Verona Pharma Plc

Health Care
Biotechnology: Pharmaceutical Preparations
www.veronapharma.com

Moat Score
Safety Score

Market Cap $51.37B
PE -313
Debt $241.74M
Cash $401.42M
EV $51.21B
FCF -$121.25M

Earnings

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Sales & Net Margins

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Earnings	-163.94M
EBIT	-$139.90M
ROE	-72%
ROA	-27%
FCF	-$121.25M
Equity	$226.60M
Growth Stability	1
PE	-313.34
PB	226.7
P/FCF	-423.66
P/S	433.37
Price/Cash	0.01
Debt/Equity	1.07
Debt/FCF	-1.99
Net Margins	-21%
Op. Margins	-118%
Sales Growth QoQ	108%
Sales CAGR	1%
Equity CAGR	30%
Earnings Growth YoY	-37%
Earnings Growth QoQ	-52%

Sales CAGR 5Y	3%
Equity CAGR 5Y	19%
Earnings CAGR 3Y	134%
Sales CAGR 3Y	134%
Equity CAGR 3Y	-1%
Market Cap	$51.37B
Revenue	$118.54M
Assets	$525.94M
Total Debt	$241.74M
Cash	$401.42M
Shares Outstanding	679.41M
EV	51.21B
Moat Score	2%
Safety Score	63%
Working Capital	444.48M
Current Ratio	8.86
Shares Growth 3y	12%
Equity Growth QoQ	11%
Equity Growth YoY	1%

Assets & ROA

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Stockholders Equity & ROE

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Verona Pharma PLC is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative therapeutics for the treatment of respiratory diseases with significant unmet medical needs. The company is currently focusing on developing its Ensifentrine product candidate, which will treat chronic obstructive pulmonary disease (COPD), cystic fibrosis (CF), and other respiratory diseases, including asthma.

SEC Filings

Direct access to Verona Pharma Plc (VRNA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 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

Sector Comparison

How does Verona Pharma Plc compare to its competitors?

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Peter Lynch's Chart

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

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Verona Pharma Plc Discounted Cash Flow

Fully customizable DCF calculator online for Verona Pharma Plc.

Years

Calculation mode

= -$1.2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$121M	-$121M	-$121M	-$121M	-$121M	-$121M	-$121M	-$121M	-$121M	-$121M	-$121M	-$1.2B
DCF		-$110M	-$100M	-$91M	-$83M	-$75M	-$68M	-$62M	-$57M	-$51M	-$47M	-$467M
Value	-$1.2B

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	-	-	-	-	-	-	-139%	-15K%	-	-410%	-21%
ROA	-	-	-	-	-	-32%	-30%	-26%	-17%	-33%	-27%
ROE	-	-	-	-	-95%	-35%	-38%	-30%	-22%	-85%	-72%

Bad Net Margins (-21.4%)

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-	-	-	-	-0.1	-0.15	-0.16	-1	-0.98	-1.99
Debt over Equity	-	-	-	-	0	0.03	0.03	0.04	0.2	0.59	1.07
Growth Stability	-	-	-	-	-	-	-	-	-	-	1

Good Debt/FCF ratio (-1.99)

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.

Neutral Debt/Equity ratio (1.07)

The company has a balance between equity and debt that is not too good nor too bad.

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-	-	-	-	-	-	-99%	-100%	-	3%
Earnings YoY growth	-	-33%	308%	-3%	104%	61%	-15%	24%	-21%	219%	-
Equity YoY growth	-	-	-	-	-46%	332%	-20%	56%	8%	-18%	19%
FCF YoY growth	-	-	-	-	-	5%	-26%	80%	-16%	144%	-