Stoke Therapeutics (STOK) AI Stock Analysis

• Market Cap: $626.77M
• Dividend Yield: N/A
• Average Volume (3M): 538.61K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.94
• Revenue Growth: 2333.50%
• EPS Growth: N/A
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): 1.90
• Shares Outstanding: 54,596,924
• 10 Day Avg. Volume: 626,972
• 30 Day Avg. Volume: 538,613
• PEG Ratio: -1.11
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.02
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 1.32
• Enterprise Value/Ebitda: -0.86
• 1Y Price Target: $24.80
• Price Target Upside: 116.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 78 Outperform
• Price Target: $12.50 ▲(8.89%Upside)

Stoke Therapeutics earns a strong overall score due to its robust financial performance, highlighted by revenue growth and improved profitability. The technical analysis supports this with positive momentum indicators. Valuation metrics are favorable, underscoring the stock's attractiveness. Corporate events, though not directly weighted, enhance the company's market positioning and growth prospects.

Positive Factors

Clinical Development

The zorevunersen pivotal Phase 3 EMPEROR trial in Dravet Syndrome has recently opened for enrollment, suggesting progress in clinical development.

Product Differentiation

Inclusion of positive behavioral and cognitive benefit data on the label can help differentiate zorevunersen from currently available seizure reduction drugs that do not help with cognition or behavior.

Strategic Collaboration

The collaboration with Biogen on zorenuversen makes significant strategic sense due to Biogen's expertise and global commercial capabilities.

Negative Factors

Market Sentiment

The investment community is less sure of Zorevenersen's place in the treatment landscape despite end-user enthusiasm.

Price Target Adjustment

Lowering P/E multiples and increasing discount rates to better align with current investor sentiment, elevated cost of capital, and reduced appetite for early-stage clinical risk reduces the price target to $35 from $47.

Stoke Therapeutics Business Overview & Revenue Model

Company Description

Stoke Therapeutics (STOK) is a biotechnology company focused on pioneering RNA-based medicines to treat severe genetic diseases. Operating within the healthcare and biotechnology sectors, the company specializes in developing treatments for conditions caused by genetic mutations with a focus on precision medicine. Its core product is the proprietary TANGO (Targeted Augmentation of Nuclear Gene Output) platform, which is designed to selectively increase protein production to achieve therapeutic benefits.

How the Company Makes Money

Stoke Therapeutics makes money primarily through the development and commercialization of its RNA-based therapies, leveraging its TANGO platform. The company generates revenue through research collaborations, licensing agreements, and potential future sales of approved therapies. Collaborations with pharmaceutical partners provide funding and milestone payments, while licensing agreements contribute to upfront payments and royalties based on product sales. These strategic partnerships are significant to Stoke's earnings as they help finance the research and development of its therapeutic candidates.

Stoke Therapeutics Financial Statement Overview

Summary

Stoke Therapeutics shows strong revenue growth and a high gross profit margin, with a transition to profitability and improved cash flow management. The balance sheet is solid with minimal leverage, though increasing liabilities could be a future risk.

Income Statement

Stoke Therapeutics demonstrates strong revenue growth, with a significant increase in total revenue over the TTM period compared to previous years. Gross profit margin is high at 98.25% for TTM, indicating efficient production operations. The net profit margin turned positive at 26.33% TTM, showing improved profitability. However, historical EBIT and EBITDA margins were negative, reflecting past operational challenges.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.01, indicating minimal leverage and strong financial health. Return on equity is impressive at 14.36% TTM, signaling effective use of equity. The equity ratio of 86.06% suggests high financial stability. However, a historical trend of increasing liabilities could pose future risks.

Cash Flow

The cash flow statement highlights substantial improvements with a positive free cash flow of $69.2M TTM, up from negative values in prior years. Operating cash flow is robust, with a positive ratio to net income of 1.38, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio of 1.38 further confirms strong cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	190.91M	36.55M	8.78M	12.40M	0.00	0.00
Gross Profit	187.58M	32.11M	8.78M	8.87M	-2.23M	-1.93M
EBITDA	39.79M	-99.19M	-112.30M	-102.81M	-83.58M	-50.32M
Net Income	50.27M	-88.98M	-104.70M	-93.11M	-84.71M	-50.61M
Balance Sheet
Total Assets	406.89M	271.56M	228.34M	256.07M	238.87M	297.93M
Cash, Cash Equivalents and Short-Term Investments	357.32M	216.90M	201.39M	229.59M	219.81M	287.31M
Total Debt	2.35M	2.32M	2.06M	2.36M	1.51M	80.00K
Total Liabilities	56.81M	42.53M	68.78M	71.22M	21.09M	11.85M
Stockholders Equity	350.07M	229.02M	159.56M	184.85M	217.78M	286.08M
Cash Flow
Free Cash Flow	69.20M	-87.05M	-82.68M	-35.83M	-68.11M	-43.27M
Operating Cash Flow	69.54M	-86.85M	-81.07M	-31.87M	-66.91M	-42.22M
Investing Cash Flow	-103.83M	-107.47M	105.95M	-45.88M	-76.43M	-1.05M
Financing Cash Flow	130.75M	131.09M	53.01M	46.41M	1.28M	108.11M

Stoke Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 11.48 is below the 20-day moving average (MA) of 11.51, above the 50-day MA of 10.36, and above the 200-day MA of 10.59, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 58.05 is Neutral, neither overbought nor oversold. The STOCH value of 38.55 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	78 Outperform	$626.77M	14.59	20.50%	―	2333.50%	―
MAZE	59 Neutral	$519.43M	―		―	―	―
RLAY	54 Neutral	$622.35M	―	-45.46%	―	-78.26%	15.41%
PHAT	54 Neutral	$622.74M	―	181.41%	―	3055.71%	-18.80%
Sector *	46 Neutral	C$194.28M	-4.22	-8.60%	2.64%	13.54%	-1.44%
ERAS	34 Underperform	$407.93M	―	-45.82%	―	―	10.38%
SANA	33 Underperform	$719.52M	―	-71.44%	―	―	19.94%

Stoke Therapeutics Corporate Events

Stoke Therapeutics Adopts Key Proposals at Annual Meeting

On June 3, 2025, Stoke Therapeutics, Inc. held its 2025 Annual Meeting of Stockholders, where several key proposals were adopted. These included the election of three Class III directors, the ratification of KPMG LLP as the independent registered public accounting firm for 2025, and the approval of executive compensation and its future advisory vote frequency. These decisions are expected to influence the company’s governance and operational strategies moving forward.

The most recent analyst rating on (STOK) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Stoke Therapeutics stock, see the STOK Stock Forecast page.

Stoke Therapeutics Launches Phase 3 EMPEROR Study

Stoke Therapeutics announced the initiation of their Phase 3 EMPEROR study for zorevunersen, with the first U.S. sites starting in May 2025. This study aims to evaluate the effectiveness of zorevunersen as a potential first-in-class therapy for Dravet syndrome, a severe genetic epilepsy. The announcement marks a significant step in the company’s efforts to address unmet medical needs in this area, potentially impacting their market positioning and offering hope for stakeholders involved in Dravet syndrome treatment.

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