Verastem, Inc. — Earnings Quality Grade F
VSTM · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
Insufficient data
Insufficient data
Revenue grew 209.1% but CFFO declined -31.2%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Insufficient data
CapEx growth 34271.4% is >2x revenue growth 209.1%
SG&A/Gross Profit = 316.8%, exceeds 70%
Gross margin swung -17.1pp (100.0% → 82.9%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.1B)
Accruals ratio = -29.2%. Low accruals
Cash $0.2B covers debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 29% of equity. Manageable
Interest coverage = -149.5x (<2x). Financial stress
Other assets 18.9% vs revenue 209.1%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Insufficient data
Manipulation Score
Insufficient data
Portfolio monitoring
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Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25