Veru (VERU) AI Stock Analysis

• Market Cap: $54.68M
• Dividend Yield: N/A
• Average Volume (3M): 151.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -52.76%
• EPS Growth: 43.40%
• Country: US
• Employees: 210
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.50
• Shares Outstanding: 14,658,392
• 10 Day Avg. Volume: 176,147
• 30 Day Avg. Volume: 151,371
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 11.05
• Enterprise Value/Gross Profit: 28.68
• Enterprise Value/Ebitda: -2.14
• 1Y Price Target: $22.50
• Price Target Upside: 503.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: $3.50 ▼(-6.17% Downside)

Veru's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. While the earnings call provided some optimism with positive clinical results and regulatory progress, the company's financial challenges and valuation concerns weigh heavily on the score.

Positive Factors

Clinical Trial Success

Successful clinical trials for Inovasarm indicate strong potential for future product approval and market entry, enhancing Veru's competitive position in the oncology sector.

Regulatory Progress

Positive feedback from the FDA and a clear regulatory path forward for Inovasarm could accelerate product development and commercialization, benefiting long-term growth.

Cost Management

Reduction in operating expenses reflects improved cost management, which can enhance profitability and support sustainable financial health over time.

Negative Factors

Declining Revenues

Declining revenues and net losses indicate operational challenges, which could hinder Veru's ability to invest in R&D and expand its market presence.

Cash Flow Concerns

Insufficient cash reserves raise concerns about Veru's ability to sustain operations and fund future growth without additional financing, impacting long-term viability.

Reverse Stock Split

The reverse stock split may reflect underlying issues with stock price and market perception, potentially affecting investor confidence and future capital raising efforts.

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 generates revenue primarily through the commercialization of its pharmaceutical products, which includes sales from its approved therapies. The company also engages in research and development partnerships with other pharmaceutical companies, which can provide additional funding and resources in exchange for shared rights to new drugs. Additionally, Veru may receive milestone payments and royalties from licensing agreements related to its drug candidates. The ongoing development of its pipeline products and successful clinical trials are critical to expanding its revenue streams.

Veru Financial Statement Overview

Summary

Veru's financial performance is under significant pressure with a declining revenue trend and large net losses, leading to a negative net profit margin. Despite a strong equity base and low leverage, the company's inability to generate positive earnings and cash flow underscores major operational challenges.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.66M	16.89M	16.30M	39.35M	61.26M	42.59M
Gross Profit	2.56M	5.85M	7.57M	30.59M	47.93M	30.79M
EBITDA	-34.39M	-36.20M	-89.98M	-79.23M	9.75M	-14.65M
Net Income	-32.71M	-37.80M	-93.15M	-83.78M	7.39M	-18.97M
Balance Sheet
Total Assets	27.33M	60.42M	50.02M	136.13M	178.15M	51.54M
Cash, Cash Equivalents and Short-Term Investments	15.01M	24.92M	9.63M	80.19M	122.36M	13.59M
Total Debt	3.25M	13.86M	14.41M	15.88M	13.74M	14.14M
Total Liabilities	11.99M	28.10M	30.34M	55.29M	25.85M	21.43M
Stockholders Equity	15.34M	32.32M	19.68M	80.84M	152.29M	30.11M
Cash Flow
Free Cash Flow	-28.98M	-21.84M	-88.68M	-48.24M	-15.95M	-2.04M
Operating Cash Flow	-28.92M	-21.68M	-88.01M	-47.51M	-15.57M	-1.93M
Investing Cash Flow	19.00M	146.21K	6.33M	4.27M	14.62M	-105.76K
Financing Cash Flow	-4.22M	36.83M	11.11M	1.07M	109.72M	9.33M

Veru Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.73
• 50DMA: Negative
• 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 VERU, the sentiment is Neutral. The current price of 3.73 is above the 20-day moving average (MA) of 3.48, below the 50-day MA of 3.97, and below the 200-day MA of 5.49, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 52.56 is Neutral, neither overbought nor oversold. The STOCH value of 67.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VERU.

Veru Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMDX	51 Neutral	$95.30M	-0.96	494.24%	―	316.13%	18.34%
VERU	47 Neutral	$54.68M	―	-96.35%	―	-52.76%	43.40%
TNYA	36 Underperform	$270.54M	-1.73	―	―	―	38.94%
BDTX	33 Underperform	$193.58M	14.36	―	―	―	―
ELTX	30 Underperform	$179.72M	-2.63	―	―	―	-4.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Veru Corporate Events

Veru Regains Nasdaq Compliance with Bid Price

On August 26, 2025, Veru Inc. announced that it has regained compliance with Nasdaq’s minimum bid price requirement, a crucial step for maintaining its listing on the exchange. This follows a previous notification from August 29, 2024, where the company was given a deadline to meet the requirement after its stock price fell below $1.00 for 30 consecutive days.

Veru Implements 1-for-10 Reverse Stock Split

On August 8, 2025, Veru Inc. implemented a 1-for-10 reverse stock split of its common stock, which was approved by shareholders on July 25, 2025. The reverse stock split aims to help Veru regain compliance with Nasdaq’s $1.00 minimum bid price requirement, and it will affect all shareholders uniformly without changing ownership percentages, except for cash payments in lieu of fractional shares.

Veru Shareholders Approve Reverse Stock Split Proposal

On July 25, 2025, Veru held a special meeting where shareholders voted on two key proposals. The first was a reverse stock split proposal, which was approved and allows the Board of Directors to determine a split ratio between 1-for-2 and 1-for-20. The second proposal, which also passed, was to adjourn the special meeting.