Sarepta Therapeutics (SRPT) AI Stock Analysis

• Market Cap: $3.51B
• Dividend Yield: N/A
• Average Volume (3M): 4.30M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.09
• Revenue Growth: 59.15%
• EPS Growth: -1881.09%
• Country: US
• Employees: 1,372
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): -4.60
• Shares Outstanding: 98,277,030
• 10 Day Avg. Volume: 7,650,064
• 30 Day Avg. Volume: 4,298,245
• PEG Ratio: 0.17
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.40
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 2.42
• Enterprise Value/Ebitda: 5.41
• 1Y Price Target: $96.57
• Price Target Upside: 173.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23

Sarepta's stock score reflects strong revenue growth but is weighed down by profitability and cash-flow challenges. Bearish technical indicators and a negative P/E ratio suggest caution, although there is potential for future demand growth. The company's ability to manage current issues will be crucial for future performance.

Positive Factors

Financial Performance

Sarepta Therapeutics reported preliminary total product revenue that significantly exceeded both analyst and consensus estimates, indicating strong performance.

Market Growth

The launch of Elevidys continues to be strong, with revenue significantly surpassing estimates and numerous patients being treated.

Regulatory Approvals

The Japanese approval of Elevidys represents the first approval for patients under four years of age.

Negative Factors

Market Competition

There is significant competition modeled for PMOs, with uncertainty around FDA affecting the outlook.

Operational Challenges

SRPT reported several headwinds in 1Q including administrative delays and site capacity constraints, which raise questions about the cadence of the launch.

Regulatory Challenges

Elevidys was approved despite the partial clinical hold in Europe due to a possibly drug-related patient death in the US.

Sarepta Therapeutics Business Overview & Revenue Model

Company Description

Sarepta Therapeutics (SRPT) is a biopharmaceutical company specializing in the development of precision genetic medicines to treat rare neuromuscular diseases. With a focus on Duchenne muscular dystrophy (DMD), Sarepta leverages its expertise in RNA-targeted therapies, gene therapy, and gene editing to develop innovative treatments that address the underlying genetic causes of these conditions. The company's core products include Exondys 51, Vyondys 53, and Amondys 45, which are exon-skipping therapies designed to treat specific mutations in the DMD gene.

How the Company Makes Money

Sarepta Therapeutics generates revenue primarily through the sales of its approved therapies for Duchenne muscular dystrophy. The company has successfully commercialized three exon-skipping therapies—Exondys 51, Vyondys 53, and Amondys 45—each targeting specific mutations in the DMD gene, allowing for a tailored approach to treatment. Additionally, Sarepta engages in collaboration and licensing agreements with other pharmaceutical and biotechnology companies, which provide both upfront payments and potential milestone payments tied to developmental, regulatory, and sales achievements. These strategic partnerships enhance Sarepta's research capabilities and expand its pipeline of potential therapies, further contributing to its revenue streams.

Sarepta Therapeutics Financial Statement Overview

Summary

Sarepta Therapeutics shows strong revenue growth and profitability improvements. However, high leverage and negative cash flow remain concerns, despite some improvements.

Income Statement

Sarepta Therapeutics has demonstrated significant revenue growth over the years, with a notable increase from $380.8M in 2019 to $1.9B in 2024. The gross profit margin is strong, consistently at 100% in 2024, indicating effective cost management. The company turned profitable in 2024 with a net profit margin of 12.37%, a significant improvement from the previous losses. However, EBIT and EBITDA margins have fluctuated, with a positive 11.47% and 11.47% respectively in 2024, suggesting better operational efficiency recently.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 0.87 in 2024, indicating a moderate level of leverage. The return on equity has improved to 15.39% in 2024, reflecting effective use of equity to generate profits. Equity ratio stands at 38.55%, which is reasonable but suggests that a significant portion of assets is financed through debt.

Cash Flow

While Sarepta Therapeutics has shown improvement in free cash flow, it remains negative in 2024 at -$342.7M, though improved from -$588.3M in 2023. The operating cash flow to net income ratio is negative, indicating challenges in converting income into cash. However, the recent reduction in net debt is a positive indicator of improving financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.90B	1.24B	933.01M	701.89M	540.10M
	Gross Profit
1.58B	1.09B	793.02M	604.84M	476.72M
	EBIT
218.08M	-267.82M	-536.20M	-449.71M	-564.16M
	EBITDA
333.06M	-439.20M	-582.12M	-306.08M	-453.38M
	Net Income Common Stockholders
235.24M	-535.98M	-703.49M	-418.78M	-554.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35B	1.68B	1.99B	2.12B	1.94B
	Total Assets
3.96B	3.26B	3.13B	3.15B	2.98B
	Total Debt
1.34B	1.40B	1.62B	1.14B	1.07B
	Net Debt
240.06M	968.38M	650.58M	-977.48M	-429.79M
	Total Liabilities
2.44B	2.41B	2.74B	2.22B	2.22B
	Stockholders Equity
1.53B	859.34M	384.95M	928.01M	761.76M
Cash Flow		Free Cash Flow
-342.74M	-588.34M	-356.17M	-481.66M	25.26M
	Operating Cash Flow
-205.79M	-500.99M	-325.35M	-443.17M	107.47M
	Investing Cash Flow
755.56M	-165.80M	-1.05B	495.41M	-121.72M
	Financing Cash Flow
124.81M	125.00M	232.51M	561.57M	682.32M

Sarepta Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRPT, the sentiment is Negative. The current price of 35.27 is below the 20-day moving average (MA) of 51.23, below the 50-day MA of 64.39, and below the 200-day MA of 108.52, indicating a bearish trend. The MACD of -8.32 indicates Positive momentum. The RSI at 22.14 is Positive, neither overbought nor oversold. The STOCH value of 3.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRPT.

Sarepta Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALKS	77 Outperform	$5.05B	14.86	25.71%	―	-12.31%	-17.53%
SRPT	54 Neutral	$3.51B	19.61	-23.61%	―	59.15%	-1881.09%
Sector *	52 Neutral	$5.04B	3.15	-44.58%	2.85%	16.08%	-0.27%
RVMD	52 Neutral	$7.35B	―	-36.68%	―	-100.00%	5.49%
BPMC	48 Neutral	$6.30B	―	-47.71%	―	99.19%	48.43%
LEGN	39 Underperform	$5.12B	―	-20.00%	―	112.46%	54.33%
AXSM	38 Underperform	$5.10B	―	-282.16%	―	72.16%	9.65%

Sarepta Therapeutics Corporate Events

Sarepta Therapeutics Announces Leadership Change and Equity Deal

Sarepta Therapeutics is undergoing a leadership change as Ryan Brown steps down, with Cristin Rothfuss set to succeed him. Concurrently, Sarepta is strengthening its financial position through a significant $325 million equity transaction with Arrowhead, purchasing over 11 million shares. This move includes lock-up and standstill provisions, limiting Sarepta’s trading and acquisition activities for specified periods, highlighting strategic stock management in the biotech sector.