Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jul 2, 2026
FATE THERAPEUTICS INC (FATE)
A forensic read on FATE THERAPEUTICS INC built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-13.3
Altman Z-score
Clean
Earnings quality
3
Forensic signals
-58.9%
ROE
$352M
Market cap
FATE THERAPEUTICS INC earns a F (Poor — capital at risk) forensic quality grade, and its Altman Z-score is -13.3, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-49%Return on invested capital.Return on invested capital is -49% and slipping from -46% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+7.6%/yrShare-count dilution.Diluted share count changed +23% over the last 3 years to FY2025 (+7.6%/yr). The count is GROWING — existing holders are being diluted. That's ~7.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~23%.
375% of revStock-based comp load.Stock-based compensation ran 375% of revenue in FY2025 — about $0.21 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-2051.1%
Debt / Equity0.07x
Free Cash Flow$-112.0M
Latest Revenue$6.6M
Return on Equity-65.8%
Revenue Growth YoY-51.2%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on FATE THERAPEUTICS INC:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about FATE's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown