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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4211
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$168M
Eric D. Shaff
Seres Therapeutics, Inc. 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. SER-155, a cultivated bacteria microbiome drug, is Phase Ib clinical trial to reduce incidences of gastrointestinal infections, bloodstream infections, and graft versus host diseases.
Headcount
330
HQ Base
Cambridge, Massachusetts
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = MCRB ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$MCRB Seres Therapeutics, Inc. | 34 | 24 | 45 | 52 | 0.7x | 4.9x | 251.3% | 76.5% | 100.0% | -6403.7% | 2337.3% | - | 0.0% | 228.0x | $168M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
Seres Therapeutics, Inc. (MCRB) receives a "Avoid" rating with a composite score of 33.9/100. It ranks #4211 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Eric D. Shaff
Chief Executive Officer
Labor Force
330
24
21
6
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for MCRB
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for MCRB.
View All RatingsHigh margin volatility — erratic forensic earnings quality
ROE proxy 251.3% (sector -2.5%)
GM 100% vs sector 43%, OM -6404% vs sector 1%
Capital turnover N/A, R&D intensity 10648.4%
Rev growth N/A, 10yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our quantitative model flags Seres Therapeutics, Inc. with an Avoid rating, assigning a composite score of 33.9/100 and 1 out of 5 stars. Ranked #4211 of 7,333 stocks, MCRB falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
Seres Therapeutics, Inc. registers a weak quality score of just 24/100, indicating significant profitability challenges. The company reports a return on equity of 251.3% (sector avg: -2.5%), gross margins of 100.0% (sector avg: 42.5%), net margins of 2337.3% (sector avg: -0.2%). Low quality scores are often associated with businesses in turnaround mode, early-stage growth, or structurally challenged industries.
With a value score of 45/100, MCRB appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 0.70x, an EV/EBITDA of 4.88x, a P/B ratio of 1.77x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Seres Therapeutics, Inc.'s investment score of 21/100 suggests limited reinvestment activity. Key growth metrics include a return on assets of 76.5% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
MCRB demonstrates moderate momentum with a score of 52/100, suggesting a neutral price trend without strong directional conviction. Revenue growth data is not currently available, while a beta of 15.38 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
Seres Therapeutics, Inc. registers a low stability score of 6/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 15.38 and a debt-to-equity ratio of 228.00x (sector avg: 0.2x). Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
Seres Therapeutics, Inc.'s short interest score of 29/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include high market sensitivity (beta: 15.38), elevated leverage (D/E: 228.00x), micro-cap liquidity risk. At $168M (micro-cap), MCRB carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Seres Therapeutics, Inc. is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #4211 of 7,333 overall (43rd percentile). Key comparisons include ROE of 251.3% exceeding the -2.5% sector median and operating margins of -6403.7% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While MCRB currently exhibits a AVOID profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Stability (6) would have the largest impact on the composite score.
EV/EBITDA 57% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 10233% BELOW SECTOR MEDIAN
Gross Margin 135% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate Seres Therapeutics, Inc. (MCRB) as Avoid with a composite score of 33.9/100 at a current price of $8.75. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.
The rating is primarily driven by strength in momentum (52th percentile) and value (45th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (6th percentile) and investment (21th percentile) tempers our overall conviction. We assign a Narrow Moat rating (40/100), Very High uncertainty, and Standard capital allocation.
Key items to watch: balance sheet deleveraging progress. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is narrowing, which raises the risk of a future downgrade if the trend persists.
Seres Therapeutics, Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 33.9/100 places it at rank #4211 in our full 7,333-stock universe. At $168M in market capitalization, Seres Therapeutics, Inc. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Momentum indicators (52th percentile) are neutral regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.
The margin cascade tells an important story: gross margins of 100% (+57.5pp vs sector) narrow to operating margins of -6404% (-6405.0pp vs sector) and net margins of 2337.3%, yielding a gross-to-net conversion rate of 2337%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.
At a current price of $8.75, Seres Therapeutics, Inc. is trading near fair value based on current fundamentals. Our value factor score of 45/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 0.7x (a 97% discount to the sector median of 22.3x), EV/EBITDA of 4.9x (discounted to peers), P/B of 1.8x, P/S of 220.4x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.
Gross margins of 100% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
Returns on equity of 251.3% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
Return on assets of 76.5% indicates efficient deployment of the full asset base, not just equity capital.
The Avoid rating (composite 33.9/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Elevated leverage (228% D/E) amplifies downside risk and limits management's financial flexibility in adverse scenarios.
We assign a Very High uncertainty rating to Seres Therapeutics, Inc.. The stock exhibits multiple compounding risk factors: elevated market sensitivity (beta of 15.38), significant leverage (228% debt-to-equity), below-average price stability (6th percentile). The extreme uncertainty around future cash flows makes precise valuation difficult, and the range of outcomes is exceptionally wide. Only investors with high risk tolerance and extended time horizons should consider this name.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 15.38); significant leverage (228% debt-to-equity); below-average price stability (6th percentile); weak quality scores (24th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 6th percentile and quality factor at the 24th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 100% provide a buffer against cost pressures. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate Seres Therapeutics, Inc.'s capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 251.3%, and the balance sheet is managed within acceptable parameters (D/E: 228%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; Seres Therapeutics, Inc. falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. Absent a dividend, the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, Seres Therapeutics, Inc. receives a Avoid rating with a composite score of 33.9/100 (rank #4211 of 7,333). Our quantitative framework assigns a Narrow Moat (40/100, trend: narrowing), Very High uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 30/100.
Our analysis does not support a constructive view on Seres Therapeutics, Inc. at this time. The combination of the current quantitative profile, very high uncertainty, and standard capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign Seres Therapeutics, Inc. a Narrow Moat rating with a composite moat score of 40/100. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that Seres Therapeutics, Inc. can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being economic value creation at 15/20.
The strongest moat sources are economic value creation (15/20) and margin superiority (12.9/20). ROE proxy 251.3% (sector -2.5%). GM 100% vs sector 43%, OM -6404% vs sector 1%. These pillars form the core of Seres Therapeutics, Inc.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include financial resilience (0.8/20) and growth durability (4.2/20). Interest coverage N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Narrowing. ROIC has declined at ~28.3pp per year, and operating margins show fundamental deterioration. Investors should monitor these indicators closely — a sustained narrowing trend often precedes material downgrades in our moat assessment.
Key profit drivers include gross margins of 100% providing a solid profitability foundation, returns on equity of 251.3% driving shareholder value creation. The margin cascade from 100% gross to -6404% operating to 2337.3% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality raises some durability concerns, with the quality factor at the 24th percentile.
The margin profile shows gross margins of 100%, operating margins of -6404%, net margins of 2337.3%. Return metrics include ROE of 251.3% and ROA of 76.5%. Relative to the Manufacturing sector, gross margins are 57.5 percentage points above the sector median of 43%, and ROE of 251.3% compares to a sector median of -2.5%.
The balance sheet reflects high leverage with D/E of 228%, which may limit financial flexibility. The sector median D/E is 0%, putting Seres Therapeutics, Inc. at higher leverage than the typical peer. Elevated leverage in combination with the current margin profile warrants close monitoring for any deterioration in debt-servicing capacity.
Below-average quality (24th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
High beta of 15.38 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
Above 50MA
37.18%
Net New Highs
+51081
Seres Therapeutics (MCRB) stock falls as the firm pauses funding for a study for its lead asset SER-155 in patients undergoing stem cell transplants. Read more here.
Seres Therapeutics reported Q3 2025 earnings, highlighting progress on SER-155, a live biotherapeutic targeting bloodstream infections in stem cell transplant patients. The company secured a $3.6M CARB-X grant, reduced workforce by 25%, and is seeking additional capital to advance clinical trials.
Particles for Humanity welcomes Marcus Chapman as Senior Vice President and Head of Finance. Chapman will oversee financial strategy, planning, and operations as the organization prepares for a 2026 commercial launch of PFH-VAP, a stable formulation of vitamin A for large scale food fortification.