VERIFYME INC (VRME) Stock Fundamental Analysis
USA - NASDAQ:VRME - US92346X2062 - Common Stock
0.9858 USD
+0.02 (+1.63%)
0.922 USD
-0.06 (-6.47%)
We assign a fundamental rating of 3 out of 10 to VRME. VRME was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. VRME scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VRME is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
VRME had negative earnings in the past year.
VRME had a positive operating cash flow in the past year.
VRME had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: VRME reported negative operating cash flow in multiple years.
1.2 Ratios
VRME's Return On Assets of -22.06% is on the low side compared to the rest of the industry. VRME is outperformed by 72.58% of its industry peers.
The Return On Equity of VRME (-26.23%) is worse than 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.06% | ||
| ROE | -26.23% | ||
| ROIC | N/A |
ROA(3y)-36.52%
ROA(5y)-32.04%
ROE(3y)-56.82%
ROE(5y)-44.86%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VRME has a Gross Margin (33.50%) which is in line with its industry peers.
In the last couple of years the Gross Margin of VRME has declined.
VRME does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 33.5% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.64%
GM growth 5Y-15.56%
2. Health
2.1 Basic Checks
VRME does not have a ROIC to compare to the WACC, probably because it is not profitable.
VRME has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VRME has been increased compared to 5 years ago.
VRME has a worse debt/assets ratio than last year.
2.2 Solvency
VRME has an Altman-Z score of -3.04. This is a bad value and indicates that VRME is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -3.04, VRME is not doing good in the industry: 81.45% of the companies in the same industry are doing better.
The Debt to FCF ratio of VRME is 3.62, which is a good value as it means it would take VRME, 3.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VRME (3.62) is better than 67.74% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that VRME is not too dependend on debt financing.
VRME's Debt to Equity ratio of 0.05 is in line compared to the rest of the industry. VRME outperforms 58.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | -3.04 |
ROIC/WACCN/A
WACC9.42%
2.3 Liquidity
VRME has a Current Ratio of 4.06. This indicates that VRME is financially healthy and has no problem in meeting its short term obligations.
VRME has a better Current ratio (4.06) than 75.81% of its industry peers.
A Quick Ratio of 4.04 indicates that VRME has no problem at all paying its short term obligations.
VRME has a better Quick ratio (4.04) than 82.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.06 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
The earnings per share for VRME have decreased strongly by -105.88% in the last year.
Looking at the last year, VRME shows a very negative growth in Revenue. The Revenue has decreased by -13.19% in the last year.
The Revenue has been growing by 151.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-105.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)-13.19%
Revenue growth 3Y203.02%
Revenue growth 5Y151.62%
Sales Q2Q%-15.55%
3.2 Future
The Earnings Per Share is expected to grow by 17.04% on average over the next years. This is quite good.
Based on estimates for the next years, VRME will show a decrease in Revenue. The Revenue will decrease by -1.36% on average per year.
EPS Next Y58.92%
EPS Next 2Y26.06%
EPS Next 3Y17.04%
EPS Next 5YN/A
Revenue Next Year-15.51%
Revenue Next 2Y-5.37%
Revenue Next 3Y-1.36%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for VRME. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for VRME. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRME is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.67 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as VRME's earnings are expected to grow with 17.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y26.06%
EPS Next 3Y17.04%
5. Dividend
5.1 Amount
VRME does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.9858
+0.02 (+1.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners10.65%
Inst Owner Change4%
Ins Owners20.16%
Ins Owner Change-0.4%
Market Cap12.15M
Revenue(TTM)22.07M
Net Income(TTM)-3787000
Analysts85
Price Target1.53 (55.2%)
Short Float %1.84%
Short Ratio0.23
Dividend
| Industry Rank | Sector 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)51.91%
Min EPS beat(2)29.97%
Max EPS beat(2)73.86%
EPS beat(4)2
Avg EPS beat(4)-12.75%
Min EPS beat(4)-114.75%
Max EPS beat(4)73.86%
EPS beat(8)6
Avg EPS beat(8)22.6%
EPS beat(12)9
Avg EPS beat(12)25.11%
EPS beat(16)11
Avg EPS beat(16)-0.03%
Revenue beat(2)1
Avg Revenue beat(2)-3.6%
Min Revenue beat(2)-14.21%
Max Revenue beat(2)7.01%
Revenue beat(4)2
Avg Revenue beat(4)-3.48%
Min Revenue beat(4)-14.21%
Max Revenue beat(4)7.01%
Revenue beat(8)2
Avg Revenue beat(8)-3.32%
Revenue beat(12)4
Avg Revenue beat(12)-2.26%
Revenue beat(16)6
Avg Revenue beat(16)1.9%
PT rev (1m)0%
PT rev (3m)9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)35.71%
EPS NY rev (1m)0%
EPS NY rev (3m)32.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.55 | ||
| P/FCF | 58.67 | ||
| P/OCF | 14.04 | ||
| P/B | 0.84 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.35
EYN/A
EPS(NY)-0.15
Fwd EYN/A
FCF(TTM)0.02
FCFY1.7%
OCF(TTM)0.07
OCFY7.12%
SpS1.79
BVpS1.17
TBVpS0.43
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.06% | ||
| ROE | -26.23% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 33.5% | ||
| FCFM | 0.94% |
ROA(3y)-36.52%
ROA(5y)-32.04%
ROE(3y)-56.82%
ROE(5y)-44.86%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y-19.64%
GM growth 5Y-15.56%
F-Score4
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 3.62 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 55.53% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.06 | ||
| Quick Ratio | 4.04 | ||
| Altman-Z | -3.04 |
F-Score4
WACC9.42%
ROIC/WACCN/A
Cap/Depr(3y)49.02%
Cap/Depr(5y)92.75%
Cap/Sales(3y)2.21%
Cap/Sales(5y)13.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-105.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y58.92%
EPS Next 2Y26.06%
EPS Next 3Y17.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.19%
Revenue growth 3Y203.02%
Revenue growth 5Y151.62%
Sales Q2Q%-15.55%
Revenue Next Year-15.51%
Revenue Next 2Y-5.37%
Revenue Next 3Y-1.36%
Revenue Next 5YN/A
EBIT growth 1Y7.8%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year115.73%
EBIT Next 3Y31.5%
EBIT Next 5YN/A
FCF growth 1Y119.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y327.63%
OCF growth 3YN/A
OCF growth 5YN/A
VERIFYME INC / VRME FAQ
Can you provide the ChartMill fundamental rating for VERIFYME INC?
ChartMill assigns a fundamental rating of 3 / 10 to VRME.
Can you provide the valuation status for VERIFYME INC?
ChartMill assigns a valuation rating of 1 / 10 to VERIFYME INC (VRME). This can be considered as Overvalued.
What is the profitability of VRME stock?
VERIFYME INC (VRME) has a profitability rating of 1 / 10.
Can you provide the expected EPS growth for VRME stock?
The Earnings per Share (EPS) of VERIFYME INC (VRME) is expected to grow by 58.92% in the next year.