Verastem, Inc. [NASDAQ:VSTM]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Verastem, Inc. [VSTM], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give VSTM an Outperform rating. Its stock price has been found in the range of 2.32 to 10.35. This is compared to its latest closing price of $2.37.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Verastem, Inc. [VSTM] is sitting at 1.86. This is compared to 1 month ago, when its average rating was 1.83.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Thu 2 May (In 16 Days).
Fundamental Analysis of Verastem, Inc. [VSTM]
Now let’s turn to look at profitability: with a current Operating Margin for Verastem, Inc. [VSTM] sitting at -354.75 and its Gross Margin at +94.07.
This company’s Return on Total Capital is -59.75, and its Return on Invested Capital has reached -38.70%. Its Return on Equity is -79.61, and its Return on Assets is -39.47. These metrics suggest that this Verastem, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Verastem, Inc. [VSTM] has generated a Total Debt to Total Equity ratio of 96.91. Similarly, its Total Debt to Total Capital is 49.21, while its Total Debt to Total Assets stands at 43.45. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 92.31, and its Long-Term Debt to Total Capital is 46.88. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is -1.09. The Enterprise Value to Sales for this firm is now 3.82, and its Total Debt to Enterprise Value stands at 1.17. Verastem, Inc. [VSTM] has a Price to Book Ratio of 2.00.
Shifting the focus to workforce efficiency, Verastem, Inc. [VSTM] earns $158,095 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 174.63 and its Total Asset Turnover is 0.15. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 6.82 and its Current Ratio is 6.83. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Verastem, Inc. [VSTM] has 73.41M shares outstanding, amounting to a total market cap of $173.98M. Its stock price has been found in the range of 2.32 to 10.35. At its current price, it has moved by -76.76% from its 52-week high, and it has moved 3.66% from its 52-week low.
This stock’s Beta value is currently 3.03, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 29.58. This stock, according to these metrics, is currently Oversold.
Conclusion: Is Verastem, Inc. [VSTM] a Reliable Buy?
Verastem, Inc. [VSTM] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.