Seres Therapeutics (MCRB) AI Stock Analysis

• Market Cap: $101.23M
• Dividend Yield: N/A
• Average Volume (3M): 934.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -100.00%
• EPS Growth: -7.66%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -0.96
• Shares Outstanding: 174,358,750
• 10 Day Avg. Volume: 1,059,303
• 30 Day Avg. Volume: 934,989
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1937.83
• Price to Cash Flow (P/CF): -0.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.50
• Price Target Upside: 832.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Seres Therapeutics faces significant financial challenges, with instability in revenue generation and profitability, as well as high debt levels. While technical indicators suggest a bearish trend, the company has made notable progress in its SER-155 program, offering potential future growth. However, uncertainties in clinical development timelines and leadership transitions pose risks. The valuation remains unattractive due to negative earnings and lack of dividends.

Positive Factors

Drug Efficacy

SER-155 demonstrated a 77% relative risk reduction in bloodstream infections in the Ph. Ib study, showing initial signs of efficacy compared to placebo.

Financial Performance

Seres has received a $50M installment fee and is set to receive another $23.5M, extending its cash runway into 1Q26.

Partnership Opportunities

The progress of the SER-155 study should boost partnership opportunities, with expectations of an upfront payment supporting further research.

Regulatory Support

The FDA is supportive of a 30-day endpoint for BloodStream Infections, which is a positive development for the next SER-155 study.

Negative Factors

Financial Stability

Seres currently has $66.8M cash and equivalents, funding their cash runway into 4Q25.

Market Risks

Increasing usage of PTCy in post-HSCT patients could help SER-155, as data showed that usage of PTCy significantly increase patients' risk of BSIs (43% in PTCy vs 14% in placebo, Salas et al, 2024).

Seres Therapeutics Business Overview & Revenue Model

Company Description

Seres Therapeutics, Inc. (MCRB) is a biotechnology company focused on developing microbiome therapeutics. The company operates in the healthcare sector and is dedicated to creating innovative treatments for diseases by harnessing the therapeutic potential of the human microbiome. Seres Therapeutics' core products include a pipeline of biologically-derived drugs aimed at treating diseases such as Clostridium difficile infection (CDI) and other conditions linked to dysbiosis of the gut microbiota.

How the Company Makes Money

Seres Therapeutics generates revenue primarily through the development and commercialization of its microbiome therapeutic products. The company earns money by advancing its product candidates through clinical trials and ultimately bringing them to market. A significant portion of its revenue comes from collaborations and partnerships with larger pharmaceutical companies, which provide funding, research support, and milestone payments. Additionally, these partnerships often include royalty agreements based on the sales of successfully commercialized products. The company's financial performance is significantly influenced by the progress of its clinical trials, regulatory approvals, and the competitive landscape in the biotechnology sector.

Seres Therapeutics Financial Statement Overview

Summary

Seres Therapeutics faces significant financial challenges across its income statement, balance sheet, and cash flow statement. The company struggles with consistent revenue generation and profitability, while maintaining a high debt load relative to equity. Persistent cash outflows from operations and investments further exacerbate its financial difficulties, raising concerns about its long-term financial sustainability.

Income Statement

Seres Therapeutics has experienced significant revenue volatility over the years, with notable revenue in 2021 but zero revenue in 2024. The company has struggled with profitability, consistently reporting negative EBIT and EBITDA margins, though net income turned positive in 2024 due to non-operational gains. Overall, the income statement reveals challenges in achieving stable revenue and controlling operational costs.

Balance Sheet

The balance sheet shows a precarious financial position with fluctuating and often negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio has been high, and the equity ratio is weak, highlighting reliance on debt financing. These aspects suggest financial instability and increased financial risk.

Cash Flow

Cash flow statements reveal persistent negative operating cash flows, indicating operational cash burn. Free cash flow has been consistently negative, reflecting cash outflows exceeding inflows from operations and investments. Despite occasional positive investing cash flows due to asset sales, the overall cash flow situation underscores liquidity challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	126.33M	7.13M	144.93M	33.22M
	Gross Profit
0.00	125.62M	6.12M	143.19M	-57.35M
	EBIT
-121.31M	-107.98M	-246.49M	-64.49M	-88.13M
	EBITDA
-121.31M	-94.31M	-237.51M	-56.72M	-77.31M
	Net Income Common Stockholders
136.00K	-113.72M	-253.82M	-61.50M	-86.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.79M	127.97M	181.34M	290.71M	253.62M
	Total Assets
139.81M	358.60M	348.78M	354.86M	342.94M
	Total Debt
91.64M	213.94M	162.59M	49.21M	40.77M
	Net Debt
60.85M	85.97M	-440.00K	-130.79M	-75.28M
	Total Liabilities
126.03M	403.46M	338.00M	223.35M	168.19M
	Stockholders Equity
13.78M	-44.86M	10.78M	131.51M	174.75M
Cash Flow		Free Cash Flow
-148.99M	-125.33M	-238.64M	-2.88M	-94.20M
	Operating Cash Flow
-148.61M	-117.35M	-228.82M	6.69M	-93.61M
	Investing Cash Flow
142.29M	10.58M	82.43M	64.09M	-158.89M
	Financing Cash Flow
-90.37M	71.70M	129.60M	1.18M	303.42M

Seres Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 0.59 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.73, and below the 200-day MA of 0.86, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.92 is Neutral, neither overbought nor oversold. The STOCH value of 15.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCRB.

Seres Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOLD	61 Neutral	$2.00B	―	-31.68%	―	32.29%	64.39%
BPMC	52 Neutral	$5.17B	―	-31.26%	―	104.04%	87.80%
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%
CRSP	46 Neutral	$2.95B	―	-19.20%	―	-89.95%	-123.71%
MCRB	44 Neutral	$101.23M	―	-3758.21%	―	-100.00%	-7.66%
NTLA	41 Neutral	$700.81M	―	-54.00%	―	59.55%	3.09%
EDIT	39 Underperform	$92.92M	―	-98.10%	―	-58.64%	-40.05%

Seres Therapeutics Corporate Events

Seres Therapeutics Reports 2024 Financial Results and SER-155 Progress

On March 13, 2025, Seres Therapeutics reported its financial results for the fourth quarter and full year of 2024, alongside updates on its SER-155 program. The company highlighted significant progress with SER-155, which received Breakthrough Therapy designation from the FDA due to its potential to reduce bloodstream infections in allo-HSCT patients. The company plans to submit a draft study protocol to the FDA in Q2 2025, aiming to advance SER-155’s development and explore expansion into other patient populations. Market research indicates a strong commercial opportunity for SER-155, driven by the unmet need for effective prophylactic therapies against bloodstream infections.

Seres Therapeutics Announces CMO Resignation in March 2025

On February 22, 2025, Seres Therapeutics announced that Lisa von Moltke, M.D. will resign from her role as Executive Vice President and Chief Medical Officer, effective March 14, 2025. Dr. von Moltke is set to join another U.S. biopharmaceutical company as Chief Medical Officer and Head of Research and Development, focusing on autoimmune diseases, reflecting her professional interest.

Seres Therapeutics Expands Board with Nestlé’s Appointee

On February 4, 2025, Seres Therapeutics expanded its Board of Directors to nine members and appointed Dr. Hans-Juergen Woerle as a Class III director. This appointment is linked to an agreement with Nestlé, which holds a significant stake in the company, granting them the right to designate a board member. Dr. Woerle, with extensive experience in medical and scientific roles, will contribute to Seres’ strategic direction, particularly in science and clinical development, enhancing the company’s industry positioning.

Seres Therapeutics Strengthens Future with VOWST Sale

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.