Stoke Therapeutics (STOK) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 47.3
• 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: 1,160,912
• 30 Day Avg. Volume: 1,268,933
• 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: 0.64
• Enterprise Value/Revenue: 5.51
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 34.25
• 1Y Price Target: $31.75
• Price Target Upside: 1.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): $189.54M

• Rating: 60 Neutral
• Price Target: $28.00 ▼(-10.29% Downside)

Stoke Therapeutics' overall stock score reflects its improved financial performance and operational efficiency, offset by valuation concerns and technical indicators suggesting potential short-term weakness. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Business Model Strength

The company's focus on RNA-based therapies for severe genetic diseases positions it well in the biotech sector, offering potential for sustainable revenue through innovative treatments and partnerships.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing the company to invest in R&D and withstand market fluctuations.

Profitability Improvement

Improved profitability indicates effective cost management and operational efficiency, enhancing the company's ability to reinvest in growth and innovation.

Negative Factors

Cash Flow Volatility

Declining free cash flow growth poses a risk to funding operations and future investments, potentially impacting long-term growth and stability.

Historical Profitability Challenges

Previous profitability issues highlight potential risks in maintaining consistent financial performance, which could affect investor confidence and strategic initiatives.

Revenue Growth Volatility

Fluctuating revenue growth suggests challenges in achieving stable market penetration and sales consistency, which could hinder long-term strategic planning.

Stoke Therapeutics Business Overview & Revenue Model

Company Description

Stoke Therapeutics (STOK) is a biotechnology company focused on developing innovative RNA-targeted medicines to treat severe genetic diseases. The company operates primarily in the biotechnology and pharmaceutical sectors, leveraging its proprietary technology to design and produce therapies aimed at modulating RNA to restore protein production. Its pipeline includes treatments for conditions such as epilepsy and other neurological disorders, with a strong emphasis on addressing the underlying genetic causes of these diseases.

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 shown significant improvement in financial health over the TTM period, with strong profitability and efficient cost management. The balance sheet is robust with low leverage, and cash flow metrics indicate good cash generation. However, historical performance has been volatile with periods of negative profitability and cash flow, suggesting potential risks if not managed carefully.

Income Statement

Stoke Therapeutics has shown a significant improvement in its income statement metrics over the TTM period. The gross profit margin is exceptionally high at 93%, indicating efficient cost management. The net profit margin has turned positive at 26.26%, reflecting a turnaround from previous losses. Revenue growth rate is positive at 4.71%, showing a steady increase in sales. However, historical data shows volatility with previous years experiencing negative margins and fluctuating revenues.

Balance Sheet

The balance sheet of Stoke Therapeutics is relatively strong with a low debt-to-equity ratio, indicating minimal leverage risk. The return on equity has improved to 18.32% in the TTM, showcasing better profitability. The equity ratio is stable, reflecting a solid capital structure. However, past years have shown negative ROE, indicating historical profitability challenges.

Cash Flow

The cash flow statement shows a decline in free cash flow growth by 11.64% in the TTM, which is a concern. However, the operating cash flow to net income ratio is healthy at 1.59, indicating good cash generation relative to net income. The free cash flow to net income ratio is nearly 1, suggesting efficient cash utilization. Historical cash flow has been negative, highlighting past operational 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	4.78M	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: 31.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 31.21 is above the 20-day moving average (MA) of 26.98, above the 50-day MA of 27.97, and above the 200-day MA of 15.75, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 61.92 is Neutral, neither overbought nor oversold. The STOCH value of 91.60 is Negative, 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
CVAC	70 Outperform	$1.23B	5.73	17.68%	―	-86.40%	30.72%
STOK	60 Neutral	$1.78B	47.30	15.02%	―	1128.17%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XERS	49 Neutral	$1.59B	―	―	―	42.05%	76.50%
SNDX	48 Neutral	$1.73B	―	-129.32%	―	597.19%	0.45%
RAPP	44 Neutral	$1.40B	―	-23.41%	―	―	―

Stoke Therapeutics Corporate Events

Stoke Therapeutics Advances in RNA Medicine and Financial Growth

Stoke Therapeutics, Inc., a biotechnology company specializing in RNA medicine to restore protein expression, is advancing its lead investigational medicine, zorevunersen, for Dravet syndrome.

Stoke Therapeutics Advances Phase 3 Study for Dravet Syndrome Treatment

Study Overview: The EMPEROR study is a multicenter, randomized, double-blind, sham-controlled, parallel group, Phase 3 clinical trial conducted by Stoke Therapeutics. It aims to evaluate the efficacy, safety, and tolerability of zorevunersen (STK-001) in patients with Dravet Syndrome, a severe form of epilepsy. This study is significant as it could lead to a new treatment option for this challenging condition.

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.

The most recent analyst rating on (STOK) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Stoke Therapeutics stock, see the STOK Stock Forecast page.