Stoke Therapeutics (STOK) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: N/A
• Average Volume (3M): 738.16K
• Price to Earnings (P/E): 44.6
• Beta (1Y): 1.66
• Revenue Growth: 1128.17%
• EPS Growth: N/A
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.65
• Shares Outstanding: 57,117,150
• 10 Day Avg. Volume: 776,677
• 30 Day Avg. Volume: 738,164
• PEG Ratio: 0.22
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 16.30
• P/FCF Ratio: -6.84
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 7.79
• Enterprise Value/Gross Profit: 7.83
• Enterprise Value/Ebitda: 48.40
• 1Y Price Target: $35.75
• Price Target Upside: 21.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $36.00 ▲(22.20% Upside)

The score is driven mainly by improving financial performance (profitability turning positive and a strong, low-leverage balance sheet) and supportive technical uptrend signals. These positives are tempered by expensive valuation (P/E 51) and lingering cash flow volatility, while recent corporate updates add a modest positive catalyst.

Positive Factors

High gross and positive net margins

Sustained very high gross margins and a durable shift to positive net margin indicate a scalable cost structure for Stoke's RNA-targeted therapies. This margin profile supports reinvestment in R&D and commercialization, reducing reliance on dilutive financing as programs advance toward potential approval.

Very low leverage and strong equity base

Extremely low leverage and a high equity ratio provide financial flexibility to fund late-stage trials and potential commercialization. A strong balance sheet lowers bankruptcy risk, supports strategic partnerships or M&A, and allows management to prioritize clinical progress over near-term financing pressures.

Advanced Phase 3 program and Biogen collaboration

Faster enrollment, a defined mid‑2027 readout target and a rolling NDA pathway materially shorten time to potential approval. The Biogen partnership and stated cash position/funding into 2028 enhance execution certainty, increasing the structural likelihood of progressing to regulatory filing and commercialization.

Negative Factors

Modest revenue growth

Low organic top-line growth underscores reliance on clinical progress and partnerships rather than recurring product revenue today. Without successful launches or expanded licensing, modest revenue trends could limit reinvestment capacity and place greater dependence on milestone-driven funding over the next several quarters.

Negative free cash flow growth and volatility

Negative FCF growth and volatile cash generation increase the probability Stoke needs external funding as programs scale. Even with current cash balances, persistent negative FCF can force dilutive financings or greater dependence on milestone payments, affecting long-term ownership and strategic flexibility.

Regulatory uncertainty despite Breakthrough status

Although Breakthrough Therapy Designation signals regulatory priority, the FDA's request for more information and lack of agreed expedited changes introduce timing risk. This uncertainty can delay filings, push out revenue realization, and affect partnership milestone timing over the medium term.

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 partnerships and collaborations with larger pharmaceutical companies that seek to leverage its RNA modulation technology. These partnerships often involve upfront payments, milestone payments based on the achievement of development and regulatory goals, and royalty agreements on future product sales. Additionally, the company may receive funding from grants or government programs aimed at supporting innovative medical research. As Stoke progresses in clinical trials and potentially brings products to market, it stands to benefit from significant revenue through product sales and licensing agreements.

Stoke Therapeutics Financial Statement Overview

Summary

Improving fundamentals with very strong gross margin (94.83%) and a turn to positive net margin (19.73%) alongside minimal leverage (debt-to-equity 0.02). Offsetting this, revenue growth is modest (2.87% TTM) and cash flow remains volatile with negative free cash flow growth.

Income Statement

Stoke Therapeutics has shown a significant improvement in its income statement metrics over the years. The TTM data indicates a strong gross profit margin of 94.83%, reflecting efficient cost management. The net profit margin has turned positive at 19.73%, a remarkable turnaround from previous losses. Revenue growth is modest at 2.87% TTM, but the company has transitioned from negative EBIT and EBITDA margins to positive ones, indicating improved operational efficiency. However, the historical volatility in revenue and profitability remains a concern.

Balance Sheet

The balance sheet of Stoke Therapeutics is relatively strong, with a low debt-to-equity ratio of 0.02, indicating minimal leverage and financial risk. The return on equity has improved to 13.28% TTM, showcasing better utilization of equity. The equity ratio stands at 85.55%, reflecting a solid capital structure. Despite these strengths, the company has experienced fluctuations in equity and asset levels over the years, which could pose risks if not managed carefully.

Cash Flow

Cash flow metrics show a mixed picture. The operating cash flow to net income ratio is healthy at 1.27 TTM, indicating good cash generation relative to earnings. However, free cash flow growth has been negative, and the free cash flow to net income ratio is nearly 1, suggesting limited cash flow surplus. Historical cash flow volatility and negative growth rates in previous years highlight potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	205.63M	36.55M	8.78M	12.40M	0.00	0.00
Gross Profit	204.64M	36.55M	8.78M	12.40M	0.00	-1.93M
EBITDA	33.10M	-99.19M	-112.30M	-102.81M	-85.09M	-50.32M
Net Income	40.57M	-88.98M	-104.70M	-101.07M	-85.81M	-52.24M
Balance Sheet
Total Assets	360.26M	271.56M	228.34M	256.07M	238.87M	297.93M
Cash, Cash Equivalents and Short-Term Investments	248.31M	216.90M	201.39M	229.59M	219.81M	287.31M
Total Debt	2.91M	2.32M	2.06M	2.36M	1.51M	1.07M
Total Liabilities	52.16M	42.53M	68.78M	71.22M	21.09M	11.85M
Stockholders Equity	308.11M	229.02M	159.56M	184.85M	217.78M	286.08M
Cash Flow
Free Cash Flow	52.37M	-87.05M	-82.68M	-35.83M	-68.11M	-43.27M
Operating Cash Flow	52.85M	-86.85M	-81.07M	-31.87M	-66.91M	-42.22M
Investing Cash Flow	-124.93M	-107.47M	105.95M	-45.88M	-76.43M	-1.05M
Financing Cash Flow	5.62M	131.09M	53.01M	46.41M	1.28M	108.11M

Stoke Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.46
• 50DMA: Negative
• 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 Neutral. The current price of 29.46 is below the 20-day moving average (MA) of 31.34, below the 50-day MA of 30.76, and above the 200-day MA of 20.23, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 54.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STOK.

Stoke Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STOK	65 Neutral	$1.68B	44.64	15.02%	―	1128.17%	―
RAPP	56 Neutral	$1.28B	-10.00	-23.41%	―	―	-37.07%
SNDX	55 Neutral	$1.76B	-5.60	-129.32%	―	597.19%	0.45%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SION	47 Neutral	$1.89B	-26.51	-28.07%	―	―	―
XERS	46 Neutral	$1.23B	-71.95	―	―	42.05%	76.50%

Stoke Therapeutics Corporate Events

Stoke Therapeutics Accelerates Phase 3 Dravet Study Timeline

On January 11, 2026, Stoke Therapeutics announced updated, accelerated timelines for its Phase 3 EMPEROR study of zorevunersen in Dravet syndrome, now expecting to complete enrollment of 150 patients in the second quarter of 2026 and to deliver a Phase 3 data readout in mid-2027 that is intended to support a rolling New Drug Application to the U.S. Food and Drug Administration starting in the first half of 2027. Following a recent multidisciplinary meeting held as part of zorevunersen’s Breakthrough Therapy Designation, the FDA requested additional information and made no immediate changes to the development program, but discussions continue around potential expedited pathways, while strong enrollment momentum, a global trial footprint, and a cash position of about $391.7 million as of December 31, 2025—together with collaboration proceeds from Biogen, expected to fund operations into 2028—underscore Stoke’s capacity to advance zorevunersen toward potential registration and commercialization in a field that currently lacks disease-modifying therapies for Dravet syndrome.

The most recent analyst rating on (STOK) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Stoke Therapeutics stock, see the STOK Stock Forecast page.

Stoke Therapeutics Highlights Zorevunersen’s Potential at Epilepsy Meeting

At the 2025 American Epilepsy Society Annual Meeting, Stoke Therapeutics and Biogen presented data supporting the potential of zorevunersen as a disease-modifying treatment for Dravet syndrome. Long-term studies demonstrated significant seizure reductions, cognitive and behavioral improvements, and enhanced quality of life for patients. The findings, including EEG analysis, suggest zorevunersen’s potential to address the underlying causes of Dravet syndrome, offering hope for improved patient outcomes.

The most recent analyst rating on (STOK) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Stoke Therapeutics stock, see the STOK Stock Forecast page.