NasdaqGM:VSTM

Stock Analysis Report

Executive Summary

Verastem, Inc., a biopharmaceutical company, focusing on developing and commercializing medicines to improve the survival and quality of life of cancer patients.


Snowflake Analysis

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VSTM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.4%

VSTM

4.7%

US Biotechs

7.2%

US Market


1 Year Return

-15.5%

VSTM

1.8%

US Biotechs

-10.4%

US Market

Return vs Industry: VSTM underperformed the US Biotechs industry which returned 1.8% over the past year.

Return vs Market: VSTM underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

VSTMIndustryMarket
7 Day17.4%4.7%7.2%
30 Day-8.2%-3.5%-12.6%
90 Day91.0%-5.4%-19.4%
1 Year-15.5%-15.5%2.6%1.8%-8.5%-10.4%
3 Year29.3%29.3%14.0%11.1%15.8%8.3%
5 Year-74.2%-74.2%-3.6%-7.9%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Verastem 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: VSTM ($2.56) is trading below our estimate of fair value ($8.12)

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 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 (28.6x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

How is Verastem forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

43.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VSTM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: VSTM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: VSTM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: VSTM's revenue (40.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: VSTM's revenue (40.8% 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


Next Steps

Past Performance

How has Verastem performed over the past 5 years?

-20.9%

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 -20.9% 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 (22%).


Return on Equity

High ROE: VSTM has a negative Return on Equity (-2079.86%), as it is currently unprofitable.


Next Steps

Financial Health

How is Verastem's financial position?


Financial Position Analysis

Short Term Liabilities: VSTM's short term assets ($85.0M) exceed its short term liabilities ($29.9M).

Long Term Liabilities: VSTM's short term assets ($85.0M) do not cover its long term liabilities ($108.0M).


Debt to Equity History and Analysis

Debt Level: VSTM's debt to equity ratio (1444.4%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: VSTM's debt is not covered by short term assets (assets are 0.8x 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: VSTM has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: VSTM has less than a year of cash runway if free cash flow continues to reduce at historical rates of -27.5% each year


Next Steps

Dividend

What is Verastem's 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 payouts.

High Dividend: Unable to evaluate VSTM'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 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Brian Stuglik (59yo)

0.67

Tenure

US$53,350

Compensation

Mr. Brian Stuglik RPh has been Chief Executive Officer of Verastem, Inc. since July 2019. Mr. Stuglik served as Chief Marketing Officer at Lilly Oncology from 2009 to December 2015. Mr. Stuglik has 35 year ...


Leadership Team

NamePositionTenureCompensationOwnership
Brian Stuglik
CEO & Director0.67yrUS$53.35k0.00063% $2.6k
Robert Gagnon
CFO & Chief Business Officer1.58yrsUS$3.04m0.00063% $2.6k
Joseph Lobacki
Executive VP & Chief Commercial Officer2.17yrsUS$1.53m0.0067% $27.4k
Daniel Paterson
COO & President0.67yrUS$708.70k0.049% $199.0k
Richard Aldrich
Founder and Consultantno dataUS$114.77kno data
Robert Weinberg
Co-Founder and Chair of Scientific Advisory Boardno datano datano data
Piyush Gupta
Co-Founderno datano datano data
Michelle Dipp
Co-Founderno datano datano data
Jonathan Pachter
Chief Scientific Officer3.83yrsUS$319.51kno data
Erin Cox
Senior Director of Investor Relations & Corporate Communications1yrno datano data

1.3yrs

Average Tenure

59yo

Average Age

Experienced Management: VSTM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Brian Stuglik
CEO & Director0.67yrUS$53.35k0.00063% $2.6k
Robert Weinberg
Co-Founder and Chair of Scientific Advisory Boardno datano datano data
Timothy Barberich
Independent Director6yrsUS$151.83k0.11% $430.1k
Stephen Sherwin
Member of Clinical & Scientific Advisory Board3.67yrsUS$37.41kno data
Paul Friedman
Member of Clinical & Scientific Advisory Board2.83yrsUS$16.13kno data
Michael Kauffman
Lead Director3.67yrsUS$206.83k0.0025% $10.2k
Alison Lawton
Independent Director7.25yrsUS$146.48k0.0016% $6.4k
Eric Rowinsky
Independent Director2.83yrsUS$152.35kno data
Max Wicha
Member of Scientific Advisory Boardno datano datano data
Gina Consylman
Independent Director1.42yrsUS$228.94kno data

3.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: VSTM's board of directors are considered experienced (3.3 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Verastem, Inc.
  • Ticker: VSTM
  • Exchange: NasdaqGM
  • Founded: 2010
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$406.029m
  • Shares outstanding: 158.60m
  • Website: https://www.verastem.com

Number of Employees


Location

  • Verastem, Inc.
  • 117 Kendrick Street
  • Suite 500
  • Needham
  • Massachusetts
  • 2494
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VSTMNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 2012
2VSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2012
0LOVLSE (London Stock Exchange)YesCommon StockGBUSDJan 2012

Biography

Verastem, Inc., a biopharmaceutical company, focusing on developing and commercializing medicines to improve the survival and quality of life of cancer patients. It markets COPIKTRA (duvelisib), an oral inhibitor of phosphoinositide 3-kinase (PI3K) and dual inhibitor of PI3K-delta and PI3K-gamma, which is indicated for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma after at least two prior therapies and relapsed or refractory follicular lymphoma (FL) after at least two prior systemic therapies. The indication in FL is approved under accelerated approval based on overall response rate. In addition, it is developing the focal adhesion kinase inhibitor defactinib, which is being investigated in combination with immunotherapeutic agents for the treatment of various different cancer types, including pancreatic cancer, ovarian cancer, non-small cell lung cancer (NSCLC), mesothelioma, and other solid tumors. Verastem, Inc. has collaboration agreements with Yakult Honsha Co., Ltd. and CSPC Pharmaceutical Group Limited. The company was founded in 2010 and is headquartered in Needham, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:31
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.