SAB Biotherapeutics Inc. Common Stock (SABS)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

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

I look for businesses with durable earnings, honest accounting, and a margin of safety. SAB Biotherapeutics does not fit the classic Buffett mold. It is an 86-employee clinical-stage biotech developing human polyclonal antibodies; lead candidate SAB-142 is in Phase 2b for type 1 diabetes. Filed figures show revenue was just $1.3M in fiscal 2024, the year ended 2024-12-31, and $2.2M in fiscal 2023, the year ended 2023-12-31, with net losses of $34.1M and $42.2M. Fiscal 2025, the year ended 2025-12-31, showed net income of $13.3M, but the quarters are volatile: fiscal Q3 2025, the quarter ended 2025-09-30, had $45.4M net income, while fiscal Q1 2026, the quarter ended 2026-03-31, lost $18.9M and fiscal Q2 2026, the quarter ended 2026-06-30, lost $22.5M. Trailing free cash flow is negative $57.4M, a negative 23.6% FCF yield. That is not a compounding machine; it is a cash-consuming research project. The balance sheet has very low debt - D/E 0.02 - and FairStock calculates P/B 1.04 at the $2.68 close on 2026-10-13. FairStock also calculates a P/E of 11.17 at that close and a Graham Number of $3.73, implying a 28.15% margin of safety. Yet the quality signals are poor: FairStock's Piotroski F-Score is 1/9, ROE is -11.27%, ROCE is -33.46%, and its FairStock Score is 34/100. The Lynch category is TURNAROUND, because it returned to profit after a loss within the last three years, but the profit is not yet consistent. I would want proof of commercial viability, stable revenue, and less cash burn before calling this a true value opportunity. The price may be statistically cheap, but the business is speculative.

In plain English: SAB Biotherapeutics is a small healthcare company testing antibody treatments, mainly for type 1 diabetes. The business looks weak today: it has little or no reported revenue, recent quarters show losses, and it is burning cash. At $2.68, the price looks cheap against some accounting measures, but the company is still speculative because it depends on clinical trial success.

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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