Stoke Therapeutics (STOK) AI Stock Analysis

• Market Cap: $608.21M
• Dividend Yield: N/A
• Average Volume (3M): 649.55K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 2.03
• Revenue Growth: 2333.50%
• EPS Growth: N/A
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): 1.90
• Shares Outstanding: 54,596,924
• 10 Day Avg. Volume: 515,606
• 30 Day Avg. Volume: 649,553
• 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: 0.41
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 1.32
• Enterprise Value/Ebitda: -0.86
• 1Y Price Target: $24.67
• Price Target Upside: 121.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: $12.50 ▲(12.21%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 Trial Success

The EMPEROR trial is designed for success, with robust methodology and global regulatory alignment supporting its credibility.

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 is strategically significant due to Biogen's expertise in anti-sense oligonucleotide products.

Negative Factors

Market Uncertainty

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, Inc. is a biotechnology company focused on addressing the underlying causes of severe genetic diseases through RNA-based medicines. The company's proprietary TANGO (Targeted Augmentation of Nuclear Gene Output) platform is designed to precisely upregulate protein expression to restore missing or deficient proteins. Stoke Therapeutics primarily targets diseases of the central nervous system, including Dravet syndrome, an epileptic encephalopathy, and other severe genetic disorders.

How the Company Makes Money

Stoke Therapeutics generates revenue primarily through collaborations, partnerships, and licensing agreements with larger pharmaceutical companies. These agreements often include upfront payments, research and development funding, milestone payments, and potential royalties on future product sales. The company also engages in strategic partnerships to leverage resources and expertise that complement its TANGO platform, aiming to accelerate the development of its RNA-based therapeutic candidates. Additionally, Stoke may receive funding from grants and other non-dilutive sources to support its research and development activities.

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
	EBIT
38.24M	-101.37M	-114.77M	-104.36M	-86.06M	-53.04M
	EBITDA
39.79M	-99.19M	-112.30M	-102.81M	-83.58M	-50.32M
	Net Income Common Stockholders
50.27M	-88.98M	-104.70M	-93.11M	-84.71M	-50.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
253.67M	216.90M	201.39M	229.59M	219.81M	287.31M
	Total Assets
281.80M	271.56M	228.34M	256.07M	238.87M	297.93M
	Total Debt
2.40M	2.32M	2.06M	2.36M	1.51M	80.00K
	Net Debt
-187.94M	-125.66M	-189.38M	-111.20M	-143.39M	-287.23M
	Total Liabilities
67.97M	42.53M	68.78M	71.22M	21.09M	11.85M
	Stockholders Equity
213.82M	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: 11.14
• 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 11.14 is above the 20-day moving average (MA) of 9.90, above the 50-day MA of 8.80, and above the 200-day MA of 10.84, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 68.69 is Neutral, neither overbought nor oversold. The STOCH value of 84.12 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
STOK	78 Outperform	$608.21M	14.16	20.50%	―	2333.50%	―
MAZE	59 Neutral	$566.30M	―		―	―	―
RLAY	56 Neutral	$576.06M	―	-45.46%	―	-78.26%	15.41%
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
PHAT	53 Neutral	$622.74M	―	181.41%	―	3055.71%	-18.80%
ERAS	34 Underperform	$453.26M	―	-45.82%	―	―	10.38%
SANA	33 Underperform	$640.58M	―	-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.

Stoke Therapeutics Announces 2024 Financial Results and Updates

On March 18, 2025, Stoke Therapeutics announced its financial results for 2024 and provided business updates, including the upcoming Phase 3 EMPEROR study of zorevunersen for Dravet syndrome. The company reported a strong financial position with $246.7 million in cash and anticipated funding from a Biogen collaboration to support operations until mid-2028. Dr. Edward M. Kaye will transition from CEO to an advisory role, and the company retains exclusive rights for zorevunersen in North America. Recent milestones, such as a Breakthrough Therapy Designation and positive data, have advanced their efforts in treating Dravet syndrome.