Fundamental Analysis of VERASTEM INC(NASDAQ:VSTM) stock

Fundamental Rating

VSTM gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 565 industry peers in the Biotechnology industry. VSTM has a bad profitability rating. Also its financial health evaluation is rather negative. VSTM has a expensive valuation and it also scores bad on growth.

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1. Profitability

1.1 Basic Checks

VSTM had negative earnings in the past year.

VSTM had a negative operating cash flow in the past year.

In the past 5 years VSTM always reported negative net income.

VSTM had a negative operating cash flow in each of the past 5 years.

1.2 Ratios

VSTM's Return On Assets of -82.62% is on the low side compared to the rest of the industry. VSTM is outperformed by 71.84% of its industry peers.

The Return On Equity of VSTM (-218.36%) is worse than 69.70% of its industry peers.

		Industry Rank	Sector Rank
ROA	-82.62%
ROE	-218.36%
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

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 Rank	Sector 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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

Compared to 1 year ago, VSTM has more shares outstanding

The number of shares outstanding for VSTM has been increased compared to 5 years ago.

The debt/assets ratio for VSTM is higher compared to a year ago.

2.2 Solvency

VSTM has an Altman-Z score of -11.97. This is a bad value and indicates that VSTM is not financially healthy and even has some risk of bankruptcy.

VSTM has a Altman-Z score of -11.97. This is in the lower half of the industry: VSTM underperforms 78.79% of its industry peers.

A Debt/Equity ratio of 0.90 indicates that VSTM is somewhat dependend on debt financing.

The Debt to Equity ratio of VSTM (0.90) is worse than 77.54% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.9
Debt/FCF	N/A
Altman-Z	-11.97

ROIC/WACCN/A

WACC10.69%

2.3 Liquidity

A Current Ratio of 3.28 indicates that VSTM has no problem at all paying its short term obligations.

Looking at the Current ratio, with a value of 3.28, VSTM is doing worse than 60.61% of the companies in the same industry.

A Quick Ratio of 3.28 indicates that VSTM has no problem at all paying its short term obligations.

VSTM has a Quick ratio (3.28) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	3.28
Quick Ratio	3.28

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

VSTM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.83% yearly.

The Revenue is expected to grow by 121.50% on average over the next years. This is a very strong growth

EPS Next Y20.61%

EPS Next 2Y18.69%

EPS Next 3Y16.67%

EPS Next 5Y7.83%

Revenue Next Year34.59%

Revenue Next 2Y67.33%

Revenue Next 3Y122.54%

Revenue Next 5Y121.5%

3.3 Evolution

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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 Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

A more expensive valuation may be justified as VSTM's earnings are expected to grow with 16.67% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y18.69%

EPS Next 3Y16.67%

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5. Dividend

5.1 Amount

VSTM does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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VERASTEM INC

NASDAQ:VSTM (11/22/2024, 8:12:19 PM)

After market: 4.09 +0.09 (+2.25%)

+0.07 (+1.78%)

Chartmill FA Rating

GICS SectorHealth Care

GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences

GICS IndustryBiotechnology

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap178.04M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-82.62%
ROE	-218.36%
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	N/A
GM	N/A
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0

Health

		Industry Rank	Sector Rank
Debt/Equity	0.9
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	3.28
Quick Ratio	3.28
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

High Growth Momentum

Growth

EPS 1Y (TTM)21.04%

EPS 3YN/A

EPS 5Y

EPS Q2Q%

EPS Next Y20.61%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-100%

Revenue growth 3YN/A

Revenue growth 5Y

Sales Q2Q%

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

VERASTEM INC (VSTM)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

More info and screens