OTCPK:VRME

Stock Analysis Report

Executive Summary

VerifyMe, Inc. provides security solutions for the identification and authentication of people, products, and packaging for various applications in the United States.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-14.3%

VRME

-1.8%

US Electronic

-1.1%

US Market


1 Year Return

-52.0%

VRME

5.6%

US Electronic

17.8%

US Market

Return vs Industry: VRME underperformed the US Electronic industry which returned 5.6% over the past year.

Return vs Market: VRME underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

VRMEIndustryMarket
7 Day-14.3%-1.8%-1.1%
30 Day-7.7%-4.9%1.5%
90 Day84.6%-0.4%6.6%
1 Year-52.0%-52.0%6.6%5.6%20.2%17.8%
3 Year100.0%100.0%35.0%31.4%47.5%38.1%
5 Year-89.5%-89.5%66.2%58.0%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

31.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate VRME's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate VRME's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: VRME 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 VRME's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VRME is overvalued based on its PB Ratio (31.2x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is VerifyMe forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.6%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as VerifyMe has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of VRME’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access VerifyMe's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has VerifyMe performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRME is currently unprofitable.

Growing Profit Margin: VRME is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VRME is unprofitable, but has reduced losses over the past 5 years at a rate of 11.5% per year.

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

Earnings vs Industry: VRME is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (13.8%).


Return on Equity

High ROE: VRME has a negative Return on Equity (-567.19%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is VerifyMe's financial position?


Financial Position Analysis

Short Term Liabilities: VRME's short term assets ($953.5K) exceed its short term liabilities ($897.2K).

Long Term Liabilities: VRME has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: VRME's debt to equity ratio (53.6%) is considered high.

Reducing Debt: VRME had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: VRME's debt is covered by short term assets (assets are 4.2x 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: VRME has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: VRME has less than a year of cash runway if free cash flow continues to grow at historical rates of 5.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate VRME'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 VRME's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VRME'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 VRME'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?

2.1yrs

Average management tenure


CEO

Patrick White (66yo)

2.5yrs

Tenure

US$295,346

Compensation

Mr. Patrick White has been Chief Executive Officer and President of VerifyMe, Inc. since August 15, 2017. Mr. White served as a Consultant of VerifyMe, Inc. from June 1, 2017 to August 14, 2017. He has bee ...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD295.35K) is below average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Norman Gardner
Founder3.1yrsUS$178.24k3.64% $485.9k
Patrick White
CEO, President & Director2.5yrsUS$295.35k0.13% $18.0k
Keith Goldstein
Chief Operating Officer2.4yrsUS$431.15kno data
Margaret Gezerlis
Chief Financial Officer1.8yrsno datano data
Sandy Fliderman
Chief Technology Officer1.5yrsUS$570.20kno data

2.1yrs

Average Tenure

58.5yo

Average Age

Experienced Management: VRME's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Norman Gardner
Founder3.1yrsUS$178.24k3.64% $485.9k
Patrick White
CEO, President & Director2.5yrsUS$295.35k0.13% $18.0k
Scott Greenberg
Independent Director0.3yrsno data0.22% $28.8k
Walter Von Wartburg
Advisory Council0yrsno datano data
Marshall Geller
Independent Director2.6yrsUS$28.34k4.87% $650.4k
Howard Goldberg
Lead Independent Director0yrsUS$36.46k2.39% $319.5k
Valerie Salembier
Advisory Council0yrsno datano data
Michael Steele
Advisory Council0yrsno datano data
Bradley Blakeman
Advisory Council0yrsno datano data
Rochelle Bloom
Advisory Council0yrsno datano data

2.6yrs

Average Tenure

73yo

Average Age

Experienced Board: VRME's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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 22.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: VerifyMe, Inc.
  • Ticker: VRME
  • Exchange: OTCPK
  • Founded: 1999
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$13.346m
  • Shares outstanding: 111.22m
  • Website: https://www.verifyme.com

Number of Employees


Location

  • VerifyMe, Inc.
  • Clinton Square
  • Suite 510
  • Rochester
  • New York
  • 14604
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRMEOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2001

Biography

VerifyMe, Inc. provides security solutions for the identification and authentication of people, products, and packaging for various applications in the United States. The company offers RainbowSecure technology that combines an invisible ink with a proprietary tuned laser to enable counterfeit products to be exposed for gaming industry; and SecureLight technology, which changes the color of ink for use in various applications, including credit cards, driver's licenses, passports, stock certificates, clothing labels, currencies, ID cards, and tax stamps, as well as to protect apparels, pharmaceuticals, and other physical products. It also provides SecureLight+ technology, a solution that can be authenticated by proprietary tuned laser devices, and with fluorescent lighting; VeriPAS technology, which provides brand owners geographical business intelligence on counterfeiting; and authentication tools, which allows customers to authenticate items with a customized beeper that identifies a product bearing their unique anti-counterfeit solution. VerifyMe, Inc. has a strategic partnership with INX International Ink Company. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was founded in 1999 and is based in Rochester, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 00:41
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.