0.7214 USD
+0.02 (+2.17%)
0.7182 USD
0 (-0.44%)
We assign a fundamental rating of 3 out of 10 to VRME. VRME was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. The financial health of VRME is average, but there are quite some concerns on its profitability. VRME does not seem to be growing, but still is valued expensively.
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.
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 72.80% of its industry peers.
The Return On Equity of VRME (-26.23%) is worse than 70.40% 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 of 33.50%. This is comparable to the rest of the industry: VRME outperforms 52.80% of its industry peers.
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 | 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.
VRME has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VRME has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -3.73, we must say that VRME is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VRME (-3.73) is worse than 84.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.62, VRME is in the better half of the industry, outperforming 69.60% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that VRME is not too dependend on debt financing.
VRME has a Debt to Equity ratio (0.05) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | -3.73 |
ROIC/WACCN/A
WACC9.18%
2.3 Liquidity
A Current Ratio of 4.06 indicates that VRME has no problem at all paying its short term obligations.
The Current ratio of VRME (4.06) is better than 75.20% of its industry peers.
VRME has a Quick Ratio of 4.04. This indicates that VRME is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of VRME (4.04) is better than 80.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.06 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
VRME shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.58%.
The Revenue has decreased by -4.37% in the past year.
VRME shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 151.62% yearly.
EPS 1Y (TTM)-22.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-13.04%
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y203.02%
Revenue growth 5Y151.62%
Sales Q2Q%-7.4%
3.2 Future
Based on estimates for the next years, VRME will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.04% on average per year.
The Revenue is expected to decrease by -1.36% on average over the next years.
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 indicates a somewhat cheap valuation: VRME is cheaper than 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.35 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
VRME's earnings are expected to grow with 17.04% in the coming years. This may justify a more expensive valuation.
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 |
0.7214
+0.02 (+2.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners10.65%
Inst Owner Change-23.76%
Ins Owners20.16%
Ins Owner Change-0.16%
Market Cap8.97M
Revenue(TTM)24.21M
Net Income(TTM)-3.79M
Analysts85
Price Target1.53 (112.09%)
Short Float %2.32%
Short Ratio0.42
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)12.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.41 | ||
| P/FCF | 43.35 | ||
| P/OCF | 10.37 | ||
| P/B | 0.62 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.38
EYN/A
EPS(NY)-0.15
Fwd EYN/A
FCF(TTM)0.02
FCFY2.31%
OCF(TTM)0.07
OCFY9.64%
SpS1.77
BVpS1.16
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 | -3.73 |
F-Score4
WACC9.18%
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)-22.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-13.04%
EPS Next Y58.92%
EPS Next 2Y26.06%
EPS Next 3Y17.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y203.02%
Revenue growth 5Y151.62%
Sales Q2Q%-7.4%
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.