Sutro Biopharma (STRO) AI Stock Analysis

• Market Cap: $72.66M
• Dividend Yield: N/A
• Average Volume (3M): 469.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.87
• Revenue Growth: -38.31%
• EPS Growth: -36.91%
• Country: US
• Employees: 269
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 84,774,180
• 10 Day Avg. Volume: 399,171
• 30 Day Avg. Volume: 469,098
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 0.74
• Enterprise Value/Ebitda: -0.45
• 1Y Price Target: $1.95
• Price Target Upside: 126.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 40 Neutral
• Price Target: $1.00 ▲(16.28% Upside)

Sutro Biopharma faces significant challenges with financial instability and ongoing losses, reflected in a low financial performance score. The technical analysis suggests a bearish trend, and poor valuation metrics further weigh down the stock's attractiveness. The NASDAQ non-compliance notice adds a significant risk factor, although it was not directly included in the weighted score calculation.

Positive Factors

Clinical Development

Sutro remains on track to initiate the first-in-human study for STRO-004 and STRO-006, with preclinical data suggesting improvements over existing ADCs by Pfizer/Seagen.

Partnerships

The partnership with Astellas remains ongoing with one program entering IND-enabling toxicology, triggering a $7.5 million milestone payment.

Preclinical Data

Sutro Biopharma presented positive preclinical data for STRO-004, showing potent antitumor activity in several cancer models and a wider therapeutic window compared to first-generation TF ADCs.

Negative Factors

Capital Requirements

The company may need additional capital in 2026 to ensure it reaches Phase 1 data with enough cash.

Collaboration Termination

Ipsen terminated the STRO-003 collaboration following a review of data and the ROR1 landscape.

Market Performance

Shares are down 58% year-to-date as the company's pivot to its earlier stage assets removes the prospect of any near-term data catalysts.

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 primarily through collaborations and partnerships with pharmaceutical companies, where it provides its proprietary technology and expertise in the development of novel therapeutics. These collaborations often involve upfront payments, milestone payments upon achieving specific development goals, and royalties on future sales of the products developed. Additionally, the company may generate revenue through government grants and funding aimed at supporting its research and development activities. Significant partnerships with larger pharmaceutical entities can enhance Sutro's revenue potential by providing access to additional resources and distribution channels.

Sutro Biopharma Financial Statement Overview

Summary

Sutro Biopharma faces significant financial challenges with a declining revenue trend and negative profitability margins. The balance sheet shows negative equity, raising solvency concerns, and the cash flow statement indicates reliance on external financing due to negative operating cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	104.47M	62.04M	153.73M	67.77M	61.88M	42.72M
Gross Profit	100.70M	54.83M	146.91M	59.48M	52.11M	-34.24M
EBITDA	-165.38M	-180.45M	-67.92M	-105.07M	-97.56M	-23.75M
Net Income	-208.70M	-227.46M	-106.79M	-119.20M	-105.54M	-32.13M
Balance Sheet
Total Assets	262.36M	387.21M	470.74M	406.94M	341.41M	394.11M
Cash, Cash Equivalents and Short-Term Investments	205.13M	316.89M	375.62M	334.36M	197.94M	368.14M
Total Debt	19.59M	23.15M	33.63M	50.43M	57.37M	24.55M
Total Liabilities	294.47M	342.61M	321.09M	189.90M	88.84M	62.06M
Stockholders Equity	-32.11M	44.60M	149.65M	217.05M	252.56M	332.05M
Cash Flow
Free Cash Flow	-252.02M	-194.64M	-115.93M	-4.31M	-97.00M	-74.93M
Operating Cash Flow	-248.86M	-191.54M	-111.62M	3.55M	-81.68M	-67.80M
Investing Cash Flow	221.10M	218.51M	-3.92M	-35.02M	-97.31M	604.00K
Financing Cash Flow	999.00K	94.05M	137.55M	48.31M	3.26M	269.25M

Sutro Biopharma Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.86
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 0.86 is above the 20-day moving average (MA) of 0.84, above the 50-day MA of 0.81, and below the 200-day MA of 1.35, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 56.52 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	60 Neutral	$71.74M	―	-69.96%	―	-99.64%	-59.17%
CRVO	52 Neutral	$89.01M	―	-54.21%	―	-19.44%	-492.39%
INMB	52 Neutral	$53.97M	―	-168.34%	―	-41.18%	-21.12%
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%
HOWL	48 Neutral	$59.90M	―	-100.55%	―	-100.00%	-22.09%
STRO	40 Neutral	$72.66M	―	-347.64%	―	-38.31%	-36.91%
ACET	27 Underperform	$59.94M	―	-64.39%	―	―	48.45%

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.