Stoke Therapeutics (STOK) AI Stock Analysis

• Market Cap: $1.92B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 49.8
• Beta (1Y): 1.60
• Revenue Growth: 1128.17%
• EPS Growth: N/A
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.65
• Shares Outstanding: 57,117,150
• 10 Day Avg. Volume: 989,099
• 30 Day Avg. Volume: 1,013,202
• PEG Ratio: 0.22
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 16.30
• P/FCF Ratio: -6.84
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 5.51
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 34.25
• 1Y Price Target: $33.63
• Price Target Upside: 2.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): $190.03M

• Rating: 70 Outperform
• Price Target: $36.00 ▲(9.56% Upside)

Stoke Therapeutics demonstrates strong technical indicators and positive corporate developments, which are offset by valuation concerns and cash flow volatility. The company's strategic initiatives and leadership changes are promising for future growth.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and growth initiatives.

Innovative Product Pipeline

The promising potential of zorevunersen in treating Dravet syndrome underscores Stoke's innovative pipeline, enhancing its competitive edge in biotechnology.

Leadership Stability

The appointment of a permanent CEO with extensive industry experience ensures leadership stability, crucial for executing long-term strategic plans.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth and cash flow volatility could hinder Stoke's ability to fund R&D and expand its market presence, impacting long-term growth.

Cash Flow Volatility

Negative free cash flow growth indicates potential liquidity issues, which could limit Stoke's ability to invest in new projects and sustain operations.

Historical Revenue Volatility

Past fluctuations in revenue and profitability suggest potential instability, which could affect investor confidence and long-term financial planning.

Stoke Therapeutics Business Overview & Revenue Model

Company Description

Stoke Therapeutics, Inc., an early-stage biopharmaceutical company, develops novel antisense oligonucleotide (ASO) medicines to treat the underlying causes of severe genetic diseases in the United States. The company utilizes its proprietary Targeted Augmentation of Nuclear Gene Output to design ASOs to precisely upregulate protein expression. Its lead clinical candidate is STK-001, which is in phase I/IIa clinical trial to treat Dravet syndrome, a severe and progressive genetic epilepsy; and STK-002, which is in preclinical stage for the treatment of autosomal dominant optic atrophy. It had entered into a license and collaboration agreement with Acadia Pharmaceuticals Inc. for the discovery, development, and commercialization of novel RNA-based medicines for the treatment of severe and rare genetic neurodevelopmental diseases of the central nervous system. The company was formerly known as ASOthera Pharmaceuticals, Inc. and changed its name to Stoke Therapeutics, Inc. in May 2016. Stoke Therapeutics, Inc. was incorporated in 2014 and is headquartered in Bedford, Massachusetts.

How the Company Makes Money

Stoke Therapeutics generates revenue primarily through partnerships and collaborations with larger pharmaceutical companies that seek to leverage its RNA modulation technology. These partnerships often involve upfront payments, milestone payments based on the achievement of development and regulatory goals, and royalty agreements on future product sales. Additionally, the company may receive funding from grants or government programs aimed at supporting innovative medical research. As Stoke progresses in clinical trials and potentially brings products to market, it stands to benefit from significant revenue through product sales and licensing agreements.

Stoke Therapeutics Financial Statement Overview

Summary

Stoke Therapeutics has improved profitability and operational efficiency, with positive margins and a strong balance sheet. However, challenges in sustaining revenue growth and managing cash flow volatility remain.

Income Statement

Stoke Therapeutics has shown a significant improvement in its income statement metrics over the years. The TTM data indicates a strong gross profit margin of 94.83%, reflecting efficient cost management. The net profit margin has turned positive at 19.73%, a remarkable turnaround from previous losses. Revenue growth is modest at 2.87% TTM, but the company has transitioned from negative EBIT and EBITDA margins to positive ones, indicating improved operational efficiency. However, the historical volatility in revenue and profitability remains a concern.

Balance Sheet

The balance sheet of Stoke Therapeutics is relatively strong, with a low debt-to-equity ratio of 0.02, indicating minimal leverage and financial risk. The return on equity has improved to 13.28% TTM, showcasing better utilization of equity. The equity ratio stands at 85.55%, reflecting a solid capital structure. Despite these strengths, the company has experienced fluctuations in equity and asset levels over the years, which could pose risks if not managed carefully.

Cash Flow

Cash flow metrics show a mixed picture. The operating cash flow to net income ratio is healthy at 1.27 TTM, indicating good cash generation relative to earnings. However, free cash flow growth has been negative, and the free cash flow to net income ratio is nearly 1, suggesting limited cash flow surplus. Historical cash flow volatility and negative growth rates in previous years highlight potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	205.63M	36.55M	8.78M	12.40M	0.00	0.00
Gross Profit	204.64M	36.55M	8.78M	12.40M	0.00	-1.93M
EBITDA	33.10M	-99.19M	-112.30M	-102.81M	-85.09M	-50.32M
Net Income	40.57M	-88.98M	-104.70M	-101.07M	-85.81M	-52.24M
Balance Sheet
Total Assets	360.26M	271.56M	228.34M	256.07M	238.87M	297.93M
Cash, Cash Equivalents and Short-Term Investments	248.31M	216.90M	201.39M	229.59M	219.81M	287.31M
Total Debt	2.91M	2.32M	2.06M	2.36M	1.51M	1.07M
Total Liabilities	52.16M	42.53M	68.78M	71.22M	21.09M	11.85M
Stockholders Equity	308.11M	229.02M	159.56M	184.85M	217.78M	286.08M
Cash Flow
Free Cash Flow	52.37M	-87.05M	-82.68M	-35.83M	-68.11M	-43.27M
Operating Cash Flow	52.85M	-86.85M	-81.07M	-31.87M	-66.91M	-42.22M
Investing Cash Flow	-124.93M	-107.47M	105.95M	-45.88M	-76.43M	-1.05M
Financing Cash Flow	5.62M	131.09M	53.01M	46.41M	1.28M	108.11M

Stoke Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STOK, the sentiment is Positive. The current price of 32.86 is above the 20-day moving average (MA) of 31.17, above the 50-day MA of 30.14, and above the 200-day MA of 17.37, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 57.70 is Neutral, neither overbought nor oversold. The STOCH value of 58.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STOK.

Stoke Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STOK	70 Outperform	$1.92B	49.80	15.02%	―	1128.17%	―
CVAC	70 Outperform	$1.09B	5.75	17.68%	―	-86.40%	30.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNDX	48 Neutral	$1.80B	-5.63	-129.32%	―	597.19%	0.45%
XERS	46 Neutral	$1.18B	-67.60	―	―	42.05%	76.50%
RAPP	44 Neutral	$1.47B	-10.65	-23.41%	―	―	-37.07%

Stoke Therapeutics Corporate Events

Stoke Therapeutics Highlights Zorevunersen’s Potential at Epilepsy Meeting

At the 2025 American Epilepsy Society Annual Meeting, Stoke Therapeutics and Biogen presented data supporting the potential of zorevunersen as a disease-modifying treatment for Dravet syndrome. Long-term studies demonstrated significant seizure reductions, cognitive and behavioral improvements, and enhanced quality of life for patients. The findings, including EEG analysis, suggest zorevunersen’s potential to address the underlying causes of Dravet syndrome, offering hope for improved patient outcomes.

Stoke Therapeutics Appoints Ian F. Smith as CEO

On October 5, 2025, Stoke Therapeutics appointed Ian F. Smith as the permanent Chief Executive Officer, effective October 6, 2025. Smith, who had been serving as the Interim CEO since March 2025, brings extensive experience from his previous roles in the biotechnology and pharmaceutical industries. His appointment is accompanied by a comprehensive employment agreement, including salary, bonuses, and stock options, reflecting the company’s strategic focus on leadership stability and growth. This leadership change marks a significant step for Stoke Therapeutics as it continues to strengthen its position in the biotech sector.