Spero Therapeutics (SPRO) AI Stock Analysis

• Market Cap: $106.36M
• Dividend Yield: N/A
• Average Volume (3M): 355.30K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.83
• Revenue Growth: -67.67%
• EPS Growth: -390.60%
• Country: US
• Employees: 32
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.03
• Shares Outstanding: 56,275,227
• 10 Day Avg. Volume: 269,730
• 30 Day Avg. Volume: 355,298
• PEG Ratio: <0.01
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 2.03
• P/FCF Ratio: -2.37
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 3.33
• Enterprise Value/Gross Profit: 3.33
• Enterprise Value/Ebitda: -2.39
• 1Y Price Target: $4.00
• Price Target Upside: 111.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: ―

Spero Therapeutics is currently facing significant financial and operational challenges, as evidenced by declining revenues, negative profit margins, and operational inefficiencies. Technical analysis suggests ongoing bearish momentum, while valuation metrics highlight financial struggles due to a negative P/E ratio. The earnings call highlighted promising developments in their tebipenem HBr program, but these are offset by setbacks in other trials and increased financial losses. The overall score reflects these mixed but predominantly negative factors.

Positive Factors

Strategic Partnerships

The partnership with GSK enhances Spero's market reach and resource access, potentially leading to significant milestone payments and increased commercialization success.

Leadership Change

The new CEO, Esther Rajavelu, is expected to strengthen strategic initiatives and partnerships, potentially improving operational efficiency and business focus.

Tebipenem HBr Program

The Phase 3 PIVOT-PO trial for tebipenem HBr could offer a novel oral treatment for cUTI, potentially transforming treatment paradigms and boosting long-term growth.

Negative Factors

Revenue Decline

Significant revenue decline indicates challenges in maintaining financial stability and growth, impacting the company's ability to fund R&D and operations.

SPR720 Trial Setback

The failure of the SPR720 trial raises concerns about the viability of the pipeline, potentially affecting future revenue streams and market confidence.

Increased Financial Losses

Rising losses highlight financial strain and operational inefficiencies, necessitating strategic adjustments to improve profitability and cash flow management.

Spero Therapeutics Business Overview & Revenue Model

Company Description

Spero Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on identifying, developing, and commercializing treatments for multi-drug resistant (MDR) bacterial infections and rare diseases in the United States. The company's product candidates include tebipenem pivoxil hydrobromide (HBr), an oral carbapenem-class antibiotic to treat complicated urinary tract infections, including pyelonephritis for adults; SPR206, a direct acting IV-administered agent to treat MDR Gram-negative bacterial infections in the hospital; and SPR720, an oral antibiotic for the treatment of non-tuberculous mycobacterial pulmonary disease. It has license agreement with Meiji Seika Pharma Co., Ltd. to support the development of tebipenem HBr; license agreement with Everest Medicines to develop, manufacture, and commercialize SPR206 in Greater China, South Korea, and Southeast Asian countries; collaboration agreement with Bill & Melinda Gates Medical Research Institute to develop SPR720 for the treatment of lung infections caused by Mycobacterium tuberculosis; and license agreement with Vertex Pharmaceuticals Incorporated for patents relating to SPR720, as well as SPR719, an active metabolite. The company was founded in 2013 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Spero Therapeutics makes money primarily through the development and commercialization of its proprietary antibiotics. Revenues are generated through partnerships, collaborations, and licensing agreements with other pharmaceutical companies and organizations, which provide funding for the development of its drug candidates. These partnerships often involve milestone payments, royalties, and shared profits from successfully developed products. Additionally, the company may receive grants and research funding from government and non-profit entities to support its research and development efforts. Key factors contributing to Spero's earnings include the successful progression of its drug candidates through clinical trials and eventual regulatory approval and commercialization.

Spero Therapeutics Financial Statement Overview

Summary

Spero Therapeutics faces significant financial challenges, particularly in profitability and cash flow management. Revenue instability and negative net income margins highlight operational inefficiencies. Although the balance sheet remains stable with manageable debt levels, the decline in equity ratio and return on equity suggests potential financial stress. The company's cash flow position indicates ongoing operational cash constraints, necessitating strategic adjustments to enhance financial performance.

Income Statement

Spero Therapeutics experienced significant revenue volatility with a decline from $96.7M in 2023 to $47.9M in 2024. The gross profit margin was stable at 100% due to cost alignment with revenue. However, the net profit margin deteriorated from 23.6% to -142.9% over the same period, indicating challenges in managing costs and expenses. EBIT and EBITDA margins also turned negative, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio improved from 0.05 in 2023 to 0.09 in 2024, showcasing a manageable debt level relative to equity. However, the return on equity fell drastically from 21.3% to -148.6%, which suggests a reduction in shareholder value. The equity ratio decreased from 58.6% to 41.7%, indicating a weaker financial position with increased liabilities.

Cash Flow

Free cash flow remained negative but improved slightly from -$33M to -$23.4M in 2024. The operating cash flow to net income ratio was negative, reflecting cash flow challenges from operations. Despite these issues, the company managed cash reserves, maintaining a relatively stable cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.50M	27.40M	96.73M	48.58M	18.26M	9.33M
Gross Profit	40.50M	27.39M	96.37M	5.92M	17.14M	-57.67M
EBITDA	-56.53M	-72.48M	25.77M	-42.26M	-87.17M	-76.93M
Net Income	-54.47M	-68.57M	22.81M	-46.41M	-89.76M	-78.28M
Balance Sheet
Total Assets	62.12M	110.54M	182.39M	124.80M	171.07M	153.45M
Cash, Cash Equivalents and Short-Term Investments	31.19M	52.89M	76.33M	109.11M	146.40M	126.91M
Total Debt	3.62M	4.30M	5.54M	6.65M	55.75M	7.84M
Total Liabilities	29.29M	64.42M	75.50M	48.87M	82.78M	21.41M
Stockholders Equity	32.83M	46.12M	106.89M	75.93M	88.29M	132.04M
Cash Flow
Free Cash Flow	-32.33M	-23.44M	-32.99M	-7.73M	-64.31M	-86.03M
Operating Cash Flow	-32.33M	-23.44M	-32.99M	-7.73M	-64.35M	-85.87M
Investing Cash Flow	0.00	0.00	0.00	33.81M	7.67M	10.47M
Financing Cash Flow	0.00	0.00	221.00K	-29.55M	84.05M	130.88M

Spero Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRO, the sentiment is Negative. The current price of 1.89 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.07, and above the 200-day MA of 1.47, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPRO.

Spero Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPRO	48 Neutral	$106.36M	10.83	-94.59%	―	-67.67%	-390.60%
DYAI	46 Neutral	39.81M	-5.90	―	―	129.20%	30.36%
SCYX	44 Neutral	45.07M	-2.55	-38.65%	―	-66.30%	50.52%
ITRM	35 Underperform	32.15M	-0.84	―	―	―	57.08%
ANTX	34 Underperform	34.16M	-1.00	―	―	―	44.85%
KALA	31 Underperform	133.75M	-2.80	―	―	―	51.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Spero Therapeutics Corporate Events

Spero Therapeutics Appoints New CEO Esther Rajavelu

On April 28, 2025, Spero Therapeutics announced the appointment of Esther Rajavelu as President and Chief Executive Officer, effective May 2, 2025. Rajavelu, who has been serving as Interim President and CEO since January 2025, will also continue her roles as Chief Financial Officer and Treasurer. This leadership transition follows the mutual separation of former CEO Sath Shukla, who will step down on the same effective date. The company is focused on advancing its PIVOT-PO Phase 3 trial for tebipenem HBr, with Rajavelu’s leadership expected to strengthen Spero’s strategic initiatives and partnerships, particularly with GSK.

Spark’s Take on SPRO Stock

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

Spero Therapeutics is currently facing financial and operational challenges, highlighted by declining revenues and increased losses. The financial performance and technical analysis suggest a cautious outlook, while the earnings call provides some optimism through strategic partnerships and potential milestone payments. However, the negative valuation metrics and recent clinical trial setbacks weigh heavily on the stock score, resulting in an overall score of 53.

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