Prime Medicine Inc. Common Stock (PRME)

FairStock Score: 21/100 — RISKY

Key Financials

AI Analysis

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

I look for businesses with durable earnings power and a margin of safety. Prime Medicine does not yet fit that mold. It is a gene-editing biotech with 146 employees and early-stage programs, including PM359 in Phase 1/2 for Chronic Granulomatous Disease. In fiscal 2025, the year ended 2025-12-31, filed results show revenue of $4.6 million, a net loss of $201.1 million, and diluted EPS of -$1.35. In fiscal Q2 2026, the quarter ended 2026-06-30, the net loss was $42.1 million, or -$0.24 per diluted share. That is not a compounding earnings machine; it is a cash-consuming research enterprise. Trailing free cash flow is -$156.8 million, a -26.0% FCF yield on the $602.2 million market cap. The balance sheet shows debt-to-equity of 2.83, ROE of -373.29%, and ROCE of -46.52%, all FairStock calculations. On the positive side, the Altman Z-Score of 6.98 suggests near-term bankruptcy risk may not be immediate, and fiscal 2025 revenue of $4.6 million rose from $3.0 million in fiscal 2024. But the Piotroski F-Score is 2/9, and the Lynch screen finds no category because the company lost money in each of the last four years. At the 2026-10-13 close of $3.32, P/B is 14.43 and P/E is -3.16, so there is no earnings-based valuation support. Biotech can create enormous value if a platform works, but I cannot underwrite that from these figures. I see a speculative pipeline, not a proven business, and the current price demands clinical success before it demands financial discipline.

In plain English: Prime Medicine is a small biotech company trying to make gene-editing medicines. It has no profits, very little revenue, and is burning through a lot of cash. At $3.32, the price does not look supported by the current business numbers and depends heavily on future medical breakthroughs.

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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