Verastem, Inc. (VSTM) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 28, 2026
Verastem, Inc. (VSTM)
A forensic read on Verastem, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-15.7
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-163.6%
ROE
$332M
Market cap
Verastem, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -15.7, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by receivables vs revenue.
What the filings flag
104d DSOReceivables vs revenue.Days sales outstanding moved from 4 to 104 days FY2022→FY2025 (receivables +28329% vs revenue +1091%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
-160%Return on invested capital.Return on invested capital is -160% and slipping from -146% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+109.8%/yrShare-count dilution.Diluted share count changed +329% over the last 3 years to FY2025 (+109.8%/yr). The count is GROWING — existing holders are being diluted. That's ~109.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~329%.
30% of revStock-based comp load.Stock-based compensation ran 30% of revenue in FY2025 — about $0.14 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-677.6%
Debt / Equity0.77x
Free Cash Flow$-137.5M
Latest Revenue$30.9M
Return on Equity-366.2%
Revenue Growth YoY+209.1%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Verastem, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about VSTM's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown