NasdaqCM:VERU

Stock Analysis Report

Executive Summary

Veru Inc., an oncology and urology biopharmaceutical company, engages in developing medicines for prostate cancer treatment and prostate cancer supportive care, and urology specialty pharmaceuticals.

Rewards

Trading at 83.2% below its fair value

Earnings are forecast to grow 58.22% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Veru's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VERU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.1%

VERU

1.4%

US Personal Products

0.03%

US Market


1 Year Return

64.5%

VERU

28.4%

US Personal Products

18.6%

US Market

Return vs Industry: VERU exceeded the US Personal Products industry which returned 28.4% over the past year.

Return vs Market: VERU exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

VERUIndustryMarket
7 Day7.1%1.4%0.03%
30 Day14.6%2.6%1.7%
90 Day18.8%-2.9%5.7%
1 Year64.5%64.5%30.1%28.4%21.1%18.6%
3 Year100.9%100.9%64.2%55.9%45.6%36.2%
5 Year-38.1%-38.1%80.1%61.7%71.1%52.3%

Price Volatility Vs. Market

How volatile is Veru's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Veru undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VERU ($2.27) is trading below our estimate of fair value ($13.54)

Significantly Below Fair Value: VERU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VERU is unprofitable, so we can't compare its PE Ratio to the Personal Products industry average.

PE vs Market: VERU is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VERU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VERU is overvalued based on its PB Ratio (4.2x) compared to the US Personal Products industry average (2.5x).


Next Steps

Future Growth

How is Veru forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

58.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VERU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: VERU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VERU's is expected to become profitable in the next 3 years.

Revenue vs Market: VERU's revenue (35.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: VERU's revenue (35.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VERU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Veru performed over the past 5 years?

-70.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VERU is currently unprofitable.

Growing Profit Margin: VERU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VERU is unprofitable, and losses have increased over the past 5 years at a rate of -70.9% per year.

Accelerating Growth: Unable to compare VERU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VERU is unprofitable, making it difficult to compare its past year earnings growth to the Personal Products industry (21.4%).


Return on Equity

High ROE: VERU has a negative Return on Equity (-48.58%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Veru's financial position?


Financial Position Analysis

Short Term Liabilities: VERU's short term assets ($17.1M) exceed its short term liabilities ($11.7M).

Long Term Liabilities: VERU's short term assets ($17.1M) exceed its long term liabilities ($7.4M).


Debt to Equity History and Analysis

Debt Level: VERU's debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if VERU's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: VERU has a low level of unsold assets or inventory.

Debt Coverage by Assets: VERU's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: VERU has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: VERU has less than a year of cash runway if free cash flow continues to reduce at historical rates of -94.8% each year


Next Steps

Dividend

What is Veru's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VERU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VERU's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VERU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VERU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: VERU is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VERU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Veru's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Mitch Steiner (58yo)

3.2yrs

Tenure

US$740,266

Compensation

Dr. Mitchell S. Steiner, also known as Mitch, M.D., F.A.C.S, has been the Chief Executive Officer, President and Director at Veru Inc. (formerly known as The Female Health Company) since October 31, 2016 & ...


CEO Compensation Analysis

Compensation vs Market: Mitch's total compensation ($USD740.27K) is above average for companies of similar size in the US market ($USD508.62K).

Compensation vs Earnings: Mitch's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

58yo

Average Age

Experienced Management: VERU's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: VERU's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$19,25004 Sep 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares10,000
Max PriceUS$1.93
BuyUS$7,88003 Sep 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares4,000
Max PriceUS$1.97
BuyUS$13,44030 Aug 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares7,000
Max PriceUS$1.92
BuyUS$36,73622 Aug 19
Michele Greco
EntityIndividual
Role
Chief Financial Officer
CFO, Executive VP of Finance & Chief Administrative Officer
Shares20,000
Max PriceUS$1.84
BuyUS$19,50612 Aug 19
Jesus Socorro
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$1.95
BuyUS$4,41018 Mar 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares3,000
Max PriceUS$1.47
BuyUS$5,14513 Mar 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares3,500
Max PriceUS$1.47
BuyUS$4,29007 Mar 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares3,000
Max PriceUS$1.43
BuyUS$5,14506 Mar 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares3,500
Max PriceUS$1.47
BuyUS$4,72601 Mar 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares3,400
Max PriceUS$1.39
BuyUS$6,35027 Feb 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares5,000
Max PriceUS$1.27
BuyUS$3,96026 Feb 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares3,000
Max PriceUS$1.32
BuyUS$7,80025 Feb 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares6,000
Max PriceUS$1.30
BuyUS$6,75022 Feb 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares5,000
Max PriceUS$1.35
BuyUS$6,79520 Feb 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares5,000
Max PriceUS$1.36
BuyUS$18,65416 Feb 19
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares13,681
Max PriceUS$1.36
BuyUS$42,67220 Dec 18
Harry Fisch
EntityIndividual
Role
Vice Chairman
Vice Chairman & Chief Corporate Officer
Shares30,000
Max PriceUS$1.42
BuyUS$146,16019 Dec 18
Gary Barnette
EntityIndividual
Shares100,000
Max PriceUS$1.51

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.2%.


Management Team

  • Mitch Steiner (58yo)

    Chairman

    • Tenure: 3.2yrs
    • Compensation: US$740.27k
  • Domingo Rodriguez (57yo)

    Executive Vice President of Clinical Operations

    • Tenure: 1.7yrs
  • Harry Fisch (60yo)

    Vice Chairman & Chief Corporate Officer

    • Tenure: 0yrs
    • Compensation: US$276.62k
  • Michele Greco (60yo)

    CFO, Executive VP of Finance & Chief Administrative Officer

    • Tenure: 1.9yrs
    • Compensation: US$521.78k
  • Kevin Gilbert

    Executive Vice President of Corporate Development

    • Tenure: 0yrs
  • K. Barnette (51yo)

    Chief Scientific Officer

    • Tenure: 0yrs
    • Compensation: US$400.70k
  • Philip Greenberg

    Executive VP of Legal & Secretary

    • Tenure: 1.1yrs
  • Phillip Kuhn

    Executive Vice President of Strategy & Commercial

    • Tenure: 0yrs
  • Gary Bird

    Senior Vice President of Quality Oversight

    • Tenure: 0.8yrs

Board Members

  • Mitch Steiner (58yo)

    Chairman

    • Tenure: 3.2yrs
    • Compensation: US$740.27k
  • Andy Love (75yo)

    Board Observer

    • Tenure: 3.2yrs
  • Michael Rankowitz (61yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$70.14k
  • Mario Eisenberger (69yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$55.38k
  • Harry Fisch (60yo)

    Vice Chairman & Chief Corporate Officer

    • Tenure: 0yrs
    • Compensation: US$276.62k
  • Jesus Socorro (43yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$60.33k

Company Information

Veru Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Veru Inc.
  • Ticker: VERU
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$142.434m
  • Shares outstanding: 65.04m
  • Website: https://www.verupharma.com

Number of Employees


Location

  • Veru Inc.
  • 48 NW 25th Street
  • Suite 102
  • Miami
  • Florida
  • 33127
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VERUNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 1990
FMWDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1990

Biography

Veru Inc., an oncology and urology biopharmaceutical company, engages in developing medicines for prostate cancer treatment and prostate cancer supportive care, and urology specialty pharmaceuticals. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:38
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.