VerifyMe Inc. Common Stock (VRME)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earning power, a competitive moat, and a margin of safety. VerifyMe provides brand protection and precision logistics, but the filed figures show a business that has not earned a profit in each of the last four years. Revenue went from $25.3M in FY2023 to $24.2M in FY2024 to $16.4M in FY2025, while net loss widened from $3.4M to $4.9M. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.9M and net loss was $505,000. The company has no Lynch category precisely because it has not earned a profit. FairStock's calculated metrics reinforce the weakness: a Piotroski F-Score of 4/9, Altman Z-Score of -5.96, trailing free cash flow of -$1.3M, and FCF yield of -11.7%. Debt is low, with D/E 0.08, so near-term solvency may not be the immediate issue. But at the 2026-10-05 close of $5.93, the market cap is $11.4M, P/B is 7.51, and P/E is negative at -14.46. Paying over seven times book for a loss-making, shrinking business is not a Graham bargain. Beta of 0.33 suggests low market correlation, but the 52-week range of $0.59 to $13.60 screams speculation. Unless revenue stabilizes, losses narrow, and free cash flow turns positive, there is no margin of safety. I would wait for evidence of a real turn.

In plain English: VerifyMe sells brand protection and tracking services for shipments. The company has lost money for years and its sales have shrunk. At the recent close on 2026-10-05, the stock looks expensive compared with those weak results, even though it has very little debt.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-05 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer