Verona Pharma plc Fundamental Analysis
Verona Pharma plc (VRNA) shows weak financial fundamentals with a PE ratio of -2155.44, profit margin of -2.94%, and ROE of -1.56%. The company generates $1.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VRNA's fundamental strength across five key dimensions:
Efficiency Score
WeakVRNA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVRNA trades at attractive valuation levels.
Growth Score
WeakVRNA faces weak or negative growth trends.
Financial Health Score
ExcellentVRNA maintains a strong and stable balance sheet.
Profitability Score
WeakVRNA struggles to sustain strong margins.
Key Financial Metrics
Is VRNA Expensive or Cheap?
P/E Ratio
VRNA trades at -2155.44 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VRNA's PEG of -237.84 indicates potential undervaluation.
Price to Book
The market values Verona Pharma plc at 32.90 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 33907.22 times EBITDA. This signals the market has high growth expectations.
How Well Does VRNA Make Money?
Net Profit Margin
For every $100 in sales, Verona Pharma plc keeps $-2.94 as profit after all expenses.
Operating Margin
Core operations generate 1.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.56 in profit for every $100 of shareholder equity.
ROA
Verona Pharma plc generates $-0.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Verona Pharma plc produces operating cash flow of $150.82M, showing steady but balanced cash generation.
Free Cash Flow
Verona Pharma plc generates strong free cash flow of $146.57M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.22 in free cash annually.
FCF Yield
VRNA converts 0.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2155.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-237.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
32.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
541.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.003
vs 25 benchmark
How VRNA Stacks Against Its Sector Peers
| Metric | VRNA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2155.44 | 29.30 | Better (Cheaper) |
| ROE | -1.56% | 418.00% | Weak |
| Net Margin | -2.94% | -11410.00% (disorted) | Weak |
| Debt/Equity | 0.88 | 0.77 | Neutral |
| Current Ratio | 10.71 | 5.08 | Strong Liquidity |
| ROA | -0.69% | -177.00% (disorted) | Weak |
VRNA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Verona Pharma plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation