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Verastem

Nasdaq:VSTM
Snowflake Description

High growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VSTM
Nasdaq
$400M
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Verastem, Inc., a biopharmaceutical company, focusing on developing and commercializing medicines to improve the survival and quality of life of cancer patients. The last earnings update was 17 days ago. More info.


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  • Verastem has significant price volatility in the past 3 months.
VSTM Share Price and Events
7 Day Returns
34.8%
NasdaqGM:VSTM
6.3%
US Biotechs
12.6%
US Market
1 Year Returns
-14.9%
NasdaqGM:VSTM
1.6%
US Biotechs
-9.1%
US Market
VSTM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Verastem (VSTM) 34.8% 31.9% 80% -14.9% 21.7% -74.8%
US Biotechs 6.3% -7.9% -7.9% 1.6% 7.7% -8.8%
US Market 12.6% -16.7% -19.6% -9.1% 8.2% 21.5%
1 Year Return vs Industry and Market
  • VSTM underperformed the Biotechs industry which returned 1.6% over the past year.
  • VSTM underperformed the Market in United States of America which returned -9.1% over the past year.
Price Volatility
VSTM
Industry
5yr Volatility vs Market
Related Companies

VSTM Value

 Is Verastem undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Verastem to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Verastem.

NasdaqGM:VSTM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:VSTM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.2
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.203 (1 + (1- 21%) (26.9%))
1.307
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.307 * 5.44%)
8.85%

Discounted Cash Flow Calculation for NasdaqGM:VSTM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Verastem is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGM:VSTM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.85%)
2020 -83.00 Analyst x1 -76.25
2021 -57.00 Analyst x1 -48.11
2022 -20.00 Analyst x1 -15.51
2023 6.00 Analyst x1 4.27
2024 34.00 Analyst x1 22.25
2025 58.50 Est @ 72.06% 35.17
2026 88.32 Est @ 50.97% 48.78
2027 120.29 Est @ 36.2% 61.04
2028 151.40 Est @ 25.86% 70.58
2029 179.59 Est @ 18.62% 76.91
Present value of next 10 years cash flows $179.00
NasdaqGM:VSTM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $179.59 × (1 + 1.74%) ÷ (8.85% – 1.74%)
$2,569.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,569.87 ÷ (1 + 8.85%)10
$1,100.59
NasdaqGM:VSTM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $179.00 + $1,100.59
$1,279.59
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,279.59 / 158.60
$8.07
NasdaqGM:VSTM Discount to Share Price
Calculation Result
Value per share (USD) From above. $8.07
Current discount Discount to share price of $2.52
= -1 x ($2.52 - $8.07) / $8.07
68.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Verastem is available for.
Intrinsic value
>50%
Share price is $2.52 vs Future cash flow value of $8.07
Current Discount Checks
For Verastem to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Verastem's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Verastem's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Verastem's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Verastem's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:VSTM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-2.00
NasdaqGM:VSTM Share Price ** NasdaqGM (2020-03-27) in USD $2.52
United States of America Biotechs Industry PE Ratio Median Figure of 37 Publicly-Listed Biotechs Companies 15.87x
United States of America Market PE Ratio Median Figure of 2,935 Publicly-Listed Companies 13.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Verastem.

NasdaqGM:VSTM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:VSTM Share Price ÷ EPS (both in USD)

= 2.52 ÷ -2.00

-1.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Verastem is loss making, we can't compare its value to the US Biotechs industry average.
  • Verastem is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Verastem's expected growth come at a high price?
Raw Data
NasdaqGM:VSTM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
43.3%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 34 Publicly-Listed Biotechs Companies 0.99x
United States of America Market PEG Ratio Median Figure of 2,005 Publicly-Listed Companies 1.03x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Verastem, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Verastem's assets?
Raw Data
NasdaqGM:VSTM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $0.09
NasdaqGM:VSTM Share Price * NasdaqGM (2020-03-27) in USD $2.52
United States of America Biotechs Industry PB Ratio Median Figure of 428 Publicly-Listed Biotechs Companies 2.47x
United States of America Market PB Ratio Median Figure of 5,145 Publicly-Listed Companies 1.27x
NasdaqGM:VSTM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:VSTM Share Price ÷ Book Value per Share (both in USD)

= 2.52 ÷ 0.09

28.14x

* Primary Listing of Verastem.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Verastem is overvalued based on assets compared to the US Biotechs industry average.
X
Value checks
We assess Verastem's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Verastem has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VSTM Future Performance

 How is Verastem expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
43.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Verastem expected to grow at an attractive rate?
  • Verastem's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Verastem's earnings growth is expected to exceed the United States of America market average.
  • Verastem's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:VSTM Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:VSTM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 43.3%
NasdaqGM:VSTM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 40.8%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 18.7%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 15.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:VSTM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:VSTM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 134 38 2
2023-12-31 79 -19 2
2022-12-31 43 -73 2
2021-12-31 25 -80 2
2020-12-31 14 -72 -75 1
2020-03-28
NasdaqGM:VSTM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 17 -139 -149
2019-09-30 15 -120 -122
2019-06-30 22 -115 -113
2019-03-31 28 -91 -89
2018-12-31 27 -75 -72
2018-09-30 26 -76 -79
2018-06-30 10 -65 -81
2018-03-31 -69 -76
2017-12-31 -57 -68
2017-09-30 -43 -61
2017-06-30 -37 -46
2017-03-31 -29 -41

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Verastem's earnings are expected to grow significantly at over 20% yearly.
  • Verastem's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:VSTM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Verastem Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:VSTM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 0.29 0.57 0.01 2.00
2023-12-31 -0.06 0.20 -0.32 2.00
2022-12-31 -0.47 -0.26 -0.67 2.00
2021-12-31 -0.66 -0.45 -0.86 2.00
2020-12-31 -0.76 -0.53 -1.13 3.00
2020-03-28
NasdaqGM:VSTM Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -2.00
2019-09-30 -1.65
2019-06-30 -1.53
2019-03-31 -1.27
2018-12-31 -1.12
2018-09-30 -1.39
2018-06-30 -1.68
2018-03-31 -1.81
2017-12-31 -1.76
2017-09-30 -1.65
2017-06-30 -1.24
2017-03-31 -1.11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Verastem will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Verastem's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Verastem has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VSTM Past Performance

  How has Verastem performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Verastem's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Verastem does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Verastem's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Verastem's 1-year growth to the US Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Verastem's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Verastem Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:VSTM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 17.46 -149.21 101.21 45.78
2019-09-30 15.05 -121.78 101.38 42.08
2019-06-30 21.53 -113.31 106.96 41.44
2019-03-31 28.39 -89.49 93.47 42.47
2018-12-31 26.72 -72.43 77.27 43.65
2018-09-30 25.51 -79.32 57.87 46.14
2018-06-30 10.00 -80.78 37.83 52.31
2018-03-31 -75.85 26.45 48.97
2017-12-31 -67.80 21.38 46.42
2017-09-30 -61.22 19.49 42.06
2017-06-30 -46.02 17.94 28.54
2017-03-31 -41.15 17.73 23.99
2016-12-31 -36.44 17.22 19.78
2016-09-30 -36.65 16.59 20.58
2016-06-30 -44.17 16.98 27.66
2016-03-31 -50.98 17.18 34.22
2015-12-31 -57.87 17.63 40.57
2015-09-30 -59.95 17.67 42.56
2015-06-30 -57.84 17.79 40.31
2015-03-31 -55.48 18.15 37.57
2014-12-31 -53.37 18.16 35.45
2014-09-30 -50.74 17.44 33.56
2014-06-30 -48.00 16.95 31.31
2014-03-31 -45.23 16.41 29.05
2013-12-31 -41.20 15.47 25.93
2013-09-30 -37.80 15.76 22.22
2013-06-30 -37.58 14.20 23.57
2013-03-31 -34.15 12.18 22.21

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Verastem has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Verastem has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Verastem improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Verastem's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Verastem has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VSTM Health

 How is Verastem's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Verastem's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Verastem is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Verastem's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Verastem's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Verastem Company Filings, last reported 2 months ago.

NasdaqGM:VSTM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 7.17 103.62 75.51
2019-09-30 21.52 136.13 160.23
2019-06-30 49.31 133.84 187.25
2019-03-31 88.46 121.97 211.66
2018-12-31 124.30 120.45 249.65
2018-09-30 107.61 25.06 145.64
2018-06-30 126.87 24.90 168.69
2018-03-31 38.55 14.91 64.22
2017-12-31 57.68 14.83 86.67
2017-09-30 40.99 2.34 60.26
2017-06-30 48.23 2.29 57.92
2017-03-31 60.47 2.25 72.57
2016-12-31 72.30 0.00 80.90
2016-09-30 82.44 0.00 86.88
2016-06-30 89.07 0.00 92.87
2016-03-31 95.97 0.00 99.54
2015-12-31 102.47 0.00 110.26
2015-09-30 112.24 0.00 120.47
2015-06-30 125.26 0.00 132.09
2015-03-31 131.91 0.00 132.07
2014-12-31 88.77 0.00 92.68
2014-09-30 88.81 0.00 93.37
2014-06-30 99.18 0.00 98.60
2014-03-31 109.33 0.00 105.64
2013-12-31 117.45 0.00 101.31
2013-09-30 126.71 0.00 99.93
2013-06-30 74.69 0.00 57.45
2013-03-31 82.83 0.00 66.72
  • Verastem's level of debt (1444.4%) compared to net worth is high (greater than 40%).
  • Unable to establish if Verastem's debt level has increased without past 5-year debt data.
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.

  • Verastem has less than a year of cash runway based on current free cash flow.
  • Verastem has less than a year of cash runway if free cash flow continues to grow at historical rates of 27.5% each year.
X
Financial health checks
We assess Verastem's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Verastem has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VSTM Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Verastem dividends.
If you bought $2,000 of Verastem shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Verastem's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Verastem's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:VSTM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 65 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1956 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:VSTM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2020-03-28

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Verastem has not reported any payouts.
  • Unable to verify if Verastem's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Verastem's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Verastem has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Verastem's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Verastem afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Verastem has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VSTM Management

 What is the CEO of Verastem's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Stuglik
COMPENSATION $53,350
AGE 59
TENURE AS CEO 0.7 years
CEO Bio

Mr. Brian Stuglik RPh has been Chief Executive Officer of Verastem, Inc. since July 2019. Mr. Stuglik served as Chief Marketing Officer at Lilly Oncology from 2009 to December 2015. Mr. Stuglik has 35 years of experience in pharmaceutical and oncology commercialization in both the U.S. and international markets. Mr. Stuglik has provided commercial and strategic consultancy services to a variety of life science companies as the founder of Proventus Health Solutions, LLC in January 2016. Prior to Proventus, he served for over 30 years at Eli Lilly and Company, as Global Vice President of Oncology Global Marketing and advancing Lilly Oncology from a single brand and approved product to a portfolio of over 6 marketed or late-stage compounds across more than 10 cancer types. While at Lilly, Mr. Stuglik lead the efforts to acquire Imclone Systems and later led the integration and transition team for Lilly. Mr. Stuglik is an accomplished executive with significant oncology commercialization expertise. He has over 35 years of commercializing important novel oncology drugs together with his extensive external network of clinical thought leaders and deep industry connections. He has successfully launched several multi-billion dollar brands over his career, including Gemzar(R), Alimta(R) and Erbitux(R). He has been a Director at Verastem, Inc. since September 2017. He holds memberships in the American Society of Clinical Oncology, the American Association of Cancer Research, and the International Association for the Study of Lung Cancer. Mr. Stuglik received a Bachelor of Science in Pharmacy from Purdue University.

CEO Compensation
  • Brian's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brian's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Verastem management team in years:

1.3
Average Tenure
59
Average Age
  • The average tenure for the Verastem management team is less than 2 years, this suggests a new team.
Management Team

Brian Stuglik

TITLE
CEO & Director
COMPENSATION
$53K
AGE
59
TENURE
0.7 yrs

Rob Gagnon

TITLE
CFO & Chief Business Officer
COMPENSATION
$3M
AGE
45
TENURE
1.6 yrs

Joe Lobacki

TITLE
Executive VP & Chief Commercial Officer
COMPENSATION
$2M
AGE
61
TENURE
2.2 yrs

Dan Paterson

TITLE
COO & President
COMPENSATION
$709K
AGE
58
TENURE
0.8 yrs

Rich Aldrich

TITLE
Founder and Consultant
COMPENSATION
$115K
AGE
65

Bob Weinberg

TITLE
Co-Founder and Chair of Scientific Advisory Board

Piyush Gupta

TITLE
Co-Founder

Michelle Dipp

TITLE
Co-Founder
AGE
43

Jon Pachter

TITLE
Chief Scientific Officer
COMPENSATION
$320K
AGE
61
TENURE
3.9 yrs

Erin Cox

TITLE
Senior Director of Investor Relations & Corporate Communications
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the Verastem board of directors in years:

3.3
Average Tenure
60.5
Average Age
  • The tenure for the Verastem board of directors is about average.
Board of Directors

Bob Weinberg

TITLE
Co-Founder and Chair of Scientific Advisory Board

Eric Rowinsky

TITLE
Independent Director
COMPENSATION
$152K
AGE
62
TENURE
2.8 yrs

Brian Stuglik

TITLE
CEO & Director
COMPENSATION
$53K
AGE
59
TENURE
2.5 yrs

Gina Consylman

TITLE
Independent Director
COMPENSATION
$229K
AGE
46
TENURE
1.4 yrs

Michael Kauffman

TITLE
Lead Director
COMPENSATION
$207K
AGE
56
TENURE
3.8 yrs

Alison Lawton

TITLE
Independent Director
COMPENSATION
$146K
AGE
58
TENURE
7.3 yrs

Steve Sherwin

TITLE
Member of Clinical & Scientific Advisory Board
COMPENSATION
$37K
AGE
70
TENURE
3.8 yrs

Max Wicha

TITLE
Member of Scientific Advisory Board

Tim Barberich

TITLE
Independent Director
COMPENSATION
$152K
AGE
71
TENURE
6 yrs

Paul Friedman

TITLE
Member of Clinical & Scientific Advisory Board
COMPENSATION
$16K
AGE
76
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Verastem's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Verastem has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VSTM News

Simply Wall St News

How Much Of Verastem, Inc. (NASDAQ:VSTM) Do Institutions Own?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies that have been privatized tend to have low insider ownership. … Private Company Ownership It seems that Private Companies own 5.7%, of the VSTM stock.

Simply Wall St -

Some Verastem (NASDAQ:VSTM) Shareholders Have Taken A Painful 82% Share Price Drop

Check out our latest analysis for Verastem Verastem isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … NasdaqGM:VSTM Income Statement, July 17th 2019 We like that insiders have been buying shares in the last twelve months. … You can click here to see who has been buying shares - and the price they paid.

Simply Wall St -

Introducing Verastem (NASDAQ:VSTM), The Stock That Zoomed 112% In The Last Three Years

(NASDAQ:VSTM) shareholders, since the share price has fallen 17% in that time. … Shareholders of unprofitable companies usually expect strong revenue growth. … Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Simply Wall St -

These Factors Make Verastem, Inc. (NASDAQ:VSTM) An Interesting Investment

Attractive stocks have exceptional fundamentals. … In the case of Verastem, Inc. … (NASDAQ:VSTM), there's

Simply Wall St -

An Intrinsic Calculation For Verastem, Inc. (NASDAQ:VSTM) Shows It's 23.98% Undervalued

by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Have Insiders Been Buying Verastem, Inc. (NASDAQ:VSTM) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. … In total, Verastem insiders bought more than they sold over the last year

Simply Wall St -

What Does Verastem Inc's (NASDAQ:VSTM) Ownership Structure Look Like?

A look at the shareholders of Verastem Inc (NASDAQ:VSTM) can tell us which group is most powerful. … Verastem is not a large company by global standards. … Let's take a closer look to see what the different types of shareholder can tell us about VSTM

Simply Wall St -

Calculating The Fair Value Of Verastem Inc (NASDAQ:VSTM)

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Market Sentiment Around Loss-Making Verastem Inc (NASDAQ:VSTM)

Verastem Inc's (NASDAQ:VSTM):. … Verastem, Inc., a biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer. … The company’s loss has recently broadened since it announced a -US$67.80m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$75.85m, moving it further away from breakeven?

Simply Wall St -

Verastem Inc (NASDAQ:VSTM) Is Trading At A 42% Discount

In this article I am going to calculate the intrinsic value of Verastem Inc (NASDAQ:VSTM) by projecting its future cash flows and then discounting them to today's value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $-87.92 $-54.92 $-15.61 $25.62 $81.34 Source Analyst x1 Analyst x1 Analyst x1 Analyst x1 Analyst x1 Present Value Discounted @ 10.95% $-79.25 $-44.62 $-11.43 $16.91 $48.39 Present Value of 5-year Cash Flow (PVCF)= $-70 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $81 × (1 + 2.5%) ÷ (10.9% – 2.5%) = $983 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $983 / ( 1 + 10.9%)5 = $585 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $515.

Simply Wall St -

VSTM Company Info

Description

Verastem, Inc., a biopharmaceutical company, focusing on developing and commercializing medicines to improve the survival and quality of life of cancer patients. It markets COPIKTRA (duvelisib), an oral inhibitor of phosphoinositide 3-kinase (PI3K) and dual inhibitor of PI3K-delta and PI3K-gamma, which is indicated for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia/small lymphocytic lymphoma after at least two prior therapies and relapsed or refractory follicular lymphoma (FL) after at least two prior systemic therapies. The indication in FL is approved under accelerated approval based on overall response rate. In addition, it is developing the focal adhesion kinase inhibitor defactinib, which is being investigated in combination with immunotherapeutic agents for the treatment of various different cancer types, including pancreatic cancer, ovarian cancer, non-small cell lung cancer (NSCLC), mesothelioma, and other solid tumors. Verastem, Inc. has collaboration agreements with Yakult Honsha Co., Ltd. and CSPC Pharmaceutical Group Limited. The company was founded in 2010 and is headquartered in Needham, Massachusetts.

Details
Name: Verastem, Inc.
VSTM
Exchange: NasdaqGM
Founded: 2010
$399,684,421
158,604,929
Website: http://www.verastem.com
Address: Verastem, Inc.
117 Kendrick Street,
Suite 500,
Needham,
Massachusetts, 02494,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM VSTM Common Stock Nasdaq Global Market US USD 27. Jan 2012
DB 2VS Common Stock Deutsche Boerse AG DE EUR 27. Jan 2012
LSE 0LOV Common Stock London Stock Exchange GB USD 27. Jan 2012
Number of employees
Current staff
Staff numbers
138
Verastem employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 03:03
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/16
Last earnings filing: 2020/03/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.