Verastem, Inc.Find Ratings Reports
VERASTEM INC's gross profit margin for the third quarter of its fiscal year 2021 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. VERASTEM INC is extremely liquid. Currently, the Quick Ratio is 7.66 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 26.29% 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.
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|Income Statement||Q3 FY21||Q3 FY20|
|Net Sales ($mil)||0.0||8.65|
|Net Income ($mil)||-22.79||13.14|
|Balance Sheet||Q3 FY21||Q3 FY20|
|Cash & Equiv. ($mil)||103.42||179.84|
|Total Assets ($mil)||111.88||217.77|
|Total Debt ($mil)||3.32||60.15|
|Profitability||Q3 FY21||Q3 FY20|
|Gross Profit Margin||-740800.0||-237.47|
|Return on Assets||-66.66||-39.78|
|Return on Equity||-77.97||-66.76|
|Debt||Q3 FY21||Q3 FY20|
|Share Data||Q3 FY21||Q3 FY20|
|Shares outstanding (mil)||182.16||169.54|
|Div / share||0.0||0.0|
|Book value / share||0.53||0.77|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2316396.0||2020895.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 5.33 indicates a premium versus the S&P 500 average of 4.73 and a significant discount versus the subsector average of 11.01. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. The valuation analysis reveals that, VERASTEM INC seems to be trading at a premium to investment alternatives.
|VSTM NM||Peers 35.78||VSTM NM||Peers 21.98|
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.
|VSTM NM||Peers 19.04||VSTM NA||Peers 1.06|
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.
|VSTM 5.33||Peers 11.01||VSTM 52.18||Peers 65.10|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, VSTM is expected to trail its peers on the basis of its earnings growth rate.
|VSTM 459.49||Peers 74.35||VSTM -94.86||Peers 545.00|
Premium. 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 premium to its subsector.
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.