FNCHQ (Finch Therapeutics Group) Net-Net Working Capital: $-9.54 (As of Jun. 2024)

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FNCHQ Finch Therapeutics Group Inc FNCHQ
12 GF Score
Price $10.20
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What is Finch Therapeutics Group Net-Net Working Capital?

Finch Therapeutics Group FNCHQ 12 Net-Net Working Capital is $-9.54 as of Jun. 2024. GuruFocus rates FNCHQ with a GF Score™ of 12/100.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Finch Therapeutics Group's Net-Net Working Capital for the quarter that ended in Jun. 2024 was $-9.54.

The industry rank for Finch Therapeutics Group's Net-Net Working Capital or its related term are showing as below:

FNCHQ's Price-to-Net-Net-Working-Capital is not ranked *
in the Biotechnology industry.
Industry Median: 5.305
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Finch Therapeutics Group  (OTCPK:FNCHQ) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Finch Therapeutics Group Net-Net Working Capital Related Terms


Finch Therapeutics Group Net-Net Working Capital Historical Data

* Premium members only.

The historical data trend for Finch Therapeutics Group's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Finch Therapeutics Group Net-Net Working Capital Chart

Finch Therapeutics Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
-78.45 -104.95 69.89 2.45 -4.58

Finch Therapeutics Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.06 -3.05 -4.58 -6.41 -9.54

FNCHQ vs CRIS, LSB, RANI: Net-Net Working Capital Comparison

For the Biotechnology subindustry, Finch Therapeutics Group's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Finch Therapeutics Group Price-to-Net-Net-Working-Capital vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Finch Therapeutics Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Finch Therapeutics Group's Price-to-Net-Net-Working-Capital falls into.


FNCHQ
12GF Score
Finch Therapeutics Group Inc FNCHQ
Net-Net Working Capital is just one metric. See GF Score™, valuation, warning signs, and more.
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Finch Therapeutics Group Net-Net Working Capital Calculation

Finch Therapeutics Group's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(25.124+0.75 * 0+0.5 * 0-32.487
-0-0)/1.606
=-4.58

Finch Therapeutics Group's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2024 is calculated as

Net-Net Working Capital(Q: Jun. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(16.035+0.75 * 0+0.5 * 0-31.357
-0-0)/1.606
=-9.54

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

What does a Net-Net Working Capital of $-9.54 mean?
Finch Therapeutics Group (FNCHQ) has a Net-Net Working Capital of $-9.54 as of Jun. 2024. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Finch Therapeutics Group
Is Finch Therapeutics Group's Net-Net Working Capital too high?
Finch Therapeutics Group's current Net-Net Working Capital is $-9.54. Overall, Finch Therapeutics Group has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Finch Therapeutics Group's Net-Net Working Capital compare to CRIS and LSB?
Finch Therapeutics Group's Net-Net Working Capital of $-9.54 can be compared against companies in the Biotechnology industry. The industry median Net-Net Working Capital is 5.31. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Biotechnology company?
The median Net-Net Working Capital among Biotechnology companies is 5.31, based on 844 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Finch Therapeutics Group For the Biotechnology industry, the median Net-Net Working Capital is 5.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Finch Therapeutics Group's current Net-Net Working Capital is $-9.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finch Therapeutics Group stock overvalued right now?
Finch Therapeutics Group (FNCHQ) has a current Net-Net Working Capital of $-9.54. The current Net-Net Working Capital is $-9.54. Finch Therapeutics Group's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Finch Therapeutics Group (FNCHQ), the current Net-Net Working Capital is $-9.54 as of Jun. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Finch Therapeutics Group Business Description

Address 75 State Street, Suite 100, Boston, MA, USA, 02109
Finch Therapeutics Group Inc is a microbiome technology company with a portfolio of intellectual property and microbiome assets. Finch has a robust intellectual property estate reflecting the company's pioneering role in the microbiome therapeutics field, including more than 70 issued U.S. and foreign patents with critical relevance for both donor-derived and donor-independent microbiome therapeutics in a range of potential indications. The company's assets include CP101, an investigational, orally administered microbiome candidate with positive clinical data from a Phase 2 randomized, placebo-controlled trial and a Phase 2 open-label trial in recurrent C. difficile infection (CDI).
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