Scholar Rock Holding (SRRK) AI Stock Analysis

• Market Cap: $3.18B
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: N/A
• EPS Growth: -29.50%
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 49
• Industry: Biotechnology
• EPS (TTM): -0.98
• Shares Outstanding: 96,127,266
• 10 Day Avg. Volume: 1,905,488
• 30 Day Avg. Volume: 1,703,623
• 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: 1.18
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -4.63K
• Enterprise Value/Ebitda: -11.79
• 1Y Price Target: $49.20
• Price Target Upside: 51.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 50 Neutral
• Price Target: ―

Scholar Rock's overall stock score reflects significant challenges due to financial underperformance, including a lack of revenue and ongoing losses. Despite these issues, positive strides in its SMA program and strategic leadership changes indicate potential for future growth. Mixed technical indicators and a weak valuation further moderate the outlook.

Positive Factors

Commercial Readiness

Management expressed confidence in its ability to support immediate launch following approval, ensuring regulatory alignment with its CDMO partners and external quality experts.

Pipeline Expansion

There is potential for expansion into other neuromuscular disorders and obesity through partnerships, highlighting the versatility of Scholar Rock's pipeline.

Regulatory Progress

The analyst expects apitegromab to be approved for a broad label in SMA, covering all types regardless of ambulatory status, due to positive Phase 3 data and safety profile.

Negative Factors

Operational Challenges

CMC inspections have identified insufficiencies at two CDMOs (one being Catalent).

Regulatory Delays

There is a potential delay in the PDUFA decision due to procedural observations from a recent FDA site inspection, which could impact the approval timeline.

Research Integrity

Investors should be aware of potential conflicts of interest in research reports involving Scholar Rock Holding.

Scholar Rock Holding Business Overview & Revenue Model

Company Description

Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery and development of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of latent myostatin that has completed the Phase 3 clinical trials for the treatment of spinal muscular atrophy; and SRK-181, which is in Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies. It is also developing a pipeline of novel product candidates with potential to transform the lives of patients suffering from a range of serious diseases, including neuromuscular disorders, cancer, and fibrosis. The company has a collaboration agreement with Gilead Sciences, Inc. to discover and develop specific inhibitors of transforming growth factor beta activation for the treatment of fibrotic diseases. Scholar Rock Holding Corporation was founded in 2012 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Scholar Rock makes money primarily through the development and commercialization of its proprietary drug candidates. The company's revenue model includes partnerships and collaborations with larger pharmaceutical companies, which provide upfront payments, milestone payments, and royalties on future sales of successfully developed drugs. Additionally, Scholar Rock may generate income through licensing agreements, where it grants other companies the rights to develop and market its therapeutic candidates. The company's financial performance is heavily influenced by the progress of its clinical trials, regulatory approvals, and the successful commercialization of its products.

Scholar Rock Holding Financial Statement Overview

Summary

Scholar Rock Holding faces significant financial challenges with no revenue and ongoing net losses. Despite a stable balance sheet with strong liquidity and low leverage, negative cash flows indicate reliance on external financing. Critical focus is needed on revenue generation and cost management to improve future profitability.

Income Statement

Scholar Rock Holding has shown no revenue for 2023 and 2024, indicating an absence of sales or other income-generating activities. The company is operating at a loss, with a significantly negative net income. Gross profit is also at zero, and the company has declining EBIT and EBITDA margins due to increasing expenses relative to revenues. The lack of revenue growth is concerning for future profitability.

Balance Sheet

Scholar Rock Holding maintains a moderate equity base relative to its total assets, with an equity ratio around 77.6% in 2024. The debt-to-equity ratio is low at 0.18, suggesting conservative leverage. However, the company is incurring losses, which could impact future equity levels. Positive cash and cash equivalents indicate good liquidity.

Cash Flow

The company experiences negative operating cash flow, which raises concerns about its ability to sustain operations without external financing. Free cash flow is also negative, indicating that the company is not generating cash from its core operations. However, financing activities have provided substantial cash inflows, helping to mitigate cash flow deficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	33.19M	18.82M	15.40M
Gross Profit	-812.00K	0.00	-2.84M	23.31M	9.79M	-58.66M
EBITDA	-318.79M	-237.52M	-168.45M	-131.38M	-127.29M	-85.39M
Net Income	-315.69M	-246.29M	-165.79M	-131.65M	-131.80M	-84.99M
Balance Sheet
Total Assets	340.05M	474.92M	311.04M	358.17M	304.44M	388.31M
Cash, Cash Equivalents and Short-Term Investments	295.01M	437.28M	279.94M	315.36M	252.99M	341.03M
Total Debt	61.53M	65.13M	61.82M	69.40M	77.06M	57.14M
Total Liabilities	106.75M	106.29M	85.82M	97.93M	132.37M	127.53M
Stockholders Equity	233.29M	368.63M	225.22M	260.24M	172.07M	260.77M
Cash Flow
Free Cash Flow	-258.12M	-201.05M	-145.30M	-133.76M	-132.04M	-64.36M
Operating Cash Flow	-257.58M	-200.95M	-145.23M	-132.69M	-126.79M	-60.27M
Investing Cash Flow	-40.04M	-76.06M	41.14M	-171.70M	134.31M	-63.50M
Financing Cash Flow	357.18M	353.03M	102.57M	194.83M	44.95M	247.82M

Scholar Rock Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.44
• 50DMA: Negative
• 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 SRRK, the sentiment is Positive. The current price of 32.44 is below the 20-day moving average (MA) of 32.92, below the 50-day MA of 35.65, and below the 200-day MA of 35.66, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 54.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRRK.

Scholar Rock Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	73 Outperform	$4.33B	19.33	33.18%	―	14.41%	627.78%
APLS	58 Neutral	$3.56B	―	-108.49%	―	20.02%	33.45%
VKTX	53 Neutral	$3.09B	―	-19.99%	―	―	-63.73%
CRNX	52 Neutral	$3.14B	―	-36.94%	―	―	-9.10%
Sector *	51 Neutral	$7.91B	-0.36	-41.70%	2.23%	23.45%	-1.86%
SRRK	50 Neutral	$3.18B	―	-172.08%	―	―	-29.50%
IMVT	45 Neutral	$2.63B	―	-77.58%	―	―	-48.38%

Scholar Rock Holding Corporate Events

Scholar Rock Appoints David Hallal as New CEO

Scholar Rock announced a significant management transition effective April 27, 2025, with David Hallal appointed as the new Chief Executive Officer, succeeding Dr. Jay Backstrom, who will become a Senior Advisor until October 31, 2025. This transition is part of a strategic move to prepare for the global launch of apitegromab, a promising treatment for spinal muscular atrophy (SMA), and includes the addition of three key executives: Akshay Vaishnaw as President of R&D, R. Keith Woods as Chief Operating Officer, and Vikas Sinha as Chief Financial Officer. These changes are expected to bolster Scholar Rock’s evolution into a fully integrated global commercial enterprise, enhancing its positioning in the biopharmaceutical industry and potentially benefiting stakeholders by accelerating the company’s growth and innovation efforts.

Spark’s Take on SRRK Stock

According to Spark, TipRanks’ AI Analyst, SRRK is a Neutral.

Scholar Rock Holding’s stock score is hindered by the lack of revenue and ongoing losses, despite a stable balance sheet and liquidity. While technical indicators provide mixed signals, the company’s strategic progress in its SMA program and forthcoming drug launch offer a positive outlook. However, valuation concerns remain due to significant net losses and no dividend yield. The overall score reflects these challenges, balanced by the potential long-term growth from its pipeline.

To see Spark’s full report on SRRK stock, click here.

Scholar Rock Holding Appoints Interim Financial Officer

Scholar Rock Holding Corporation announced the appointment of Erin Moore as interim Principal Financial Officer and interim Principal Accounting Officer, effective March 21, 2025, following the departure of Edward Myles. Moore, who has been with the company since 2018 and holds extensive financial and accounting credentials, will temporarily oversee financial operations. Additionally, the company scheduled its 2025 Annual Meeting of Stockholders for May 22, 2025, with March 26, 2025, set as the record date for stockholders entitled to vote. The deadline for stockholder proposals is March 31, 2025, adhering to the Securities Exchange Act regulations.

Scholar Rock Advances SMA Program with Apitegromab Submission

Scholar Rock reported its financial results for 2024, highlighting significant progress in its SMA program with the submission of a Biologics License Application for apitegromab, anticipated to launch in the U.S. in late 2025. The company also plans to expand its research into other neuromuscular disorders and cardiometabolic indications, supported by a strong financial position and recent public offering.