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Sutro Biopharma Inc (STRO)
NASDAQ:STRO
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Sutro Biopharma (STRO) AI Stock Analysis

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STRO

Sutro Biopharma

(NASDAQ:STRO)

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Neutral 42 (OpenAI - 5.2)
Rating:42Neutral
Price Target:
$19.50
▼(-14.77% Downside)
Action:Reiterated
Date:08/17/26
The score is weighed down primarily by weak financial performance (large operating losses, sharp revenue decline, heavy ongoing cash burn, and negative equity). Technical indicators also point to a sustained downtrend (price below key moving averages and negative MACD), with only a modest offset from near-oversold readings. Valuation offers limited support because the negative P/E reflects continued losses and dividend yield data is not available.
Positive Factors
Clinical ADC Validation
Early responses across several solid tumors, low discontinuation and a wider therapeutic index support STRO-004’s development potential. These findings also provide clinical validation for Sutro’s ADC engineering platform and may enable future combination strategies.
Negative Factors
Severe Operating Losses
Revenue is currently far below the cost base, leaving the company dependent on external funding, collaborations or successful clinical development. Sustained operating losses could constrain investment capacity and increase dilution risk before products commercialize.
Read all positive and negative factors
Positive Factors
Negative Factors
Clinical ADC Validation
Early responses across several solid tumors, low discontinuation and a wider therapeutic index support STRO-004’s development potential. These findings also provide clinical validation for Sutro’s ADC engineering platform and may enable future combination strategies.
Read all positive factors

Sutro Biopharma (STRO) vs. SPDR S&P 500 ETF (SPY)

Sutro Biopharma Business Overview & Revenue Model

Company Description
Sutro Biopharma, Inc. is a clinical-stage biotechnology company focused on the discovery, development, and manufacturing of innovative therapeutic products. Its primary objective is to create protein-based treatments for challenging conditions lik...
How the Company Makes Money
Sutro Biopharma primarily generates revenue through (1) collaboration and license agreements and (2) other related research and development services performed for partners; it does not rely on recurring product sales in the way a commercial-stage ...

Sutro Biopharma Financial Statement Overview

Summary
Financial profile is weak: revenue contracted sharply (TTM -54.1%) and profitability is deeply negative (TTM net margin about -395% with very negative EBIT/EBITDA margins). Cash burn remains heavy (TTM operating cash flow about -$145.2M; free cash flow about -$145.6M). Balance-sheet risk is elevated with negative stockholders’ equity in 2025 and TTM, increasing financing/dilution risk, despite relatively low absolute debt.
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
20
Very Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue45.70M102.48M62.04M153.73M67.77M61.88M
Gross Profit44.42M95.16M54.83M146.91M59.48M52.11M
EBITDA-134.60M-145.65M-180.45M-67.92M-105.07M-97.56M
Net Income-180.64M-191.09M-227.46M-106.79M-119.20M-105.54M
Balance Sheet
Total Assets194.46M173.83M387.21M470.74M406.94M341.41M
Cash, Cash Equivalents and Short-Term Investments164.35M141.43M316.89M375.62M334.36M197.94M
Total Debt10.78M15.67M23.15M33.63M55.02M57.37M
Total Liabilities297.78M306.28M342.61M321.09M189.90M88.84M
Stockholders Equity-103.32M-132.45M44.60M149.65M217.05M252.56M
Cash Flow
Free Cash Flow-145.62M-178.93M-194.64M-115.93M-4.31M-97.00M
Operating Cash Flow-145.17M-177.23M-191.54M-111.62M3.55M-81.68M
Investing Cash Flow32.79M45.01M218.51M-3.92M-35.02M-97.31M
Financing Cash Flow102.69M44.00K94.05M137.55M48.31M3.26M

Sutro Biopharma Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.88
Price Trends
50DMA
26.29
Negative
100DMA
28.83
Negative
200DMA
21.66
Negative
Market Momentum
MACD
-1.36
Positive
RSI
37.31
Neutral
STOCH
38.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRO, the sentiment is Negative. The current price of 22.88 is below the 20-day moving average (MA) of 23.38, below the 50-day MA of 26.29, and above the 200-day MA of 21.66, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 37.31 is Neutral, neither overbought nor oversold. The STOCH value of 38.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STRO.

Sutro Biopharma Risk Analysis

Sutro Biopharma disclosed 78 risk factors in its most recent earnings report. Sutro Biopharma reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sutro Biopharma Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$590.11M49.291.91%-15.05%
58
Neutral
$625.18M-12.03-16.59%67.01%40.54%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
50
Neutral
$296.01M-1.60-33.22%215.59%22.48%
48
Neutral
$495.79M-4.00-45.45%2.33%36.86%
46
Neutral
$122.57M-1.5044.63%3.03%57.71%
42
Neutral
$350.86M-1.21192.77%-56.25%30.97%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STRO
Sutro Biopharma
21.04
12.46
145.28%
ARVN
Arvinas Holding Company
9.37
2.05
27.94%
BCYC
Bicycle Therapeutics
4.37
-2.73
-38.45%
ADCT
ADC Therapeutics
1.00
-2.18
-68.68%
CCCC
C4 Therapeutics
4.00
1.39
53.26%
OABI
OmniAb
4.33
2.48
134.05%

Sutro Biopharma Corporate Events

Business Operations and StrategyFinancial Disclosures
Sutro Biopharma Q2 Results Highlight Advancing ADC Pipeline
Positive
Aug 12, 2026
On August 12, 2026, Sutro Biopharma reported second quarter 2026 financial results and released new clinical data from its Phase 1 STRIVE-01 study of STRO-004, a Tissue Factor-targeting DAR8 exatecan ADC in heavily pretreated patients with advance...
Executive/Board ChangesShareholder Meetings
Sutro Biopharma Shareholders Back Board, Pay and Auditor
Positive
Jun 8, 2026
On June 5, 2026, Sutro Biopharma held its 2026 Annual Meeting of Stockholders, where shareholders elected three Class II directors, Jane Chung, Connie Matsui, and James Panek, each to serve a three-year term ending at the 2029 Annual Meeting. The ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 17, 2026