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Seres Therapeutics Inc. (MCRB)
:MCRB

Seres Therapeutics (MCRB) AI Stock Analysis

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Seres Therapeutics

(NASDAQ:MCRB)

Rating:42Neutral
Price Target:
Seres Therapeutics' overall score reflects significant financial challenges with unstable revenue, high debt, and negative cash flows. Technical indicators suggest bearish momentum, while valuation is affected by negative earnings. The earnings call provided some optimism with SER-155 progress and financial improvements, but uncertainties remain. Overall, the stock score indicates caution due to financial instability and bearish technical trends.
Positive Factors
FDA Support
The FDA is supportive of a 30-day endpoint for BloodStream Infections, which is a positive development for the next SER-155 study.
Financial Strength
Seres has received a $50M installment fee and is set to receive another $23.5M, extending its cash runway into 1Q26.
Partnership Opportunities
Recent progress on SER-155 should boost partnership opportunities, with expectations of an upfront payment supporting further research.
Negative Factors
Capital Requirements
Seres plans to submit a draft Ph. II protocol for SER-155 for the treatment of BSI in allo-HSCT patients to the FDA, but requires additional capital or a partnership to initiate the study.
Partnership Uncertainty
Seres is still engaging with partnership discussion, and recent progress on SER-155 should boost opportunities.
Study Design Uncertainty
Uncertainty around SER-155 study design and partnership discussion led to a lower probability of success from 35% to 20% and an increased discount rate from 6% to 34%.

Seres Therapeutics (MCRB) vs. SPDR S&P 500 ETF (SPY)

Seres Therapeutics Business Overview & Revenue Model

Company DescriptionSeres Therapeutics, Inc., a microbiome therapeutics platform company, engages in developing bacterial consortia that are designed to functionally interact with host cells and tissues to treat disease. The company's lead product candidate is the SER-109, an oral microbiome therapeutic candidate that has completed Phase III clinical trial for the treatment of clostridium difficile infection (CDI). It is also developing SER-155, a cultivated bacteria microbiome drug, which is Phase Ib clinical trial to reduce incidences of gastrointestinal infections, bloodstream infections, and graft versus host diseases in immunocompromised patients receiving allogeneic hematopoietic stem cell transplantation and solid organ transplants. In addition, the company engages in the development of SER-287 and SER-301 that are in Phase Ib to treat ulcerative colitis; SER-401 for patients with metastatic melanoma; and SER-262 to treat Clostridioides difficile infection. It has license and collaboration agreements with Nestec Ltd. and Memorial Sloan Kettering Cancer Center. The company was formerly known as Seres Health, Inc. and changed its name to Seres Therapeutics, Inc. in May 2015. Seres Therapeutics, Inc. was incorporated in 2010 and is headquartered in Cambridge, Massachusetts.
How the Company Makes MoneySeres 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 Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 47.02%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant progress in the development and regulatory approval process of SER-155, with positive feedback from the medical community and improved financial performance. However, challenges in securing partnerships and navigating the biotech financing environment pose potential risks. Overall, the positive developments outweigh the challenges.
Q1-2025 Updates
Positive Updates
Progress in Advancing SER-155
Significant progress is being made advancing SER-155 into the next stage of development in allo-HSCT, with a 77% relative risk reduction in bloodstream infections observed in Phase 1b study.
Encouragement from Medical Community
Positive feedback received from the European Society for Blood and Marrow Transplantation Conference, highlighting the medical community's support and interest in SER-155.
Financial Performance and Cost Management
Reported net income from continuing operations of $32.7 million in Q1 2025, compared to a net loss of $32.9 million in Q1 2024. R&D expenses reduced to $11.8 million from $19.5 million, and G&A expenses decreased to $11.9 million from $14.9 million.
Regulatory and Strategic Progress
Constructive interactions with FDA, incorporating feedback into Phase 2 study design for SER-155, aiming for a time and capital-efficient path to clinical data.
Negative Updates
Challenging Biotech Financing Environment
The biotech financing environment remains challenging, making it difficult to secure partnerships and financial support for advancing SER-155.
Gating Factors for Phase 2 Study
Partnership remains a gating item for initiating the SER-155 Phase 2 study, with no definitive timeline provided for securing a partner and starting the study.
Company Guidance
During the Seres Therapeutics First Quarter 2025 Earnings Conference Call, the company emphasized significant progress with SER-155, particularly in advancing it to the next clinical study phase. The Phase 1b study demonstrated a 77% relative risk reduction in bloodstream infections in allo-HSCT patients, with a favorable safety profile. The upcoming Phase 2 study, anticipated to include multiple European sites, aims to enroll 248 participants and incorporate an adaptive design with an interim analysis expected within 12 months of initiation. Financially, Seres reported a net income of $32.7 million for Q1 2025, largely due to a $50 million installment payment from Nestle, with cash and equivalents totaling $58.8 million as of March 31, 2025. The company expects to fund operations into Q1 2026, contingent on a second installment from Nestle and potential partnerships to support SER-155's development.

Seres Therapeutics Financial Statement Overview

Summary
Seres Therapeutics faces significant financial challenges. The income statement reveals revenue instability and persistent profitability issues. The balance sheet highlights financial instability with high debt-to-equity ratios, and cash flow statements show ongoing liquidity challenges due to negative operating cash flows.
Income Statement
38
Negative
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
25
Negative
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.00126.33M7.13M144.93M33.22M
Gross Profit-1.42M0.00125.62M6.12M143.19M-57.35M
EBITDA-117.42M-121.31M-94.31M-237.51M-56.72M-77.31M
Net Income72.95M136.00K-113.72M-253.82M-61.50M-86.45M
Balance Sheet
Total Assets164.18M139.81M358.60M348.78M354.86M342.94M
Cash, Cash Equivalents and Short-Term Investments58.85M30.79M127.97M181.34M290.71M253.62M
Total Debt89.55M91.64M213.94M162.59M49.21M40.77M
Total Liabilities113.72M126.03M403.46M338.00M223.35M168.19M
Stockholders Equity50.47M13.78M-44.86M10.78M131.51M174.75M
Cash Flow
Free Cash Flow-86.81M-148.99M-125.33M-238.64M-2.88M-94.20M
Operating Cash Flow-86.46M-148.61M-117.35M-228.82M6.69M-93.61M
Investing Cash Flow142.32M142.29M10.58M82.43M64.09M-158.89M
Financing Cash Flow-107.95M-90.37M71.70M129.60M1.18M303.42M

Seres Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.57
Price Trends
50DMA
8.56
Positive
100DMA
10.84
Positive
200DMA
13.68
Negative
Market Momentum
MACD
1.13
Negative
RSI
70.44
Negative
STOCH
89.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCRB, the sentiment is Positive. The current price of 12.57 is above the 20-day moving average (MA) of 9.68, above the 50-day MA of 8.56, and below the 200-day MA of 13.68, indicating a neutral trend. The MACD of 1.13 indicates Negative momentum. The RSI at 70.44 is Negative, neither overbought nor oversold. The STOCH value of 89.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCRB.

Seres Therapeutics Risk Analysis

Seres Therapeutics disclosed 64 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$7.59B0.30-61.86%2.27%16.72%1.10%
47
Neutral
$60.51M-116.63%-100.00%24.59%
42
Neutral
$107.85M-3758.21%-100.00%-7.66%
35
Underperform
$55.28M-101.34%21.40%
TITIL
34
Underperform
$168.13M-44.50%52.54%
VOVOR
33
Underperform
$288.66M-125.43%2.98%
30
Underperform
$132.29M-744.59%27.65%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MCRB
Seres Therapeutics
12.57
-11.23
-47.18%
JSPR
Jasper Therapeutics
3.51
-16.41
-82.38%
ELTX
Elicio Therapeutics
8.08
3.83
90.12%
VOR
Vor Biopharma
2.50
1.53
157.73%
TIL
Instil Bio
24.49
10.98
81.27%
SNTI
Senti Biosciences
2.13
-1.02
-32.38%

Seres Therapeutics Corporate Events

Shareholder MeetingsStock Split
Seres Therapeutics Approves Reverse Stock Split Plan
Neutral
Apr 14, 2025

On April 10, 2025, Seres Therapeutics held its Annual Meeting where shareholders approved several key proposals, including the election of directors and a reverse stock split. The reverse stock split, set at a ratio of 1-for-20, will become effective on April 21, 2025, and aims to adjust the trading price of the company’s stock. This decision reflects the company’s strategic efforts to enhance its market positioning and potentially attract more investors by aligning its stock price with market expectations.

Spark’s Take on MCRB Stock

According to Spark, TipRanks’ AI Analyst, MCRB is a Neutral.

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.

To see Spark’s full report on MCRB stock, click here.

Product-Related AnnouncementsFinancial Disclosures
Seres Therapeutics Reports 2024 Financial Results and SER-155 Progress
Positive
Mar 13, 2025

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.

Executive/Board Changes
Seres Therapeutics Announces CMO Resignation in March 2025
Neutral
Feb 27, 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.

Executive/Board ChangesBusiness Operations and Strategy
Seres Therapeutics Expands Board with Nestlé’s Appointee
Positive
Feb 6, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 26, 2025