Verrica Pharmaceuticals Inc.

Health Care
Biotechnology: Pharmaceutical Preparations
www.verrica.com

Safety Score

Market Cap $46.06M
Debt $43.31M
Cash $22.96M
EV $66.40M
FCF -$59.62M

Earnings

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Sales & Net Margins

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Earnings	-$84.99M
EBIT	-$77.65M
ROA	-236%
FCF	-$59.62M
Equity	-$34.05M
Growth Stability	1
PE	-0.54
PB	-1.35
P/FCF	-0.77
P/S	5
Price/Cash	0.5
Debt/Equity	-1.27
Debt/FCF	-0.73
Net Margins	-836%
Gross Margins	78%
Op. Margins	-843%
Sales Growth YoY	-161%
Sales Growth QoQ	-134%
Sales CAGR	5%
Equity CAGR	-16%
Earnings Growth YoY	-8%

Earnings Growth QoQ	33%
Sales CAGR 5Y	50%
Equity CAGR 5Y	-18%
Earnings CAGR 3Y	152%
Sales CAGR 3Y	152%
Equity CAGR 3Y	-23%
Market Cap	$46.06M
Revenue	$9.21M
Assets	$32.93M
Total Debt	$43.31M
Cash	$22.96M
Shares Outstanding	45.6M
EV	66.4M
Safety Score	35%
Working Capital	7.16M
Current Ratio	1.34
Gross Profit	$7.21M
Shares Growth 3y	23%
Equity Growth QoQ	156%
Equity Growth YoY	-180%

Assets & ROA

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Stockholders Equity & ROE

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Verrica Pharmaceuticals Inc is a dermatology therapeutics company engaged in the development and commercialization of novel treatments that provide a meaningful benefit for people living with skin diseases. Its lead product candidate, VP-102, is developed for the treatment of molluscum contagiosum, or molluscum, a highly contagious and primarily pediatric viral skin disease, and common warts.

SEC Filings

Direct access to Verrica Pharmaceuticals Inc. (VRCA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Verrica Pharmaceuticals Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Verrica Pharmaceuticals Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

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Verrica Pharmaceuticals Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Verrica Pharmaceuticals Inc..

Years

Calculation mode

= -$596M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$60M	-$60M	-$60M	-$60M	-$60M	-$60M	-$60M	-$60M	-$60M	-$60M	-$60M	-$596M
DCF		-$54M	-$49M	-$45M	-$41M	-$37M	-$34M	-$31M	-$28M	-$25M	-$23M	-$230M
Value	-$596M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-	-	-	-	-292%	-271%	-1K%	-836%
ROA	-	-24%	-44%	-54%	-39%	-48%	-81%	-236%
ROE	-	-23%	-43%	-129%	-108%	-61%	-339%	-

Bad Net Margins (-836.01%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-2.22	-2.87	-0	-1.1	-0.73
Debt over Equity	-	-	-	2.13	2.51	0	2.17	-1.27
Growth Stability	-	-	-	-	-	-	-	1

Good Debt/FCF ratio (-0.73)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (-1.27)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-	-	-	-	-25%	-43%	50%
Earnings YoY growth	-	112%	37%	51%	-18%	-30%	174%	-
Equity YoY growth	-	-1K%	-27%	-49%	-1%	23%	-51%	-18%
FCF YoY growth	-	-	55%	13%	-10%	-33%	105%	-