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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3191
Positioning
Market Dominance
Manufacturing
Computer Software
$11M
Patrick J. White
VerifyMe, Inc., a technology solutions provider, provides products to connect brands with consumers in the United States. The company offers verificationMe 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. It also offers VerifyMe Authenticate services that provide an assortment of tools through its patented products.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$VRME VerifyMe, Inc. | 43 | 33 | 18 | 55 | - | - | -59.8% | -50.1% | 36.5% | -44.8% | -32.6% | -6.0% | 0.0% | 19.0x | $11M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
VerifyMe, Inc. (VRME) receives a "Reduce" rating with a composite score of 42.5/100. It ranks #3191 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Patrick J. White
Chief Executive Officer
Labor Force
8
33
33
24
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for VRME
In-line with peers — no strong momentum signal
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for VRME.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
ROE proxy -59.8% (sector -2.5%)
GM 37% vs sector 43%, OM -45% vs sector 1%
Capital turnover N/A, R&D intensity 0.1%
Rev growth -6%, 10yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
VerifyMe, Inc. receives a Reduce rating from our analysis, with a composite score of 42.5/100 and 2 out of 5 stars, ranking #3191 out of 7,333 stocks. VRME's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
VRME's quality score of 33/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -59.8% (sector avg: -2.5%), gross margins of 36.5% (sector avg: 42.5%), net margins of -32.6% (sector avg: -0.2%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
VRME registers a value score of just 18/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/B ratio of 1.19x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
VerifyMe, Inc.'s investment score of 33/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -6.0% vs. a sector average of 5.9% and a return on assets of -50.1% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
VRME demonstrates moderate momentum with a score of 55/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at -6.0% year-over-year, while a beta of 1.49 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
VerifyMe, Inc. registers a low stability score of 24/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 1.49 and a debt-to-equity ratio of 19.00x (sector avg: 0.2x). Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
VRME's short interest factor score of 89/100 indicates very low short selling activity relative to peers — a positive signal suggesting institutional investors see limited near-term downside. Specific risk factors include above-average market sensitivity (beta: 1.49), elevated leverage (D/E: 19.00x), micro-cap liquidity risk. As a micro-cap company with a market capitalization of $11M, VerifyMe, Inc. benefits from the generally lower volatility and deeper liquidity associated with its size class.
VerifyMe, Inc. is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3191 of 7,333 overall (56th percentile). Key comparisons include ROE of -59.8% trailing the -2.5% sector median and operating margins of -44.8% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While VRME currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Value (18) would have the largest impact on the composite score.
ROE 2312% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 14% BELOW SECTOR MEDIAN
Op. Margin 3571% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate VerifyMe, Inc. (VRME) as a Reduce with a composite score of 42.5/100 at a current price of $1.01. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in momentum (55th percentile) and quality (33th percentile), which together account for the majority of the composite score. Offsetting weakness in value (18th percentile) and stability (24th percentile) tempers our overall conviction. We assign a No Moat rating (19/100), High uncertainty, and Poor capital allocation.
Key items to watch: the path to profitability; valuation compression risk if growth disappoints. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
VerifyMe, Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 42.5/100 places it at rank #3191 in our full 7,333-stock universe. At $11M in market capitalization, VerifyMe, Inc. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue contraction of -6% combined with momentum at the 55th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 37% (-6.0pp vs sector) narrow to operating margins of -45% (-46.1pp vs sector) and net margins of -32.6%, yielding a gross-to-net conversion rate of -89%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $1.01, VerifyMe, Inc. is trading at a premium to fundamental value. Our value factor score of 18/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.
The stock currently trades at P/B of 1.2x, P/S of 0.7x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
A conservative balance sheet (19% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
The Reduce rating (composite 42.5/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Revenue decline of -6% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
Thin net margins of -32.6% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
Below-average quality (33th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
We assign a High uncertainty rating to VerifyMe, Inc.. Key risk factors include elevated market sensitivity (beta of 1.49), current negative profitability (net margin -32.6%), below-average price stability (24th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.49); current negative profitability (net margin -32.6%); below-average price stability (24th percentile); weak quality scores (33th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 24th percentile and quality factor at the 33th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: conservative leverage (19% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate VerifyMe, Inc.'s capital allocation as Poor. Key concerns include low returns on equity (-59.8%), negative profitability, weak asset returns (ROA -50.1%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — VerifyMe, Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, VerifyMe, Inc. receives a Reduce rating with a composite score of 42.5/100 (rank #3191 of 7,333). Our quantitative framework assigns a No Moat (19/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 33/100.
Our analysis does not support a constructive view on VerifyMe, Inc. at this time. The combination of limited competitive advantages, high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign VerifyMe, Inc. a meaningful economic moat, scoring 19/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, financial resilience, reached only 7/20.
The strongest moat sources are financial resilience (7/20) and margin superiority (5.6/20). Interest coverage N/A. GM 37% vs sector 43%, OM -45% vs sector 1%. These pillars form the core of VerifyMe, Inc.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (2.5/20). Capital turnover N/A, R&D intensity 0.1%. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect VerifyMe, Inc.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 37% providing a solid profitability foundation, declining revenues (-6%) that pressure the earnings outlook. The margin cascade from 37% gross to -45% operating to -32.6% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality raises some durability concerns, with the quality factor at the 33th percentile.
The margin profile shows gross margins of 37%, operating margins of -45%, net margins of -32.6%. Return metrics include ROE of -59.8% and ROA of -50.1%. Relative to the Manufacturing sector, gross margins are 6.0 percentage points below the sector median of 43%, and ROE of -59.8% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 19%, revenue growth of -6%. The sector median D/E is 0%, putting VerifyMe, Inc. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
High beta of 1.49 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
Above 50MA
37.18%
Net New Highs
+51081
VerifyMe reported Q2 2025 financial results with $4.5 million revenue, decreased from previous year, focusing on PeriShip logistics platform and strategic growth through carrier integrations and potential acquisitions.
VerifyMe Inc. (NASDAQ: VRME) and Open World Ltd. announced the execution of a merger agreement to create a combined entity focused on digital asset infrastructure, RWA tokenization, and regulated compliance frameworks. The merged company is expected to list on Nasdaq Capital Market under a new ticker symbol, with regulatory filings and shareholder approvals anticipated by Q2 2026.
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