Veru (VERU) AI Stock Analysis

• Market Cap: $78.20M
• Dividend Yield: N/A
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -7.43%
• EPS Growth: 69.03%
• Country: US
• Employees: 210
• Sector: Healthcare
• Sector Strength: 64
• Industry: Biotechnology
• EPS (TTM): -0.23
• Shares Outstanding: 146,383,930
• 10 Day Avg. Volume: 1,071,601
• 30 Day Avg. Volume: 1,811,744
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.13
• Price to Cash Flow (P/CF): -1.70
• P/FCF Ratio: 0.00
• 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: $4.50
• Price Target Upside: 733.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Veru is facing substantial financial and operational challenges, with declining revenues, negative profitability, and cash flow issues. While promising clinical results and strategic shifts provide some optimism, the stock's technical indicators and valuation metrics remain weak. These factors collectively suggest a cautious outlook.

Positive Factors

Clinical trial progress

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.

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 business focus

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

Negative Factors

Financial outlook

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

Initial trial results

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.

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 operational inefficiencies. Despite a low debt-to-equity ratio, the company struggles with negative profitability metrics, necessitating strategic revisions to improve financial health.

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
-38.97M	-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
5.17M	24.92M	9.63M	80.19M	122.36M	13.59M
	Total Assets
16.50M	60.42M	50.02M	136.13M	178.15M	51.54M
	Total Debt
20.02K	3.99M	14.41M	14.92M	12.63M	14.14M
	Net Debt
-5.15M	-20.93M	4.78M	-65.27M	-109.73M	547.57K
	Total Liabilities
4.50M	28.10M	30.34M	55.29M	25.85M	21.43M
	Stockholders Equity
12.00M	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: Neutral
• Last Price: 0.54
• 50DMA: Positive
• 100DMA: Negative
• 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 Neutral. The current price of 0.54 is below the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.53, and below the 200-day MA of 0.73, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 37.57 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
Sector *	51 Neutral	$5.20B	3.18	-40.80%	2.96%	17.66%	1.94%
VERU	44 Neutral	$78.20M	―	-80.11%	―	-7.43%	69.03%
TNYA	36 Underperform	$74.52M	―	-95.69%	―	―	23.55%
OCX	34 Underperform	$82.37M	―	-910.86%	―	25.15%	81.47%
BDTX	33 Underperform	$84.45M	―	-69.67%	―	―	33.97%
ELTX	30 Underperform	$80.57M	―	-9999.00%	―	―	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.