Septerna, Inc. (SEPN) AI Stock Analysis

• Market Cap: $966.16M
• Dividend Yield: N/A
• Average Volume (3M): 328.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.53
• Revenue Growth: -13.37%
• EPS Growth: -1025.90%
• Country: US
• Employees: 75
• Sector: Technology
• Sector Strength: 88
• Industry: Biotechnology
• EPS (TTM): -0.56
• Shares Outstanding: 44,585,136
• 10 Day Avg. Volume: 303,779
• 30 Day Avg. Volume: 328,474
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.17
• Enterprise Value/Revenue: 227.05
• Enterprise Value/Gross Profit: 227.05
• Enterprise Value/Ebitda: -1.64
• 1Y Price Target: $23.00
• Price Target Upside: 6.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $22.00 ▲(1.52% Upside)

Septerna, Inc. benefits from strong technical momentum, but financial performance is hindered by operational inefficiencies and cash flow issues. Valuation concerns due to negative earnings further impact the score.

Positive Factors

Strong Revenue Growth

The significant increase in revenue indicates successful commercialization efforts and growing demand for Septerna's drug candidates, enhancing long-term growth prospects.

Robust Balance Sheet

A strong equity base and low leverage provide financial stability and flexibility, enabling Septerna to invest in R&D and withstand industry volatility.

Strategic Partnerships

Partnerships enhance research capabilities and market reach, providing financial support and strategic collaboration, which is crucial for long-term success in the biotech industry.

Negative Factors

Operational Inefficiencies

Operational challenges and losses suggest inefficiencies that could hinder profitability and require strategic adjustments to improve operational performance.

Negative Cash Flow

Persistent negative cash flow indicates reliance on external funding, posing risks if financing becomes constrained, affecting long-term sustainability.

Volatile Earnings

Earnings volatility reflects financial instability and potential challenges in achieving consistent profitability, impacting investor confidence and strategic planning.

Septerna, Inc. Business Overview & Revenue Model

Company Description

Septerna, Inc., a clinical-stage biotechnology company, discovers and develops G protein-coupled receptor (GPCR) oral small molecule products candidates for the treatment of endocrinology, immunology and inflammation, and metabolic diseases. The company develops SEP-786, an oral small molecule PTH1R agonist for hypoparathyroidism; SEP-631, an oral small molecule MRGPRX2 NAM for chronic spontaneous urticaria and other mast cell diseases; TSHR Program, an oral small molecule TSHR NAM for Graves' disease and thyroid eye disease. It also develops oral small molecule single- and multi-incretin receptor agonists for metabolic disorders including obesity and type 2 diabetes. Septerna, Inc. was formerly known as GPCR NewCo, Inc. and changed its name to Septerna Inc. in June 2021. The company was incorporated in 2019 and is headquartered in South San Francisco, California.

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. shows robust revenue growth, but faces significant operational challenges and losses. The strong equity base and low leverage are positives, but negative cash flows indicate financial risk.

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	726.00K	1.07M	151.00K	0.00
Gross Profit	726.00K	1.07M	151.00K	0.00
EBITDA	-100.60M	-79.42M	-44.70M	-27.39M
Net Income	-87.50M	-71.80M	4.18M	-27.68M
Balance Sheet
Total Assets	415.23M	456.55M	130.87M	36.12M
Cash, Cash Equivalents and Short-Term Investments	326.56M	350.92M	88.48M	30.61M
Total Debt	24.57M	25.48M	12.57M	710.00K
Total Liabilities	37.67M	36.51M	169.24M	80.32M
Stockholders Equity	377.56M	420.05M	-38.37M	-44.20M
Cash Flow
Free Cash Flow	-83.03M	-69.57M	-41.60M	-24.59M
Operating Cash Flow	-81.40M	-67.47M	-38.72M	-23.30M
Investing Cash Flow	-163.69M	-160.60M	22.12M	-1.29M
Financing Cash Flow	303.23M	377.78M	74.52M	30.05M

Septerna, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 21.67 is above the 20-day moving average (MA) of 21.59, above the 50-day MA of 16.98, and above the 200-day MA of 11.71, indicating a bullish trend. The MACD of 1.45 indicates Positive momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 26.56 is Neutral, 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
TBPH	66 Neutral	$719.16M	61.05	6.23%	―	24.49%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEPN	58 Neutral	$966.16M	―	-32.78%	―	-13.37%	-1025.90%
DAWN	50 Neutral	$767.22M	―	-24.75%	―	2190.50%	52.85%
KURA	47 Neutral	$841.93M	―	-51.11%	―	―	-1.26%
MRVI	47 Neutral	$870.78M	―	-55.41%	―	-22.52%	-37.00%
GOSS	35 Underperform	$563.90M	―	-783.37%	―	-58.02%	-57.23%

Septerna, Inc. Corporate Events

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.

Septerna Reports Q2 2025 Financial Results and Progress

Septerna, Inc. is a biotechnology company specializing in G protein-coupled receptor (GPCR) drug discovery, focusing on developing innovative oral small molecule therapies for various therapeutic areas including endocrinology, immunology, inflammation, and metabolic diseases.

Septerna Appoints Liz Bhatt as New President

On July 30, 2025, Septerna, Inc. announced the appointment of Liz Bhatt as the company’s new President, effective August 1, 2025. Bhatt, who has been the Chief Operating Officer since June 2022, will continue in this role while assuming the presidency from Jeffrey Finer, who remains the CEO. This leadership change signifies a strategic move for Septerna, as Bhatt’s dual role is expected to enhance operational efficiency and leadership continuity.

The most recent analyst rating on (SEPN) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Septerna, Inc. stock, see the SEPN Stock Forecast page.