MeritValue

Prime Medicine, Inc.

PRMEdata completeness 88%6 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

Prime Medicine, Inc. earns about -120% on equity, but has diluted owners by 1047% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$01$01$02$2.98M3$4.63M3
Net income−$165.4M4−$121.8M5−$198.1M6−$195.9M7−$201.1M7
Operating cash flow−$34.1M8−$131.8M9−$165.4M10−$122.9M11−$162.6M11
Capital expenditure$4.15M12$16.1M13$8.72M14$7.29M15$4.53M15
Free cash flow (derived)−$38.2M8−$147.9M9−$174.1M10−$130.2M11−$167.1M11
Total debt—————
Cash & equivalents$185.4M16$187.6M17$41.6M18$182.5M19$63M19
Diluted shares13.0M33.9M91.0M118.6M148.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$8.13
your share of equity
Profit it earned you last year
−$13.52
Free cash flow it threw off
−$11.23
Debt you’d be carrying
—

10 shares is a claim on $8.13 of net worth that earned you −$13.52 and generated −$11.23 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-120% avg · 5y
FY21 —FY22 -39%FY23 -149%FY24 -128%FY25 -166%

It earned an average -120% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+1047% shares · 5y

Share count is up 1047% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001628280-23-007266 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-12-31 · accession 0001628280-25-008884 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-12-31 · accession 0001628280-26-013569 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001628280-23-007266 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001628280-24-008116 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001628280-25-008884 (NetIncomeLoss)
  7. 10-K · period ending 2024-12-31 · accession 0001628280-26-013569 (NetIncomeLoss)
  8. 10-K · period ending 2021-12-31 · accession 0001628280-23-007266 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-12-31 · accession 0001628280-24-008116 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-12-31 · accession 0001628280-25-008884 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-12-31 · accession 0001628280-26-013569 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2021-12-31 · accession 0001628280-23-007266 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-12-31 · accession 0001628280-24-008116 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-12-31 · accession 0001628280-25-008884 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-12-31 · accession 0001628280-26-013569 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2021-12-31 · accession 0001628280-23-007266 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2022-12-31 · accession 0001628280-24-008116 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-12-31 · accession 0001628280-25-008884 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-12-31 · accession 0001628280-26-013569 (CashAndCashEquivalentsAtCarryingValue)