ScoreWhy is Spero Therapeutics, Inc. ?
1
Poor Management Efficiency with a low ROE of 5.97%
- The company has been able to generate a Return on Equity (avg) of 5.97% signifying low profitability per unit of shareholders funds
2
The company has declared Negative results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at USD -27.67 MM
- CASH AND EQV(HY) Lowest at USD 79.81 MM
- NET SALES(Q) Lowest at USD 3.05 MM
3
With ROE of -158.96%, it has a risky valuation with a 5.51 Price to Book Value
- Over the past year, while the stock has generated a return of 170.90%, its profits have fallen by -1299.7%
4
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -2.46% over the previous quarter and currently hold 7.41% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
5
Market Beating performance in long term as well as near term
- Along with generating 170.90% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Spero Therapeutics, Inc. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Spero Therapeutics, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Spero Therapeutics, Inc.
334.26%
0.25
253.12%
S&P 500
30.29%
0.62
19.30%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.55%
EBIT Growth (5y)
6.13%
EBIT to Interest (avg)
-40.38
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-1.39
Sales to Capital Employed (avg)
1.01
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
29.49%
ROCE (avg)
20.70%
ROE (avg)
5.97%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
5.51
EV to EBIT
-1.76
EV to EBITDA
-1.76
EV to Capital Employed
-4.91
EV to Sales
3.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
-158.96%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -170.85 %
PRE-TAX PROFIT(Q)
At USD -6.79 MM has Grown at 61.03%
NET PROFIT(Q)
At USD -6.79 MM has Grown at 60.37%
-9What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD -27.67 MM
CASH AND EQV(HY)
Lowest at USD 79.81 MM
NET SALES(Q)
Lowest at USD 3.05 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -319 %
Here's what is working for Spero Therapeutics, Inc.
Pre-Tax Profit
At USD -6.79 MM has Grown at 61.03%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
At USD -6.79 MM has Grown at 60.37%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Debt-Equity Ratio
Lowest at -170.85 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by 0% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Spero Therapeutics, Inc.
Net Sales
At USD 3.05 MM has Fallen at -61.02%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (USD MM)
Operating Cash Flow
Lowest at USD -27.67 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Net Sales
Lowest at USD 3.05 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Operating Profit Margin
Lowest at -319 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Cash and Eqv
Lowest at USD 79.81 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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