8.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-155.56%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y320.68%
Revenue growth 5Y224.82%
Sales Q2Q%-3.02%

3.2 Future

VRME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.59% yearly.
Based on estimates for the next years, VRME will show a small growth in Revenue. The Revenue will grow by 2.42% on average per year.
EPS Next Y-2%
EPS Next 2Y15.31%
EPS Next 3Y14.59%
EPS Next 5YN/A
Revenue Next Year-3.18%
Revenue Next 2Y0.82%
Revenue Next 3Y2.42%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
VRME Yearly Revenue VS EstimatesVRME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5M 10M 15M 20M 25M
VRME Yearly EPS VS EstimatesVRME Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -0.5 -1 -1.5

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for VRME. In the last year negative earnings were reported.
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 RankSector Rank
PE N/A
Fwd PE N/A
VRME Price Earnings VS Forward Price EarningsVRME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, VRME is valued cheaper than 84.17% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.83
EV/EBITDA N/A
VRME Per share dataVRME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5 2

4.3 Compensation for Growth

A more expensive valuation may be justified as VRME's earnings are expected to grow with 14.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.31%
EPS Next 3Y14.59%

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0

5. Dividend

5.1 Amount

No dividends for VRME!.
Industry RankSector Rank
Dividend Yield N/A

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VERIFYME INC

NASDAQ:VRME (2/20/2025, 8:00:01 PM)

Premarket: 0.95 -0.01 (-0.68%)

0.9565

-0.04 (-4.35%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)03-19 2025-03-19/amc
Inst Owners10.32%
Inst Owner Change-16.5%
Ins Owners18.17%
Ins Owner Change1.56%
Market Cap10.04M
Analysts85
Price Target2.3 (140.46%)
Short Float %1.98%
Short Ratio0.02
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)-22.86%
Min EPS beat(2)-114.75%
Max EPS beat(2)69.04%
EPS beat(4)3
Avg EPS beat(4)26.32%
Min EPS beat(4)-114.75%
Max EPS beat(4)100%
EPS beat(8)6
Avg EPS beat(8)22.09%
EPS beat(12)8
Avg EPS beat(12)-8.25%
EPS beat(16)11
Avg EPS beat(16)-7.09%
Revenue beat(2)1
Avg Revenue beat(2)-2.4%
Min Revenue beat(2)-6.65%
Max Revenue beat(2)1.84%
Revenue beat(4)1
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-6.65%
Max Revenue beat(4)1.84%
Revenue beat(8)3
Avg Revenue beat(8)-1.1%
Revenue beat(12)4
Avg Revenue beat(12)-0.07%
Revenue beat(16)6
Avg Revenue beat(16)2.21%
PT rev (1m)0%
PT rev (3m)50%
EPS NQ rev (1m)-250%
EPS NQ rev (3m)-450%
EPS NY rev (1m)-66.67%
EPS NY rev (3m)-66.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.45%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.4
P/FCF 14.83
P/OCF 8.76
P/B 0.98
P/tB 13.06
EV/EBITDA N/A
EPS(TTM)-0.31
EYN/A
EPS(NY)-0.23
Fwd EYN/A
FCF(TTM)0.06
FCFY6.74%
OCF(TTM)0.11
OCFY11.41%
SpS2.41
BVpS0.98
TBVpS0.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -22.4%
ROE -32.31%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 37.14%
FCFM 2.68%
ROA(3y)-23.04%
ROA(5y)-80.68%
ROE(3y)-38.65%
ROE(5y)N/A
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
ROICexcg growth 3YN/A
ROICexcg 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-24.41%
GM growth 5Y-13.02%
F-Score7
Asset Turnover1.7
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 3.1
Debt/EBITDA N/A
Cap/Depr 39.12%
Cap/Sales 1.86%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.74
Quick Ratio 1.74
Altman-Z -5.23
F-Score7
WACC8.77%
ROIC/WACCN/A
Cap/Depr(3y)106.86%
Cap/Depr(5y)170.78%
Cap/Sales(3y)11.45%
Cap/Sales(5y)23.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-155.56%
EPS Next Y-2%
EPS Next 2Y15.31%
EPS Next 3Y14.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y320.68%
Revenue growth 5Y224.82%
Sales Q2Q%-3.02%
Revenue Next Year-3.18%
Revenue Next 2Y0.82%
Revenue Next 3Y2.42%
Revenue Next 5YN/A
EBIT growth 1Y47.52%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year126.83%
EBIT Next 3Y34.67%
EBIT Next 5YN/A
FCF growth 1Y117.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y132.28%
OCF growth 3YN/A
OCF growth 5YN/A