Versarien (VRS) AI Stock Analysis

• Market Cap: £601.00K
• Dividend Yield: N/A
• Average Volume (3M): 122.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -38.73%
• EPS Growth: 96.64%
• Country: UK
• Employees: 64
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.00
• Shares Outstanding: 6,009,963,000
• 10 Day Avg. Volume: 44,468,735
• 30 Day Avg. Volume: 122,011,386
• PEG Ratio: <0.01
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -0.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: 0.00p ▼(-100.00% Downside)

Versarien's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative margins, and high leverage. Technical analysis suggests a bearish trend, and valuation metrics are unattractive due to negative earnings and lack of dividends. These factors collectively result in a low overall stock score.

Positive Factors

Diverse Revenue Streams

Versarien's diverse revenue streams, including sales, licensing, and R&D collaborations, provide resilience against market fluctuations and foster innovation.

Strategic Partnerships

Strategic partnerships in key industries enhance Versarien's market position and facilitate the adoption of its advanced materials, driving long-term growth.

Government Support Potential

Potential government grants for advanced materials can bolster Versarien's financial stability and support its R&D efforts, aiding long-term competitiveness.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in market demand or execution, potentially affecting long-term sustainability if not addressed.

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting Versarien's ability to invest in growth or weather downturns.

Negative Cash Flow

Ongoing negative cash flow suggests operational inefficiencies and may necessitate external financing, affecting long-term financial health.

Versarien Business Overview & Revenue Model

Company Description

Versarien plc, an engineering materials company, provides engineering solutions for various industry sectors in the United Kingdom, rest of Europe, North America, and internationally. The company operates in two segments, Graphene and Plastic Products, and Hard Wear and Metallic Products. The Graphene and Plastic Products segment offers graphene products, such as Nanene, a few-layer graphene; Polygrene, a graphene enhanced polymer; Hexotene, a few-layer hexagonal boron nitride nano-platelet powder; and graphene-based nanomaterials for energy storage devices, as well as a range of electrically conductive graphene inks for various printing processes, substrates, and applications under the Graphinks name. This segment also provides graphene enhanced plastic products, including graphene enhanced mobile accessories, injection molding products, tool boxes, transit trays, PU foam tanks, and vacuum forming products. The Hard Wear and Metallic Products segment also offers sintered tungsten carbide products comprising special inserts and blanks, cutting knives, wear-resistant parts, nozzles and valve inserts for flow control, and defense and aerospace tungsten carbide parts for use in arduous environmental applications; and micro-porous metals for the thermal management industry, as well as supplies extruded aluminum products, such as aluminum industrial products and aluminum heat sinks. It also manufactures, sells, and supplies anti-bacterial and antiviral masks; and hospital bed panels and visors. The company was founded in 2010 and is based in Cheltenham, the United Kingdom.

How the Company Makes Money

Versarien generates revenue through the sale of its advanced materials, particularly graphene-related products, to various industries. The company has multiple revenue streams, including direct product sales, licensing agreements, and collaborations with other companies for research and development projects. Key partnerships with organizations in the aerospace, automotive, and construction sectors allow Versarien to leverage its technology and expand its market reach. Additionally, the company may benefit from government grants and funding aimed at promoting advanced material technologies, which can contribute to its overall earnings.

Versarien Financial Statement Overview

Summary

Versarien is facing substantial financial challenges, with declining revenues, negative margins, and high leverage. The income statement shows significant declines in revenue and negative profitability metrics. The balance sheet reveals high debt levels, and cash flow analysis indicates ongoing cash burn. While the company can raise financing, the financial outlook is concerning.

Income Statement

Versarien's income statement reveals significant challenges. The company has experienced a consistent decline in revenue from 2021 to 2024, with a notable drop in total revenue from £5.4M in 2023 to £2.4M in 2024. Gross profit margins are negative, and net income is deeply negative, indicating ongoing profitability issues. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of approximately 7.26 in 2024, indicating heavy reliance on debt financing. Stockholder's equity has decreased significantly, which is concerning. However, the company has managed to maintain a positive, though declining, equity ratio, suggesting some level of asset backing.

Cash Flow

Cash flow analysis shows persistent negative free cash flow, reflecting ongoing cash burn that requires attention. The operating cash flow to net income ratio is negative, suggesting operational difficulties. However, the company has been able to secure financing, as seen in the positive financing cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.80M	2.42M	5.45M	7.40M	7.63M	6.57M
Gross Profit	238.00K	-468.00K	-248.00K	800.00K	2.45M	1.46M
EBITDA	-1.83M	-2.66M	-12.29M	-3.67M	-3.30M	-6.76M
Net Income	-2.97M	-4.12M	-13.53M	-5.38M	-5.08M	-7.78M
Balance Sheet
Total Assets	6.39M	6.64M	10.38M	22.20M	23.84M	25.24M
Cash, Cash Equivalents and Short-Term Investments	852.00K	145.00K	596.00K	1.35M	3.10M	6.32M
Total Debt	5.82M	5.99M	7.31M	7.97M	5.57M	5.11M
Total Liabilities	7.95M	7.79M	9.30M	10.36M	9.40M	8.75M
Stockholders Equity	166.00K	824.00K	3.19M	13.22M	15.84M	17.78M
Cash Flow
Free Cash Flow	-1.15M	-1.75M	-3.08M	-8.34M	-5.72M	-2.57M
Operating Cash Flow	-1.07M	-1.72M	-2.74M	-3.68M	-2.15M	-894.00K
Investing Cash Flow	-123.00K	198.00K	-336.00K	-4.66M	-3.57M	-1.68M
Financing Cash Flow	2.00M	1.07M	2.32M	7.33M	6.46M	3.28M

Versarien Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Neutral
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VRS, the sentiment is Negative. The current price of 0.01 is above the 20-day moving average (MA) of <0.01, equal to the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.72 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:VRS.

Versarien Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HAYD	55 Neutral	£28.10M	-1.76	―	―	-27.64%	35.09%
HDD	53 Neutral	£8.08M	-18.64	-11.10%	―	14.51%	77.27%
DCTA	45 Neutral	£8.09M	-2.23	-78.76%	―	-24.85%	40.28%
VRS	39 Underperform	£601.00K	-0.07	-235.32%	―	-38.73%	96.64%
GEX	31 Underperform	£6.24M	-0.80	―	―	―	―

Versarien Corporate Events

Versarien Signs Agreement for Asset Disposal Amid Restructuring

Versarien plc has signed a non-binding agreement with a UK public company for the sale of its remaining assets, including Total Carbide Limited, Gnanomat SL, and its patent and trademark portfolio. The transaction, valued at £200,000 in cash and shares, also involves the acquirer assuming a £5.7 million loan. The deal is subject to several conditions, including shareholder approval and regulatory consent, and if completed, will leave Versarien as a cash shell seeking reverse takeover opportunities. Failure to conclude the transaction may lead to the appointment of administrators.

Versarien Considers Strategic Restructuring Amidst Financial Challenges

Versarien plc has announced an update on its restructuring process, revealing that it is considering a specific offer for its business and assets that could lead to a solvent liquidation or its designation as an AIM Rule 15 cash shell. The company aims to continue operations through October by generating revenue from graphene sales and cooperating with creditors, although the details of the proposed transaction are still under negotiation and subject to government approvals.

Versarien Announces Restructuring and Asset Sale Amid Financial Challenges

Versarien plc has announced an update on its ongoing restructuring process, which includes the accelerated sale of its assets, such as its patent portfolio and shareholdings in Total Carbide Limited and Gnanomat SL. The company is evaluating offers from interested parties, though no legal agreements have been finalized. Versarien Graphene Limited is in administration, while Cambridge Graphene Limited and 2-DTech Limited are undergoing voluntary liquidation. The company’s cash reserves are projected to last until the end of September 2025, with further announcements expected as the situation develops.

Versarien Restructuring Update and Investor Withdrawal

Versarien plc has announced updates on its restructuring process, including the accelerated sale of its assets, such as its patent portfolio and shares in Total Carbide Limited and Gnanomat SL. The sale is nearing completion, with implications for the company’s future to be assessed by the board. Additionally, a Chinese strategic investor has withdrawn from a proposed investment due to lengthy regulatory reviews and financial uncertainties at Versarien. The company’s cash conservation efforts have extended its financial runway, but it remains uncertain beyond September 2025.

Versarien Faces Regulatory Hurdles in Joint Venture with Chinese Firm

Versarien plc announced a setback in its proposed joint venture with China’s Anhui Boundary Innovative Materials Technology due to a decision by the UK government. The determination prevents the acquisition and use of Versarien’s assets by the joint venture, citing security concerns over graphene’s dual-use applications. The joint venture aimed to import materials for use in electric vehicle technologies and other sectors, but the future of this collaboration remains uncertain pending further regulatory clearances.

Versarien Initiates Restructuring Amid Financial Uncertainty

Versarien plc has announced further steps in its restructuring process, including placing Versarien Graphene Limited into administration and liquidating Cambridge Graphene Limited and 2-DTech Limited, to extend its cash runway. The company is in discussions with a strategic investor and marketing Total Carbide Limited for sale, but there is uncertainty about the completion of these transactions. Leonard Curtis has been appointed to oversee an accelerated sale process of Versarien’s remaining assets, with potential asset sales likely yielding less than the company’s liabilities, which could lead to administration and suspension of trading on AIM, leaving shareholders without returns.