Company Overview
VerifyMe, Inc. operates within the Industrials sector, specifically focusing on the Security & Protection Services industry, where it provides specialized brand protection and precision logistics solutions. The company's operational model is bifurcated into two distinct segments: Precision Logistics and Authentication. The Precision Logistics segment leverages predictive analytics to optimize the delivery of time and temperature sensitive perishable products, ensuring that goods remain within required safety parameters during transit. The company maintains a market capitalization of $9.97M and reported annual revenue of $21.67M over the trailing twelve months. With a workforce of 40 employees, the firm operates on a relatively small scale, which is reflected in its current market cap and revenue figures. These financial metrics indicate that VerifyMe, Inc. is a micro-cap entity with a revenue profile that suggests a niche market position rather than broad-scale industrial dominance.
Financial Health
The company reported revenue of $21.67M for the trailing twelve months, while net income stood at -$4,719,000, and EBITDA was $654,000. The significant disparity between the $21.67M revenue and the -$4,719,000 net income reveals a cost structure where operating expenses and taxes substantially exceed pre-tax profits, resulting in a loss on an accounting basis despite positive EBITDA. Free cash flow is reported at -$1,331,375, which indicates that the company is currently burning cash, thereby limiting its immediate financial flexibility for capital expenditures or acquisitions without external financing. Gross margin stands at 34.9%, operating margin is 8.3%, and profit margin is -21.8%, highlighting that while the company retains a significant portion of revenue after direct costs, high operating expenses and other factors erode profitability to a net loss. Total cash on hand is $4.01M, compared to total debt of $833,000, resulting in a debt-to-equity ratio of 7.50. Despite the high debt-to-equity ratio, the substantial cash reserve suggests the balance sheet is not currently under immediate distress, though the leverage ratio indicates a heavy reliance on equity financing relative to debt obligations. The current ratio is 3.70, which signifies a strong position regarding short-term liquidity and the ability to cover current liabilities with current assets. Return on Equity is -44.1% and Return on Assets is -2.3%, metrics that reveal management is currently generating negative returns on the capital invested and the assets utilized to operate the business.
Valuation Assessment
The P/E Ratio (TTM) is listed as N/A due to the negative net income, whereas the Forward P/E is 40.15. The absence of a trailing P/E combined with a forward P/E of 40.15 implies that the market is pricing in an expectation of future earnings growth sufficient to justify a valuation multiple, despite current unprofitability. The Price to Book ratio is 0.89, indicating that the market values the company at less than one dollar for every dollar of its book value, suggesting no current market premium over the accounting book value. The Price to Sales ratio is 0.46 and the EV/EBITDA is 10.43, which are alternative valuation metrics suggesting the stock is priced at less than half of its annual sales revenue. The 52-week high is $1.51 and the 52-week low is $0.55, meaning the stock is trading within the middle of its recent trading range but significantly below its peak performance of the year. The Beta value is 0.43, which indicates that the stock price exhibits lower volatility relative to the broader market, moving less than half as much as the market index on average.
Growth & Income
Revenue Growth (YoY) is -7.4% and Earnings Growth (YoY) is N/A. The negative revenue growth indicates a contraction in sales, and since earnings are negative, the concept of earnings growing faster or slower than revenue is currently theoretical rather than operational reality. The company does not pay dividends, evidenced by a Dividend Yield of N/A and a Payout Ratio of 0.0%. Because the payout ratio is zero, the company retains all earnings, though currently negative, to reinvest into growth initiatives or operations rather than distributing income to shareholders. The overall growth and income profile is characterized by a shrinking revenue base and a lack of dividend distribution, positioning the stock as a pure play on future operational turnaround or market expansion.