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ZYBERNO

Stock Report

Updated Sep 1, 2026

VerifyMe, Inc. (VRME)

Financial Services • NASDAQ

$0.64

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

30.0/100

WEAK BUSINESS

VerifyMe, Inc. (VRME) scores 30/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full VRME quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

-100.0%

Overvalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

-32.6%

Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)

-10.5%

Yield + growth — what the business alone earns you, even if the market never re-rates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full VRME valuation analysis · → View full VRME Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-49.3%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.02x)

Operating Margin (Operational Efficiency):CRITICAL (-49.3%)

Return on Capital (Capital Efficiency):CRITICAL (-56.8%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

VerifyMe, Inc. (VRME) stock report — Zyberno Score 30/100 (WEAK BUSINESS), Margin of Safety -100.0%, -33% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, VerifyMe, Inc. (VRME) trades at $0.64 against an estimated intrinsic value per share of $0.28 — a -100.0% Margin of Safety based on Owner Earnings of $841.00K TTM, projected at -50.0% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of -32.6% annually.

Over the trailing twelve months, VRME generated $841.00K in Owner Earnings. Reinvestment rate: 67.4%. Owner Earnings have declined at 50.0% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:0.64

Market Cap:$8.60M

Valuation Multiples (3)

P/B Ratio:0.86x

P/S Ratio:0.77x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$5.86M

Pfcf Ratio:15.07x

Price Action & Momentum (3)

12-1 Momentum:

-17.0% (23th pctile)

📈 Click to view full VRME Momentum analysis →

Momentum Percentile:23 / 100

% of 52-Week High:42.6%

B. Profitability Assessment

Return Metrics (5)

ROE:

-49.3%

📊 Click to view full VRME ROE analysis →

ROA:-42.0%

Roic:

-56.8%

📊 Click to view full VRME ROIC analysis →

Reinvestment Rate:67.4%

Fundamental Growth Rate (g):-38.3%

Margin Analysis (3)

Operating Margin Ttm:-49.3%

Net Margin Ttm:-47.1%

Ebitda Margin:-37.0%

TTM Performance (3)

Gross Margin Ttm:47.0%

Operating Margin Ttm:-49.3%

Net Margin Ttm:-47.1%

Yield Metrics (3)

Earnings Yield:-$62.11

Owner Earnings Yield:$9.54

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.02

📊 Click to view full VRME Earnings Surprise analysis →

EPS Surprise vs Expected:22.9%

Latest Earnings Filed:2026-08-14

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-26.0%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-50.0%

Operating Cash Flow Growth Rate (Linear):-10.1%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:4.32x

Quick Ratio:4.29x

Cash Ratio:1.98x

Leverage Analysis (3)

Debt To Equity Ttm:0.02x

Debt-to-Equity Ratio:0.02x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-16.96x

Times Interest Earned:-16.96

Capital Structure (4)

Working Capital:4,726,000.00

Cash And Cash Equivalents:2,823,000.00

Long Term Debt:$32.00K

Net Debt:-$2.74M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $11.10M

Linear Growth: -26.0%

📊 Click to view full VRME Revenue analysis & methodology →

Cost Of Revenue Ttm:$5.88M

Profitability Breakdown (2)

Gross profit TTM: $5.22M

Linear Growth: -17.4%

📊 Click to view full VRME Gross Profit analysis & methodology →

-$5.48M

Bottom Line Performance (3)

-$5.23M

Income Before Tax:-$7.92M

Ebitda Ttm:-4,104,000.00

Operating Expenses (5)

Operating Expenses:10,699,000.00

R And D Expense:20,000.00

Sga Expense:3,675,000.00

Income Tax Expense:-$1.00K

Interest Expense:299,000.00

Expense Ratios (3)

R And D To Revenue Percentage:1.0%

Sga To Revenue Percentage:192.6%

Ebitda Margin:-37.0%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$11.39M

Current Assets:$6.15M

Ppe Net:13,000.00

Goodwill:2,926,000.00

Intangible Assets:$2.30M

Liability Structure (4)

Total Liabilities:1,423,000.00

Current Liabilities:1,423,000.00

Long Term Debt:$32.00K

Short Term Debt:$51.00K

Equity & Capital (3)

Equity:$9.97M

Retained Earnings:-$91.76M

Common Stock:675,000,000.00

Working Capital Items (3)

Accounts Receivable:558,000.00

Inventory:41,000.00

Accounts Payable:342,000.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:0.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $296.00K

Linear Growth: -10.1%

Free cash flow TTM: $585.00K

Linear Growth: -50.0%

📊 Click to view full VRME Free Cash Flow analysis & methodology →

Investment Activities (1)

Investing Cash Flow:-$109.00K

Financing Activities (3)

Financing Cash Flow:-$14.00K

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$875.00K

Non-Cash Items (1)

Depreciation Amortization Ttm:1,374,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.41

-$0.41

Earnings Per Share Ttm:-$0.39

Revenue & Cash Per Share (2)

Sales Per Share Ttm:0.83

Operating Cash Flow Per Share:$0.05

Book Value & Capital (2)

Book Value Per Share:$0.75

Cash Per Share:0.21

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.89x

Working Capital Turnover Ttm:2.35x

Receivables Management (2)

Receivables Turnover Ttm:19.90x

Days Sales Outstanding Ttm:18.34

Inventory Management (2)

Inventory Turnover Ttm:143.46x

Days Inventory Outstanding Ttm:2.54

Payables & Cash Cycle (2)

Days Payable Outstanding:21.22

Cash Conversion Cycle:-0.33

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:50.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $841.00K

Linear Growth: -50.0%

📊 Click to view full VRME Owner Earnings analysis & methodology →

Owner Earnings Per Share:$0.06

Owner Earnings Yield:$9.54

Growth Assessment (1)

Owner Earnings Growth Rate:-$50.00

Damodaran Growth Analysis (2)

Reinvestment Rate:67.4%

Fundamental Growth Rate (g):-38.3%

Intrinsic Value Models (1)

Intrinsic Value:

$3.75M

📊 Click to view full VRME DCF valuation →

Margin of Safety (1)

Margin Of Safety:

-100.0%

📊 Click to view full VRME valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:

-32.6%

📊 Click to view full VRME expected return analysis →

Forward Expected Return (Yield + Growth):

-10.5%

📊 Click to view full VRME expected return analysis →

Investment Assessment (1)

Buffett Assessment:Overvalued

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (1)

Revenue Growth Rate (Linear):-26.0%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-50.0%

Operating Cash Flow Growth Rate (Linear):-10.1%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):-17.4%

Book Value Growth Rate (Linear):-8.0%

Owner Earnings Growth Rate:-$50.00

C. Company Profile & Context

Corporate Information (6)

Symbol:VRME

Company Name:VerifyMe, Inc.

Sector:Financial Services

Industry:Finance Services

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:penny

Volume Category:N/A

Share Structure (3)

Shares Outstanding:13.36M

Shares Outstanding Basic:13.36M

Shares Outstanding Diluted:13.36M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-01 16:14:40 UTC

Data Timestamp:2026-08-21T19:08:30.012108