Septerna, Inc. (SEPN) AI Stock Analysis
SEPN AI stock analysis summary
AI ResearchSepterna, Inc. (SEPN) is a clinical-stage biotechnology company focused on oral small molecule GPCR drugs. The company achieved trailing twelve months revenue of $98.9M, though operating margin stood at -62.9%. It maintains a strong balance sheet with $372.3M in cash and short-term investments alongside net cash of $349.8M.
- Market cap
- $1.70B
- Revenue (TTM)
- $98.9M
- P/E
- — fwd 107.5x
- 1Y return
- 61.1% S&P 500 16.8%
- Avg. target
- $54.22 49.2% vs last close
Bull case
- Revenue expanded rapidly from $1.1M in FY2024 to $46.0M in FY2025, achieving a 2-year revenue CAGR of 1644.5%.
- The company ended the second quarter of 2026 with $349.8M in net cash and a strong current ratio of 4.99.
- Wall Street analysts maintain 9 Strong Buy ratings and 1 Buy rating, with an average price target of $54.22.
Bear case
- The company remains unprofitable with trailing twelve months net income reflecting an operating margin of -62.9% and EPS of -$0.54.
- Valuation multiples are elevated, featuring a forward P/E of 107.5x compared to the US-listed Healthcare median of 17.3x.
- Analyst consensus projects revenue to contract by 23.4% to $73.6M in the next fiscal year, with EPS declining to -$1.94.
What Septerna does
Septerna, Inc., headquartered in South San Francisco, California, is a clinical-stage biotechnology company that discovers and develops G protein-coupled receptor (GPCR) oral small molecule therapies. Its pipeline includes the PTH1R Program for hypoparathyroidism, SEP-631 for chronic spontaneous urticaria and other mast cell diseases, and the TSHR Program for Graves' disease and thyroid eye disease. Septerna also focuses on neurology, women's health, cardiovascular disease, and respiratory disease. Additionally, the company maintains a global collaboration and license agreement with Novo Nordisk to discover, develop, and commercialize oral small molecule treatments for metabolic-related diseases.
Growth and profitability
Septerna's annual revenue rose from $151,000 in FY2023 to $1.1M in FY2024 and reached $46.0M in FY2025, reflecting a 2-year revenue CAGR of 1644.5%. For FY2025, net income was -$48.9M, compared to -$71.8M in FY2024 and $4.2M in FY2023. Operating margin was -175.8% in FY2025 as R&D expenses reached $97.6M. Over the trailing twelve months ended June 30, 2026, revenue totaled $98.9M with quarterly revenue growth of 22375.6% year-over-year. TTM net profit margin was -24.5% and diluted EPS was -$0.54.
Balance sheet and cash flow
As of June 30, 2026, Septerna held $372.3M in cash and short-term investments against total debt of $22.5M, yielding net cash of $349.8M. The current ratio was 4.99 and debt-to-equity was 0.06. Shareholders' equity stood at $386.7M out of total assets of $566.7M. In FY2025, operating cash flow turned positive to $110.2M and free cash flow was $109.7M. Cash use during FY2025 included $518,000 in capital expenditures and $1,000 in share buybacks.
Valuation and performance
Septerna trades at a market capitalization of $1.70B and an enterprise value of $1.44B. The stock carries a forward P/E of 107.5x and a price-to-sales multiple of 17.2x, compared to the median of its US-listed Healthcare peers of 17.3x forward P/E and 4.1x price-to-sales. Its EV-to-revenue ratio is 14.6x, and price-to-book is 4.6x. Shares gained 61.1% over the past year, outperforming the S&P 500 (SPY) return of 16.8%, and sit 16.1% above their 200-day moving average.
What analysts expect
Wall Street coverage consists of 9 Strong Buy ratings and 1 Buy rating, with 0 Hold, Sell, or Strong Sell recommendations. The mean price target is $54.22, representing a 49.2% upside from the last close of $36.35. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $96.1M and EPS of -$1.19. Septerna has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings report is scheduled for November 9, 2026.
Key risks and what to watch
- R&D expenses increased from $36.0M in FY2023 to $97.6M in FY2025, which could accelerate cash burn if clinical trials expand.
- Next fiscal year projections anticipate revenue declining 23.4% while net losses widen to an estimated EPS of -$1.94.
- Short interest represents 12.7% of the float, pointing to elevated skepticism from market participants.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SEPN AI stock analysis
This page is an AI-written research summary of Septerna, Inc. (SEPN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SEPN income statement, SEPN balance sheet, SEPN key metrics, SEPN analyst forecast, SEPN chart. See the SEPN stock overview for the latest quote and news.
SEPN AI stock analysis FAQ
What does Septerna, Inc. do?
Septerna, Inc. is a clinical-stage biotechnology company developing oral small molecule medicines targeting G protein-coupled receptors (GPCRs). Its pipeline includes programs for hypoparathyroidism, chronic spontaneous urticaria, and Graves' disease, alongside a collaboration with Novo Nordisk.
Does Septerna pay a dividend?
Septerna does not pay a dividend, as it is a clinical-stage biotechnology company that reinvests capital into research and development.
What is Septerna's cash and debt position?
As of June 30, 2026, Septerna held $372.3M in cash and short-term investments and $22.5M in total debt, resulting in a net cash position of $349.8M.
What do Wall Street analysts forecast for SEPN stock?
Analysts have set an average price target of $54.22, implying a 49.2% upside from the recent close of $36.35, backed by 9 Strong Buy and 1 Buy ratings.