Verastem, Inc. [VSTM] is following upward trend in the market concluded with the last trading session. The shares of the Healthcare sector company has a current value of $1.50 after VSTM shares went up by 6.38% during the last trading session. One of the reasons why Healthcare stocks may go bullish is increased momentum in the press.
Verastem, Inc. [NASDAQ:VSTM]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Verastem, Inc. [VSTM], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give VSTM an Outperform rating. Its stock price has been found in the range of 1.16 to 10.35. This is compared to its latest closing price of $1.41.
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 2.40. This is compared to 1 month ago, when its average rating was 1.80.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Wed 14 Aug (In 34 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 0.28. The Enterprise Value to Sales for this firm is now -0.93, 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 78.28M shares outstanding, amounting to a total market cap of $110.37M. Its stock price has been found in the range of 1.16 to 10.35. At its current price, it has moved down by -85.51% from its 52-week high, and it has moved up 29.31% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 52.64. This RSI score is good, suggesting this stock is neither overbought or 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.