ScoreWhy is Verastem, Inc. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 10.79% over the last 5 years
2
With a growth in Net Sales of 114.65%, the company declared Very Positive results in Jun 26
- The company has declared positive results for the last 3 consecutive quarters
- NET SALES(Q) Highest at USD 40.08 MM
- RAW MATERIAL COST(Y) Fallen by -23.26% (YoY)
- CASH AND EQV(HY) Highest at USD 318.03 MM
3
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -10.99%, its profits have fallen by -44.7%
4
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -5.31% over the previous quarter and currently hold 11.16% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
5
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 15.76% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.99% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Verastem, Inc. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Verastem, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Verastem, Inc.
-10.99%
1.94
75.52%
S&P 500
15.76%
1.20
13.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.79%
EBIT Growth (5y)
-152.58%
EBIT to Interest (avg)
-20.91
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
1.27
Sales to Capital Employed (avg)
0.24
Tax Ratio
0.12%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
7.74
EV to EBIT
-1.91
EV to EBITDA
-1.92
EV to Capital Employed
-5.36
EV to Sales
10.51
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
-292.68%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend27What is working for the Company
NET SALES(Q)
Highest at USD 40.08 MM
RAW MATERIAL COST(Y)
Fallen by -23.26% (YoY
CASH AND EQV(HY)
Highest at USD 318.03 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 6.7 times
OPERATING PROFIT(Q)
Highest at USD -32.43 MM
OPERATING PROFIT MARGIN(Q)
Highest at -80.92 %
PRE-TAX PROFIT(Q)
Highest at USD -32.01 MM
NET PROFIT(Q)
Highest at USD -32.83 MM
EPS(Q)
Highest at USD -0.35
-7What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD -162.2 MM
INTEREST(HY)
At USD 0.74 MM has Grown at 83.66%
Here's what is working for Verastem, Inc.
Net Sales
At USD 40.08 MM has Grown at 223.31%
over average net sales of the previous four periods of USD 12.4 MMMOJO Watch
Near term sales trend is extremely positive
Net Sales (USD MM)
Net Sales
Highest at USD 40.08 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Profit
Highest at USD -32.43 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at -80.92 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD -32.01 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD -32.83 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD -0.35
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 318.03 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 6.7 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -23.26% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Verastem, Inc.
Interest
At USD 0.74 MM has Grown at 83.66%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Cash Flow
Lowest at USD -162.2 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
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