Verrica PharmaceuticalsSTU:1NE0 -0.56%45 Beneish M-Score is 3.42 as of Jul. 08, 2026, which is at its 10-year median of 3.42. GuruFocus rates STU:1NE0 with a GF Score™ of 45/100 and a GF Value™ of €12.59 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 822 Biotechnology companies, Verrica Pharmaceuticals ranks worse than 90.75% on this metric.
The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Warning Sign:
Beneish M-Score 3.42 higher than -1.78, which implies that the company might have manipulated its financial results.
The historical rank and industry rank for Verrica Pharmaceuticals's Beneish M-Score or its related term are showing as below:
STU:1NE0'
s Beneish M-Score Range Over the Past 10 Years
Min: -8.53 Med: 3.42 Max: 110.12
Current: 3.42
During the past 10 years, the highest Beneish M-Score of Verrica Pharmaceuticals was 110.12. The lowest was -8.53. And the median was 3.42.
Verrica Pharmaceuticals Beneish M-Score Related Terms
Verrica Pharmaceuticals Beneish M-Score 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.
STU:1NE0 vs ENGN, PEPG, ONCY: Beneish M-Score Comparison
For the Biotechnology subindustry, Verrica Pharmaceuticals's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Verrica Pharmaceuticals's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Verrica Pharmaceuticals's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Verrica Pharmaceuticals for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 0.2718
+
0.528 * 0.8014
+
0.404 * 8.6303
+
0.892 * 4.7554
+
0.115 * 1.0434
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.1385
+
4.679 * -0.105723
-
0.327 * 0.3152
=
3.06
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(1.052 / (1.052 + 2.153))
/
(0.66 / (0.66 + 1.438))
=
0.328237
/
0.314585
=
1.0434
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(-15.326 - 0.524
-
-12.303)
/
33.55
=
-0.105723
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Verrica Pharmaceuticals has a M-score of 3.06 signals that the company is likely to be a manipulator.
Verrica Pharmaceuticals (STU:1NE0) has a Beneish M-Score of 3.42 as of Jul. 08, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Verrica Pharmaceuticals and its competitors. This is near median its historical median of 3.42. According to the industry distribution chart, Verrica Pharmaceuticals ranks #746 out of 822 companies in the Biotechnology industry, placing it in the top 90.8%.
Is Verrica Pharmaceuticals' Beneish M-Score too high?
Verrica Pharmaceuticals' current Beneish M-Score of 3.42 is near median its 10-year median of 3.42. Based on the distribution chart, Verrica Pharmaceuticals ranks #746 out of 822 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Verrica Pharmaceuticals has a GF Score™ of 45/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Verrica Pharmaceuticals' Beneish M-Score compare to ENGN and PEPG?
According to the Biotechnology industry distribution chart, Verrica Pharmaceuticals ranks #746 out of 822 companies for Beneish M-Score. This places Verrica Pharmaceuticals in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Biotechnology company?
A good Beneish M-Score depends on the Biotechnology industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Verrica Pharmaceuticals and its competitors. Verrica Pharmaceuticals's current Beneish M-Score is 3.42, which is near median its own 10-year median of 3.42. 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 (STU:1NE0) is currently considered Possible Value Trap. The stock's GF Value™ is €12.59, compared to a current price of €5.31 — trading 57.8% below its estimated fair value. The current Beneish M-Score is 3.42, which is near median its 10-year median of 3.42. Verrica Pharmaceuticals' overall GF Score™ is 45/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Verrica Pharmaceuticals (STU:1NE0), the current Beneish M-Score is 3.42 as of Jul. 08, 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 (STU:1NE0) Overvalued in 2026?
Based on GuruFocus' analysis, Verrica Pharmaceuticals stock appears to be undervalued.
The current stock price of €5.31 is trading 57.8% below its estimated GF Value™ of €12.59.
GuruFocus considers Verrica Pharmaceuticals to be Possible Value Trap.
Key valuation signals for STU:1NE0:
Beneish M-Score: 3.42 (near median its 10-year median of 3.42)
GF Value™: €12.59 vs. price of €5.31 (57.8% below fair value)
No single metric tells the full story. See the STU:1NE0 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.
45GF Score
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