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Verastem, Inc.

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VSTM : NASDAQ :
$2.44 | %
Today's Range: 2.40 - 2.47
Avg. Daily Volume: 0
03/01/21 - 4:00 PM ET
Rating Summary Rating Detail Financial Analysis Peer Group

Financial Analysis


VERASTEM INC's gross profit margin for the third quarter of its fiscal year 2020 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. VERASTEM INC is extremely liquid. Currently, the Quick Ratio is 4.92 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 503.11% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY20 Q3 FY19
Net Sales ($mil)8.659.03
EBITDA ($mil)-20.53-25.6
EBIT ($mil)-20.8-26.1
Net Income ($mil)13.14-30.14


Balance Sheet Q3 FY20 Q3 FY19
Cash & Equiv. ($mil)179.84160.77
Total Assets ($mil)217.77192.6
Total Debt ($mil)60.15140.08
Equity ($mil)129.7721.52


Profitability Q3 FY20 Q3 FY19
Gross Profit Margin93.0-283.44
EBITDA Margin-237.46-283.43
Operating Margin-240.58-288.97
Sales Turnover0.10.08
Return on Assets-39.78-63.23
Return on Equity-66.76-565.99
Debt Q3 FY20 Q3 FY19
Current Ratio5.05.47
Debt/Capital0.320.87
Interest Expense1.95.04
Interest Coverage-10.96-5.18


Share Data Q3 FY20 Q3 FY19
Shares outstanding (mil)169.5474.31
Div / share0.00.0
EPS0.08-0.41
Book value / share0.770.29
Institutional Own % n/a n/a
Avg Daily Volume4048089.02969708.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 3.08 indicates a discount versus the S&P 500 average of 4.05 and a significant discount versus the subsector average of 11.38. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, VERASTEM INC proves to trade at a discount to investment alternatives.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
VSTM NM Peers 116.21   VSTM NM Peers 27.20

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

VSTM's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

VSTM's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
VSTM NM Peers 19.87   VSTM NA Peers 2.39

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

VSTM's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
VSTM 3.08 Peers 11.38   VSTM 50.81 Peers -39.59

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

VSTM is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

VSTM is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
VSTM 18.50 Peers 1488.31   VSTM 43.69 Peers 748.98

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

VSTM is trading at a significant discount to its subsector on this measurement.

 

Lower. A sales growth rate that trails the subsector implies that a company is losing market share.

VSTM significantly trails its peers on the basis of sales growth.

 

 

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