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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:68Neutral
Price Target:
$18.50
▼(-10.54% 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
Clinical Trial Progress
The upcoming P3 EMPEROR trial for Zorevunersen is actively adding sites and has dosed the first patient, which indicates progress in the trial phase.
Financial Performance
STOK reported 2Q25 total revenue $14M vs. consensus $9M, showing better than expected revenue performance.
Regulatory Strategy
Management is talking about using Zorevunersin's Breakthrough Therapy Designation to have a multidisciplinary meeting with the FDA to discuss the data to date and explore expedited access of Zorevunersen for patients.
Negative Factors
Regulatory Approval Challenges
The tone at the company has evolved to a more aggressive stance, openly discussing the possibility of accelerated approval.
Trial Completion Uncertainty
The company expects that enrollment will be completed in one year, which is very encouraging.

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

Stoke Therapeutics Business Overview & Revenue Model

Company DescriptionStoke Therapeutics (STOK) is a biotechnology company focused on developing innovative RNA-based therapies to treat a range of severe genetic diseases. The company leverages its proprietary TANGO (Targeted Augmentation of Nuclear Gene Output) platform to enhance the expression of specific genes, aiming to restore protein levels that are insufficient in certain disorders. Stoke Therapeutics primarily operates in the biotechnology sector, with a focus on rare diseases, and is advancing its lead product candidates through clinical trials to address conditions like epilepsy and other neurological disorders.
How the Company Makes MoneyStoke 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue199.89M36.55M8.78M12.40M0.000.00
Gross Profit199.89M36.55M8.78M12.40M-2.23M-1.93M
EBITDA42.27M-99.19M-112.30M-102.81M-83.58M-50.32M
Net Income52.48M-88.98M-104.70M-101.07M-85.81M-52.24M
Balance Sheet
Total Assets384.51M271.56M228.34M256.07M238.87M297.93M
Cash, Cash Equivalents and Short-Term Investments247.71M216.90M201.39M229.59M219.81M287.31M
Total Debt2.30M2.32M2.06M2.36M1.51M1.15M
Total Liabilities49.56M42.53M68.78M71.22M21.09M11.85M
Stockholders Equity334.94M229.02M159.56M184.85M217.78M286.08M
Cash Flow
Free Cash Flow61.15M-87.05M-82.68M-35.83M-68.11M-43.27M
Operating Cash Flow61.60M-86.85M-81.07M-31.87M-66.91M-42.22M
Investing Cash Flow-164.03M-107.47M105.95M-45.88M-76.43M-1.05M
Financing Cash Flow10.65M131.09M53.01M46.41M1.28M108.11M

Stoke Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.68
Price Trends
50DMA
14.76
Positive
100DMA
12.35
Positive
200DMA
11.10
Positive
Market Momentum
MACD
1.67
Positive
RSI
79.44
Negative
STOCH
77.06
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 20.68 is above the 20-day moving average (MA) of 18.22, above the 50-day MA of 14.76, and above the 200-day MA of 11.10, indicating a bullish trend. The MACD of 1.67 indicates Positive momentum. The RSI at 79.44 is Negative, neither overbought nor oversold. The STOCH value of 77.06 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 0 New Risks

Stoke Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$1.08B23.2318.17%1218.82%
60
Neutral
$851.32M181.41%1049.81%7.85%
59
Neutral
$659.52M
55
Neutral
$689.65M-46.24%-76.27%22.77%
51
Neutral
$7.92B-0.43-41.67%2.21%22.29%-1.85%
34
Underperform
$419.83M-31.16%50.77%
33
Underperform
$770.93M-109.12%7.58%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STOK
Stoke Therapeutics
20.68
5.98
40.68%
PHAT
Phathom Pharmaceuticals
12.34
-5.38
-30.36%
RLAY
Relay Therapeutics
4.12
-2.12
-33.97%
SANA
Sana Biotechnology
2.96
-2.08
-41.27%
ERAS
Erasca
1.61
-1.25
-43.71%
MAZE
Maze Therapeutics, Inc.
15.88
0.88
5.87%

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: Aug 15, 2025