Veru (VERU) AI Stock Analysis

• Market Cap: $76.21M
• Dividend Yield: N/A
• Average Volume (3M): 882.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -21.28%
• EPS Growth: 36.26%
• Country: US
• Employees: 210
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -0.05
• Shares Outstanding: 146,583,920
• 10 Day Avg. Volume: 898,629
• 30 Day Avg. Volume: 882,520
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.71
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 10.76
• Enterprise Value/Ebitda: -0.32
• 1Y Price Target: $4.00
• Price Target Upside: 684.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Veru's overall stock score reflects significant financial performance challenges, particularly in maintaining profitability and generating cash flow. While technical indicators suggest a neutral outlook, the negative valuation metrics highlight investor concerns. Clinical developments offer potential upside, but the need for additional funding and financial strains pose notable risks. Corporate governance improvements are positive but do not substantially alter the stock's short-term prospects.

Positive Factors

Clinical Advancements

Enobosarm remains the front-runner in demonstrating clinical lean mass improvements in GLP1-driven lean mass loss, which could lead to regulatory discussions and potential partnerships.

Product Differentiation

Enobosarm's selective targeting of musculoskeletal androgen receptors differentiates it from other treatments, reducing negative effects associated with testosterone and anabolic steroids.

Strategic Moves

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

Negative Factors

Financial Performance

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.

Funding Concerns

The company may need to raise additional capital within the next 12 months, in our view.

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 sale of its pharmaceutical products, particularly those focused on oncology and urology. The company's revenue streams include the commercialization of its FDA-approved drugs and the development of new therapies that are in various stages of clinical trials. Veru also engages in strategic partnerships and licensing agreements to enhance its product pipeline and expand its market reach. Additionally, the company may receive milestone payments and royalties from collaborations with other pharmaceutical companies.

Veru Financial Statement Overview

Summary

Veru's financial performance is challenged by declining revenues and significant net losses, indicated by a negative net profit margin and weak cash flow. Despite a strong equity base and low leverage, the inability to generate positive earnings and cash flow highlights operational inefficiencies and the need for strategic reassessment.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
14.75M	16.89M	16.30M	39.35M	61.26M	42.59M
	Gross Profit
4.70M	5.85M	7.57M	30.59M	47.93M	30.79M
	EBIT
-39.28M	-36.92M	-93.78M	-83.22M	-5.44M	-14.75M
	EBITDA
-38.34M	-36.20M	-89.98M	-79.23M	9.75M	-14.65M
	Net Income Common Stockholders
-38.47M	-37.80M	-93.15M	-83.78M	7.39M	-18.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.61M	24.92M	9.63M	80.19M	122.36M	13.59M
	Total Assets
39.83M	60.42M	50.02M	136.13M	178.15M	51.54M
	Total Debt
3.52M	13.86M	14.41M	14.92M	12.63M	14.14M
	Net Debt
-23.09M	-11.05M	4.78M	-65.27M	-109.73M	547.57K
	Total Liabilities
13.20M	28.10M	30.34M	55.29M	25.85M	21.43M
	Stockholders Equity
26.63M	32.32M	19.68M	80.84M	152.29M	30.11M
Cash Flow		Free Cash Flow
-27.15M	-21.84M	-88.68M	-48.24M	-15.95M	-2.04M
	Operating Cash Flow
-26.99M	-21.68M	-88.01M	-47.51M	-15.57M	-1.93M
	Investing Cash Flow
17.39M	146.21K	6.33M	4.27M	14.62M	-105.76K
	Financing Cash Flow
-4.37M	36.83M	11.11M	1.07M	109.72M	9.33M

Veru Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.51
• 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 Negative. The current price of 0.51 is below the 20-day moving average (MA) of 0.52, below the 50-day MA of 0.52, and below the 200-day MA of 0.68, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 48.94 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 *	52 Neutral	$5.19B	3.04	-44.20%	2.82%	16.59%	-0.39%
VERU	45 Neutral	$76.21M	―	-88.03%	―	-21.28%	36.26%
TNYA	36 Underperform	$79.38M	―	-76.21%	―	―	23.55%
OCX	35 Underperform	$80.08M	―	-428.96%	―	178.08%	86.04%
BDTX	33 Underperform	$119.98M	35.17	4.14%	―	―	33.97%
ELTX	30 Underperform	$93.42M	―	-744.59%	―	―	27.65%

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.