Stoke Therapeutics (STOK) AI Stock Analysis

• Market Cap: $536.69M
• Dividend Yield: N/A
• Average Volume (3M): 836.02K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 2.02
• Revenue Growth: 2333.50%
• EPS Growth: N/A
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): 1.90
• Shares Outstanding: 54,596,924
• 10 Day Avg. Volume: 832,463
• 30 Day Avg. Volume: 836,020
• PEG Ratio: 0.08
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.70
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 8.90
• Enterprise Value/Ebitda: -0.90
• 1Y Price Target: $24.67
• Price Target Upside: 145.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Stoke Therapeutics' score reflects its high growth potential and strategic partnership with Biogen, which provide financial backing and enhance its development pipeline. While the company is unprofitable with negative cash flow, its strong equity position and potential undervaluation offer a promising outlook. Technical indicators show positive momentum, though the stock's high volatility warrants caution.

Positive Factors

Clinical Trials

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

Market Differentiation

Zorevunersen could be a game-changing therapy for Dravet syndrome patients, demonstrating strong seizure reduction and improvements in cognition and behavior.

Strategic Partnerships

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.

Valuation Concerns

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., 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 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 is experiencing high revenue growth but remains unprofitable with significant operating losses. The company has a strong equity base and no debt, providing some financial stability. However, negative cash flow from operations and investments requires careful management of cash reserves.

Income Statement

Stoke Therapeutics has shown significant revenue growth, with total revenue increasing from $8.78 million in 2023 to $36.56 million in 2024. However, the company is still unprofitable, with negative EBIT and net income margins due to high operating expenses, resulting in a net profit margin of -243.4% in 2024.

Balance Sheet

The company maintains a strong equity position with no debt in 2024, resulting in a debt-to-equity ratio of 0 and a high equity ratio of 84.4%. Despite these strengths, the company has a history of operating losses, which is a concern for long-term sustainability.

Cash Flow

Stoke Therapeutics has a negative operating cash flow and free cash flow, indicating that it is still consuming cash for operations. The free cash flow has decreased slightly from -$82.68 million in 2023 to -$87.05 million in 2024. The operating cash flow to net income ratio is close to 1, reflecting that cash flow is largely in line with net losses.

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
29.01M	32.11M	8.78M	8.87M	-2.23M	-1.93M
	EBIT
38.24M	-101.37M	-114.77M	-104.36M	-86.06M	-53.04M
	EBITDA
39.32M	-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
357.32M	216.90M	201.39M	229.59M	219.81M	287.31M
	Total Assets
406.89M	271.56M	228.34M	256.07M	238.87M	297.93M
	Total Debt
0.00	2.32M	2.06M	2.36M	1.51M	80.00K
	Net Debt
-274.82M	-125.66M	-189.38M	-111.20M	-143.39M	-287.23M
	Total Liabilities
12.13M	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: 10.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 10.05 is above the 20-day moving average (MA) of 9.49, above the 50-day MA of 8.32, and below the 200-day MA of 11.12, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 72.14 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	66 Neutral	$536.69M	12.77	20.50%	―	2333.50%	―
MAZE	59 Neutral	$424.83M	―		―	―	―
Sector *	52 Neutral	$5.19B	3.04	-44.20%	2.82%	16.59%	-0.39%
RLAY	46 Neutral	$502.33M	―	-45.46%	―	-78.26%	15.41%
PHAT	43 Neutral	$306.48M	―	181.41%	―	3055.71%	-18.80%
ERAS	34 Underperform	$348.44M	―	-45.82%	―	―	10.38%
SANA	33 Underperform	$378.93M	―	-71.44%	―	―	19.94%

Stoke Therapeutics Corporate Events

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.