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VERASTEM INC (VSTM) Stock Fundamental Analysis

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

6.09  +0.22 (+3.75%)

Fundamental Rating

1

VSTM gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 572 industry peers in the Biotechnology industry. Both the profitability and financial health of VSTM have multiple concerns. VSTM is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

VSTM had negative earnings in the past year.
In the past year VSTM has reported a negative cash flow from operations.
VSTM had negative earnings in each of the past 5 years.
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 -50M -100M

1.2 Ratios

VSTM has a Return On Assets of -69.13%. This is in the lower half of the industry: VSTM underperforms 65.49% of its industry peers.
VSTM has a worse Return On Equity (-271.17%) than 72.74% of its industry peers.
Industry RankSector Rank
ROA -69.13%
ROE -271.17%
ROIC N/A
ROA(3y)-67.16%
ROA(5y)-69.65%
ROE(3y)-116.08%
ROE(5y)-495.87%
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 -500 -1K -1.5K -2K

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for VSTM so they could not be analyzed.
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 0 -1K -2K -3K

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2

2. Health

2.1 Basic Checks

VSTM does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for VSTM has been increased compared to 1 year ago.
The number of shares outstanding for VSTM has been increased compared to 5 years ago.
Compared to 1 year ago, VSTM has a worse debt to assets ratio.
VSTM Yearly Shares OutstandingVSTM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M 25M
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 50M 100M 150M 200M 250M

2.2 Solvency

Based on the Altman-Z score of -9.82, we must say that VSTM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -9.82, VSTM is not doing good in the industry: 74.16% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.96 indicates that VSTM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.96, VSTM is not doing good in the industry: 78.76% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF N/A
Altman-Z -9.82
ROIC/WACCN/A
WACC10.89%
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 0 50M -50M 100M -100M

2.3 Liquidity

VSTM has a Current Ratio of 3.23. This indicates that VSTM is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.23, VSTM is not doing good in the industry: 62.12% of the companies in the same industry are doing better.
VSTM has a Quick Ratio of 3.23. This indicates that VSTM is financially healthy and has no problem in meeting its short term obligations.
VSTM has a worse Quick ratio (3.23) than 60.35% of its industry peers.
Industry RankSector Rank
Current Ratio 3.23
Quick Ratio 3.23
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 50M 100M 150M 200M 250M

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 21.04% over the past year.
Looking at the last year, VSTM shows a very negative growth in Revenue. The Revenue has decreased by -100.00% in the last year.
EPS 1Y (TTM)21.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)-100%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%N/A

3.2 Future

Based on estimates for the next years, VSTM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.70% on average per year.
The Revenue is expected to grow by 136.53% on average over the next years. This is a very strong growth
EPS Next Y26.17%
EPS Next 2Y16.65%
EPS Next 3Y15.86%
EPS Next 5Y16.7%
Revenue Next Year76%
Revenue Next 2Y95.84%
Revenue Next 3Y133.34%
Revenue Next 5Y136.53%

3.3 Evolution

VSTM Yearly Revenue VS EstimatesVSTM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 100M 200M 300M 400M 500M
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 15.86% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.65%
EPS Next 3Y15.86%

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0

5. Dividend

5.1 Amount

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

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VERASTEM INC

NASDAQ:VSTM (2/5/2025, 2:37:20 PM)

6.09

+0.22 (+3.75%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)10-17 2024-10-17/dmh
Earnings (Next)N/A N/A
Inst Owners36.01%
Inst Owner Change0.06%
Ins Owners0.69%
Ins Owner Change0.84%
Market Cap271.07M
Analysts84.29
Price Target12.53 (105.75%)
Short Float %11.94%
Short Ratio3.05
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)2
Avg EPS beat(2)44.19%
Min EPS beat(2)20.27%
Max EPS beat(2)68.1%
EPS beat(4)2
Avg EPS beat(4)0.79%
Min EPS beat(4)-61.29%
Max EPS beat(4)68.1%
EPS beat(8)5
Avg EPS beat(8)1.69%
EPS beat(12)7
Avg EPS beat(12)2.59%
EPS beat(16)8
Avg EPS beat(16)-4.56%
Revenue beat(2)1
Avg Revenue beat(2)9703.92%
Min Revenue beat(2)-100%
Max Revenue beat(2)19507.8%
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)8.01%
PT rev (3m)3.46%
EPS NQ rev (1m)-2.79%
EPS NQ rev (3m)7.34%
EPS NY rev (1m)1.45%
EPS NY rev (3m)6.19%
Revenue NQ rev (1m)12.5%
Revenue NQ rev (3m)50%
Revenue NY rev (1m)-1.29%
Revenue NY rev (3m)30.77%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S N/A
P/FCF N/A
P/OCF N/A
P/B 8.41
P/tB 8.41
EV/EBITDA N/A
EPS(TTM)-3.19
EYN/A
EPS(NY)-2.62
Fwd EYN/A
FCF(TTM)-2.46
FCFYN/A
OCF(TTM)-2.46
OCFYN/A
SpS0
BVpS0.72
TBVpS0.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -69.13%
ROE -271.17%
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)-67.16%
ROA(5y)-69.65%
ROE(3y)-116.08%
ROE(5y)-495.87%
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-Score2
Asset Turnover0
Health
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.23
Quick Ratio 3.23
Altman-Z -9.82
F-Score2
WACC10.89%
ROIC/WACCN/A
Cap/Depr(3y)31.75%
Cap/Depr(5y)19.6%
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)21.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20%
EPS Next Y26.17%
EPS Next 2Y16.65%
EPS Next 3Y15.86%
EPS Next 5Y16.7%
Revenue 1Y (TTM)-100%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%N/A
Revenue Next Year76%
Revenue Next 2Y95.84%
Revenue Next 3Y133.34%
Revenue Next 5Y136.53%
EBIT growth 1Y-26.25%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5Y34.46%
FCF growth 1Y-91.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-91.88%
OCF growth 3YN/A
OCF growth 5YN/A