NasdaqGS:MCRB

Stock Analysis Report

Executive Summary

Seres Therapeutics, Inc., a microbiome therapeutics platform company, engages in developing biological drugs that are designed to treat disease by restoring the function of a dysbiotic microbiome.

Rewards

Revenue is forecast to grow 38.92% per year

Risk Analysis

Earnings are forecast to decline by an average of -8.3% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Mediocre balance sheet with limited growth.

Share Price & News

How has Seres Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCRB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.1%

MCRB

-0.6%

US Biotechs

-0.3%

US Market


1 Year Return

-52.0%

MCRB

14.9%

US Biotechs

18.6%

US Market

Return vs Industry: MCRB underperformed the US Biotechs industry which returned 11% over the past year.

Return vs Market: MCRB underperformed the US Market which returned 15.5% over the past year.


Shareholder returns

MCRBIndustryMarket
7 Day-7.1%-0.6%-0.3%
30 Day0%9.4%2.2%
90 Day0%14.9%5.6%
1 Year-52.0%-52.0%15.9%14.9%21.1%18.6%
3 Year-62.5%-62.5%28.1%24.1%45.6%36.2%
5 Yearn/a6.8%1.9%71.1%52.2%

Price Volatility Vs. Market

How volatile is Seres Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Seres Therapeutics undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Seres Therapeutics is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Seres Therapeutics has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Seres Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCRB is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MCRB is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MCRB is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MCRB's revenue (38.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: MCRB's revenue (38.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MCRB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Seres Therapeutics performed over the past 5 years?

-20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCRB is currently unprofitable.

Growing Profit Margin: MCRB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MCRB is unprofitable, and losses have increased over the past 5 years at a rate of -20.7% per year.

Accelerating Growth: Unable to compare MCRB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MCRB is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: MCRB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Seres Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: MCRB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MCRB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MCRB is debt free.

Reducing Debt: MCRB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: MCRB has a high level of physical assets or inventory.

Debt Coverage by Assets: MCRB has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MCRB has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MCRB has sufficient cash runway for 1.198157 years if free cash flow continues to reduce at historical rates of -21.6% each year.


Next Steps

Dividend

What is Seres Therapeutics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MCRB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MCRB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MCRB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MCRB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCRB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Seres Therapeutics's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Eric Shaff (43yo)

0.9yrs

Tenure

US$1,447,070

Compensation

Mr. Eric D. Shaff serves as President and Chief Executive Officer of Seres Therapeutics, Inc. since January 15, 2019 and serves as its Director since January 2019. He served as Chief Operating Officer at S ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD1.45M) is about average for companies of similar size in the US market ($USD1.13M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: MCRB's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

56yo

Average Age

Experienced Board: MCRB's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$19,999,99820 Jun 19
Flagship Pioneering
EntityCompany
Shares8,888,888
Max PriceUS$2.25

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.3%.


Management Team

  • Tom DesRosier (64yo)

    Chief Legal Officer

    • Tenure: 3.6yrs
    • Compensation: US$1.84m
  • Jim Weston

    Senior Vice President of Regulatory Affairs

    • Tenure: 2.6yrs
  • Kevin Horgan (60yo)

    Executive VP & Chief Medical Officer

    • Tenure: 1.2yrs
  • John Aunins (58yo)

    CTO and Executive VP of Bioprocess & Manufacturing

    • Tenure: 7yrs
  • Eric Shaff (43yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$1.45m
  • Matt Henn (44yo)

    Executive VP & Chief Scientific Officer

    • Tenure: 0.8yrs
  • Carlo Tanzi

    VP of Investor Relations & Corporate Communications

    • Tenure: 4.1yrs
  • Jeff York

    Vice President of Human Resources

    • Tenure: 2.6yrs
  • Marcus Chapman (48yo)

    VP of Finance

    • Tenure: 1.9yrs

Board Members

  • Noubar Afeyan (56yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$154.17k
  • Charlie Cooney (75yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Denny Ausiello (73yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$131.09k
  • Kurt Graves (51yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$137.17k
  • Roger Pomerantz (62yo)

    Chairman of the Board

    • Tenure: 6.1yrs
    • Compensation: US$3.02m
  • Rich Kender (63yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$147.17k
  • Lorence Kim (45yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$135.67k
  • Mark Wilcox

    Member of Scientific Advisory Board

    • Tenure: 4.9yrs
  • Greg Behar (50yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$130.67k
  • Eric Shaff (43yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$1.45m

Company Information

Seres Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seres Therapeutics, Inc.
  • Ticker: MCRB
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$262.477m
  • Shares outstanding: 69.99m
  • Website: https://www.serestherapeutics.com

Number of Employees


Location

  • Seres Therapeutics, Inc.
  • 200 Sidney Street
  • 4th Floor
  • Cambridge
  • Massachusetts
  • 2139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCRBNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 2015
1S9DB (Deutsche Boerse AG)YesCommon SharesDEUSDJun 2015

Biography

Seres Therapeutics, Inc., a microbiome therapeutics platform company, engages in developing biological drugs that are designed to treat disease by restoring the function of a dysbiotic microbiome. The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:37
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.