Seres Therapeutics Inc. Common Stock (MCRB)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earnings, conservative balance sheets, and a price that leaves room for error. Seres is a clinical-stage biotech, not a compounding business. Its revenue is almost nonexistent: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $736,000, with net income of $4.6M and diluted EPS of $0.47. That profit did not come from a scaled commercial engine; in fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $358,000 and net loss was $19.9M, or diluted EPS of -$2.08. For FY2025, the period ended 2025-12-31, revenue was $789,000, net income was $5.7M, and diluted EPS was $0.64. FY2023, the period ended 2023-12-31, had a net loss of $113.7M and diluted EPS of -$17.77. So earnings are erratic and tiny relative to the losses. FairStock calculations as of the 2026-10-13 close show a $2.53 price, $25.2M market cap, P/B of 0.72, negative P/E, ROE of -66.57%, ROCE of -39.85%, and D/E of 1.64. Trailing free cash flow is -$51.3M and FCF yield is -203.9%. The Altman Z-score is -13.62 and Piotroski is 5/9, so financial health is not reassuring. The Lynch category is TURNAROUND because it returned to profit after a loss within the last three years. The pipeline may hold optionality, but from the figures I see no durable competitive moat, no steady revenue, and no margin of safety beyond a low P/B. I would want repeatable profits and self-funding operations before calling this a value opportunity.

In plain English: Seres Therapeutics is a small healthcare company testing new medicines for serious infections and related problems. The business looks weak because it earns very little revenue and has mostly lost money, though it reported small profits in some recent periods. The stock is near its 52-week low and sells for less than its accounting net assets, but the company's financial picture is fragile, so the price is not clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer