Stoke Therapeutics (STOK) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 2.05
• Revenue Growth: 1218.82%
• EPS Growth: N/A
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.40
• Shares Outstanding: 54,797,417
• 10 Day Avg. Volume: 1,050,948
• 30 Day Avg. Volume: 1,076,150
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.33
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 2.09
• Enterprise Value/Ebitda: 9.89
• 1Y Price Target: $24.88
• Price Target Upside: 8.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: $18.50 ▼(-19.39% Downside)

Stoke Therapeutics' overall stock score reflects strong financial performance and positive corporate developments, particularly the initiation of a significant Phase 3 study. However, technical indicators suggest caution due to overbought conditions, and the valuation is moderate with no dividend yield. Historical financial volatility remains a risk factor.

Positive Factors

Phase 3 Study Initiation

The launch of the Phase 3 EMPEROR study for zorevunersen is a pivotal step, potentially enhancing market positioning and addressing unmet medical needs in Dravet syndrome treatment, which could drive long-term growth.

Strong Profitability

Improved profitability indicates effective cost management and operational efficiency, providing a solid foundation for sustainable growth and financial health.

Low Leverage

A low debt-to-equity ratio minimizes leverage risk, enhancing financial stability and flexibility, which is crucial for long-term strategic initiatives and resilience.

Negative Factors

Historical Volatility

Past volatility in profitability and cash flow suggests potential risks if not managed carefully, which could impact investor confidence and long-term stability.

Decline in Free Cash Flow

A decline in free cash flow growth can constrain the company's ability to invest in new projects and manage debt, potentially affecting long-term operational capabilities.

Negative Historical Margins

Negative historical margins highlight past operational challenges, which could pose risks if similar issues arise, affecting future profitability and growth.

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 the development and commercialization of its RNA-based therapies. The company may earn money through various channels, including grants, partnerships, and licensing agreements with larger pharmaceutical companies for the development and commercialization of their proprietary technologies and drug candidates. Additionally, Stoke Therapeutics could receive milestone payments tied to the successful development of its therapies or royalties on future sales once products are commercialized. Collaborations with academic institutions and research organizations can also contribute to funding and support for ongoing research, further enhancing its revenue potential.

Stoke Therapeutics Financial Statement Overview

Summary

Stoke Therapeutics exhibits strong financial performance with significant revenue growth and a high gross profit margin of 98.25%. The company has transitioned to profitability with a net profit margin of 26.33% TTM. The balance sheet is robust with minimal leverage, and cash flow management has improved significantly, evidenced by a positive free cash flow of $69.2M TTM.

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	199.89M	36.55M	8.78M	12.40M	0.00	0.00
Gross Profit	199.89M	36.55M	8.78M	12.40M	-2.23M	-1.93M
EBITDA	42.27M	-99.19M	-112.30M	-102.81M	-83.58M	-50.32M
Net Income	52.48M	-88.98M	-104.70M	-101.07M	-85.81M	-52.24M
Balance Sheet
Total Assets	384.51M	271.56M	228.34M	256.07M	238.87M	297.93M
Cash, Cash Equivalents and Short-Term Investments	247.71M	216.90M	201.39M	229.59M	219.81M	287.31M
Total Debt	2.30M	2.32M	2.06M	2.36M	1.51M	1.15M
Total Liabilities	49.56M	42.53M	68.78M	71.22M	21.09M	11.85M
Stockholders Equity	334.94M	229.02M	159.56M	184.85M	217.78M	286.08M
Cash Flow
Free Cash Flow	61.15M	-87.05M	-82.68M	-35.83M	-68.11M	-43.27M
Operating Cash Flow	61.60M	-86.85M	-81.07M	-31.87M	-66.91M	-42.22M
Investing Cash Flow	-164.03M	-107.47M	105.95M	-45.88M	-76.43M	-1.05M
Financing Cash Flow	10.65M	131.09M	53.01M	46.41M	1.28M	108.11M

Stoke Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.95
• 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 22.95 is above the 20-day moving average (MA) of 22.01, above the 50-day MA of 17.88, and above the 200-day MA of 11.88, indicating a bullish trend. The MACD of 1.47 indicates Positive momentum. The RSI at 68.60 is Neutral, neither overbought nor oversold. The STOCH value of 32.36 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	68 Neutral	$1.25B	26.78	18.17%	―	1218.82%	―
PHAT	60 Neutral	830.75M	-2.47	131.84%	―	1049.81%	7.85%
MAZE	59 Neutral	1.15B	-15.65	―	―	―	―
RLAY	55 Neutral	779.30M	-2.25	-43.42%	―	-76.27%	22.77%
ERAS	34 Underperform	541.81M	-3.99	―	―	―	50.77%
SANA	33 Underperform	882.17M	-3.19	―	―	―	7.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.