Sutro Biopharma (STRO) AI Stock Analysis

• Market Cap: $64.19M
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.75
• Revenue Growth: -56.88%
• EPS Growth: -57.57%
• Country: US
• Employees: 269
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.91
• Shares Outstanding: 84,461,365
• 10 Day Avg. Volume: 364,189
• 30 Day Avg. Volume: 1,012,263
• PEG Ratio: -0.20
• Price to Book (P/B): -2.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.32
• Enterprise Value/Market Cap: -0.33
• Enterprise Value/Revenue: -0.05
• Enterprise Value/Gross Profit: -8.43
• Enterprise Value/Ebitda: 0.04
• 1Y Price Target: $1.70
• Price Target Upside: 123.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 39 Underperform
• Price Target: $0.50 ▼(-34.21%Downside)

Sutro Biopharma's overall score is primarily impacted by its precarious financial position and bearish technical indicators. The NASDAQ non-compliance notice further exacerbates the risks, creating an unattractive investment profile at this time.

Positive Factors

Financial Stability

Despite the challenges, Sutro maintains a solid cash position of $316.9 million, which suggests financial stability.

Scientific Innovation

Sutro's cell-free platform and linker chemistry allow the development of ADCs with a higher drug-to-antibody ratio, enabling higher dosing levels and improved efficacy.

Strategic Partnerships

Sutro Biopharma partnered ROR1 ADC STRO-003 with Ipsen and is developing two immunostimulatory ADCs with Astellas, which could bring in over $1.6 billion in milestones plus royalties.

Negative Factors

Clinical Risk

There is a risk that Sutro Biopharma's drugs may fail in the clinic, and the company will likely require additional capital.

Program Discontinuation

The impact of luvelta’s discontinuation continues to weigh on investor sentiment, although management has moved swiftly to reposition the story around a next-generation ADC pipeline.

Workforce Reduction

Sutro announced a near-50% reduction in headcount, indicating significant restructuring within the company.

Sutro Biopharma Business Overview & Revenue Model

Company Description

Sutro Biopharma, Inc. (STRO) is a biotechnology company focused on developing and manufacturing next-generation oncology therapeutics. The company specializes in the development of antibody-drug conjugates (ADCs), bispecific antibodies, and other protein therapeutics for cancer treatment. Sutro leverages its proprietary cell-free protein synthesis platform, XpressCF+, to create complex biologics that can target cancer cells more precisely, offering potentially improved therapies for patients.

How the Company Makes Money

Sutro Biopharma generates revenue through a combination of product sales, collaboration agreements, and licensing. The company's proprietary XpressCF+ platform is a key driver of collaborations with other pharmaceutical companies, where Sutro receives upfront payments, research funding, milestone payments, and potentially royalties on commercialized products. Additionally, Sutro may earn revenue from the direct commercialization of its own pipeline of oncology therapeutics, though this depends on successful development and regulatory approval of these drugs. Partnerships with larger biotech firms for co-development and co-commercialization are significant contributors to its earnings, allowing Sutro to leverage additional resources and expertise in the development of its therapeutic candidates.

Sutro Biopharma Financial Statement Overview

Summary

Sutro Biopharma faces significant financial challenges, including negative equity, declining revenues, and negative cash flows. These factors indicate high financial risk typical of early-stage biotech firms but remain concerning.

Income Statement

Sutro Biopharma shows a volatile revenue trend with a recent revenue decline in the TTM period. The gross profit margin has dramatically decreased, indicating rising costs or reduced pricing power. Net profit margins remain negative, reflecting ongoing losses, although these are consistent with typical biotech firms in early stages. The EBIT and EBITDA margins are also negative, highlighting operational challenges.

Balance Sheet

The balance sheet exhibits a negative stockholder equity in the TTM period, indicating potential financial instability. The debt-to-equity ratio is irrelevant due to negative equity, but the total liabilities exceed total assets, raising concerns about solvency. Overall, the financial leverage is high, and equity financing may be necessary to maintain operations.

Cash Flow

Sutro Biopharma's cash flow statement reveals a negative operating cash flow, suggesting operational inefficiencies or high R&D costs typical in biotech. The free cash flow is negative, and there's a significant reliance on financing activities, raising sustainability concerns if external funding diminishes.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.04M	153.73M	67.77M	61.88M	42.72M
Gross Profit	54.83M	146.91M	59.48M	52.11M	-34.24M
EBITDA	-180.45M	-67.92M	-105.07M	-98.52M	-23.75M
Net Income	-227.46M	-106.79M	-119.20M	-108.67M	-36.20M
Balance Sheet
Total Assets	387.21M	470.74M	406.94M	341.41M	394.11M
Cash, Cash Equivalents and Short-Term Investments	316.89M	375.62M	302.34M	197.94M	368.14M
Total Debt	23.15M	33.63M	67.52M	57.37M	24.55M
Total Liabilities	342.61M	321.09M	189.90M	88.84M	62.06M
Stockholders Equity	44.60M	149.65M	217.05M	252.56M	332.05M
Cash Flow
Free Cash Flow	-194.64M	-115.93M	-4.31M	-97.00M	-74.93M
Operating Cash Flow	-191.54M	-111.62M	3.55M	-81.68M	-67.80M
Investing Cash Flow	218.51M	-3.92M	-35.02M	-97.31M	604.00K
Financing Cash Flow	94.05M	137.55M	48.31M	3.26M	269.25M

Sutro Biopharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRO, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.77, below the 50-day MA of 0.83, and below the 200-day MA of 1.77, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.89 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STRO.

Sutro Biopharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$7.35B	-0.07	-63.71%	2.81%	16.17%	0.03%
CUE	51 Neutral	$67.81M	―	-221.66%	―	13.83%	37.66%
INO	44 Neutral	$70.83M	―	-132.44%	―	-60.52%	42.41%
APLT	39 Underperform	$65.39M	―	-83.71%	―	―	―
STRO	39 Underperform	$64.19M	―	-679.15%	―	-56.88%	-57.57%
CYCC	38 Underperform	$20.70M	―	-1949.77%	―	-89.76%	80.28%
UNCY	28 Underperform	$56.56M	―	-2355.27%	―	-100.00%	52.65%

Sutro Biopharma Corporate Events

Sutro Biopharma Faces NASDAQ Non-Compliance Notice

On June 20, 2025, Sutro Biopharma received a notice from NASDAQ indicating non-compliance with the $1.00 minimum bid price requirement for continued listing on The NASDAQ Global Market. The company has until December 17, 2025, to meet this requirement, with options for an additional compliance period if necessary. Failure to comply could result in delisting, but the company plans to monitor its stock price and may implement a reverse stock split to regain compliance.

The most recent analyst rating on (STRO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Sutro Biopharma stock, see the STRO Stock Forecast page.

Sutro Biopharma Adopts Key Proposals at Annual Meeting

On June 6, 2025, Sutro Biopharma held its 2025 Annual Meeting of Stockholders, where several key proposals were adopted. These included the election of three Class I directors to serve until 2028, the ratification of Ernst & Young LLP as the independent accounting firm for 2025, approval of executive compensation on a non-binding basis, and an amendment to the company’s Restated Certificate of Incorporation to potentially enact a reverse stock split.

The most recent analyst rating on (STRO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Sutro Biopharma stock, see the STRO Stock Forecast page.