SPRO is now undervalued and could go up 355%
Spero Therapeutics, based in Cambridge, Massachusetts, develops treatments for multi-drug resistant infections and rare diseases, with key products including SPR720, tebipenem HBr, and SPR206. The company went public on November 2, 2017, and employs 46 people.
Based on our analysis, Spero Therapeutics has received an undervalued rating of 4 out of 5 stars from Cashu. Several key financial ratios indicate that the company is priced lower than its intrinsic value compared to its sector peers.
The price-to-book (PB) ratio for Spero stands at 1.22, significantly lower than the sector average of 2.64. A lower PB ratio suggests that the company's stock may be undervalued relative to its assets, indicating a potential buying opportunity for investors.
In terms of profitability, Spero's net profit margin is reported at -142.91, which, while negative, is slightly worse than the sector's -138.43. Although both figures indicate challenges in profitability, the smaller negative margin of Spero suggests it may be on a path to improvement.
The return on equity (ROE) for Spero is -148.66, compared to the sector average of -75.69. While negative ROE is a concern, Spero's much higher figure could indicate that the company is facing significant challenges in generating returns for shareholders. However, it also reflects the potential for turnaround as management works to improve operations.
Finally, Spero’s return on assets (ROA) is -62.03, against the sector's -48.03. Again, while negative, Spero's performance indicates room for improvement.
Overall, these financial ratios suggest that Spero Therapeutics is currently undervalued, providing a potential opportunity for investors looking for growth in the biotechnology sector.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
