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VERASTEM INC (VSTM) Stock Fundamental Analysis

NASDAQ:VSTM - Nasdaq - US92337C2035 - Common Stock - Currency: USD

5.72  -0.25 (-4.19%)

Premarket: 5.8 +0.08 (+1.4%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to VSTM. VSTM was compared to 551 industry peers in the Biotechnology industry. Both the profitability and financial health of VSTM have multiple concerns. VSTM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

VSTM had negative earnings in the past year.
In the past year VSTM has reported a negative cash flow from operations.
In the past 5 years VSTM always reported negative net income.
VSTM had a negative operating cash flow in each of the past 5 years.
VSTM Yearly Net Income VS EBIT VS OCF VS FCFVSTM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -50M -100M

1.2 Ratios

VSTM has a worse Return On Assets (-128.66%) than 82.76% of its industry peers.
Industry RankSector Rank
ROA -128.66%
ROE N/A
ROIC N/A
ROA(3y)-88.21%
ROA(5y)-74.8%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
VSTM Yearly ROA, ROE, ROICVSTM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500 -1K -1.5K -2K

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for VSTM so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/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
VSTM Yearly Profit, Operating, Gross MarginsVSTM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -1K -2K -3K

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2

2. Health

2.1 Basic Checks

VSTM does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for VSTM has been increased compared to 1 year ago.
The number of shares outstanding for VSTM has been increased compared to 5 years ago.
VSTM has a worse debt/assets ratio than last year.
VSTM Yearly Shares OutstandingVSTM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
VSTM Yearly Total Debt VS Total AssetsVSTM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

2.2 Solvency

VSTM has an Altman-Z score of -14.61. This is a bad value and indicates that VSTM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VSTM (-14.61) is worse than 80.22% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -14.61
ROIC/WACCN/A
WACC11.05%
VSTM Yearly LT Debt VS Equity VS FCFVSTM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M

2.3 Liquidity

A Current Ratio of 3.07 indicates that VSTM has no problem at all paying its short term obligations.
VSTM has a worse Current ratio (3.07) than 64.43% of its industry peers.
A Quick Ratio of 3.07 indicates that VSTM has no problem at all paying its short term obligations.
The Quick ratio of VSTM (3.07) is worse than 62.79% of its industry peers.
Industry RankSector Rank
Current Ratio 3.07
Quick Ratio 3.07
VSTM Yearly Current Assets VS Current LiabilitesVSTM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

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3. Growth

3.1 Past

VSTM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.14%, which is quite impressive.
The Revenue for VSTM have been decreasing by -10.55% on average. This is quite bad
EPS 1Y (TTM)31.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.3%
Revenue 1Y (TTM)N/A
Revenue growth 3Y69.6%
Revenue growth 5Y-10.55%
Sales Q2Q%N/A

3.2 Future

VSTM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.46% yearly.
The Revenue is expected to grow by 121.78% on average over the next years. This is a very strong growth
EPS Next Y12.06%
EPS Next 2Y16.49%
EPS Next 3Y24.96%
EPS Next 5Y20.46%
Revenue Next Year70.48%
Revenue Next 2Y207.24%
Revenue Next 3Y187.06%
Revenue Next 5Y121.78%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
VSTM Yearly Revenue VS EstimatesVSTM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 100M 200M 300M 400M 500M
VSTM Yearly EPS VS EstimatesVSTM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 -5 -10 -15 -20 -25

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1

4. Valuation

4.1 Price/Earnings Ratio

VSTM 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 VSTM. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
VSTM Price Earnings VS Forward Price EarningsVSTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
VSTM Per share dataVSTM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -1 -2 -3

4.3 Compensation for Growth

A more expensive valuation may be justified as VSTM's earnings are expected to grow with 24.96% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.49%
EPS Next 3Y24.96%

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0

5. Dividend

5.1 Amount

VSTM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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VERASTEM INC

NASDAQ:VSTM (8/6/2025, 8:00:38 PM)

Premarket: 5.8 +0.08 (+1.4%)

5.72

-0.25 (-4.19%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-04 2025-11-04
Inst Owners70.46%
Inst Owner Change-0.95%
Ins Owners0.66%
Ins Owner Change-1.19%
Market Cap314.31M
Analysts85.33
Price Target15.56 (172.03%)
Short Float %36.35%
Short Ratio7.26
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)-20.6%
Min EPS beat(2)-61.48%
Max EPS beat(2)20.27%
EPS beat(4)2
Avg EPS beat(4)0.74%
Min EPS beat(4)-61.48%
Max EPS beat(4)68.1%
EPS beat(8)4
Avg EPS beat(8)-8.49%
EPS beat(12)6
Avg EPS beat(12)-2.92%
EPS beat(16)8
Avg EPS beat(16)-6%
Revenue beat(2)0
Avg Revenue beat(2)-100%
Min Revenue beat(2)-100%
Max Revenue beat(2)-100%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.17%
PT rev (3m)17.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)-13.01%
EPS NY rev (3m)-25.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-32.06%
Revenue NY rev (3m)44.53%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 31.43
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-3.03
EYN/A
EPS(NY)-2.25
Fwd EYN/A
FCF(TTM)-1.91
FCFYN/A
OCF(TTM)-1.91
OCFYN/A
SpS0.18
BVpS-0.53
TBVpS-0.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -128.66%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)-88.21%
ROA(5y)-74.8%
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-Score3
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 107.69%
Cap/Sales 0.28%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.07
Quick Ratio 3.07
Altman-Z -14.61
F-Score3
WACC11.05%
ROIC/WACCN/A
Cap/Depr(3y)35.9%
Cap/Depr(5y)41.04%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.3%
EPS Next Y12.06%
EPS Next 2Y16.49%
EPS Next 3Y24.96%
EPS Next 5Y20.46%
Revenue 1Y (TTM)N/A
Revenue growth 3Y69.6%
Revenue growth 5Y-10.55%
Sales Q2Q%N/A
Revenue Next Year70.48%
Revenue Next 2Y207.24%
Revenue Next 3Y187.06%
Revenue Next 5Y121.78%
EBIT growth 1Y-24.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5Y36.99%
FCF growth 1Y-21.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-21.18%
OCF growth 3YN/A
OCF growth 5YN/A