Sutro Biopharma (STRO) AI Stock Analysis

• Market Cap: $74.66M
• Dividend Yield: N/A
• Average Volume (3M): 859.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.93
• Revenue Growth: -38.31%
• EPS Growth: -36.91%
• Country: US
• Employees: 269
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 84,774,180
• 10 Day Avg. Volume: 1,570,330
• 30 Day Avg. Volume: 859,958
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 0.74
• Enterprise Value/Ebitda: -0.45
• 1Y Price Target: $2.36
• Price Target Upside: 133.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 40 Underperform
• Price Target: $1.00 ▼(-0.99% Downside)

Sutro Biopharma's overall score is primarily impacted by its financial instability, characterized by negative equity and ongoing losses. Technical indicators suggest bearish momentum and high volatility, while valuation metrics highlight the lack of profitability. Despite strong revenue growth, the company's financial challenges and risk factors significantly weigh down its score.

Positive Factors

Revenue Growth

Strong revenue growth indicates potential for future profitability, suggesting that the company is expanding its market presence and product adoption.

Gross Profit Margin

A high gross profit margin reflects efficient cost management, which can support long-term profitability if operational efficiencies are maintained.

Cash Flow Growth

Positive cash flow growth suggests improving financial health and the ability to fund operations and strategic initiatives without relying heavily on external financing.

Negative Factors

Negative Equity

Negative equity indicates financial instability and potential solvency issues, which could limit the company's ability to raise capital and invest in growth.

Ongoing Losses

Ongoing losses reflect challenges in achieving profitability, which may hinder long-term sustainability unless cost structures are improved.

Operating Cash Flow

Negative operating cash flow suggests that the company may struggle to cover its operational expenses, potentially impacting its ability to sustain growth.

Sutro Biopharma Business Overview & Revenue Model

Company Description

Sutro Biopharma, Inc. operates as clinical stage drug discovery, development, and manufacturing company. It focuses on creating protein therapeutics for cancer and autoimmune disorders through integrated cell-free protein synthesis and site-specific conjugation platform, XpressCF+.The company's product candidates include STRO-001, an antibody-drug conjugate (ADC) directed against the cancer target CD74 for patients with multiple myeloma and non-Hodgkin lymphoma that is in Phase 1 clinical trials; and STRO-002, an ADC directed against folate receptor-alpha for patients with ovarian and endometrial cancers, which is in Phase 1 clinical trials. It has collaboration and license agreements with Merck Collaboration to develop research programs focusing on cytokine derivatives for cancer and autoimmune disorders; and Celgene Corporation to discover and develop bispecific antibodies and/or ADCs focused on the field of immuno-oncology. The company was formerly known as Fundamental Applied Biology, Inc. Sutro Biopharma, Inc. was incorporated in 2003 and is headquartered in South San Francisco, California.

How the Company Makes Money

Sutro Biopharma generates revenue primarily through collaborations and partnerships with pharmaceutical companies, where it provides its proprietary technology and expertise in the development of novel therapeutics. These collaborations often involve upfront payments, milestone payments upon achieving specific development goals, and royalties on future sales of the products developed. Additionally, the company may generate revenue through government grants and funding aimed at supporting its research and development activities. Significant partnerships with larger pharmaceutical entities can enhance Sutro's revenue potential by providing access to additional resources and distribution channels.

Sutro Biopharma Financial Statement Overview

Summary

Sutro Biopharma shows strong revenue growth and gross profit margins but faces significant profitability and financial stability challenges. The negative equity and ongoing losses suggest a need for strategic restructuring to achieve sustainable growth and profitability. Cash flow improvements are a positive sign, but further efforts are needed to stabilize operations.

Income Statement

Sutro Biopharma shows a strong gross profit margin of 96.39% TTM, indicating efficient cost management relative to revenue. However, the company faces significant challenges with negative net profit and EBIT margins, reflecting ongoing losses. Revenue growth is robust at 57.26% TTM, suggesting potential for future profitability if cost structures are improved.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, resulting in a negative debt-to-equity ratio. This indicates financial instability and potential solvency issues. The return on equity is also negative, highlighting inefficiencies in generating returns from equity investments.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 26.96% TTM, but the company still operates with negative operating cash flow. The free cash flow to net income ratio is slightly above 1, indicating that cash flow generation is somewhat aligned with net income, albeit both are negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	104.47M	62.04M	153.73M	67.77M	61.88M	42.72M
Gross Profit	100.70M	54.83M	146.91M	59.48M	52.11M	-34.24M
EBITDA	-165.38M	-180.45M	-67.92M	-105.07M	-97.56M	-23.75M
Net Income	-208.70M	-227.46M	-106.79M	-119.20M	-105.54M	-32.13M
Balance Sheet
Total Assets	262.36M	387.21M	470.74M	406.94M	341.41M	394.11M
Cash, Cash Equivalents and Short-Term Investments	205.13M	316.89M	375.62M	334.36M	197.94M	368.14M
Total Debt	19.59M	23.15M	33.63M	50.43M	57.37M	24.55M
Total Liabilities	294.47M	342.61M	321.09M	189.90M	88.84M	62.06M
Stockholders Equity	-32.11M	44.60M	149.65M	217.05M	252.56M	332.05M
Cash Flow
Free Cash Flow	-252.02M	-194.64M	-115.93M	-4.31M	-97.00M	-74.93M
Operating Cash Flow	-248.86M	-191.54M	-111.62M	3.55M	-81.68M	-67.80M
Investing Cash Flow	221.10M	218.51M	-3.92M	-35.02M	-97.31M	604.00K
Financing Cash Flow	999.00K	94.05M	137.55M	48.31M	3.26M	269.25M

Sutro Biopharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRO, the sentiment is Positive. The current price of 1.01 is above the 20-day moving average (MA) of 0.87, above the 50-day MA of 0.88, and below the 200-day MA of 1.06, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 63.36 is Neutral, neither overbought nor oversold. The STOCH value of 41.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRO.

Sutro Biopharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPTX	60 Neutral	$79.90M	―	-69.96%	―	-99.64%	-59.17%
CRVO	52 Neutral	$70.32M	―	-54.21%	―	-19.44%	-492.39%
INMB	52 Neutral	$49.18M	―	-168.34%	―	-41.18%	-21.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HOWL	48 Neutral	$73.17M	―	-100.55%	―	-100.00%	-22.09%
STRO	40 Underperform	$74.66M	―	-347.64%	―	-38.31%	-36.91%
ACET	27 Underperform	$159.38M	―	-64.39%	―	―	48.45%