Sutro Biopharma (STRO) AI Stock Analysis

• Market Cap: $61.99M
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.65
• Revenue Growth: -56.88%
• EPS Growth: -57.57%
• Country: US
• Employees: 269
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -0.91
• Shares Outstanding: 84,461,365
• 10 Day Avg. Volume: 1,879,604
• 30 Day Avg. Volume: 1,159,642
• PEG Ratio: <0.01
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.70
• Price Target Upside: 132.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 38 Underperform
• Price Target: $0.50 ▼(-31.51%Downside)

Sutro Biopharma's overall stock score is primarily driven by its precarious financial position and valuation challenges. The technical analysis further indicates bearish momentum, compounded by the risk of NASDAQ delisting. These factors collectively contribute to the low score.

Positive Factors

Financial Stability

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

Partnerships and Collaborations

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.

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.

Negative Factors

Financial Needs

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

Program Discontinuation

Sutro Biopharma is being downgraded to Market Perform due to the discontinuation of the luvelta program, which was the lead program driving the valuation methodology.

Workforce and Restructuring

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. 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 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 characterized by declining revenues, increased losses, and cash flow difficulties. While the company maintains a strong cash position, rising leverage and declining equity are concerning. The overall financial health requires strategic improvements in revenue generation and cost control to stabilize and grow.

Income Statement

Sutro Biopharma has experienced fluctuating revenues with a decline in total revenue from $153.7 million in 2023 to $62.0 million in 2024, showing a revenue growth rate of -59.65% in the latest period. Gross profit margin remains stable at 100%, but net profit margins have worsened due to increasing net losses. EBIT and EBITDA margins are negative, indicating operational challenges and a need for cost management improvements.

Balance Sheet

The company's balance sheet shows a concerning debt-to-equity ratio of 0.52 in 2024, up from 0.22 in 2023, indicating increased leverage. Stockholders’ equity has decreased significantly, impacting the equity ratio, which stands at 11.5%. Despite these concerns, the company maintains a strong cash position, which can provide some cushion against financial instability.

Cash Flow

Operating cash flow is negative, worsening from -$111.6 million in 2023 to -$191.5 million in 2024, highlighting increased cash burn. Free cash flow is also negative and has declined, reflecting substantial challenges in generating cash from operations. The operating cash flow to net income ratio underscores the company's struggle to convert earnings into cash.

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	62.04M	146.91M	59.48M	52.11M	-34.24M
EBITDA	-186.81M	-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: 0.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.73 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.87, and below the 200-day MA of 1.99, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.04 is Neutral, neither overbought nor oversold. The STOCH value of 14.25 is Positive, 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
INO	52 Neutral	$77.38M	―	-132.44%	―	-60.52%	42.41%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	17.09%	1.64%
CUE	46 Neutral	$55.83M	―	-221.66%	―	13.83%	37.66%
APLT	39 Underperform	$45.84M	―	-83.71%	―	―	―
STRO	38 Underperform	$61.99M	―	-679.15%	―	-56.88%	-57.57%
CYCC	38 Underperform	$7.86M	―	-1949.77%	―	-89.76%	80.28%
UNCY	28 Underperform	$86.82M	―	-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.