Verastem Inc. Common Stock (VSTM)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

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

I look for businesses with durable earning power, honest balance sheets, and a price that leaves a margin of safety. Verastem does not fit that mold yet. It is a 102-employee biotech developing Avutometinib and Defactinib for cancers, and it has reported losses in each of the last four years. The revenue ramp is real: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $40.1M, up from $2.1M in fiscal Q2 2025 and $18.7M in fiscal Q1 2026. For FY2025, the year ended 2025-12-31, revenue was $30.9M versus $10.0M in FY2024. But the bottom line remains deeply negative: fiscal Q2 2026 net loss was $34.7M, or $0.35 per diluted share, and FY2025 net loss was $209.5M, or $3.02 per share. Trailing free cash flow was negative $171.8M. As of the 2026-10-13 close at $7.45, FairStock calculations show a negative P/E of -3.05, P/B of 8.01, ROE of -471.16%, ROCE of -49.59%, debt-to-equity of 1.69, Piotroski F-Score of 2/9, and Altman Z-Score of -5.55. Those are not signs of a fortress balance sheet. FairStock also assigns no Peter Lynch category because of losses in each of the last four years. The growth trajectory depends on clinical and commercial execution, not on a proven moat. I would call this speculative: the market is paying for pipeline hope rather than present earnings. Without a visible path to sustainable profits and self-funding, there is no margin of safety I can calculate.

In plain English: Verastem is a small biotech that develops cancer drugs. It is growing sales but still loses money and burns cash, so the business looks weak on profits. At $7.45, the price looks expensive relative to its losses and book value, based on the numbers provided.

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Data as of 2026-10-13 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