Sutro Biopharma (STRO) AI Stock Analysis

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Sutro Biopharma

(NASDAQ:STRO)

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Rating:42Neutral

Price Target:$9.00▼(-12.28% Downside)

Action:reiterated

Date:11/06/26

The score is primarily held down by weak financial performance (sharp revenue contraction, very large losses, and substantial ongoing cash burn alongside negative equity). Technicals also remain bearish with price below all major moving averages and negative MACD, only partially offset by near-oversold RSI. Valuation is constrained by a negative P/E and the absence of a dividend yield in the provided data.

Positive Factors

ADC Pipeline ProgressEarly clinical activity across several solid-tumor types, combined with manageable tolerability and predictable pharmacokinetics, supports the potential for STRO-004 to advance. The broader ADC pipeline also creates multiple opportunities for future clinical validation and partnering value.

Negative Factors

Persistent Cash BurnThe scale and persistence of negative operating and free cash flow show that current activities consume substantial cash rather than funding themselves. Continued development spending may require future financing, which could reduce flexibility and expose shareholders to dilution or unfavorable capital terms.

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

Market Cap: $170.12M
Dividend Yield: ―
Average Volume (3M): 305.99K
Price to Earnings (P/E): -0.6
Beta (1Y): 3.35
Revenue Growth: -56.25%
EPS Growth: 30.97%
Country: US
Employees: 128
Sector: Healthcare
Sector Strength: 51
Industry: Biotechnology

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 like c...

How the Company Makes Money

Sutro Biopharma primarily generates revenue through (1) collaboration and license agreements with pharmaceutical/biotechnology partners and (2) to a lesser extent, other operating revenues associated with these arrangements; the company does not cons...

Sutro Biopharma Financial Statement Overview

Summary

Weak fundamentals: revenue is highly volatile and recently contracted sharply (TTM -54.1%), profitability is deeply negative (TTM net margin about -395% with very negative EBIT/EBITDA margins), and cash burn remains heavy (TTM operating cash flow about -$145.2M; free cash flow about -$145.6M). Balance sheet risk is elevated with negative equity in 2025/TTM, increasing reliance on external financing despite relatively low absolute debt.

Income Statement

24Negative

Balance Sheet

18Very Negative

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.70M	102.48M	62.04M	153.73M	67.77M	61.88M
Gross Profit	44.42M	95.16M	54.83M	146.91M	59.48M	52.11M
EBITDA	-134.60M	-145.65M	-180.45M	-67.92M	-107.67M	-97.56M
Net Income	-180.64M	-191.09M	-227.46M	-106.79M	-119.20M	-105.54M
Balance Sheet
Total Assets	194.46M	173.83M	387.21M	470.74M	406.94M	341.41M
Cash, Cash Equivalents and Short-Term Investments	164.35M	141.43M	316.89M	375.62M	334.36M	197.94M
Total Debt	10.78M	15.67M	23.15M	33.63M	55.02M	57.37M
Total Liabilities	297.78M	306.28M	342.61M	321.09M	189.90M	88.84M
Stockholders Equity	-103.32M	-132.45M	44.60M	149.65M	217.05M	252.56M
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	-111.62M	3.55M	-81.68M
Investing Cash Flow	32.79M	45.01M	218.51M	-3.92M	-35.02M	-97.31M
Financing Cash Flow	102.69M	44.00K	94.05M	137.55M	48.31M	3.26M

Sutro Biopharma Technical Analysis

Technical Analysis SentimentNegative

Last Price10.26

Price Trends

50DMA13.82Negative

100DMA19.59Negative

200DMA22.84Negative

Market Momentum

MACD-1.20Negative

RSI41.63Neutral

STOCH76.00Neutral

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 10.26 is above the 20-day moving average (MA) of 9.98, below the 50-day MA of 13.82, and below the 200-day MA of 22.84, indicating a neutral trend. The MACD of -1.20 indicates Negative momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 76.00 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.

Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

3 New Risks

1.If we fail to maintain compliance with Nasdaq's minimum listing requirements, our common stock will be subject to delisting. Our ability to publicly or privately sell equity securities and the liquidity of our common stock could be adversely affected if our common stock is delisted.Q4, 2025

2.more effective, our ability to develop and successfully commercialize product candidates may be adversely affected.Q4, 2025

3.U.S.-China trade relations may adversely impact our supply chain operations and business.Q4, 2025

Sutro Biopharma Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

STRO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OABI	69Neutral	$743.89M	-15.00	-16.73%	―	90.63%	42.74%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ARVN	49Neutral	$453.16M	-46.07	-2.00%	―	-11.85%	81.44%
ADCT	47Neutral	$192.78M	-3.06	36.95%	―	12.85%	63.71%
CCCC	45Neutral	$393.95M	-4.01	-37.71%	―	7.20%	57.15%
BCYC	42Neutral	$258.27M	-1.82	-26.02%	―	194.79%	43.93%
STRO	42Neutral	$168.63M	-0.59	185.30%	―	-56.25%	30.97%

* Healthcare Sector Average

Performance Comparison

STRO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
STRO	Sutro Biopharma	10.26	0.97	10.44%
ARVN	Arvinas Holding Company	6.91	-3.21	-31.72%
BCYC	Bicycle Therapeutics	3.69	-2.91	-44.09%
ADCT	ADC Therapeutics Ltd	1.60	-2.45	-60.49%
CCCC	C4 Therapeutics, Inc.	2.89	0.44	17.96%
OABI	Omniab, Inc.	5.10	3.58	235.53%

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 advanced s...

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: Nov 06, 2026

Sutro Biopharma AI Stock Analysis