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Verastem, Inc.
Recommendation [as of August 31, 2018]: HOLD
Risk Evaluation: HIGH Price: 9.960 (Aug 31, 2018 close) Trading Currency: USD Country: United States
GICS Sector: Health Care Sector Ranking: Marketweight SPGMI's Quality Ranking: NR
GICS Industry: Biotechnology
Business Summary: Verastem, Inc., a biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer. Its programs target
the focal adhesion kinase (FAK) and the phosphoinositide 3-kinase (PI3K) signaling pathways. The company's lead FAK inhibitor is defactinib, an orally available contd...
Negat ive
Quality
Posit ive
Growth
Relative Strength vs As Reported Earnings vs Total Return[%CAGR] YTD 1Yr 3Yr 5Yr
Risk Evaluation : HIGH Index Previous Year
NasdaqGM:VSTM 469.2 154.1 18.0 -6.1
40-Week Mov. Avg. Up Down No Change
Asset/Market Size Risk High
Peer Average 114.3 145.1 -.9 1.2
Volume Quantitative Ranking
Financial Leverage Risk Moderate
Below Avg. Above Avg. S&P 500 15.1 19.4 16.5 14.4
Price Volatility Risk High
Liquidity Risk Moderate Quantitative Rankings: SB = Strong Buy, H = Hold, SS = Strong Sell
Past performance is not an indication of future performance and should not be relied upon as such.
Source: CFRA, S&P Global Market Intelligence (SPGMI)
NasdaqGM: VSTM's HOLD recommendation is based on its score from CFRA's quantitative model for the United States.
Growth and Valuation model sub-categories are the largest positive and negative drivers, respectively, of the HOLD recommendation.
Growth includes factors that measure EPS growth and stability and cash flow growth and stability.
Valuation includes factors such as price to earnings, price to EBITDA, and price to cash flow.
NasdaqGM: VSTM's overall score ranked in the 70th percentile of all stocks in the model universe (1 = best and 100 = worst).
Compound Annual Growth Rates 5 year P/E Ratio Comparisons [forward 12-month Diluted EPS estimates]
Revenue - %CAGR Current
Company NasdaqGM:VSTM -9.8
Peer Average 181.9 14.9 1.4 Peer Average NA
S&P 500 8.9 4.0 3.1 S&P 500 17.3
Operating EPS - %CAGR 5-Year Average
Company 35.4 -3.9 -1.7 NasdaqGM:VSTM NA
Peer Average -29.2 -27.3 -5.6 Peer Average NA
S&P 500 18.0 8.6 6.1 S&P 500 17
This document is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the 1
particular needs of any specific person who may receive this report. Refer to important disclosures at the end of this report. Source: CFRA, S&P Global Market Intelligence (SPGMI)
QUANTITATIVE STOCK REPORT | September 03, 2018 | NasdaqGM : VSTM
Verastem, Inc.
Recommendation [as of August 31, 2018]: HOLD
Risk Evaluation: HIGH Price: 9.960 (Aug 31, 2018 close) Trading Currency: USD Country: United States
EPS Per Share and Revenues [Millions USD, except per share] Key Profitability Ratios
Fiscal year ends Dec 31 2013 2014 2015 2016 2017 LTM
EPS Quarterly - Actual & Estimated Q3'17 Q4'17 Q1'18 Q2'18 Q3'18E %
%Yr.-Yr. Operating NA NA NA NA NA -801.4
-190.5 -30.3 -17.1 -28.6 43.4
Chg. Margin
%
-84.8 -1.2 -3.8 -29.2 - Peer
Surprise -1781.6 -749.1 -2654.6 -3022.1 -1566.3 -1561.5
Average
No. of
4 6 6 6 4 % Net
Analysts NA NA NA NA NA -807.8
Margin
EPS Annual - Actual & Estimated 2015 2016 2017 2018E 2019E
Peer
%Yr.-Yr. -1845.0 -584.6 -2704.9 -3023.5 -1589.5 -1531.5
22.2 38.5 -77.8 -1.7 43.4 Average
Chg.
No. of % Return
7 3 6 1 4 on -24.9 -32.5 -38.0 -26.5 -58.5 -49.5
Analysts
Capital
Peer
-33.5 -41.7 64.5 426.0 -80.5 -49.4
Average
Revenues Quarterly - Actual & Estimated Q3'17 Q4'17 Q1'18 Q2'18 Q3'18E
%Yr.-Yr. % Cash
� � � â � Flow to NA NA NA NA NA NA
Chg.
No. of Sales
5 7 7 7 6 Key Valuation Ratios
Analysts Peer
-1948.1
2012-661.8
2013-1614.6
2014 -2406.4 -1482.0
2015 2016 Current NA
Average
Fwrd P/E -
NA NM NM NM NM NM
High
Revenues Annual - Actual & Estimated 2015 2016 2017 2018E 2019E
%Yr.-Yr. Fwrd P/E -
� � � â 267.6 NA NM NM NM NM
Chg. Low
No. of Peer Average NA 38.2 51.1 48.4 48.7 10.6
8 4 7 3 6
Analysts
Avg
NA NA NA 0.9 1.0 NM
EV/EBITDA
Peer Average NA 22.3 29.1 30.2 0.6 9.1
Avg Price to
Source: S&P Global Market Intelligence NA NA NA NA NA 47.8
Sales
Note: EPS & Revenues in graphs above may represent analyst-adjusted actuals and estimates and therefore may not match numbers in the
financial data presentation below. Peer Average NA 9.8 16.7 21.0 47.4 21.0
Avg Price to
NA 2.8 2.4 1.9 0.5 5.8
Book
Peer Average NA 9.5 7.0 8.2 3.5 6.8
Income Statement, Cash Flow and Balance Sheet Data (Millions USD, except per share) Fiscal Year Ending: Dec. 31 .
2010 2011 2012 2013 2014 2015 2016 2017
Revenue NA NA NA NA NA NA NA NA
Operating Income -1.9 -13.7 -32.2 -41.4 -53.6 -58.2 -37.0 -67.8
Net Income -1.9 -13.7 -32.0 -41.2 -53.4 -57.9 -36.4 -67.8
Operating Cash Flow -0.8 -9.4 -22.6 -26.3 -36.9 -45.6 -29.5 -57.3
Capital Expenditures 0.019 0.785 0.310 0.056 2.429 0.211 0.039 NA
Earnings Per Share -2.22 -10.59 -1.70 -1.82 -2.07 -1.61 -0.99 -1.76
Dividends Per Share NA NA NA NA NA NA NA NA
Dividend Payout Ratio Nil Nil Nil Nil Nil Nil Nil Nil
Free Cash Flow Per Share -0.95 -7.84 -1.22 -1.16 -1.52 -1.27 -0.80 NA
Cash and Short Term Investments 3.6 47.8 56.6 101.3 92.7 110.3 80.9 86.7
Long Term Debt NA NA NA NA NA NA NA 14.8
Total Debt Nil Nil Nil Nil Nil Nil Nil 14.8
Common Equity -0.7 -12.8 90.5 117.4 88.8 102.5 72.3 57.7
Note: Data may be restated; before results of discontinued operations/special items. Per share data adjusted for stock dividends as of ex-dividend date.
NA = Not Available. NM = Not Meaningful.
Source: S&P Global Market Intelligence (SPGMI)
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QUANTITATIVE STOCK REPORT | September 03, 2018 | NasdaqGM : VSTM
Verastem, Inc.
Recommendation [as of August 31, 2018]: HOLD
Risk Evaluation: HIGH Price: 9.960 (Aug 31, 2018 close) Trading Currency: USD Country: United States
Rankings are not predictive of future performance. For full definitions of Rankings, see the glossary section of this report.
Note: Peer Group selection is performed using CFRA's proprietary peer ranking system. Peers are selected based on factors such as similarity of analyst coverage, industry, size, and region. The subject
company is ranked against a universe of companies ( the "Universe") which has been compiled by CFRA and consists of a list of companies with similar characteristics, but may not include all the companies
within the same industry and/or that engage in the same line of business. The subject company and some of the companies in the Peer Group may be ranked by two different ranking systems. For the purpose
of the overall ranking/recommendation, the subject company is ranked against all the companies in the Universe and not necessarily against the companies listed in the Peer Group.
Fiscal Years Avg Est. High Est Low Est. # of Est. Est. P/E
2019 -1.01 -0.64 -1.45 4 NM
2018 -1.79 -1.79 -1.79 1 NM
2019 vs. 2018 44% 64% 19% 300% NA
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QUANTITATIVE STOCK REPORT | September 03, 2018 | NasdaqGM : VSTM
Verastem, Inc.
Recommendation [as of August 31, 2018]: HOLD
Risk Evaluation: HIGH Price: 9.960 (Aug 31, 2018 close) Trading Currency: USD Country: United States
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