Sarepta Therapeutics (SRPT) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: N/A
• Average Volume (3M): 7.82M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.73
• Revenue Growth: 64.89%
• EPS Growth: -221.56%
• Country: US
• Employees: 1,372
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 1.89
• Shares Outstanding: 97,713,440
• 10 Day Avg. Volume: 6,194,637
• 30 Day Avg. Volume: 7,815,930
• 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: 1.33
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 1.21
• Enterprise Value/Ebitda: 54.06
• 1Y Price Target: $22.83
• Price Target Upside: 24.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 26

• Rating: 49 Neutral
• Price Target: $18.50 ▲(0.76% Upside)

Sarepta Therapeutics' overall stock score is primarily influenced by its financial performance challenges, including profitability and cash flow issues. The strategic restructuring and cost-saving measures discussed in the earnings call provide some optimism, but technical indicators and valuation concerns weigh on the score.

Positive Factors

Revenue Growth

Strong revenue contribution from ELEVIDYS indicates robust demand and successful market penetration, supporting long-term growth prospects.

Strategic Restructuring

Cost-saving measures and restructuring efforts aim to improve profitability and operational efficiency, enhancing financial stability over time.

Pipeline Focus

Concentrating on high-impact programs ensures strategic resource allocation, potentially leading to breakthrough therapies and future revenue streams.

Negative Factors

Workforce Reduction

Significant workforce reduction may impact morale and operational capacity, potentially hindering long-term growth and innovation capabilities.

ELEVIDYS Adoption Challenges

Safety concerns and hesitancy in ELEVIDYS adoption could limit revenue growth and market acceptance, affecting long-term sales potential.

Nonambulatory Patient Suspension

Suspension of shipments for nonambulatory patients raises regulatory and safety concerns, potentially delaying market expansion and revenue.

Sarepta Therapeutics Business Overview & Revenue Model

Company Description

Sarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; and VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping. The company is also developing AMONDYS 45, a product candidate that uses phosphorodiamidate morpholino oligomer chemistry and exon-skipping technology to skip exon 45 of the dystrophin gene; SRP-5051, a peptide conjugated PMO that binds exon 51 of dystrophin pre-mRNA; SRP-9001, a DMD micro-dystrophin gene therapy program; and SRP-9003, a limb-girdle muscular dystrophies gene therapy program. It has collaboration agreements with F. Hoffman-La Roche Ltd; Nationwide Children's Hospital; Lysogene; Duke University; Genethon; and StrideBio. The company was incorporated in 1980 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Sarepta Therapeutics generates revenue primarily through the commercialization of its therapeutic products, including its lead drug, Exondys 51, which is used to treat DMD. The company earns money from product sales, royalties, and milestone payments associated with its collaborations and partnerships with other pharmaceutical companies. Additionally, Sarepta has engaged in licensing agreements that provide upfront payments and potential future royalties based on sales of partnered products. The company also benefits from government grants and research funding aimed at advancing its clinical programs.

Sarepta Therapeutics Financial Statement Overview

Summary

Sarepta Therapeutics shows strong revenue growth but faces significant profitability and cash flow challenges. The company has improved its debt-to-equity ratio, yet persistent losses and negative cash flow growth highlight the need for strategic improvements.

Income Statement

Sarepta Therapeutics has shown a positive revenue growth rate of 11.11% TTM, indicating a strong upward trajectory in sales. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains robust at 78.85% TTM, but the negative net profit margin of -2.34% TTM highlights ongoing challenges in cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.997 TTM, indicating a more balanced capital structure compared to previous years. However, the return on equity remains negative at -4.42% TTM, reflecting ongoing losses. The equity ratio is stable, suggesting a reasonable proportion of assets financed by equity, but the high leverage in past years poses a risk.

Cash Flow

Sarepta Therapeutics faces significant challenges in cash flow management, with a negative free cash flow growth rate of -35.78% TTM. The operating cash flow to net income ratio is also negative, indicating difficulties in converting earnings into cash. Despite this, the free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.48B	1.90B	1.24B	933.01M	701.89M	540.10M
Gross Profit	1.96B	1.58B	1.09B	793.02M	604.84M	476.72M
EBITDA	43.97M	333.06M	-439.20M	-582.12M	-306.08M	-453.38M
Net Income	-57.96M	235.24M	-535.98M	-703.49M	-418.78M	-554.13M
Balance Sheet
Total Assets	3.68B	3.96B	3.26B	3.13B	3.15B	2.98B
Cash, Cash Equivalents and Short-Term Investments	800.14M	1.35B	1.68B	1.99B	2.12B	1.94B
Total Debt	1.35B	1.34B	1.40B	1.62B	1.14B	1.07B
Total Liabilities	2.32B	2.44B	2.41B	2.74B	2.22B	2.22B
Stockholders Equity	1.36B	1.53B	859.34M	384.95M	928.01M	761.76M
Cash Flow
Free Cash Flow	-441.55M	-342.74M	-588.34M	-356.17M	-481.66M	25.26M
Operating Cash Flow	-300.75M	-205.79M	-500.99M	-325.35M	-443.17M	107.47M
Investing Cash Flow	376.33M	755.56M	-165.80M	-1.05B	495.41M	-121.72M
Financing Cash Flow	51.40M	124.81M	125.00M	232.51M	561.57M	682.32M

Sarepta Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.36
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRPT, the sentiment is Positive. The current price of 18.36 is above the 20-day moving average (MA) of 17.99, above the 50-day MA of 17.56, and below the 200-day MA of 60.17, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 43.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRPT.

Sarepta Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARQT	58 Neutral	2.11B	-23.60	-67.11%	―	99.50%	65.91%
MESO	54 Neutral	2.01B	-18.75	-17.10%	―	191.53%	5.09%
SRPT	49 Neutral	$1.78B	19.61	-4.76%	―	64.89%	-221.56%
BCRX	48 Neutral	1.60B	-43.90	8.47%	―	45.85%	76.36%
DYN	43 Neutral	1.87B	-3.41	―	―	―	-7.71%
COGT	37 Underperform	1.98B	-5.84	―	―	―	2.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sarepta Therapeutics Corporate Events

Sarepta Therapeutics Completes Convertible Notes Exchange

On August 20, 2025, Sarepta Therapeutics entered into exchange agreements with holders of its 1.25% Convertible Senior Notes due 2027, exchanging $700 million of these notes for new 4.875% Convertible Senior Notes due 2030, common stock, and cash. This strategic financial move, completed on August 28, 2025, aims to manage debt maturity and optimize capital structure, potentially impacting the company’s financial flexibility and market positioning.

Sarepta Therapeutics Restructures Debt with New Convertible Notes

On August 20, 2025, Sarepta Therapeutics entered into exchange agreements with holders of its 1.25% Convertible Senior Notes due 2027, exchanging approximately $700 million of these notes for new 4.875% Convertible Senior Notes due 2030, shares of common stock, and cash. Additionally, the company engaged in a private placement transaction with J. Wood Capital Advisors LLC for $20 million in common stock, with the issuance of these securities relying on exemptions from registration under the Securities Act. These strategic financial maneuvers are expected to impact the company’s capital structure and provide flexibility in managing its debt obligations.

Sarepta Therapeutics Announces Strategic Restructuring Plan

Sarepta Therapeutics announced a strategic restructuring and pipeline prioritization, resulting in the end of Bilal Arif’s employment as Executive Vice President, Chief Technical Operations Officer, effective September 16, 2025. Arif will transition to a Special Advisor role until his employment ends and will continue as a consultant through December 31, 2025. The company has agreed to provide Arif with a severance package and consulting fees, while his equity awards will continue to vest during his consultancy. This move reflects Sarepta’s ongoing efforts to optimize its operations and focus on its core strategic objectives.

Sarepta Faces FDA Hold on Gene Therapy Trials

On July 21, 2025, Sarepta Therapeutics announced that the FDA placed a clinical hold on its investigational gene therapy trials for LGMD, affecting several of its product candidates. This follows a strategic restructuring process announced on July 16, 2025, where the company paused LGMD programs except SRP-9003, for which it completed Phase 3 enrollment and dosing in December 2024. Sarepta plans to discuss with the FDA a potential pathway for accelerated approval of SRP-9003 after the hold is lifted. Additionally, the FDA revoked the platform technology designation for Sarepta’s AAVrh74 platform, initially granted in June 2025.

Sarepta Therapeutics Announces Strategic Restructuring Plan

On July 14, 2025, Sarepta Therapeutics announced a strategic restructuring plan, including a 36% workforce reduction, to prioritize high-value programs and ensure long-term financial sustainability. The company aims to save approximately $400 million annually and focus on its siRNA platform, while also updating the ELEVIDYS label with a black box warning for acute liver issues. Key executive appointments were made, and the company reported preliminary second-quarter 2025 financial results, with total net product revenue of $513 million.