Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
Prime Medicine, Inc. (PRME)
A forensic read on Prime Medicine, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-9.2
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-188.8%
ROE
$620M
Market cap
Prime Medicine, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -9.2, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+611.5%Accruals ratio.Net operating assets grew +611.5% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -271% of net operating assets.
-68%Return on invested capital.Return on invested capital is -68% and slipping from -63% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+113.0%/yrShare-count dilution.Diluted share count changed +339% over the last 3 years to FY2025 (+113.0%/yr). The count is GROWING — existing holders are being diluted. That's ~113.0% 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 ~339%.
632% of revStock-based comp load.Stock-based compensation ran 632% of revenue in FY2025 — about $0.20 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-4342.4%
Free Cash Flow$-167.1M
Latest Revenue$4.6M
Return on Equity-166.4%
Revenue Growth YoY+55.3%
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 Prime Medicine, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about PRME'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