Septerna, Inc. (SEPN) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 332.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.50
• 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: 285,141
• 30 Day Avg. Volume: 332,038
• 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: 0.35
• Enterprise Value/Revenue: 18.49
• Enterprise Value/Gross Profit: 18.49
• Enterprise Value/Ebitda: -4.64
• 1Y Price Target: $29.25
• Price Target Upside: 14.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $28.00 ▲(10.06% Upside)

Septerna, Inc.'s stock score is primarily driven by strong technical momentum and positive corporate developments, such as the strategic board appointment. However, financial performance and valuation concerns, including significant losses and a negative P/E ratio, weigh down the overall score.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong market demand and successful product development, enhancing long-term business prospects.

Strategic Leadership

The strategic leadership addition is expected to enhance R&D capabilities, driving innovation and competitive advantage in GPCR-targeted therapies.

Low Financial Leverage

Low financial leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities without excessive risk.

Negative Factors

Operational Inefficiencies

Negative margins indicate inefficiencies in operations, which could hinder profitability and require strategic improvements for sustainable growth.

Cash Flow Constraints

Negative cash flow suggests reliance on external funding, posing a risk if financing becomes limited, impacting long-term financial health.

Significant Losses

Significant losses highlight financial volatility and the need for improved cost management to achieve sustainable profitability.

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. is experiencing rapid revenue growth but faces operational inefficiencies and significant losses. The balance sheet is strong with high equity levels and low leverage, but negative cash flow poses a 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	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: 25.44
• 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 25.44 is below the 20-day moving average (MA) of 25.80, above the 50-day MA of 23.05, and above the 200-day MA of 13.40, indicating a neutral trend. The MACD of 1.12 indicates Positive momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 26.40 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEPN	61 Neutral	$1.17B	―	-22.38%	―	2147.20%	-269.99%
TBPH	61 Neutral	$895.89M	32.30	14.03%	―	27.12%	―
DAWN	50 Neutral	$864.53M	―	-30.16%	―	31.11%	-46.75%
MRVI	49 Neutral	$920.54M	―	-41.06%	―	-30.56%	48.79%
KURA	47 Neutral	$910.20M	―	-65.10%	―	―	-5.18%
GOSS	35 Underperform	$807.78M	―	―	―	-58.17%	-116.24%

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.