Sutro Biopharma (STRO) AI Stock Analysis

• Market Cap: $126.85M
• Dividend Yield: N/A
• Average Volume (3M): 987.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.83
• Revenue Growth: -34.36%
• EPS Growth: -59.98%
• Country: US
• Employees: 269
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -6.70
• Shares Outstanding: 8,519,392
• 10 Day Avg. Volume: 2,002,360
• 30 Day Avg. Volume: 987,852
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.17
• Price to Sales (P/S): 2.28
• P/FCF Ratio: -0.73
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 0.72
• Enterprise Value/Ebitda: -0.51
• 1Y Price Target: $20.00
• Price Target Upside: 36.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $16.00 ▲(9.59% Upside)

The score is held back primarily by weak financial fundamentals—large losses, negative cash flow, and negative equity—despite strong revenue growth and margins. Technical momentum is constructive and provides support, while valuation remains constrained by unprofitability. The Nasdaq compliance update is a modest positive but secondary to the underlying financial risks.

Positive Factors

High gross margin and revenue growth

Very high gross margins combined with strong TTM revenue growth indicate the underlying platform yields low incremental costs and meaningful market traction. Over a 2–6 month horizon this supports scalable unit economics, better bargaining power in collaborations, and the ability to reinvest in R&D or clinical programs.

Proprietary platform advantage

Sutro's cell-free protein synthesis platform and focus on next-generation ADCs create a structural competitive advantage. Platform-based capabilities can accelerate candidate generation, improve manufacturing flexibility, and enable a pipeline of differentiated assets that sustain partnerships and long-term commercial optionality.

Diversified collaboration-driven revenue model

A revenue mix that includes collaborations, milestone payments, and grants provides non-dilutive funding and external validation. Durable partnerships with larger biopharma can share development risk, provide upfront and milestone cash, and extend runway while supporting clinical progress across multiple programs.

Negative Factors

Negative stockholders' equity

Negative equity and a negative debt-to-equity ratio reflect structural balance-sheet weakness that reduces financial flexibility. This condition limits access to traditional financing, raises the likelihood of dilutive capital raises, and can constrain strategic options and partner confidence over the medium term.

Persistent negative cash flow

Ongoing negative operating and free cash flows signal continued cash burn and a need for external financing. Over 2–6 months this constrains the company’s ability to fund clinical programs internally, increases dilution risk from new capital raises, and can delay program timelines if funding gaps emerge.

Severe unprofitability and margin erosion

Extremely negative net margins and deteriorating EBIT/EBITDA indicate high operating burn relative to revenue. Without meaningful margin improvement or major clinical/partnership successes, the company lacks a clear path to self-sustaining profits, increasing reliance on external capital and raising long-term viability concerns.

Sutro Biopharma Business Overview & Revenue Model

Company Description

Sutro Biopharma, Inc. operates as clinical stage drug discovery, development, and manufacturing company. It focuses on creating protein therapeutics for cancer and autoimmune disorders through integrated cell-free protein synthesis and site-specific conjugation platform, XpressCF+.The company's product candidates include STRO-001, an antibody-drug conjugate (ADC) directed against the cancer target CD74 for patients with multiple myeloma and non-Hodgkin lymphoma that is in Phase 1 clinical trials; and STRO-002, an ADC directed against folate receptor-alpha for patients with ovarian and endometrial cancers, which is in Phase 1 clinical trials. It has collaboration and license agreements with Merck Collaboration to develop research programs focusing on cytokine derivatives for cancer and autoimmune disorders; and Celgene Corporation to discover and develop bispecific antibodies and/or ADCs focused on the field of immuno-oncology. The company was formerly known as Fundamental Applied Biology, Inc. Sutro Biopharma, Inc. was incorporated in 2003 and is headquartered in South San Francisco, California.

How the Company Makes Money

Sutro Biopharma generates revenue through a combination of product development collaborations, government grants, and potential future product sales. The company often engages in partnerships with larger biopharmaceutical companies, which may involve upfront payments, milestone payments tied to clinical and regulatory achievements, and royalties on future sales of partnered products. Additionally, Sutro may receive funding from grants and collaborations aimed at advancing its research and development programs. The revenue model is heavily reliant on the successful progression of its therapeutic candidates through clinical trials and into commercialization.

Sutro Biopharma Financial Statement Overview

Summary

Strong gross margin (96.39%) and very strong TTM revenue growth (112.3%) are outweighed by severe unprofitability (net margin -199.76%), negative operating/free cash flow, and balance-sheet weakness including negative stockholders’ equity.

Income Statement

Sutro Biopharma shows a high gross profit margin of 96.39% in TTM, indicating strong cost management. However, the company struggles with profitability, reflected in a negative net profit margin of -199.76% and declining EBIT and EBITDA margins. Revenue growth is positive at 112.3% in TTM, but the company remains unprofitable, which is a concern.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -0.61 in TTM. Return on equity is also negative, indicating inefficiency in generating returns from equity. The equity ratio is not directly provided, but the negative equity suggests financial instability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a slight improvement in free cash flow to net income ratio at 1.01 in TTM. However, the negative free cash flow growth rate of -10.68% indicates cash flow challenges, which could impact future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.65M	62.04M	153.73M	67.77M	61.88M	42.72M
Gross Profit	105.65M	54.83M	146.91M	59.48M	52.11M	-34.24M
EBITDA	-148.58M	-180.45M	-67.92M	-105.07M	-97.56M	-23.75M
Net Income	-216.77M	-227.46M	-106.79M	-119.20M	-105.54M	-32.13M
Balance Sheet
Total Assets	209.66M	387.21M	470.74M	406.94M	341.41M	394.11M
Cash, Cash Equivalents and Short-Term Investments	167.59M	316.89M	375.62M	334.36M	197.94M	368.14M
Total Debt	17.66M	23.15M	33.63M	55.02M	57.37M	24.55M
Total Liabilities	296.93M	342.61M	321.09M	189.90M	88.84M	62.06M
Stockholders Equity	-87.27M	44.60M	149.65M	217.05M	252.56M	332.05M
Cash Flow
Free Cash Flow	-225.11M	-194.64M	-115.93M	-4.31M	-97.00M	-74.93M
Operating Cash Flow	-222.53M	-191.54M	-111.62M	3.55M	-81.68M	-67.80M
Investing Cash Flow	113.80M	218.51M	-3.92M	-35.02M	-97.31M	604.00K
Financing Cash Flow	84.00K	94.05M	137.55M	48.31M	3.26M	269.25M

Sutro Biopharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.60
• 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 STRO, the sentiment is Positive. The current price of 14.6 is above the 20-day moving average (MA) of 14.24, above the 50-day MA of 11.56, and above the 200-day MA of 9.53, indicating a bullish trend. The MACD of 1.02 indicates Positive momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 36.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRO.

Sutro Biopharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPTX	57 Neutral	$114.24M	-1.56	-49.78%	―	-82.16%	14.58%
STRO	52 Neutral	$126.85M	-0.56	-1810.01%	―	-34.36%	-59.98%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INMB	51 Neutral	$40.41M	-0.66	-155.77%	―	19.05%	2.01%
ACET	46 Neutral	$71.17M	-0.32	-71.73%	―	―	25.89%
CRVO	45 Neutral	$43.21M	-1.59	-71.42%	―	-38.81%	-76.96%
HOWL	44 Neutral	$31.15M	-0.37	-122.43%	―	-100.00%	-8.30%

Sutro Biopharma Corporate Events

Sutro Biopharma Regains Nasdaq Listing Compliance

On December 17, 2025, Sutro Biopharma announced that it had regained compliance with Nasdaq Listing Rule 5450(a)(1), closing a listing matter that began on June 20, 2025, when its stock price fell below $1.00 per share for 30 consecutive business days. As of December 16, 2025, the company’s stock maintained a bid price of at least $1.00 per share for 10 consecutive business days, meeting the key requirement for continued listing on the Nasdaq Global Market, alongside other applicable criteria. The resolution of this issue marks a positive development for the company’s operations and market standing, ensuring its continued access to the critical resources offered by Nasdaq.

The most recent analyst rating on (STRO) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Sutro Biopharma stock, see the STRO Stock Forecast page.

Sutro Biopharma Announces Reverse Stock Split

On December 2, 2025, Sutro Biopharma announced a 1-for-10 reverse stock split of its common stock, effective December 3, 2025, to comply with Nasdaq’s minimum bid price requirement. This move, approved by the Board on November 20, 2025, reduces the number of outstanding shares from approximately 85 million to 8.5 million, with no change to stockholder ownership percentages except for rounding up fractional shares.

The most recent analyst rating on (STRO) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on Sutro Biopharma stock, see the STRO Stock Forecast page.