Sarepta Therapeutics (SRPT) AI Stock Analysis

• Market Cap: $1.98B
• Dividend Yield: N/A
• Average Volume (3M): 17.13M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.69
• Revenue Growth: 64.89%
• EPS Growth: -221.56%
• Country: US
• Employees: 1,372
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): 1.89
• Shares Outstanding: 97,713,440
• 10 Day Avg. Volume: 12,070,865
• 30 Day Avg. Volume: 17,127,845
• 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: 1.20
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 1.21
• Enterprise Value/Ebitda: 54.06
• 1Y Price Target: $23.88
• Price Target Upside: 17.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 30

• Rating: 46 Neutral
• Price Target: $20.00 ▼(-1.48% Downside)

Sarepta Therapeutics faces significant challenges in profitability, cash flow, and valuation, which weigh heavily on its overall stock score. While the company shows strong revenue growth and has a positive long-term demand outlook, recent corporate events and technical indicators suggest caution. The strategic restructuring and FDA hold further highlight operational risks.

Positive Factors

Financial Performance

Revenue of ~$611M, above Citi/FactSet’s ~$530M, driven by a Roche milestone on Japanese Elevidys approval, gains on strategic investments, and an income tax benefit.

Market Position

With ELEVIDYS back in the ambulatory setting, no issues are expected meeting the <4x total net leverage ratio required to draw upon the $600M revolver.

Product Demand

There is still enthusiasm amongst ambulatory patients to be dosed with Elevidys, with observed improvement and long-term stabilization of function.

Negative Factors

Financial Strategy

The rapid pivot from strategic investment to divestiture in less than 12 months weakens Sarepta's credibility in capital allocation and renews concerns that Sarepta’s late-stage and commercial portfolio may not generate sufficient near-term cash to support its current debt and pipeline ambitions.

Regulatory Challenges

A recommendation for rejection of EU approval in ambulatory DMD patients, with the Committee for Medicinal Products for Human Use (CHMP) citing no statistical significance in NSAA.

Safety Concerns

Elevidys’ risk profile on severe and possibly fatal liver-toxicity is unchanged, a persistent risk for investors.

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 demonstrates strong revenue growth and a stable asset base, but faces profitability and cash flow challenges. The company is investing heavily in growth, potentially at the expense of short-term profitability. Careful management of operating expenses and strategic financing will be crucial for sustaining growth and improving financial health.

Income Statement

Sarepta Therapeutics has shown consistent revenue growth, with a notable increase in total revenue from $540 million in 2020 to $2.23 billion in TTM (Trailing-Twelve-Months). The gross profit margin remains strong, yet the company is facing challenges at the operating level with negative EBIT and EBITDA margins, indicating profitability issues. Net profit margin is also negative, pointing towards high operating expenses and potential inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, reflecting prudent financial leverage but potential exposure to interest rate risks. The equity ratio is stable, suggesting a solid asset base, though return on equity is negative due to net losses. This indicates challenges in generating sufficient returns for shareholders despite asset growth.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, highlighting potential liquidity concerns. The company's ability to convert operating cash flow into net income is weak, with significant cash outflows from operations. Despite negative free cash flow growth, financing activities provide some liquidity cushion.

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: Neutral
• Last Price: 20.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRPT, the sentiment is Neutral. The current price of 20.3 is above the 20-day moving average (MA) of 16.08, below the 50-day MA of 20.97, and below the 200-day MA of 75.61, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 57.01 is Neutral, neither overbought nor oversold. The STOCH value of 92.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SRPT.

Sarepta Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALKS	75 Outperform	$4.53B	13.74	23.94%	―	-0.17%	23.84%
AXSM	53 Neutral	$5.25B	―	-280.68%	―	69.83%	22.16%
RVMD	52 Neutral	$6.59B	―	-46.61%	―	-100.00%	-23.49%
LEGN	52 Neutral	$6.96B	―	-29.70%	―	75.01%	-13.20%
Sector *	51 Neutral	$7.44B	-0.20	-46.00%	2.26%	22.80%	-2.27%
BPMC	50 Neutral	$8.37B	―	-47.71%	―	99.19%	48.43%
SRPT	46 Neutral	$1.98B	19.61	-4.76%	―	64.89%	-221.56%

Sarepta Therapeutics Corporate Events

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.

The most recent analyst rating on (SRPT) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Sarepta Therapeutics stock, see the SRPT Stock Forecast page.

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.

The most recent analyst rating on (SRPT) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Sarepta Therapeutics stock, see the SRPT Stock Forecast page.

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.

The most recent analyst rating on (SRPT) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Sarepta Therapeutics stock, see the SRPT Stock Forecast page.

Sarepta Therapeutics Approves Amendments at Annual Meeting

On June 5, 2025, Sarepta Therapeutics held its annual meeting where stockholders approved amendments to the company’s equity and employee stock purchase plans, increasing the number of shares available under these plans. Additionally, stockholders elected new directors, approved executive compensation, and ratified KPMG as the independent auditor, indicating strong shareholder support for the company’s strategic initiatives and governance.

The most recent analyst rating on (SRPT) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Sarepta Therapeutics stock, see the SRPT Stock Forecast page.