Septerna, Inc. (SEPN) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: N/A
• Average Volume (3M): 332.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.55
• Revenue Growth: 2147.20%
• EPS Growth: -269.99%
• Country: US
• Employees: 75
• Sector: Technology
• Sector Strength: 88
• Industry: Biotechnology
• EPS (TTM): 0.18
• Shares Outstanding: 44,774,193
• 10 Day Avg. Volume: 412,486
• 30 Day Avg. Volume: 332,491
• PEG Ratio: <0.01
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 210.70
• P/FCF Ratio: -3.26
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 18.49
• Enterprise Value/Gross Profit: 18.49
• Enterprise Value/Ebitda: -4.64
• 1Y Price Target: $29.25
• Price Target Upside: 14.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $19.50 ▼(-23.71% Downside)

The overall stock score is primarily influenced by strong revenue growth and a solid balance sheet, but is offset by operational inefficiencies and significant losses. Technical indicators show a positive price trend, but lack strong momentum. Valuation is a concern due to negative earnings and no dividend yield.

Positive Factors

Revenue Growth

The significant increase in revenue indicates strong market demand and successful product development, enhancing long-term growth prospects.

Innovative Product Pipeline

The development of SEP-479 and initiation of SEP-631 trials highlight a robust pipeline, positioning Septerna for future breakthroughs in GPCR therapies.

Strong Balance Sheet

A strong equity base with low leverage provides financial stability, supporting long-term investment in R&D and strategic initiatives.

Negative Factors

Operational Inefficiencies

Negative margins indicate operational challenges that could hinder profitability and require strategic improvements for sustainable growth.

Cash Flow Constraints

Negative cash flow suggests inefficiency in generating cash from operations, posing a risk if external funding becomes limited.

Significant Losses

Substantial losses reflect financial volatility and may impact the company's ability to invest in growth and innovation without external support.

Septerna, Inc. Business Overview & Revenue Model

Company Description

Septerna, Inc. (SEPN) is a biotechnology company focused on the development of innovative therapies that target G protein-coupled receptors (GPCRs), which play a crucial role in various physiological processes and diseases. The company operates within the biopharmaceutical sector, aiming to create novel drug candidates that can address unmet medical needs across a range of therapeutic areas, including oncology and neurology. Septerna leverages its proprietary technology platform to identify and optimize drug candidates, positioning itself at the forefront of drug discovery and development.

How the Company Makes Money

Septerna, Inc. generates revenue primarily through the development and commercialization of its drug candidates. The company's revenue model includes milestone payments from partnerships with larger pharmaceutical companies, royalties on sales of successfully commercialized products, and potential licensing agreements. Significant partnerships with established industry players provide not only financial support but also strategic collaboration opportunities, enhancing Septerna's research capabilities and market reach. Additionally, government grants and funding for research and development may contribute to the company's earnings, particularly in the early stages of product development.

Septerna, Inc. Financial Statement Overview

Summary

Septerna, Inc. is experiencing rapid revenue growth but faces operational inefficiencies and significant losses. The balance sheet is strong with high equity and low leverage, but cash flow constraints pose a financial risk. Improvement in operational efficiency and sustainable cash flow is crucial for long-term stability.

Income Statement

Septerna, Inc. showed a significant revenue increase from $151,000 in 2023 to $1,075,000 in 2024, indicating strong revenue growth. However, net income turned negative in 2024 with a substantial loss of $71.8 million compared to a profit in 2023, demonstrating volatility. The EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The company has a strong equity base with stockholders' equity at $420 million in 2024, and a high equity ratio of approximately 92%. However, the company carries debt, with a debt-to-equity ratio of 0.06, which is relatively low, indicating low financial leverage. The improvement in equity is a positive sign, but past equity deficits highlight potential financial instability.

Cash Flow

Free cash flow remains negative at $69.57 million in 2024, showing no improvement from 2023. Operating cash flow is also negative, suggesting inefficiency in generating cash from operations. The reliance on financing activities to fund operations could be a risk if external funding becomes limited.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	22.05M	1.07M	151.00K	0.00
Gross Profit	22.05M	1.07M	151.00K	0.00
EBITDA	-87.90M	-79.42M	-44.70M	-27.39M
Net Income	-58.81M	-71.80M	4.18M	-27.68M
Balance Sheet
Total Assets	606.65M	456.55M	130.87M	36.12M
Cash, Cash Equivalents and Short-Term Investments	474.35M	350.92M	88.48M	30.61M
Total Debt	24.11M	25.48M	12.57M	710.00K
Total Liabilities	217.92M	36.51M	169.24M	80.32M
Stockholders Equity	388.73M	420.05M	-38.37M	-44.20M
Cash Flow
Free Cash Flow	103.15M	-69.57M	-41.60M	-24.59M
Operating Cash Flow	104.22M	-67.47M	-38.72M	-23.30M
Investing Cash Flow	-177.29M	-160.60M	22.12M	-1.29M
Financing Cash Flow	304.82M	377.78M	74.52M	30.05M

Septerna, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEPN, the sentiment is Positive. The current price of 25.56 is above the 20-day moving average (MA) of 20.99, above the 50-day MA of 20.19, and above the 200-day MA of 12.11, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 70.24 is Negative, neither overbought nor oversold. The STOCH value of 89.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEPN.

Septerna, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TBPH	60 Neutral	$936.43M	32.85	14.03%	―	27.12%	―
SEPN	52 Neutral	$1.03B	―	-22.38%	―	2147.20%	-269.99%
DAWN	50 Neutral	$874.80M	―	-30.16%	―	31.11%	-46.75%
MRVI	49 Neutral	$958.90M	―	-41.06%	―	-30.56%	48.79%
KURA	47 Neutral	$985.04M	―	-65.10%	―	―	-5.18%
GOSS	35 Underperform	$708.26M	―	―	―	-58.17%	-116.24%

Septerna, Inc. Corporate Events

Septerna’s SEP-631 Study: A Potential Game-Changer in Pharmaceutical Research

Septerna, Inc. (SEPN) is conducting a Phase 1 clinical study titled A Phase 1, Double-Blind, Randomized, Placebo-Controlled, Single and Multiple Ascending Dose Study to Evaluate the Safety, Tolerability, Pharmacokinetics, Pharmacodynamics, and Food Effect of SEP-631 in Healthy Adult Volunteers. The study aims to assess the safety and tolerability of the oral drug SEP-631, alongside its pharmacokinetic and pharmacodynamic properties, in healthy adult volunteers. This research is significant as it explores the potential of SEP-631 in therapeutic applications.

Septerna, Inc. Expands Board with New R&D Chair

On September 25, 2025, Septerna, Inc. expanded its Board of Directors by appointing Keith Gottesdiener, M.D., a veteran biotechnology leader, as a Class I director and Chair of the newly formed R&D Committee. Dr. Gottesdiener’s extensive experience in advancing therapeutics and regulatory strategy is expected to significantly contribute to Septerna’s growth as it continues to develop its GPCR-targeted therapies and expand its clinical pipeline.

The most recent analyst rating on (SEPN) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Septerna, Inc. stock, see the SEPN Stock Forecast page.

Septerna Updates Presentation on Drug Discovery Progress

On September 3, 2025, Septerna, Inc. updated its corporate presentation to highlight advancements in its drug discovery programs and collaborations. The company is progressing with its SEP-479 and SEP-631 programs, aiming for clinical trials in 2026, and has secured significant funding to support operations into 2029. These developments position Septerna as a key player in expanding GPCR-targeted therapies, with potential implications for stakeholders in terms of market opportunities and innovative treatment options.

The most recent analyst rating on (SEPN) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Septerna, Inc. stock, see the SEPN Stock Forecast page.

Septerna Begins Phase 1 Trial for SEP-631

On August 21, 2025, Septerna, Inc. announced the dosing of the first participants in a Phase 1 clinical trial for SEP-631, an oral small molecule targeting MRGPRX2 for treating mast cell-driven diseases like chronic spontaneous urticaria. The trial aims to evaluate the safety, tolerability, pharmacokinetics, and pharmacodynamics of SEP-631 in healthy volunteers, potentially offering a new oral treatment option for patients with significant unmet medical needs.

The most recent analyst rating on (SEPN) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Septerna, Inc. stock, see the SEPN Stock Forecast page.