Seres Therapeutics (MCRB) AI Stock Analysis

• Market Cap: $65.14M
• Dividend Yield: N/A
• Average Volume (3M): 129.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -100.00%
• EPS Growth: -7.66%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): 3.75
• Shares Outstanding: 8,732,422
• 10 Day Avg. Volume: 117,622
• 30 Day Avg. Volume: 129,172
• PEG Ratio: <0.01
• Price to Book (P/B): 22.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.75
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 218.82
• Enterprise Value/Gross Profit: -67.49
• Enterprise Value/Ebitda: -0.18
• 1Y Price Target: $7.00
• Price Target Upside: -6.17% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Seres Therapeutics' overall score reflects significant financial challenges with unstable revenue, high debt, and negative cash flows. Technical indicators suggest bearish momentum, while valuation is affected by negative earnings. The earnings call provided some optimism with SER-155 progress and financial improvements, but uncertainties remain. Overall, the stock score indicates caution due to financial instability and bearish technical trends.

Positive Factors

Financial Stability

Seres has received a $50M installment fee and is set to receive another $23.5M, extending its cash runway into 1Q26.

Partnership Opportunities

The progress of the SER-155 study should boost partnership opportunities, with expectations of an upfront payment supporting further research.

Regulatory Support

The FDA is supportive of a 30-day endpoint for BloodStream Infections, which is a positive development for the next SER-155 study.

Negative Factors

Need for Additional Capital

Seres plans to submit a draft Ph. II protocol for SER-155 for the treatment of BSI in allo-HSCT patients to the FDA this quarter, but requires additional capital or a partnership to initiate the study.

Uncertainty in Study Design

Uncertainty around SER-155 study design and partnership discussion led to a lower probability of success from 35% to 20% and an increased discount rate from 6% to 34%.

Seres Therapeutics Business Overview & Revenue Model

Company Description

Seres Therapeutics, Inc., a microbiome therapeutics platform company, engages in developing bacterial consortia that are designed to functionally interact with host cells and tissues to treat disease. The company's lead product candidate is the SER-109, an oral microbiome therapeutic candidate that has completed Phase III clinical trial for the treatment of clostridium difficile infection (CDI). It is also developing SER-155, a cultivated bacteria microbiome drug, which is Phase Ib clinical trial to reduce incidences of gastrointestinal infections, bloodstream infections, and graft versus host diseases in immunocompromised patients receiving allogeneic hematopoietic stem cell transplantation and solid organ transplants. In addition, the company engages in the development of SER-287 and SER-301 that are in Phase Ib to treat ulcerative colitis; SER-401 for patients with metastatic melanoma; and SER-262 to treat Clostridioides difficile infection. It has license and collaboration agreements with Nestec Ltd. and Memorial Sloan Kettering Cancer Center. The company was formerly known as Seres Health, Inc. and changed its name to Seres Therapeutics, Inc. in May 2015. Seres Therapeutics, Inc. was incorporated in 2010 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Seres Therapeutics generates revenue primarily through the development and commercialization of its microbiome therapeutic products. The company earns money by advancing its product candidates through clinical trials and ultimately bringing them to market. A significant portion of its revenue comes from collaborations and partnerships with larger pharmaceutical companies, which provide funding, research support, and milestone payments. Additionally, these partnerships often include royalty agreements based on the sales of successfully commercialized products. The company's financial performance is significantly influenced by the progress of its clinical trials, regulatory approvals, and the competitive landscape in the biotechnology sector.

Seres Therapeutics Financial Statement Overview

Summary

Seres Therapeutics faces significant financial challenges. The income statement reveals revenue instability and persistent profitability issues. The balance sheet highlights financial instability with high debt-to-equity ratios, and cash flow statements show ongoing liquidity challenges due to negative operating cash flows.

Income Statement

Seres Therapeutics has experienced significant revenue volatility over the years, with notable revenue in 2021 but zero revenue in 2024. The company has struggled with profitability, consistently reporting negative EBIT and EBITDA margins, though net income turned positive in 2024 due to non-operational gains. Overall, the income statement reveals challenges in achieving stable revenue and controlling operational costs.

Balance Sheet

The balance sheet shows a precarious financial position with fluctuating and often negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio has been high, and the equity ratio is weak, highlighting reliance on debt financing. These aspects suggest financial instability and increased financial risk.

Cash Flow

Cash flow statements reveal persistent negative operating cash flows, indicating operational cash burn. Free cash flow has been consistently negative, reflecting cash outflows exceeding inflows from operations and investments. Despite occasional positive investing cash flows due to asset sales, the overall cash flow situation underscores liquidity challenges.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	126.33M	7.13M	144.93M	33.22M
	Gross Profit
-1.42M	0.00	125.62M	6.12M	143.19M	-57.35M
	EBIT
-116.59M	-121.31M	-107.98M	-246.49M	-64.49M	-88.13M
	EBITDA
-117.42M	-121.31M	-94.31M	-237.51M	-56.72M	-77.31M
	Net Income Common Stockholders
72.95M	136.00K	-113.72M	-253.82M	-61.50M	-86.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.85M	30.79M	127.97M	181.34M	290.71M	253.62M
	Total Assets
164.18M	139.81M	358.60M	348.78M	354.86M	342.94M
	Total Debt
89.55M	91.64M	213.94M	162.59M	49.21M	40.77M
	Net Debt
30.70M	60.85M	85.97M	-440.00K	-130.79M	-75.28M
	Total Liabilities
113.72M	126.03M	403.46M	338.00M	223.35M	168.19M
	Stockholders Equity
50.47M	13.78M	-44.86M	10.78M	131.51M	174.75M
Cash Flow		Free Cash Flow
-86.81M	-148.99M	-125.33M	-238.64M	-2.88M	-94.20M
	Operating Cash Flow
-86.46M	-148.61M	-117.35M	-228.82M	6.69M	-93.61M
	Investing Cash Flow
142.32M	142.29M	10.58M	82.43M	64.09M	-158.89M
	Financing Cash Flow
-107.95M	-90.37M	71.70M	129.60M	1.18M	303.42M

Seres Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCRB, the sentiment is Negative. The current price of 7.46 is below the 20-day moving average (MA) of 8.45, below the 50-day MA of 11.24, and below the 200-day MA of 15.63, indicating a bearish trend. The MACD of -1.12 indicates Negative momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 22.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCRB.

Seres Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.15B	3.02	-44.64%	2.83%	16.44%	-0.47%
SNTI	47 Neutral	$82.94M	―	-116.63%	―	-100.00%	24.59%
MCRB	42 Neutral	$65.14M	―	-3758.21%	―	-100.00%	-7.66%
JSPR	35 Underperform	$74.06M	―	-101.34%	―	―	21.40%
TIL	34 Underperform	$95.97M	―	-44.50%	―	―	52.54%
VOR	33 Underperform	$22.11M	―	-125.43%	―	―	2.98%
ELTX	30 Underperform	$85.26M	―	-744.59%	―	―	27.65%

Seres Therapeutics Corporate Events

Seres Therapeutics Approves Reverse Stock Split Plan

On April 10, 2025, Seres Therapeutics held its Annual Meeting where shareholders approved several key proposals, including the election of directors and a reverse stock split. The reverse stock split, set at a ratio of 1-for-20, will become effective on April 21, 2025, and aims to adjust the trading price of the company’s stock. This decision reflects the company’s strategic efforts to enhance its market positioning and potentially attract more investors by aligning its stock price with market expectations.

Spark’s Take on MCRB Stock

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

Seres Therapeutics faces significant financial challenges, with instability in revenue generation and profitability, as well as high debt levels. While technical indicators suggest a bearish trend, the company has made notable progress in its SER-155 program, offering potential future growth. However, uncertainties in clinical development timelines and leadership transitions pose risks. The valuation remains unattractive due to negative earnings and lack of dividends.

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

Seres Therapeutics Reports 2024 Financial Results and SER-155 Progress

On March 13, 2025, Seres Therapeutics reported its financial results for the fourth quarter and full year of 2024, alongside updates on its SER-155 program. The company highlighted significant progress with SER-155, which received Breakthrough Therapy designation from the FDA due to its potential to reduce bloodstream infections in allo-HSCT patients. The company plans to submit a draft study protocol to the FDA in Q2 2025, aiming to advance SER-155’s development and explore expansion into other patient populations. Market research indicates a strong commercial opportunity for SER-155, driven by the unmet need for effective prophylactic therapies against bloodstream infections.

Seres Therapeutics Announces CMO Resignation in March 2025

On February 22, 2025, Seres Therapeutics announced that Lisa von Moltke, M.D. will resign from her role as Executive Vice President and Chief Medical Officer, effective March 14, 2025. Dr. von Moltke is set to join another U.S. biopharmaceutical company as Chief Medical Officer and Head of Research and Development, focusing on autoimmune diseases, reflecting her professional interest.

Seres Therapeutics Expands Board with Nestlé’s Appointee

On February 4, 2025, Seres Therapeutics expanded its Board of Directors to nine members and appointed Dr. Hans-Juergen Woerle as a Class III director. This appointment is linked to an agreement with Nestlé, which holds a significant stake in the company, granting them the right to designate a board member. Dr. Woerle, with extensive experience in medical and scientific roles, will contribute to Seres’ strategic direction, particularly in science and clinical development, enhancing the company’s industry positioning.