Verastem, Inc. (VSTM) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Aug 12, 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
-12.5
Distress distance
Clean
Earnings quality
3
Forensic signals
-2.7
P / E (ttm)
-366.2%
ROE
$638M
Market cap
0.00%
Dividend yield
209.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Verastem, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -12.5, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by receivables vs revenue.
What the filings flag
104d DSO
FY2022→FY2025
Receivables 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. FY2022 and FY2025 aren't consecutive filed years here, so FY2025's opening balance can't be taken from FY2022 — both figures are measured on period-end balances rather than the beginning-plus-ending average, which keeps the two endpoints comparable to each other.
30% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 30% of revenue in FY2025 — about $0.14 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 36.5% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
n/m (stock split)
FY2022–FY2025
Share count (stock split).Diluted share count changed +329% over the last 3 years to FY2025, but that includes a large one-time change around FY2025 consistent with a stock split or reverse split, not gradual buybacks or issuance — a split changes the count with NO effect on any holder's proportional ownership, so the raw +62.5%/yr figure isn't a real buyback/dilution read here.
Key fundamentals
Latest Revenue$30.9M
Revenue Growth YoY+209.1%
Revenue CAGR (3yr)+128.3%
Net Margin-677.6%
Return on Equity-366.2%
Debt / Equity0.54x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Verastem, Inc.'s actual 10-K/10-Q/8-K filings?