Q32 Bio Inc. Common Stock (QTTB)

FairStock Score: 95/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

As a Buffett-Graham investor, I want durable economics, honest accounting, and a margin of safety. Q32 Bio is a clinical-stage biotech with 22 employees, developing bempikibart for alopecia areata and other autoimmune diseases. The filed record is uneven: in fiscal year 2025 (period ended 2025-12-31), revenue was $53.7M, net income $29.8M, and diluted EPS $2.42; but in fiscal Q1 2026 (quarter ended 2026-03-31), net income was -$7.6M and diluted EPS -$0.54, and in fiscal Q2 2026 (quarter ended 2026-06-30), net income was -$8.9M and diluted EPS -$0.44. Earlier losses include fiscal Q3 2025 (quarter ended 2025-09-30) net income of -$7.4M and fiscal Q2 2025 (quarter ended 2025-06-30) net income of -$9.5M. Trailing free cash flow is -$19.8M, a FairStock FCF yield of -7.9%. That tells me fiscal year 2025 profitability is not yet a proven earnings stream. The balance sheet looks low-levered at D/E 0.05, and FairStock's Altman Z-score is 15.68, but its Piotroski F-score is 3/9, which is weak. FairStock P/B is 1.89 and ROE is 72.14%; high ROE should be treated cautiously when profits are uneven. At the $8.45 close on 2026-10-26, FairStock P/E is 2.69, Graham Number is $17.75, and margin of safety is 51.27%; those statistics look cheap, but they depend on earnings that have not persisted. No moat is evident in a 22-person clinical-stage company with a lead antibody and binary trial risk. Growth cannot be judged cleanly because revenue growth is N/A; the quarterly filings show losses. This is a FairStock TURNAROUND—returned to profit after a loss within the last three years—but I would require repeatable cash generation before trusting the low multiples.

In plain English: Q32 Bio is a small healthcare company testing a medicine for autoimmune conditions such as alopecia areata. It had a profitable fiscal year 2025 on paper, but recent filed quarters show losses, so the business is not yet steady. At the $8.45 close on 2026-10-26, the price looks cheap against one rough value estimate in the data, but the uneven earnings and cash spending make that cheapness uncertain.

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Data as of 2026-10-26 close · note generated 2026-10-28 · 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