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Stoke Therapeutics Inc (STOK)
NASDAQ:STOK
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Stoke Therapeutics (STOK) AI Stock Analysis

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STOK

Stoke Therapeutics

(NASDAQ:STOK)

Rating:78Outperform
Price Target:
$15.50
▲(18.32%Upside)
Stoke Therapeutics' overall score is driven by strong technical indicators and a significant corporate event that enhances its market prospects. Financial performance is solid, with notable improvements in profitability and cash flow. Valuation is fair, but the absence of a dividend yield may limit appeal. The lack of earnings call data is neutral in this assessment.
Positive Factors
Clinical Trial Progress
The zorevunersen pivotal Phase 3 EMPEROR trial in Dravet Syndrome has recently opened for enrollment, suggesting progress in clinical development.
Market Potential
The upcoming pivotal trial has a significant chance of producing differentiated efficacy, potentially opening up a $1-1.5B+ opportunity.
Regulatory Approval
The FDA has awarded zorevunersen with a breakthrough designation for the treatment of Dravet syndrome, highlighting its potential impact on this devastating childhood epilepsy.
Negative Factors
Clinical Trial Risks
Risks include Phase I/II being open-label with small sample sizes and potential challenges in Phase III execution.
Data Validation
Validation of the OLE data in the pivotal Phase 3 trial might make zorevunersen a potentially first-in-class disease modifying therapy for Dravet syndrome.

Stoke Therapeutics (STOK) vs. SPDR S&P 500 ETF (SPY)

Stoke Therapeutics Business Overview & Revenue Model

Company DescriptionStoke 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 MoneyStoke 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 exhibits strong revenue growth and improved profitability, with a high gross profit margin and positive net profit margin. The balance sheet is robust with low leverage, and cash flow management shows substantial improvement with positive free cash flow.
Income Statement
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue36.55M8.78M12.40M0.000.00
Gross Profit32.11M8.78M8.87M-2.23M-1.93M
EBITDA-99.19M-112.30M-102.81M-83.58M-50.32M
Net Income-88.98M-104.70M-93.11M-84.71M-50.61M
Balance Sheet
Total Assets271.56M228.34M256.07M238.87M297.93M
Cash, Cash Equivalents and Short-Term Investments216.90M201.39M229.59M219.81M287.31M
Total Debt2.32M2.06M2.36M1.51M80.00K
Total Liabilities42.53M68.78M71.22M21.09M11.85M
Stockholders Equity229.02M159.56M184.85M217.78M286.08M
Cash Flow
Free Cash Flow-87.05M-82.68M-35.83M-68.11M-43.27M
Operating Cash Flow-86.85M-81.07M-31.87M-66.91M-42.22M
Investing Cash Flow-107.47M105.95M-45.88M-76.43M-1.05M
Financing Cash Flow131.09M53.01M46.41M1.28M108.11M

Stoke Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.10
Price Trends
50DMA
11.28
Positive
100DMA
9.72
Positive
200DMA
10.54
Positive
Market Momentum
MACD
0.61
Negative
RSI
58.53
Neutral
STOCH
59.03
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 13.1 is above the 20-day moving average (MA) of 12.27, above the 50-day MA of 11.28, and above the 200-day MA of 10.54, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 59.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STOK.

Stoke Therapeutics Risk Analysis

Stoke Therapeutics disclosed 67 risk factors in its most recent earnings report. Stoke Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks

Stoke Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$737.60M17.1720.50%2333.50%
66
Neutral
CHF27.76B16.809.37%1.98%28.68%7.54%
59
Neutral
$720.46M
57
Neutral
$630.92M-45.46%-78.26%15.41%
55
Neutral
$631.82M181.41%3055.71%-18.80%
34
Underperform
$484.42M-45.82%10.38%
33
Underperform
$1.16B-71.44%19.94%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STOK
Stoke Therapeutics
13.10
-2.76
-17.40%
PHAT
Phathom Pharmaceuticals
9.63
-2.11
-17.97%
RLAY
Relay Therapeutics
3.74
-5.20
-58.17%
SANA
Sana Biotechnology
4.95
-1.45
-22.66%
ERAS
Erasca
1.74
-1.54
-46.95%
MAZE
Maze Therapeutics, Inc.
16.82
1.82
12.13%

Stoke Therapeutics Corporate Events

Executive/Board ChangesShareholder Meetings
Stoke Therapeutics Adopts Key Proposals at Annual Meeting
Neutral
Jun 4, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Stoke Therapeutics Launches Phase 3 EMPEROR Study
Positive
Jun 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025