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VERASTEM INC (VSTM) Stock Fundamental Analysis

NASDAQ:VSTM - Nasdaq - US92337C2035 - Common Stock - Currency: USD

7.04  +0.83 (+13.37%)

Premarket: 7.25 +0.21 (+2.98%)

Fundamental Rating

1

VSTM gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 568 industry peers in the Biotechnology industry. Both the profitability and financial health of VSTM have multiple concerns. VSTM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year VSTM has reported negative net income.
VSTM had a negative operating cash flow in the past year.
In the past 5 years VSTM always reported negative net income.
In the past 5 years VSTM always reported negative operating cash flow.
VSTM Yearly Net Income VS EBIT VS OCF VS FCFVSTM 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 2024 -50M -100M

1.2 Ratios

VSTM's Return On Assets of -128.66% is on the low side compared to the rest of the industry. VSTM is outperformed by 81.87% of its industry peers.
Industry RankSector Rank
ROA -128.66%
ROE N/A
ROIC N/A
ROA(3y)-88.21%
ROA(5y)-74.8%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
VSTM Yearly ROA, ROE, ROICVSTM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500 -1K -1.5K -2K

1.3 Margins

VSTM does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
VSTM Yearly Profit, Operating, Gross MarginsVSTM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -1K -2K -3K

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2. Health

2.1 Basic Checks

VSTM does not have a ROIC to compare to the WACC, probably because it is not profitable.
VSTM has more shares outstanding than it did 1 year ago.
VSTM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VSTM is higher compared to a year ago.
VSTM Yearly Shares OutstandingVSTM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
VSTM Yearly Total Debt VS Total AssetsVSTM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

2.2 Solvency

Based on the Altman-Z score of -14.39, we must say that VSTM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -14.39, VSTM is not doing good in the industry: 79.93% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -14.39
ROIC/WACCN/A
WACC10.46%
VSTM Yearly LT Debt VS Equity VS FCFVSTM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M

2.3 Liquidity

A Current Ratio of 3.07 indicates that VSTM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.07, VSTM is doing worse than 64.26% of the companies in the same industry.
VSTM has a Quick Ratio of 3.07. This indicates that VSTM is financially healthy and has no problem in meeting its short term obligations.
VSTM has a worse Quick ratio (3.07) than 61.80% of its industry peers.
Industry RankSector Rank
Current Ratio 3.07
Quick Ratio 3.07
VSTM Yearly Current Assets VS Current LiabilitesVSTM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.63% over the past year.
VSTM shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -10.55% yearly.
EPS 1Y (TTM)14.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-30.39%
Revenue 1Y (TTM)N/A
Revenue growth 3Y69.6%
Revenue growth 5Y-10.55%
Sales Q2Q%N/A

3.2 Future

Based on estimates for the next years, VSTM will show a very strong growth in Earnings Per Share. The EPS will grow by 20.46% on average per year.
Based on estimates for the next years, VSTM will show a very strong growth in Revenue. The Revenue will grow by 114.04% on average per year.
EPS Next Y30.11%
EPS Next 2Y24.13%
EPS Next 3Y18.67%
EPS Next 5Y20.46%
Revenue Next Year17.95%
Revenue Next 2Y188.38%
Revenue Next 3Y161.37%
Revenue Next 5Y114.04%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
VSTM Yearly Revenue VS EstimatesVSTM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 100M 200M 300M 400M
VSTM Yearly EPS VS EstimatesVSTM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 -5 -10 -15 -20 -25

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for VSTM. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for VSTM. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
VSTM Price Earnings VS Forward Price EarningsVSTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
VSTM Per share dataVSTM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -1 -2 -3

4.3 Compensation for Growth

A more expensive valuation may be justified as VSTM's earnings are expected to grow with 18.67% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.13%
EPS Next 3Y18.67%

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0

5. Dividend

5.1 Amount

VSTM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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VERASTEM INC

NASDAQ:VSTM (4/22/2025, 8:00:01 PM)

Premarket: 7.25 +0.21 (+2.98%)

7.04

+0.83 (+13.37%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)03-20 2025-03-20/amc
Earnings (Next)05-07 2025-05-07
Inst Owners65.43%
Inst Owner Change-0.02%
Ins Owners0.96%
Ins Owner Change1.3%
Market Cap362.49M
Analysts84.29
Price Target13.11 (86.22%)
Short Float %15.25%
Short Ratio4.19
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)-20.6%
Min EPS beat(2)-61.48%
Max EPS beat(2)20.27%
EPS beat(4)2
Avg EPS beat(4)0.74%
Min EPS beat(4)-61.48%
Max EPS beat(4)68.1%
EPS beat(8)4
Avg EPS beat(8)-8.49%
EPS beat(12)6
Avg EPS beat(12)-2.92%
EPS beat(16)8
Avg EPS beat(16)-6%
Revenue beat(2)0
Avg Revenue beat(2)-100%
Min Revenue beat(2)-100%
Max Revenue beat(2)-100%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.27%
PT rev (3m)13.03%
EPS NQ rev (1m)19.25%
EPS NQ rev (3m)19.25%
EPS NY rev (1m)6.68%
EPS NY rev (3m)8.07%
Revenue NQ rev (1m)-100%
Revenue NQ rev (3m)-100%
Revenue NY rev (1m)-45.87%
Revenue NY rev (3m)-30.21%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 36.25
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-3.5
EYN/A
EPS(NY)-2.45
Fwd EYN/A
FCF(TTM)-2.04
FCFYN/A
OCF(TTM)-2.03
OCFYN/A
SpS0.19
BVpS-0.56
TBVpS-0.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -128.66%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)-88.21%
ROA(5y)-74.8%
ROE(3y)N/A
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 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 107.69%
Cap/Sales 0.28%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.07
Quick Ratio 3.07
Altman-Z -14.39
F-Score3
WACC10.46%
ROIC/WACCN/A
Cap/Depr(3y)35.9%
Cap/Depr(5y)41.04%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-30.39%
EPS Next Y30.11%
EPS Next 2Y24.13%
EPS Next 3Y18.67%
EPS Next 5Y20.46%
Revenue 1Y (TTM)N/A
Revenue growth 3Y69.6%
Revenue growth 5Y-10.55%
Sales Q2Q%N/A
Revenue Next Year17.95%
Revenue Next 2Y188.38%
Revenue Next 3Y161.37%
Revenue Next 5Y114.04%
EBIT growth 1Y-24.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5Y36.99%
FCF growth 1Y-21.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-21.18%
OCF growth 3YN/A
OCF growth 5YN/A