NasdaqGM:VSTM

Stock Analysis Report

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Market Cap

US$761.6m

Last Updated

2021/06/25 00:54 UTC

Data Sources

Company Financials +

Executive Summary

Verastem, Inc., a development-stage biopharmaceutical company, focusing on developing and commercializing medicines to enhance the life of cancer patients. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


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 is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: VSTM's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-7.1%

VSTM

-0.2%

US Biotechs

0.5%

US Market


1 Year Return

134.4%

VSTM

20.7%

US Biotechs

42.6%

US Market

Return vs Industry: VSTM exceeded the US Biotechs industry which returned 20.7% over the past year.

Return vs Market: VSTM exceeded the US Market which returned 42.6% over the past year.


Shareholder returns

VSTMIndustryMarket
7 Day-7.1%-0.2%0.5%
30 Day14.5%3.9%1.9%
90 Day79.4%7.5%7.9%
1 Year134.4%134.4%22.5%20.7%44.9%42.6%
3 Year-36.0%-36.0%16.2%11.2%64.4%54.1%
5 Year240.8%240.8%57.5%45.2%128.3%102.7%

Long-Term 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 ($4.43) is trading below our estimate of fair value ($27.24)

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 (7.4x) compared to the US Biotechs industry average (3.4x).


Future Growth

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

61.6%

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 (52.7% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: VSTM's revenue (52.7% 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


Past Performance

How has Verastem performed over the past 5 years?

-18.3%

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 18.3% 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 (-7.7%).


Return on Equity

High ROE: VSTM has a negative Return on Equity (-43.63%), as it is currently unprofitable.


Financial Health

How is Verastem's financial position?


Financial Position Analysis

Short Term Liabilities: VSTM's short term assets ($127.7M) exceed its short term liabilities ($11.8M).

Long Term Liabilities: VSTM's short term assets ($127.7M) exceed its long term liabilities ($22.4M).


Debt to Equity History and Analysis

Debt Level: VSTM's debt to equity ratio (19.2%) is considered satisfactory.

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


Balance Sheet


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.


Dividend

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.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Brian Stuglik (61 yo)

1.92yrs

Tenure

US$3,472,674

Compensation

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 ($USD3.47M) is above average for companies of similar size in the US market ($USD2.39M).

Compensation vs Earnings: Brian's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: VSTM's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: VSTM's board of directors are considered experienced (3.9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


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$761.603m
  • Shares outstanding: 171.92m
  • Website: https://www.verastem.com

Number of Employees


Location

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

Listings


Biography

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 dua...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/25 00:54
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.