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VERRICA PHARMACEUTICALS INC (VRCA) Stock Fundamental Analysis

NASDAQ:VRCA - Nasdaq - US92511W1080 - Common Stock - Currency: USD

0.4088  -0.04 (-9.2%)

After market: 0.4133 +0 (+1.1%)

Fundamental Rating

2

Overall VRCA gets a fundamental rating of 2 out of 10. We evaluated VRCA against 198 industry peers in the Pharmaceuticals industry. Both the profitability and financial health of VRCA have multiple concerns. VRCA is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

VRCA had negative earnings in the past year.
In the past year VRCA has reported a negative cash flow from operations.
VRCA had negative earnings in each of the past 5 years.
In the past 5 years VRCA always reported negative operating cash flow.
VRCA Yearly Net Income VS EBIT VS OCF VS FCFVRCA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 -20M -40M -60M

1.2 Ratios

VRCA has a Return On Assets of -141.46%. This is amonst the worse of the industry: VRCA underperforms 81.31% of its industry peers.
Industry RankSector Rank
ROA -141.46%
ROE N/A
ROIC N/A
ROA(3y)-92.78%
ROA(5y)-75.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
VRCA Yearly ROA, ROE, ROICVRCA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500 -500 -1K

1.3 Margins

Looking at the Gross Margin, with a value of 63.79%, VRCA is in the better half of the industry, outperforming 70.71% of the companies in the same industry.
VRCA does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 63.79%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
VRCA Yearly Profit, Operating, Gross MarginsVRCA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -200 -400 -600 -800 -1K

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1

2. Health

2.1 Basic Checks

VRCA does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, VRCA has more shares outstanding
VRCA has more shares outstanding than it did 5 years ago.
VRCA has a worse debt/assets ratio than last year.
VRCA Yearly Shares OutstandingVRCA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
VRCA Yearly Total Debt VS Total AssetsVRCA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

2.2 Solvency

Based on the Altman-Z score of -10.93, we must say that VRCA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -10.93, VRCA is doing worse than 74.24% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -10.93
ROIC/WACCN/A
WACC13.7%
VRCA Yearly LT Debt VS Equity VS FCFVRCA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M

2.3 Liquidity

VRCA has a Current Ratio of 1.76. This is a normal value and indicates that VRCA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.76, VRCA is doing worse than 63.64% of the companies in the same industry.
A Quick Ratio of 1.68 indicates that VRCA should not have too much problems paying its short term obligations.
VRCA has a Quick ratio of 1.68. This is in the lower half of the industry: VRCA underperforms 60.61% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.68
VRCA Yearly Current Assets VS Current LiabilitesVRCA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

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5

3. Growth

3.1 Past

The earnings per share for VRCA have decreased by -5.48% in the last year.
Looking at the last year, VRCA shows a very strong growth in Revenue. The Revenue has grown by 47.54%.
The Revenue for VRCA have been decreasing by -14.25% on average. This is quite bad
EPS 1Y (TTM)-5.48%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%54.72%
Revenue 1Y (TTM)47.54%
Revenue growth 3Y-14.25%
Revenue growth 5YN/A
Sales Q2Q%-82.7%

3.2 Future

Based on estimates for the next years, VRCA will show a very strong growth in Earnings Per Share. The EPS will grow by 20.14% on average per year.
The Revenue is expected to grow by 73.95% on average over the next years. This is a very strong growth
EPS Next Y79.96%
EPS Next 2Y33.26%
EPS Next 3Y25.22%
EPS Next 5Y20.14%
Revenue Next Year104.5%
Revenue Next 2Y96.11%
Revenue Next 3Y86.94%
Revenue Next 5Y73.95%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
VRCA Yearly Revenue VS EstimatesVRCA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 50M 100M 150M
VRCA Yearly EPS VS EstimatesVRCA Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 0.5 -0.5 1 -1 -1.5

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1

4. Valuation

4.1 Price/Earnings Ratio

VRCA reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for VRCA. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
VRCA Price Earnings VS Forward Price EarningsVRCA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 5 10 15 20

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
VRCA Per share dataVRCA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -0.5 -1 -1.5

4.3 Compensation for Growth

A more expensive valuation may be justified as VRCA's earnings are expected to grow with 25.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.26%
EPS Next 3Y25.22%

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0

5. Dividend

5.1 Amount

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

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VERRICA PHARMACEUTICALS INC

NASDAQ:VRCA (5/7/2025, 8:00:02 PM)

After market: 0.4133 +0 (+1.1%)

0.4088

-0.04 (-9.2%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)03-11 2025-03-11/amc
Earnings (Next)05-07 2025-05-07
Inst Owners29.48%
Inst Owner Change-0.77%
Ins Owners37.53%
Ins Owner Change61.14%
Market Cap37.80M
Analysts76.67
Price Target3.4 (731.7%)
Short Float %5.83%
Short Ratio6.31
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)-10.27%
Min EPS beat(2)-30.9%
Max EPS beat(2)10.36%
EPS beat(4)2
Avg EPS beat(4)-3.67%
Min EPS beat(4)-30.9%
Max EPS beat(4)14.57%
EPS beat(8)4
Avg EPS beat(8)-6.13%
EPS beat(12)7
Avg EPS beat(12)10.68%
EPS beat(16)10
Avg EPS beat(16)15.96%
Revenue beat(2)0
Avg Revenue beat(2)-102.67%
Min Revenue beat(2)-137.73%
Max Revenue beat(2)-67.61%
Revenue beat(4)2
Avg Revenue beat(4)-38.51%
Min Revenue beat(4)-137.73%
Max Revenue beat(4)35.05%
Revenue beat(8)5
Avg Revenue beat(8)59.46%
Revenue beat(12)7
Avg Revenue beat(12)43.13%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-52.38%
EPS NQ rev (1m)-0.86%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)24.94%
EPS NY rev (3m)45.03%
Revenue NQ rev (1m)2.64%
Revenue NQ rev (3m)19.11%
Revenue NY rev (1m)3.95%
Revenue NY rev (3m)17.69%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 5
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-1.54
EYN/A
EPS(NY)-0.31
Fwd EYN/A
FCF(TTM)-0.66
FCFYN/A
OCF(TTM)-0.66
OCFYN/A
SpS0.08
BVpS-0.11
TBVpS-0.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -141.46%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 63.79%
FCFM N/A
ROA(3y)-92.78%
ROA(5y)-75.94%
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-Score2
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 2.13%
Cap/Sales 0.36%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.76
Quick Ratio 1.68
Altman-Z -10.93
F-Score2
WACC13.7%
ROIC/WACCN/A
Cap/Depr(3y)37.37%
Cap/Depr(5y)830.75%
Cap/Sales(3y)3.58%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.48%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%54.72%
EPS Next Y79.96%
EPS Next 2Y33.26%
EPS Next 3Y25.22%
EPS Next 5Y20.14%
Revenue 1Y (TTM)47.54%
Revenue growth 3Y-14.25%
Revenue growth 5YN/A
Sales Q2Q%-82.7%
Revenue Next Year104.5%
Revenue Next 2Y96.11%
Revenue Next 3Y86.94%
Revenue Next 5Y73.95%
EBIT growth 1Y-4.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.93%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-56.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-57.94%
OCF growth 3YN/A
OCF growth 5YN/A