Verastem, Inc., a development-stage biopharmaceutical company, focusing on developing and commercializing medicines to enhance the life of cancer patients.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$2.55|
|52 Week High||US$1.14|
|52 Week Low||US$4.94|
|1 Month Change||-14.72%|
|3 Month Change||-22.96%|
|1 Year Change||109.02%|
|3 Year Change||-50.10%|
|5 Year Change||100.79%|
|Change since IPO||-77.01%|
Recent News & Updates
Verastem: Buying Opportunity Following Unjustified Sell-Off
Verastem Oncology has had a relatively quiet year for most of 2021 but a pair of announcements has provided a burst of excitement that could revitalize investor sentiment. The company’s RAF/MEK dual inhibitor, VS-6766, continues to show encouraging results in LGSOC and NSCLC. Verastem and Amgen have teamed up to pit VS-6766+LUMAKRAS against NSCLC. I discuss my leading downside risks and how I plan to manage my position around them. I take a look at the charts to map out my next buy.
|VSTM||US Biotechs||US Market|
Return vs Industry: VSTM exceeded the US Biotechs industry which returned 17.1% over the past year.
Return vs Market: VSTM exceeded the US Market which returned 31.1% over the past year.
Stable Share Price: VSTM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: VSTM's weekly volatility (7%) has been stable over the past year.
About the Company
Verastem, Inc., a development-stage biopharmaceutical company, focusing on developing and commercializing medicines to enhance the life of cancer patients. Its product in development include VS-6766, a dual rapidly accelerated fibrosarcoma (RAF)/mitogen-activated protein kinase (MEK) inhibitor that blocks MEK kinase activity and the ability of RAF to phosphorylate MEK. The company also engages in developing RAMP 201, an adaptive two-part multicenter open label trial to evaluate the efficacy and safety of VS-6766 and in combination with defactinib, an oral small molecule inhibitor of focal adhesion kinase (FAK) in patients with recurrent low grade serous ovarian cancer; and RAMP 202, which is in Phase 2 trial to evaluate the safety of VS-6766 in combination with defactinib in patients with KRAS mutant non-small cell lung cancer following treatment with a platinum-based regimen and immune checkpoint inhibitor.
Verastem Fundamentals Summary
|VSTM fundamental statistics|
Is VSTM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|VSTM income statement (TTM)|
|Cost of Revenue||US$32.07m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-0.21|
|Net Profit Margin||-396.22%|
How did VSTM perform over the long term?See historical performance and comparison
Is Verastem undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VSTM ($2.55) is trading below our estimate of fair value ($136.27)
Significantly Below Fair Value: VSTM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VSTM is unprofitable, so we can't compare its PE Ratio to the US Biotechs industry average.
PE vs Market: VSTM 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 VSTM's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: VSTM is overvalued based on its PB Ratio (5.2x) compared to the US Biotechs industry average (2.9x).
How is Verastem forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VSTM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: VSTM is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: VSTM's is expected to become profitable in the next 3 years.
Revenue vs Market: VSTM's revenue (74.1% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: VSTM's revenue (74.1% 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 VSTM's Return on Equity is forecast to be high in 3 years time
How has Verastem performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VSTM is currently unprofitable.
Growing Profit Margin: VSTM is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: VSTM is unprofitable, and losses have increased over the past 5 years at a rate of 13.8% per year.
Accelerating Growth: Unable to compare VSTM's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: VSTM is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (4.9%).
Return on Equity
High ROE: VSTM has a negative Return on Equity (-43.83%), as it is currently unprofitable.
How is Verastem's financial position?
Financial Position Analysis
Short Term Liabilities: VSTM's short term assets ($114.8M) exceed its short term liabilities ($12.7M).
Long Term Liabilities: VSTM's short term assets ($114.8M) exceed its long term liabilities ($22.9M).
Debt to Equity History and Analysis
Debt Level: VSTM's debt to equity ratio (23%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if VSTM's debt to equity ratio has reduced over the past 5 years.
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: VSTM has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if VSTM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
What is Verastem current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VSTM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VSTM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VSTM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VSTM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VSTM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brian Stuglik (62 yo)
Mr. Brian M. Stuglik, B.Pharm, RPh, has been the Chief Executive Officer of Verastem, Inc. since July 29, 2019. Mr. Stuglik serves as a Director of Puma Biotechnology, Inc. since July 5, 2020. Mr. Stuglik...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD3.47M) is above average for companies of similar size in the US market ($USD1.67M).
Compensation vs Earnings: Brian's compensation has increased whilst the company is unprofitable.
Experienced Management: VSTM's management team is considered experienced (2.9 years average tenure).
Experienced Board: VSTM's board of directors are considered experienced (3.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.6%.
Verastem, Inc.'s employee growth, exchange listings and data sources
- Name: Verastem, Inc.
- Ticker: VSTM
- Exchange: NasdaqGM
- Founded: 2010
- Industry: Biotechnology
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$460.934m
- Shares outstanding: 180.76m
- Website: https://www.verastem.com
Number of Employees
- Verastem, Inc.
- 117 Kendrick Street
- Suite 500
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/22 23:07|
|End of Day Share Price||2021/10/22 00:00|
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.