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Sutro Biopharma Inc (STRO)
NASDAQ:STRO
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Sutro Biopharma (STRO) AI Stock Analysis

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STRO

Sutro Biopharma

(NASDAQ:STRO)

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Neutral 43 (OpenAI - 4o)
Rating:43Neutral
Price Target:
$1.00
▲(13.64% Upside)
Sutro Biopharma's overall stock score is primarily impacted by its financial performance, which is challenged by negative equity and ongoing losses despite strong revenue growth. Technical analysis shows mixed signals with potential short-term recovery, but the valuation remains unattractive due to negative earnings and lack of dividends.
Positive Factors
Innovative Technology Platform
Sutro's proprietary platform enables rapid development of complex biologics, providing a competitive edge in the biotechnology sector.
Strong Revenue Growth
Strong revenue growth indicates successful market penetration and potential for future profitability if cost structures are optimized.
Strategic Partnerships
Partnerships with pharmaceutical companies enhance revenue potential and provide access to additional resources and distribution channels.
Negative Factors
Negative Equity
Negative equity indicates financial instability and potential solvency issues, which could hinder long-term growth and investment.
Ongoing Losses
Persistent losses highlight the need for strategic restructuring to achieve sustainable profitability and operational efficiency.
Negative Operating Cash Flow
Negative operating cash flow suggests challenges in covering operating expenses, impacting the company's ability to invest in growth.

Sutro Biopharma (STRO) vs. SPDR S&P 500 ETF (SPY)

Sutro Biopharma Business Overview & Revenue Model

Company DescriptionSutro 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 MoneySutro 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 shows strong revenue growth and gross profit margins but faces significant profitability and financial stability challenges. The negative equity and ongoing losses suggest a need for strategic restructuring to achieve sustainable growth and profitability. Cash flow improvements are a positive sign, but further efforts are needed to stabilize operations.
Income Statement
45
Neutral
Sutro Biopharma shows a strong gross profit margin of 96.39% TTM, indicating efficient cost management relative to revenue. However, the company faces significant challenges with negative net profit and EBIT margins, reflecting ongoing losses. Revenue growth is robust at 57.26% TTM, suggesting potential for future profitability if cost structures are improved.
Balance Sheet
30
Negative
The balance sheet reveals a concerning negative stockholders' equity, resulting in a negative debt-to-equity ratio. This indicates financial instability and potential solvency issues. The return on equity is also negative, highlighting inefficiencies in generating returns from equity investments.
Cash Flow
40
Negative
Cash flow analysis shows a positive free cash flow growth rate of 26.96% TTM, but the company still operates with negative operating cash flow. The free cash flow to net income ratio is slightly above 1, indicating that cash flow generation is somewhat aligned with net income, albeit both are negative.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue104.47M62.04M153.73M67.77M61.88M42.72M
Gross Profit100.70M54.83M146.91M59.48M52.11M-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 Assets262.36M387.21M470.74M406.94M341.41M394.11M
Cash, Cash Equivalents and Short-Term Investments205.13M316.89M375.62M334.36M197.94M368.14M
Total Debt19.59M23.15M33.63M50.43M57.37M24.55M
Total Liabilities294.47M342.61M321.09M189.90M88.84M62.06M
Stockholders Equity-32.11M44.60M149.65M217.05M252.56M332.05M
Cash Flow
Free Cash Flow-252.02M-194.64M-115.93M-4.31M-97.00M-74.93M
Operating Cash Flow-248.86M-191.54M-111.62M3.55M-81.68M-67.80M
Investing Cash Flow221.10M218.51M-3.92M-35.02M-97.31M604.00K
Financing Cash Flow999.00K94.05M137.55M48.31M3.26M269.25M

Sutro Biopharma Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.88
Price Trends
50DMA
0.87
Positive
100DMA
0.86
Positive
200DMA
1.17
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
48.76
Neutral
STOCH
25.09
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 0.88 is below the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.87, and below the 200-day MA of 1.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 25.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STRO.

Sutro Biopharma Risk Analysis

Sutro Biopharma disclosed 76 risk factors in its most recent earnings report. Sutro Biopharma reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sutro Biopharma Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
74.10M-0.67-56.04%-99.64%-59.17%
52
Neutral
75.04M-3.11-19.44%-492.39%
52
Neutral
51.84M-0.78-41.18%-21.12%
48
Neutral
94.89M-1.26-96.08%-100.00%-22.09%
43
Neutral
$75.46M-347.64%-38.31%-36.91%
27
Underperform
71.16M-0.6548.45%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STRO
Sutro Biopharma
0.88
-2.60
-74.71%
CRVO
CervoMed
8.11
-7.20
-47.03%
ACET
Adicet Bio
0.85
-0.55
-39.29%
INMB
Inmune Bio
1.95
-3.01
-60.69%
RPTX
Repare Therapeutics
1.72
-1.78
-50.86%
HOWL
Werewolf Therapeutics
2.08
-0.02
-0.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 14, 2025