VSTM Stock Analysis: Verastem | NASDAQ
Biotechnology | NASDAQ, USA | Market Cap: 1.140m USD | 12M Return: 5.8% | US92337C2035 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 38.5M
Qual. Beats: -1
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 11.9 years of data, until 10/2026
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, ≥40 worth a closer look and ≥60 is strong.
Verastem, Inc. is a development-stage biopharmaceutical company headquartered in Needham, Massachusetts, focused on developing and commercializing oncology treatments in the United States. The companys pipeline centers on two orally administered small molecule candidates: Avutometinib, a dual RAF/MEK inhibitor targeting the RAS/MAPK signaling pathway, and Defactinib, a FAK inhibitor under investigation for various solid tumors. As a small-cap biotech with no approved products, Verastem relies heavily on clinical trial outcomes and strategic partnerships to advance its candidates.
The company is conducting multiple clinical studies, including the RAMP 301 confirmatory trial in recurrent low-grade serous ovarian cancer, the adaptive RAMP 201 trial combining Avutometinib with Defactinib, the FRAME study in KRAS mutant cancers, and the RAMP 205 trial. It also has the RAMP 203 trial evaluating Avutometinib in combination with Amgens KRAS-G12C inhibitor LUMAKRAS. Verastem supports its development efforts through license agreements with Chugai Pharmaceutical (for Avutometinib) and Pfizer (for FAK inhibitors), a clinical collaboration with Amgen, and a discovery partnership with GenFleet Therapeutics targeting RAS pathway-driven cancers.
- RAMP 301 ovarian cancer trial results drive near-term valuation
- FDA approval decision for avutometinib-defactinib combination pending
- Cash runway and dilution risk weigh on small-cap biotech
| Net Income: -202.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.79 > 0.02 and ΔFCF/TA -17.93 > 1.0 |
| NWC/Revenue: 112.0% < 20% (prev 1.24k%; Δ -1.13k% < -1%) |
| CFO/TA -0.79 > 3% & CFO -162.2m > Net Income -202.7m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 2.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (100.1m) vs 12m ago 35.22% < -2% |
| Gross Margin: 86.69% > 18% (prev 95.25%; Δ -8.56% > 0.5%) |
| Asset Turnover: 43.46% > 50% (prev 5.10%; Δ 38.37% > 0%) |
| Interest Coverage Ratio: -136.0 > 6 (EBIT TTM -200.7m / Interest Expense TTM 1.48m) |
| A: 0.47 (Total Current Assets 176.2m - Total Current Liabilities 78.1m) / Total Assets 206.5m |
| B: -5.99 (Retained Earnings -1.24b / Total Assets 206.5m) |
| C: -1.00 (EBIT TTM -200.7m / Avg Total Assets 201.4m) |
| D: 0.32 (Book Value of Equity 50.0m / Total Liabilities 156.5m) |
| Altman-Z'' = -22.76 = D |
| DSRI: 1.46 (Receivables 29.1m/2.28m, Revenue 87.5m/10.0m) |
| GMI: 1.10 (GM 95.25% / 86.69%) |
| AQI: 1.25 (AQ_t 0.13 / AQ_t-1 0.11) |
| SGI: 8.75 (Revenue 87.5m / 10.0m) |
| TATA: -0.20 (NI -202.7m - CFO -162.2m) / TA 206.5m) |
| Beneish M = 3.13 (Cap -4..+1) = D |
As of November 11, 2026, the stock is trading at USD 8.73 with a total of 2,952,448 shares traded. Over the past week, the price has changed by -10.64%, over one month by +5.82%, over three months by +28.57% and over the past year by +5.82%.
Current recommended Stop Loss: 7.80 (which is 10.7% or 1.3 ATR below the current price).
Verastem has received a consensus analysts rating of 4.90. Therefore, it is recommended to buy VSTM.
- StrongBuy: 9
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 17.1 | 96% |
P/S = 13.021
P/B = 23.7479
P/EG = -1.89
Revenue TTM = 87.5m USD
EBIT TTM = -200.7m USD
EBITDA TTM = -199.6m USD
Long Term Debt = 76.3m USD (from longTermDebt, last quarter)
Short Term Debt = 6.43m USD (from shortTermDebt, last quarter)
Debt = 86.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 2.61m
Net Debt = -49.4m USD (calculated: Debt 86.9m - CCE 136.4m)
Enterprise Value = 1.09b USD (1.14b + Debt 86.9m - CCE 136.4m)
Interest Coverage Ratio = -136.0 (Ebit TTM -200.7m / Interest Expense TTM 1.48m)
EV/FCF = -6.67x (Enterprise Value 1.09b / FCF TTM -163.5m)
FCF Yield = -15.00% (FCF TTM -163.5m / Enterprise Value 1.09b)
FCF Margin = -186.8% (FCF TTM -163.5m / Revenue TTM 87.5m)
Net Margin = -231.6% (Net Income TTM -202.7m / Revenue TTM 87.5m)
Gross Margin = 86.69% ((Revenue TTM 87.5m - Cost of Revenue TTM 11.7m) / Revenue TTM)
Gross Margin QoQ = 89.92% (prev 83.66%)
Tobins Q-Ratio = 5.28 (Enterprise Value 1.09b / Total Assets 206.5m)
Interest Expense / Debt = 1.70% (Interest Expense 1.48m / Debt 86.9m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -158.6m (EBIT -200.7m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.25 (Total Current Assets 176.2m / Total Current Liabilities 78.1m)
Debt / Equity = 1.74 (Debt 86.9m / totalStockholderEquity, last quarter 50.0m)
Debt / EBITDA = 0.25 (negative EBITDA) (Net Debt -49.4m / EBITDA -199.6m)
Debt / FCF = 0.30 (negative FCF - burning cash) (Net Debt -49.4m / FCF TTM -163.5m)
Total Stockholder Equity = 43.4m (last 4 quarters mean from totalStockholderEquity)
RoA = -100.7% (out of range, set to none)
RoE = -467.5% (Net Income TTM -202.7m / Total Stockholder Equity 43.4m)
RoCE = -167.8% (out of range, set to none) (EBIT -200.7m / Capital Employed (Equity 43.4m + L.T.Debt 76.3m))
RoIC = -121.6% (out of range, set to none) (NOPAT -158.6m / Invested Capital 130.4m)
WACC = 8.31% (E(1.14b)/V(1.23b) * Re(8.84%) + D(86.9m)/V(1.23b) * Rd(1.70%) * (1-Tc(0.21)))
Discount Rate = 8.84% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 98.15 | Cagr: 79.54%
[DCF] Fair Price = unknown (Cash Flow -163.5m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -3.56 | # QB: -1
Revenue Correlation: N/A | Revenue CAGR: N/A | SUE: 4.0 | # QB: 1
EPS current Quarter (2027-03-31): EPS=-0.54 | Chg30d=-30.49% | Revisions=+25% | Analysts=2
EPS current Year (2026-12-31): EPS=-1.80 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+23.4% | GrowthRev=+260.0%
EPS next Year (2027-12-31): EPS=-1.22 | Chg30d=-62.67% | Revisions=-25% | GrowthEPS=+32.2% | GrowthRev=+43.0%
[Analyst] Revisions Ratio: +17% (up=2, down=1)