NasdaqGS:SPRO

Stock Analysis Report

Executive Summary

Spero Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on identifying, developing, and commercializing novel treatments for multi-drug resistant (MDR) bacterial infections in the United States.

Rewards

Revenue is forecast to grow 58.43% per year

Risk Analysis

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

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

10.3%

SPRO

-4.1%

US Biotechs

-1.3%

US Market


1 Year Return

0.6%

SPRO

8.2%

US Biotechs

22.0%

US Market

Return vs Industry: SPRO underperformed the US Biotechs industry which returned 11.3% over the past year.

Return vs Market: SPRO underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SPROIndustryMarket
7 Day10.3%-4.1%-1.3%
30 Day-5.9%-3.5%1.6%
90 Day-9.1%11.7%8.9%
1 Year0.6%0.6%9.2%8.2%24.7%22.0%
3 Yearn/a23.3%19.2%49.4%39.7%
5 Yearn/a1.0%-3.8%78.1%58.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.98x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SPRO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SPRO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SPRO is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: SPRO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SPRO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPRO is good value based on its PB Ratio (1.8x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Spero Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

39.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SPRO's revenue (58.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: SPRO's revenue (58.4% 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 SPRO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Spero Therapeutics performed over the past 5 years?

-17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPRO is currently unprofitable.

Growing Profit Margin: SPRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPRO is unprofitable, and losses have increased over the past 5 years at a rate of -17.4% per year.

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

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


Return on Equity

High ROE: SPRO has a negative Return on Equity (-50.02%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spero Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: SPRO's short term assets ($104.0M) exceed its short term liabilities ($15.1M).

Long Term Liabilities: SPRO's short term assets ($104.0M) exceed its long term liabilities ($4.4M).


Debt to Equity History and Analysis

Debt Level: SPRO is debt free.

Reducing Debt: SPRO has not had any debt for past 5 years.


Balance Sheet

Inventory Level: SPRO has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SPRO's debt is 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: SPRO has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SPRO has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of -15.5% each year.


Next Steps

Dividend

What is Spero 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 SPRO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SPRO'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 SPRO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPRO'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 SPRO'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 Spero Therapeutics's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Ankit Mahadevia (38yo)

4.8yrs

Tenure

US$721,324

Compensation

Mr. Ankit Mahadevia, MD, MBA serves as the Chief Executive Officer and President of Spero Therapeutics, LLC. Mr. Mahadevia Co-founded of Spero Therapeutics, Inc. in 2013 and has been its Chief Executive Of ...


CEO Compensation Analysis

Compensation vs Market: Ankit's total compensation ($USD721.32K) is below average for companies of similar size in the US market ($USD1.08M).

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


Management Age and Tenure

2.0yrs

Average Tenure

60yo

Average Age

Experienced Management: SPRO's management team is considered experienced (2 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

62yo

Average Age

Experienced Board: SPRO's board of directors are considered experienced (5.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28.3%.


Management Team

  • Tom Parr (65yo)

    Chief Scientific Officer

    • Tenure: 5.8yrs
    • Compensation: US$450.89k
  • Ian Critchley

    Head of Clinical Microbiology

    • Tenure: 1.8yrs
  • Ankit Mahadevia (38yo)

    Co-Founder

    • Tenure: 4.8yrs
    • Compensation: US$721.32k
  • Sharon Klahre

    Senior Director of Investor Relations

    • Jay Blackington

      Vice President of People Strategy & Culture

      • Tenure: 1.2yrs
    • Melissa Stundick

      Executive Director of Strategic Alliances

      • Cristina Larkin (49yo)

        Chief Operating Officer

        • Tenure: 2.3yrs
        • Compensation: US$533.80k
      • David Melnick (67yo)

        Chief Medical Officer

        • Tenure: 2yrs
        • Compensation: US$1.63m
      • Steve DiPalma (60yo)

        Interim CFO & Treasurer

        • Tenure: 0.2yrs
      • Susannah Walpole

        Head of Clinical Operations

        • Tenure: 2yrs

      Board Members

      • Jean-François Formela (62yo)

        Independent Director

        • Tenure: 6.8yrs
        • Compensation: US$92.15k
      • Frank Thomas (49yo)

        Independent Director

        • Tenure: 2.5yrs
        • Compensation: US$102.15k
      • Milind Deshpande (62yo)

        Chairman

        • Compensation: US$122.03k
      • Eric Gordon

        Scientific Advisors

        • Tenure: 5.7yrs
      • George Drusano

        Clinical Advisor

        • Tenure: 5.7yrs
      • Steve Gilman (66yo)

        Scientific Advisor

        • Patrick Vink (56yo)

          Independent Director

          • Tenure: 4.3yrs
          • Compensation: US$100.65k
        • Gordon Archer (75yo)

          Clinical Advisor

          • Tenure: 5.7yrs
        • Ankit Mahadevia (38yo)

          Co-Founder

          • Tenure: 4.8yrs
          • Compensation: US$721.32k
        • Paul Ambrose

          Clinical Advisor

          • Tenure: 5.7yrs

        Company Information

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


        Key Information

        • Name: Spero Therapeutics, Inc.
        • Ticker: SPRO
        • Exchange: NasdaqGS
        • Founded: 2013
        • Industry: Biotechnology
        • Sector: Pharmaceuticals & Biotech
        • Market Cap: US$187.647m
        • Shares outstanding: 19.13m
        • Website: https://sperotherapeutics.com

        Number of Employees


        Location

        • Spero Therapeutics, Inc.
        • 675 Massachusetts Avenue
        • 14th Floor
        • Cambridge
        • Massachusetts
        • 2139
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        SPRONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2017
        2HADB (Deutsche Boerse AG)YesCommon StockDEEURNov 2017

        Biography

        Spero Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on identifying, developing, and commercializing novel treatments for multi-drug resistant (MDR) bacterial infections in the United States. Its product candidate includes SPR994, an oral carbapenem-class antibiotic to treat MDR gram-negative infections for adults; SPR741, which is in Phase Ib clinical trial to treat MDR gram-negative infections in the hospital setting; SPR206, an agent that is phase I clinical trial to disrupt the outer membrane of gram-negative bacteria; and SPR720, an oral antibiotic, which is in phase I clinical trial for the treatment of pulmonary non-tuberculous mycobacterial infections. Spero Therapeutics, Inc. has collaboration agreement with Everest Medicines to develop, manufacture, and commercialize SPR206 in Greater China, South Korea, and Southeast Asian countries, as well as has option to rights to SPR741 in the territory; and collaboration agreement with Bill & Melinda Gates Medical Research Institute to develop SPR720 for the treatment of lung infections caused by Mycobacterium tuberculosis. The company was founded in 2013 and is headquartered in Cambridge, Massachusetts. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/26 00:59
        End of Day Share Price2020/01/24 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.