Sutro Biopharma (STRO) AI Stock Analysis

• Market Cap: $77.78M
• Dividend Yield: N/A
• Average Volume (3M): 987.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.91
• 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: -0.09
• Price to Book (P/B): 31.70
• Price to Sales (P/S): 22.79
• P/FCF Ratio: -7.26
• Enterprise Value/Market Cap: 8.85
• Enterprise Value/Revenue: 6.52
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: -4.63
• 1Y Price Target: $16.36
• Price Target Upside: 83.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $9.00 ▲(0.78% Upside)

The overall score reflects significant financial challenges, including negative equity and cash flow issues, which are partially offset by strong revenue growth. Technical indicators and valuation metrics suggest limited attractiveness, while recent corporate events provide a mixed outlook with both positive and negative implications.

Positive Factors

Innovative Product Development

The initiation of the Phase 1 trial for STRO-004 highlights Sutro's commitment to advancing novel therapeutics, potentially enhancing its market position in oncology with innovative ADCs.

Strong Gross Profit Margin

A high gross profit margin indicates effective cost management and potential for profitability if revenue growth continues, supporting long-term financial health.

Strategic Partnerships

Strategic partnerships provide Sutro with financial support and collaborative opportunities, enhancing its R&D capabilities and market reach.

Negative Factors

Negative Equity

Negative equity indicates financial instability, potentially limiting Sutro's ability to secure financing and invest in growth opportunities.

Cash Flow Challenges

Negative cash flows suggest liquidity issues, which could hinder Sutro's ability to fund operations and invest in future growth without external financing.

Organizational Restructuring Risks

While aimed at cost savings, significant workforce reductions could disrupt operations and impact employee morale, affecting long-term productivity and innovation.

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 shows strong revenue growth and gross profit margins, but 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	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: Negative
• Last Price: 8.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 8.93 is above the 20-day moving average (MA) of 8.89, below the 50-day MA of 9.34, and above the 200-day MA of 8.74, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 64.31 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
RPTX	60 Neutral	$94.41M	-1.27	-49.78%	―	-82.16%	14.58%
CRVO	52 Neutral	$73.93M	-2.73	-71.42%	―	-38.81%	-76.96%
INMB	52 Neutral	$48.65M	-0.85	-155.77%	―	19.05%	2.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
STRO	47 Neutral	$77.78M	-0.34	-1810.01%	―	-34.36%	-59.98%
HOWL	45 Neutral	$51.94M	-0.40	-122.43%	―	-100.00%	-8.30%
ACET	27 Underperform	$72.08M	-0.37	-71.73%	―	―	25.89%

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.

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.

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.