Spero Therapeutics, Inc. (SPRO)
Valuation Overview•Is Spero Therapeutics, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
High-quality fundamentals with a strong composite quality score of 82/100, backed by robust profitability and solvency.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: High-quality compounder, with profitability as the only relative weakness.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
SPRO demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($37M) and minimal debt risk.
The company demonstrates solid revenue growth (7.1% 3Y CAGR) paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 24.7% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $258K | +24.3% | +7.1% | +44.9% | — | |
| EBITDA | -$7.5M | — | +91.7% | — | — | |
| Net Income | -$7.2M | +112.5% | — | — | — | |
| EPS (Diluted) | $-0.13 | +111.8% | — | — | — | |
| Free Cash Flow | $15.9M | +46.2% | -17.8% | +31.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 100.0% | 16.3% | 49.8% | -1070.8% |
| Operating Margin | 24.7% | -44.1% | -616.9% | -1738.6% |
| Net Margin | 27.8% | -35.5% | -625.2% | -1529.0% |
| FCF Margin | 13.2% | -33.9% | -29.4% | -1472.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.18 | $-0.13 | +27.8% | ||
| Q1'26 | $-0.20 | $0.53 | +365.0% | ||
| Q4'25 | $-0.25 | $-0.13 | +48.0% | ||
| Q3'25 | $-0.38 | $-0.03 | +92.1% | ||
| Q2'25 | $-0.55 | $-0.25 | +54.5% | ||
| Q1'25 | $-0.35 | $-0.38 | -8.6% | ||
| Q4'24 | $-0.27 | $-0.32 | -18.5% | ||
| Q3'24 | $-0.35 | $-0.33 | +5.7% |
Total return is -22.4% (1Y), lagging the benchmark by -47.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -3.0% | -12.3% | — |
| 1Y | -22.4% | -47.4% | — |
| 3YCAGR | +14.2% | -8.2% | — |
| 5YCAGR | -31.1% | -45.1% | — |
| 10YCAGR | -14.9% | -29.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Spero Therapeutics, Inc. (SPRO) valuation, health, and returns.
Based on peer relative multiples, Spero Therapeutics, Inc. appears Cheap versus peers compared to industry peers.
Spero Therapeutics, Inc. has multiple valuation anchors: Peer Relative Fair Value: $4.29. A convergence of these signals offers higher conviction.
Spero Therapeutics, Inc. displays excellent financial health with a composite quality score of 82/100, supported by a Altman Z-Score of 0.6 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of -0.2%.
Spero Therapeutics, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Spero Therapeutics, Inc.'s current growth trajectory is Accelerating. The company achieved +24.3% 1Y revenue growth and +111.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +7.1%.
Wall Street consensus is Buy based on 13 analysts, beating EPS expectations in 75% of recent quarters with a 5-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Spero Therapeutics, Inc. include: -39.8% 1-year max drawdown, high beta (1.54x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.54x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.