Veru (VERU) AI Stock Analysis

• Market Cap: $83.55M
• Dividend Yield: N/A
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -21.28%
• EPS Growth: 36.26%
• Country: US
• Employees: 210
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.05
• Shares Outstanding: 146,583,920
• 10 Day Avg. Volume: 1,490,731
• 30 Day Avg. Volume: 2,297,590
• PEG Ratio: -0.02
• Price to Book (P/B): 4.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.91
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 17.02
• Enterprise Value/Ebitda: -0.45
• 1Y Price Target: $0.50
• Price Target Upside: -12.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $0.50 ▼(-12.28%Downside)

Veru's overall stock score is primarily impacted by its challenging financial performance and valuation, indicating substantial operational inefficiencies and ongoing losses. Promising clinical results and potential regulatory advancements offer some optimism, but financial sustainability is a significant concern. Technical indicators suggest a neutral market sentiment.

Positive Factors

Clinical Study Success

The Ph. IIb QUALITY study has achieved full enrollment of over 150 patients, with top-line data expected to provide insights into enobosarm's effectiveness.

Potential Partnerships

Positive results from the QUALITY trial could help the company secure a partnership before advancing enobosarm into a pivotal program for the treatment of obesity.

Strategic Business Moves

VERU has strategically monetized its FC2 female condom business for $18M to focus solely on enobosarm's development.

Negative Factors

Market Competition

The ease of administration for enobosarm (an oral drug) compares favorably to other competing treatment options that require intravenous administration.

Stock Volatility

A significant intra-day stock sell-off was attributed to the lack of meaningful weight loss benefits observed during the initial period of the study.

Study Challenges

The ongoing Phase 2b QUALITY trial of enobosarm in combination with Wegovy (semaglutide) for the treatment of sarcopenic obesity is on track to report topline data in January 2025.

Veru Business Overview & Revenue Model

Company Description

Veru Inc., an oncology biopharmaceutical company, focuses on developing medicines for the management of cancers. Its commercial products comprise FC2 female condom/internal condom for the dual protection against unintended pregnancy and the transmission of sexually transmitted infections for ministries of health, government health agencies, U.N. agencies, nonprofit organizations, and commercial partners. The company's development drug candidates include Enobosarm, an oral selective androgen receptor agonist that is in phase III clinical trial for the treatment of AR+ ER+ HER2- metastatic breast cancer; Sabizabulin, which is phase IIb clinical trial for the treatment of AR+ ER+ HER2- metastatic breast cancer; Enobosarm + abemaciclib combination therapy, which is in phase III clinical trial for the treatment of AR+ ER+ HER2- metastatic breast cancer; and Sabizabulin + enobosarm combination therapy, an oral targeted cytoskeleton disruptor plus selective androgen receptor agonist, which is in phase II clinical trial for the treatment of metastatic triple negative breast cancer. Its drug candidates also comprise Sabizabulin, which is in Phase II clinical trial for the treatment of metastatic castration and androgen receptor targeting agent resistant prostate cancer; VERU-100, a GnRH antagonist peptide injection, which is in Phase II clinical trial for the treatment of advanced hormone sensitive prostate cancer; Zuclomiphene Citrate, which is in Phase II clinical trial for treating hot flashes; and Sabizabulin, which is in phase III clinical trial for the treatment of SARS-CoV-2 in subjects at high risk for acute respiratory distress syndrome. In addition, the company is advancing a new drug formulation for the treatment of men with lower urinary tract symptoms from an enlarged prostate. The company was formerly known as The Female Health Company and changed its name to Veru Inc. in July 2017. Veru Inc. was incorporated in 1971 and is headquartered in Miami, Florida.

How the Company Makes Money

Veru Inc. generates revenue through the development and commercialization of pharmaceutical products. The company's key revenue streams include sales from its proprietary drug products and potential royalties and milestone payments from partnerships and collaborations in the pharmaceutical industry. Veru's oncology drug candidates, which are in various stages of clinical development, present potential future revenue streams upon successful approval and commercialization. Additionally, the company engages in strategic partnerships and licensing agreements that can contribute significantly to its earnings.

Veru Financial Statement Overview

Summary

Veru's financials reveal significant challenges, with declining revenues and substantial net losses leading to negative profit margins. The company struggles with cash generation, as indicated by negative operating and free cash flow. A strong equity base and low leverage are positives, but the inability to generate profits remains a critical issue.

Income Statement

Veru's income statement reveals significant challenges with profitability. The company has experienced declining revenues, with a 12.7% decrease from the previous year, and a negative net profit margin of -260.8% TTM due to substantial net losses. Although gross profit margin remains positive at 31.9%, the EBIT and EBITDA margins are severely negative, indicating operational inefficiencies. This suggests that Veru is struggling to manage its operating expenses effectively in relation to its revenue.

Balance Sheet

Veru maintains a relatively moderate debt-to-equity ratio of 0.13 TTM, indicating a conservative approach to leveraging. The equity ratio is 66.9%, which showcases a strong reliance on equity financing and a robust capital base. However, the return on equity is negative at -144.4% TTM, reflecting the company's inability to generate profits from its equity base. This highlights a need for improvement in generating returns for shareholders.

Cash Flow

The cash flow statement shows that Veru is facing challenges with cash generation, having negative operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is negative, indicating that the company is not converting its net income into free cash flow. This raises concerns about Veru's ability to sustain its operations and invest in future growth without additional financing.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	16.89M	16.30M	39.35M	61.26M	42.59M
Gross Profit	5.85M	7.57M	30.59M	47.93M	30.79M
EBITDA	-36.20M	-89.98M	-79.23M	9.75M	-14.65M
Net Income	-37.80M	-93.15M	-83.78M	7.39M	-18.97M
Balance Sheet
Total Assets	60.42M	50.02M	136.13M	178.15M	51.54M
Cash, Cash Equivalents and Short-Term Investments	24.92M	9.63M	80.19M	122.36M	13.59M
Total Debt	13.86M	14.41M	14.92M	12.63M	14.14M
Total Liabilities	28.10M	30.34M	55.29M	25.85M	21.43M
Stockholders Equity	32.32M	19.68M	80.84M	152.29M	30.11M
Cash Flow
Free Cash Flow	-21.84M	-88.68M	-48.24M	-15.95M	-2.04M
Operating Cash Flow	-21.68M	-88.01M	-47.51M	-15.57M	-1.93M
Investing Cash Flow	146.21K	6.33M	4.27M	14.62M	-105.76K
Financing Cash Flow	36.83M	11.11M	1.07M	109.72M	9.33M

Veru Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.57
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERU, the sentiment is Negative. The current price of 0.57 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.58, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 39.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERU.

Veru Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	HK$16.88B	5.55	-7.44%	3.12%	11.55%	-28.15%
VERU	49 Neutral	$83.55M	―	-88.03%	―	-21.28%	36.26%
IMDX	48 Neutral	$81.22M	―	-428.96%	―	178.08%	86.04%
TNYA	36 Underperform	$138.38M	―	-76.21%	―	―	23.55%
BDTX	33 Underperform	$181.39M	51.70	4.14%	―	―	33.97%
ELTX	30 Underperform	$149.09M	―	-744.59%	―	―	27.65%
TELO	―	$62.50M	―	-876.77%	―	―	―

Veru Corporate Events

Veru Inc. Shareholders Approve Equity Plan Amendment

On March 13, 2025, Veru Inc. held its Annual Meeting of Shareholders, where the shareholders approved an amendment to the 2018 Equity Incentive Plan, increasing the number of shares of the Company’s Common Stock authorized for issuance from 18,500,000 to 26,000,000. Additionally, the shareholders elected directors for the upcoming term and ratified the appointment of Cherry Bekaert LLP as the Company’s independent registered public accounting firm for the fiscal year ending September 30, 2025. These decisions reflect Veru Inc.’s strategic efforts to enhance its equity incentive offerings and ensure strong governance and financial oversight.