VerifyMe (VRME) AI Stock Analysis

• Market Cap: $10.11M
• Dividend Yield: N/A
• Average Volume (3M): 80.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -4.37%
• EPS Growth: -3.25%
• Country: US
• Employees: 40
• Sector: Industrials
• Sector Strength: 90
• Industry: Security & Protection Services
• EPS (TTM): -0.04
• Shares Outstanding: 12,354,772
• 10 Day Avg. Volume: 59,787
• 30 Day Avg. Volume: 80,476
• PEG Ratio: 0.13
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.16
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: -2.07
• 1Y Price Target: $1.25
• Price Target Upside: 76.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

VerifyMe's stock score reflects its financial struggles, marked by consistent net losses and negative margins. While there are some positive developments, such as improved gross margins and debt reduction, these are overshadowed by revenue declines and operational challenges. The technical analysis indicates a neutral trend, and the stock's valuation remains unattractive due to its negative P/E ratio. The mixed sentiment from the earnings call, coupled with the absence of forward guidance, adds to the uncertainty surrounding the company's future prospects.

Positive Factors

Customer Growth

The number of new customers in the Precision Logistics segment was up approximately 6% year-over-year.

Debt Management

The company retired most of its debt through a warrant inducement raise, leaving only $0.8 million of convertible notes held by company affiliates and board members.

Financial Performance

Adjusted EPS and adjusted EBITDA exceeded expectations, contributing to the maintained OUTPERFORM rating.

Negative Factors

Business Performance

The company's logistics business performance was weak due to factors such as the loss of the FedEx direct premium business and a soft industry backdrop.

Guidance and Market Conditions

Management chose not to provide financial guidance for FY/25 due to unpredictable market conditions in the logistics space.

Revenue Decline

Q4 results showed a decline in total revenue of around 12.1% compared to the same period the previous year.

VerifyMe Business Overview & Revenue Model

Company Description

VerifyMe, Inc., a technology solutions provider, provides products to connect brands with consumers in the United States. The company offers VerifyMe Engage services that provides the ability for the brand owner to gather business intelligence and engage with the consumer using authentication test as the initial contact with the consumer. It also offers VerifyMe Authenticate services that provide an assortment of tools through its patented products comprising VerifyInk, a patented invisible ink; VerifyAuthenticator technology, a device used with a smartphone and the VerifyMe app to authenticate and decode VerifyInk codes; VerifyLabel, a tamper proof labels; and VerifyChecker, a handheld device that is tuned to authenticate the unique frequency of VerifyInk invisible ink. In addition, the company provides VerifyMe Track & Trace, a supply chain serialization, track and trace technology utilizing overt dynamic codes, such as VerifyCode, which is tied to cloud-based authentication and track and trace system. Further, it offers VerifyMe Online that includes technologies and services that enable customers to tackle counterfeit websites, domains and e-commerce platforms, and social media sites offering or promoting counterfeit products. VerifyMe, Inc. has a strategic partnership with INX International Ink Company. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Rochester, New York.

How the Company Makes Money

VerifyMe makes money through a combination of product sales, service contracts, and licensing agreements. The company generates revenue by selling its patented security inks and pigments that are used in printing secure labels and packaging. Additionally, VerifyMe earns income from subscription-based services for its digital authentication tools and software platforms, which allow businesses to track and verify the authenticity of their products in real-time. Significant partnerships with label and packaging companies enhance its market reach, and its collaboration with technology firms helps integrate its solutions into broader security and supply chain systems, further contributing to its earnings.

VerifyMe Financial Statement Overview

Summary

VerifyMe faces significant financial challenges, including consistent net losses and negative margins. Despite some improvements in operational cash flow and debt reduction, the company remains unprofitable with fluctuating cash flows and moderate leverage.

Income Statement

VerifyMe has shown inconsistent revenue growth over the years, with a significant drop in 2024 compared to 2023. The company has faced persistent negative net and EBIT margins, indicating ongoing profitability challenges. Despite some gross profit, the company’s inability to convert revenue into net income remains a concern.

Balance Sheet

The balance sheet reveals a decreasing trend in stockholders' equity and total assets. The debt-to-equity ratio has improved slightly due to reduced total debt, but the return on equity remains negative due to net losses. The equity ratio suggests a moderately leveraged position, but the consistent net losses could pose future risks.

Cash Flow

VerifyMe exhibits fluctuations in operating cash flow, with a positive free cash flow in recent years. However, the operating cash flow to net income ratio is unfavorable due to persistent net losses. The company’s ability to generate cash from operations remains inconsistent, posing potential liquidity concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
24.21M	25.31M	19.58M	867.00K	343.00K
	Gross Profit
8.66M	9.00M	6.49M	599.00K	281.00K
	EBIT
-2.08M	-2.93M	6.08M	-13.39M	-3.57M
	EBITDA
-863.00K	-1.79M	-13.54M	-4.71M	-3.44M
	Net Income Common Stockholders
-3.82M	-3.39M	-14.49M	12.17M	-7.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.82M	3.10M	3.41M	9.42M	7.94M
	Total Assets
16.07M	20.70M	20.75M	21.69M	8.77M
	Total Debt
2.22M	2.95M	2.35M	0.00	72.00K
	Net Debt
-601.00K	-143.00K	-1.06M	-9.42M	-7.87M
	Total Liabilities
5.85M	8.17M	7.17M	521.00K	455.00K
	Stockholders Equity
10.21M	12.53M	13.59M	21.17M	8.32M
Cash Flow		Free Cash Flow
348.00K	209.00K	-2.83M	-3.51M	-2.41M
	Operating Cash Flow
871.00K	244.00K	-2.55M	-3.25M	-2.28M
	Investing Cash Flow
-575.00K	-1.20M	-7.88M	-2.85M	-125.00K
	Financing Cash Flow
-616.00K	634.00K	4.42M	7.59M	10.09M

VerifyMe Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRME, the sentiment is Negative. The current price of 0.71 is above the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.72, and below the 200-day MA of 1.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.29 is Neutral, neither overbought nor oversold. The STOCH value of 65.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRME.

VerifyMe Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.38B	12.03	5.25%	249.91%	4.11%	-11.02%
SPCB	56 Neutral	$22.45M	―	9.92%	―	―	―
GFAI	52 Neutral	$23.13M	―	-72.31%	―	-1.43%	85.31%
VRME	48 Neutral	$10.11M	―	-28.42%	―	-4.37%	-3.25%
BKYI	44 Neutral	$4.65M	―	-185.43%	―	-10.64%	79.12%
DGLY	15 Underperform	$208.08K	―	-1340.84%	―	-32.26%	39.17%

VerifyMe Corporate Events

VerifyMe Announces New CFO Appointment

On May 6, 2025, VerifyMe, Inc. announced the upcoming retirement of Nancy Meyers from her role as Executive Vice President and Chief Financial Officer, effective July 7, 2025. Her departure is not due to any disagreements with the company. Jennifer Cola, with extensive experience in public company accounting and finance, will be appointed as the new Chief Financial Officer upon Meyers’ retirement. Cola will initially serve as Vice President of Finance starting May 19, 2025, with a compensation package that includes an annual salary and restricted stock units. The Compensation Committee also approved a bonus structure for the Chief Financial Officer and Chief Executive Officer, with the bonuses tied to the company’s Adjusted EBITDA performance goals.

The most recent analyst rating on (VRME) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on VerifyMe stock, see the VRME Stock Forecast page.

Spark’s Take on VRME Stock

According to Spark, TipRanks’ AI Analyst, VRME is a Neutral.

VerifyMe’s stock score reflects its financial struggles, marked by consistent net losses and negative margins. While there are some positive developments, such as improved gross margins and debt reduction, these are overshadowed by revenue declines and operational challenges. The technical analysis indicates a neutral trend, and the stock’s valuation remains unattractive due to its negative P/E ratio. The mixed sentiment from the earnings call, coupled with the absence of forward guidance, adds to the uncertainty surrounding the company’s future prospects.

To see Spark’s full report on VRME stock, click here.