Sutro Biopharma (STRO) AI Stock Analysis

• Market Cap: $86.47M
• Dividend Yield: N/A
• Average Volume (3M): 987.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.82
• 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: 84,774,180
• 10 Day Avg. Volume: 2,002,360
• 30 Day Avg. Volume: 987,852
• PEG Ratio: -0.09
• Price to Book (P/B): 31.70
• Price to Sales (P/S): 22.79
• P/FCF Ratio: -7.26
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 0.71
• Enterprise Value/Ebitda: -0.50
• 1Y Price Target: $2.20
• Price Target Upside: -74.71% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: $7.00 ▼(-19.54% Downside)

Sutro Biopharma's overall stock score is primarily impacted by its financial performance challenges, including negative equity and cash flow issues. The technical analysis indicates a bearish trend, while the valuation is weak due to the negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall score.

Positive Factors

Innovative Platform

Sutro's proprietary cell-free protein synthesis platform enables the creation of advanced therapeutics, offering a competitive edge in drug development.

Pipeline Advancement

Advancing STRO-004 into clinical trials marks significant progress in Sutro's pipeline, potentially leading to new cancer treatments and revenue streams.

High Gross Profit Margin

A high gross profit margin indicates strong cost management, which is crucial for maintaining financial health and supporting R&D investments.

Negative Factors

Negative Equity

Negative equity suggests financial instability, which can hinder the company's ability to raise capital and invest in growth opportunities.

Cash Flow Challenges

Persistent cash flow issues may limit Sutro's operational flexibility and ability to fund ongoing R&D and clinical trials, impacting long-term growth.

Profitability Issues

Sutro's ongoing profitability challenges could affect its ability to sustain operations and invest in future growth, posing a risk to long-term viability.

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

Sutro Biopharma demonstrates strong revenue growth and gross profit margins, but faces significant challenges in profitability and financial stability. The negative equity and cash flow issues highlight potential risks, requiring strategic improvements to achieve sustainable growth.

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	203.96M	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: Neutral
• Last Price: 8.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 8.7 is above the 20-day moving average (MA) of 8.64, below the 50-day MA of 9.24, and below the 200-day MA of 9.12, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 28.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STRO.

Sutro Biopharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPTX	53 Neutral	$76.47M	-0.69	-49.78%	―	-82.16%	14.58%
CRVO	52 Neutral	$64.95M	-2.69	-71.42%	―	-38.81%	-76.96%
INMB	52 Neutral	$41.74M	―	-155.77%	―	19.05%	2.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
STRO	39 Underperform	$86.47M	-0.40	-1810.01%	―	-34.36%	-59.98%
HOWL	38 Underperform	$55.33M	-0.74	-122.43%	―	-100.00%	-8.30%
ACET	27 Underperform	$105.79M	-0.53	-71.73%	―	―	25.89%

Sutro Biopharma Corporate Events

Sutro Biopharma Reports Q3 2025 Financial Results

Sutro Biopharma, Inc., a company specializing in the development of next-generation antibody-drug conjugates (ADCs) for cancer treatment, has reported its financial results for the third quarter of 2025. The company is known for its innovative approach in creating site-specific and novel-format ADCs that aim to improve drug exposure and reduce side effects in oncology treatments.

Sutro Biopharma Announces Major Organizational Restructuring

On September 29, 2025, Sutro Biopharma announced an organizational restructuring to prioritize its three preclinical ADC programs and research collaborations, aiming to extend its financial runway into mid-2027. The restructuring involves a workforce reduction of about one-third and is expected to result in cost savings and milestone payments, with initial clinical data from its STRO-004 ADC anticipated in 2026.

The most recent analyst rating on (STRO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sutro Biopharma stock, see the STRO Stock Forecast page.

Sutro Biopharma’s STRO-002: A Promising Phase 1 Trial Update in Ovarian and Endometrial Cancers

Sutro Biopharma’s recent clinical study update focuses on a Phase 1 trial of STRO-002, an anti-Folate Receptor Alpha (FolRα) antibody-drug conjugate, aimed at treating advanced epithelial ovarian and endometrial cancers. The study’s primary goal is to evaluate the safety, pharmacokinetics, and preliminary efficacy of STRO-002, which is significant for developing new treatments for these challenging cancers.