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Verrica PharmaceuticalsVRCA +0.90%47 Debt-to-Equity is 0.42 as of Jun. 2026, which is 425% above its 10-year median of 0.08. GuruFocus rates VRCA with a GF Score™ of 47/100 and a GF Value™ of $8.37 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 964 Biotechnology companies, Verrica Pharmaceuticals ranks worse than 71.37% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Verrica Pharmaceuticals's Debt-to-Equity or its related term are showing as below:
VRCA'
s Debt-to-Equity Range Over the Past 10 Years
Min: -4.66 Med: 0.08 Max: 30.8
Current: 0.42
During the past 10 years, the highest Debt-to-Equity Ratio of Verrica Pharmaceuticals was 30.80. The lowest was -4.66. And the median was 0.08.
VRCA's Debt-to-Equity is ranked worse than 71.37% of 964
companies
in the Biotechnology industry
Industry Median: 0.155
vs VRCA: 0.42
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Verrica Pharmaceuticals Debt-to-Equity Related Terms
Verrica Pharmaceuticals Debt-to-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
VRCA vs RANI, CGTX, KLRS: Debt-to-Equity Comparison
For the Biotechnology subindustry, Verrica Pharmaceuticals's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Verrica Pharmaceuticals Debt-to-Equity vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Verrica Pharmaceuticals's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Verrica Pharmaceuticals's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Verrica Pharmaceuticals (VRCA) has a Debt-to-Equity of 0.42 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Verrica Pharmaceuticals and its competitors. This is 425% above median its historical median of 0.08. According to the industry distribution chart, Verrica Pharmaceuticals ranks #688 out of 964 companies in the Biotechnology industry, placing it in the top 71.4%.
Is Verrica Pharmaceuticals' Debt-to-Equity too high?
Verrica Pharmaceuticals' current Debt-to-Equity of 0.42 is 425% above median its 10-year median of 0.08. The Biotechnology industry median Debt-to-Equity is 0.16. Verrica Pharmaceuticals' value of 0.42 is 171% above this industry median. Based on the distribution chart, Verrica Pharmaceuticals ranks #688 out of 964 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Verrica Pharmaceuticals has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Verrica Pharmaceuticals' Debt-to-Equity compare to RANI and CGTX?
According to the Biotechnology industry distribution chart, Verrica Pharmaceuticals ranks #688 out of 964 companies for Debt-to-Equity. This places Verrica Pharmaceuticals in the lower half of its industry. The industry median Debt-to-Equity is 0.16. Verrica Pharmaceuticals' value of 0.42 is 171% above this benchmark. While the company's 10-year median is 0.08 vs. the industry median of 0.16, Verrica Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Biotechnology company?
The median Debt-to-Equity among Biotechnology companies is 0.16, based on 964 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Verrica Pharmaceuticals's current Debt-to-Equity of 0.42 is 171% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Verrica Pharmaceuticals and its competitors. For the Biotechnology industry, the median Debt-to-Equity is 0.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verrica Pharmaceuticals's current Debt-to-Equity is 0.42, which is 425% above median its own 10-year median of 0.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verrica Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Verrica Pharmaceuticals (VRCA) is currently considered Possible Value Trap. The stock's GF Value™ is $8.37, compared to a current price of $4.49 — trading 46.4% below its estimated fair value. The current Debt-to-Equity is 0.42, which is 425% above median its 10-year median of 0.08 and 171% above the Biotechnology industry median of 0.16. Verrica Pharmaceuticals' overall GF Score™ is 47/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Verrica Pharmaceuticals (VRCA), the current Debt-to-Equity is 0.42 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Verrica Pharmaceuticals (VRCA) Overvalued in 2026?
Based on GuruFocus' analysis, Verrica Pharmaceuticals stock appears to be undervalued.
The current stock price of $4.49 is trading 46.4% below its estimated GF Value™ of $8.37.
GuruFocus considers Verrica Pharmaceuticals to be Possible Value Trap.
Key valuation signals for VRCA:
Debt-to-Equity: 0.42 (425% above median its 10-year median of 0.08)
GF Value™: $8.37 vs. price of $4.49 (46.4% below fair value)
Industry Position: 171% above the Biotechnology median (#688 of 964)
No single metric tells the full story. See the VRCA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Verrica Pharmaceuticals Inc is a therapeutics company developing and commercializing medications for the treatment of dermatologic diseases, including skin cancers. Its commercial product and portfolio of product candidates are clinician administered therapies in areas of high unmet need. This product portfolio consists of one product with an approved indication for molluscum contagiosum, or molluscum, with the potential for several follow-on indications, as well as additional pipeline product candidates. Its commercial product, YCANTH (VP-102), for the treatment of molluscum in adult and pediatric patients two years of age and older. YCANTH (VP-102) is a proprietary drug-device combination that contains a GMP-controlled formulation of cantharidin.
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