VERIFYME INC (VRME)
US92346X2062 - Common Stock
We assign a fundamental rating of 2 out of 10 to VRME. VRME was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. VRME has a bad profitability rating. Also its financial health evaluation is rather negative. VRME is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VRME has reported negative net income.
In the past year VRME had a positive cash flow from operations.
In the past 5 years VRME reported 4 times negative net income.
VRME had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
VRME has a worse Return On Assets (-16.36%) than 71.43% of its industry peers.
VRME has a Return On Equity of -27.04%. This is in the lower half of the industry: VRME underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.36% | ||
| ROE | -27.04% | ||
| ROIC | N/A |
ROA(3y)-23.04%
ROA(5y)-80.68%
ROE(3y)-38.65%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 35.54%, VRME is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
VRME's Gross Margin has declined in the last couple of years.
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 | 35.54% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-24.41%
GM growth 5Y-13.02%
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.
VRME has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VRME is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -3.27, we must say that VRME is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VRME (-3.27) is worse than 82.54% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that VRME is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.16, VRME is in line with its industry, outperforming 51.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -3.27 |
ROIC/WACCN/A
WACC9.26%
2.3 Liquidity
VRME has a Current Ratio of 1.50. This is a normal value and indicates that VRME is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.50, VRME is doing worse than 76.19% of the companies in the same industry.
VRME has a Quick Ratio of 1.49. This is a normal value and indicates that VRME is financially healthy and should not expect problems in meeting its short term obligations.
VRME has a Quick ratio (1.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
VRME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.23%, which is quite impressive.
Looking at the last year, VRME shows a very strong growth in Revenue. The Revenue has grown by 29.28%.
Measured over the past years, VRME shows a very strong growth in Revenue. The Revenue has been growing by 224.82% on average per year.
EPS 1Y (TTM)80.23%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-100%
Revenue 1Y (TTM)29.28%
Revenue growth 3Y320.68%
Revenue growth 5Y224.82%
Revenue growth Q2Q-10.18%
3.2 Future
VRME is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.17% yearly.
Based on estimates for the next years, VRME will show a quite strong growth in Revenue. The Revenue will grow by 12.78% on average per year.
EPS Next Y21.31%
EPS Next 2Y26.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.59%
Revenue Next 2Y12.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
VRME reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year VRME is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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 VRME's earnings are expected to grow with 26.17% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y26.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for VRME!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERIFYME INC
NASDAQ:VRME (5/3/2024, 7:25:17 PM)
After market: 1.5799 -0.02 (-1.26%)1.6
-0.32 (-16.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.29M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
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)
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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)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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)
EY
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 | -16.36% | ||
| ROE | -27.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 35.54% | ||
| 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 Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.49 | ||
| 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)
Growth
EPS 1Y (TTM)80.23%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y21.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.28%
Revenue growth 3Y320.68%
Revenue growth 5Y
Revenue growth 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