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Seres Therapeutics (MCRB)
NASDAQ:MCRB
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Seres Therapeutics
(NASDAQ:MCRB)52Neutral
Positive Factors
Financial Stability
The sale of Vowst rights to Nestle resulted in significant net proceeds and future milestone payment opportunities.
Regulatory Support
FDA supports reduction of BSIs 30 days post-HSCT as primary endpoint for next SER-155 study, a significant step forward for SER-155 in our view.
Negative Factors
Market Sentiment
It is difficult to find a near-term fundamental growth driver to help improve subdued sentiment on shares.
Seres Therapeutics (MCRB) vs. S&P 500 (SPY)
Market Cap
$133.28M
Dividend YieldN/A
Average Volume (3M)856.32K
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth-99.95%
EPS Growth-5.95%
CountryUS
Employees233
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.19
Shares Outstanding174,107,530
10 Day Avg. Volume818,856
30 Day Avg. Volume856,324
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2042.19
Price to Cash Flow (P/CF)-0.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.00Price Target Upside1269.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Seres Therapeutics Business Overview & Revenue Model
Company DescriptionSeres Therapeutics, Inc. (MCRB) is a leading biotechnology company specializing in the development of microbiome therapeutics. The company focuses on discovering and developing products to treat diseases associated with microbiome dysbiosis, leveraging its expertise in microbiome science to create innovative treatments. Seres' core products include drug candidates designed to restore the microbiome to a healthy state, targeting infectious, inflammatory, and metabolic diseases.
How the Company Makes MoneySeres Therapeutics generates revenue primarily through partnerships and collaborations with larger pharmaceutical companies. These partnerships often involve upfront payments, milestone payments upon reaching certain clinical or regulatory goals, and royalties on product sales if the therapies are successfully commercialized. A significant portion of Seres' revenue comes from its collaboration with Nestlé Health Science, which focuses on the development and commercialization of microbiome therapeutics. Additionally, the company may also generate revenue from government grants and other external funding aimed at advancing its research and development initiatives.
Seres Therapeutics Financial Statement Overview
Summary
Seres Therapeutics is facing significant financial challenges across all aspects of its financial statements. The income statement shows declining revenues and profitability, while the balance sheet indicates high leverage with significant debt. Cash flow analysis highlights operational inefficiencies and poor cash management. The company's financial performance reflects instability, and improved cost control, revenue growth, and debt management are critical for future financial health.Income Statement
The income statement indicates significant challenges with profitability. The company has a negative EBIT and EBITDA margin both for the TTM and annually, reflecting operational inefficiencies. The TTM net profit margin is deeply negative at -39.80%, and revenue has decreased notably from the previous year, indicating revenue growth challenges. The gross profit margin for TTM is negative, highlighting cost control issues. Overall, the income statement reflects financial stress with declining revenue and profitability.45
Neutral
Balance Sheet
The balance sheet shows a weak equity position with a small positive stockholders' equity in the TTM period. The debt-to-equity ratio is high, signaling financial leverage risk. The TTM equity ratio is approximately 13.38%, suggesting reliance on liabilities for financing. The negative equity in previous years also raises concerns about the company's financial stability. Overall, the balance sheet reflects a high-risk financial structure with significant debt.38
Negative
Cash Flow
The cash flow statement reveals significant cash flow challenges. The TTM operating cash flow to net income ratio is negative, indicating operational inefficiencies. The free cash flow is deteriorating, with a negative growth rate over recent periods, and the free cash flow to net income ratio is also negative. The company's ability to generate cash from operations is weak, raising concerns about liquidity. Overall, the cash flow statement suggests poor cash management and operational inefficiencies.42
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 64.00K | 126.33M | 7.13M | 144.93M | 33.22M | 34.51M | Gross Profit |
| -6.97M | 125.62M | 6.12M | 143.19M | -57.35M | -45.64M | EBIT |
| -141.70M | -107.98M | -246.49M | -64.49M | -88.13M | -71.88M | EBITDA |
| -144.71M | -94.31M | -237.51M | -56.72M | -77.31M | -59.95M | Net Income Common Stockholders |
| -25.47M | -113.72M | -253.82M | -61.50M | -86.45M | -64.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 85.82M | 127.97M | 181.34M | 290.71M | 253.62M | 94.82M | Total Assets |
| 120.47M | 358.60M | 348.78M | 354.86M | 342.94M | 132.44M | Total Debt |
| 7.25M | 213.94M | 162.59M | 49.21M | 40.77M | 44.78M | Net Debt |
| -78.57M | 85.97M | -440.00K | -130.79M | -75.28M | -20.35M | Total Liabilities |
| 168.52M | 403.46M | 338.00M | 223.35M | 168.19M | 180.76M | Stockholders Equity |
| -48.05M | -44.86M | 10.78M | 131.51M | 174.75M | -48.32M |
| Cash Flow | Free Cash Flow | ||||
| -158.39M | -125.33M | -238.64M | -2.88M | -94.20M | -77.52M | Operating Cash Flow |
| -157.23M | -117.35M | -228.82M | 6.69M | -93.61M | -76.52M | Investing Cash Flow |
| 141.51M | 10.58M | 82.43M | 64.09M | -158.89M | -30.52M | Financing Cash Flow |
| -85.68M | 71.70M | 129.60M | 1.18M | 303.42M | 86.23M |
Seres Therapeutics Technical Analysis
Negative
0.73
Price Trends
0.81
Negative
0.81
Negative
0.88
Negative
Market Momentum
-0.02
Positive
43.52
Neutral
66.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCRB, the sentiment is Negative. The current price of 0.73 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.81, and below the 200-day MA of 0.88, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCRB.
Seres Therapeutics Risk Analysis
Seres Therapeutics disclosed 63 risk factors in its most recent earnings report. Seres Therapeutics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Seres Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $2.65B | ― | -31.68% | ― | 32.29% | 64.39% | |
52 Neutral | $133.28M | ― | -3758.21% | ― | -99.95% | -5.95% | |
52 Neutral | $5.54B | ― | -31.26% | ― | 104.04% | 87.80% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $3.91B | ― | -19.20% | ― | -89.95% | -123.71% | |
42 Neutral | $129.44M | ― | -98.10% | ― | 150.95% | 5.48% | |
39 Underperform | $979.28M | ― | -54.00% | ― | 59.55% | 3.09% |
* Healthcare Sector Average
Performance Comparison
MCRB
Seres Therapeutics
0.72
-0.05
-6.49%
FOLD
Amicus
8.88
-2.91
-24.68%
BPMC
Blueprint Medicines
87.76
-1.94
-2.16%
EDIT
Editas Medicine
1.56
-7.05
-81.88%
NTLA
Intellia Therapeutics
9.46
-18.32
-65.95%
CRSP
Crispr Therapeutics AG
43.34
-31.96
-42.44%
Seres Therapeutics Earnings Call Summary
Earnings Call Date: Nov 13, 2024 | % Change Since: 10.61% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant clinical progress with SER-155 and financial restructuring through the sale of VOWST, positioning the company for future growth. However, the increased net loss and reduction in workforce present notable challenges.Highlights
Positive SER-155 Phase Ib Clinical Results
SER-155 showed a significant reduction in bacterial bloodstream infections in allo-HSCT patients, with a relative risk reduction of approximately 77% compared to placebo.
Sale of VOWST to Nestle Health Science
The sale of VOWST brought in significant immediate capital and future financial consideration, allowing the company to retire debt and streamline operations.
SER-155 Advances with FDA Designation Requests
The company has applied for breakthrough therapy designation and qualified infectious disease product designation for SER-155, with FDA feedback expected by the end of the year.
Substantial Financial Improvements
Net income from discontinued operations was $139.8 million in Q3 2024, with a gain from the sale of the VOWST business.
Lowlights
Higher Net Loss from Continuing Operations
The company reported a net loss of $51 million for the third quarter, compared to $41 million in the same period in 2023, due to debt extinguishment and a reduction in interest income.
Reduction in Headcount
The company's headcount decreased by 100 team members, primarily due to the transition of manufacturing and quality team members to Nestlé Health Science.
Company Guidance
During the Q3 2024 earnings call for Seres Therapeutics, the company provided significant guidance on its strategic focus and financial outlook. Key metrics included the completion of the VOWST sale to Nestlé Health Science, which provided an immediate capital infusion of $155 million, with future payments of approximately $73.5 million expected in 2025. The sale has enabled Seres to retire its debt, reducing operational costs and headcount by about 100 team members. Seres reported a net loss from continuing operations of $51 million for the quarter, a slight increase from $41 million the previous year, primarily due to a $23.4 million debt extinguishment loss. However, they saw a net income from discontinued operations of $139.8 million, largely due to the gain from the VOWST sale. The company anticipates funding operations into Q4 2025 and is actively seeking a partner to support the development of SER-155, a promising candidate for reducing bacterial bloodstream infections. SER-155 showed a 77% reduction in infection rates in its Phase Ib cohort 2 study, with plans to seek breakthrough therapy and QIDP designations from the FDA.Seres Therapeutics Corporate Events
M&A TransactionsBusiness Operations and Strategy
Seres Therapeutics Strengthens Future with VOWST Sale
Positive
Jan 13, 2025
Seres Therapeutics announced the completion of the VOWST asset sale in September 2024, which provided significant financial resources to advance their SER-155 development program. This strategic move has extended their operational runway into early 2026, enabling the company to focus on expanding their pipeline and reducing cash burn. The company aims to leverage these resources to pursue strategic partnerships and broaden the therapeutic potential of SER-155, which has shown promise in treating conditions like allo-HSCT and other immune-related diseases.
Delistings and Listing ChangesM&A TransactionsBusiness Operations and StrategyRegulatory Filings and Compliance
Seres Therapeutics Faces Nasdaq Challenge Amid Trial Success
Neutral
Nov 13, 2024
Seres Therapeutics faces a Nasdaq compliance challenge as its stock fell below the $1 bid price requirement, prompting a 180-day period to rectify the situation or face potential delisting. Meanwhile, the company reported promising results from its SER-155 trial, showing a significant reduction in bloodstream infections among patients, which could lead to breakthrough therapy designation. Financially, Seres completed the sale of its VOWST business, bolstering funding for operations into late 2025, while actively seeking a strategic partnership to expand SER-155’s market reach.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.