Stoke Therapeutics (STOK) AI Stock Analysis

• Market Cap: $418.56M
• Dividend Yield: N/A
• Average Volume (3M): 828.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: 316.30%
• EPS Growth: 29.18%
• Country: US
• Employees: 128
• Sector: Healthcare
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): -1.68
• Shares Outstanding: 54,077,740
• 10 Day Avg. Volume: 958,262
• 30 Day Avg. Volume: 828,147
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 26.32
• Price to Cash Flow (P/CF): -5.10
• P/FCF Ratio: 0.00
• 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: $28.00
• Price Target Upside: 278.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Stoke Therapeutics has significant growth potential with recent corporate developments and strategic partnerships. However, its current financial performance, technical indicators, and valuation raise concerns. The strong equity base provides some stability, but continued operating losses and negative cash flow are notable risks.

Positive Factors

Financial Performance

The company exceeded revenue expectations with Q4 revenue of $23M, significantly higher than predictions.

Partnerships

The Biogen deal came at an opportune time that might help build the foundation for Stoke to be a commercial-stage company.

Regulatory Approval

Zorevunersen is expected to be the first disease-modifying therapy approved for Dravet syndrome, targeting a sizable and underappreciated market.

Negative Factors

Investor Concerns

The transition in leadership at Stoke is seen as timely, with a focus on finding a CEO with late-stage development and commercialization experience.

Leadership Changes

CEO Ed Kaye has decided to step down effective March 19 without a replacement being named at the same time, leading to some investor skepticism.

Stoke Therapeutics Business Overview & Revenue Model

Company Description

Stoke Therapeutics, Inc. is a biotechnology company focused on addressing the underlying causes of severe genetic diseases through RNA-based medicines. The company's proprietary TANGO (Targeted Augmentation of Nuclear Gene Output) platform is designed to precisely upregulate protein expression to restore missing or deficient proteins. Stoke Therapeutics primarily targets diseases of the central nervous system, including Dravet syndrome, an epileptic encephalopathy, and other severe genetic disorders.

How the Company Makes Money

Stoke Therapeutics generates revenue primarily through collaborations, partnerships, and licensing agreements with larger pharmaceutical companies. These agreements often include upfront payments, research and development funding, milestone payments, and potential royalties on future product sales. The company also engages in strategic partnerships to leverage resources and expertise that complement its TANGO platform, aiming to accelerate the development of its RNA-based therapeutic candidates. Additionally, Stoke may receive funding from grants and other non-dilutive sources to support its research and development activities.

Stoke Therapeutics Financial Statement Overview

Summary

Stoke Therapeutics shows promise in revenue growth, but profitability and cash flow challenges persist. The company has a strong asset base and low leverage, which is positive for financial stability. However, consistent negative earnings and cash flows indicate potential risks that need to be addressed for long-term sustainability.

Income Statement

Stoke Therapeutics has shown a significant increase in total revenue in the TTM period, indicating growth potential. However, the company continues to operate at a loss with negative EBIT and net income, resulting in low profitability margins. The gross profit margin is moderately positive, yet the negative net profit margin highlights ongoing financial challenges.

Balance Sheet

The company's balance sheet reflects a solid equity position with a high equity ratio, suggesting stability. Debt levels are relatively low, resulting in a favorable debt-to-equity ratio. However, the continuous net loss impacts return on equity negatively. Overall, there is a strong asset base, but profitability remains a concern.

Cash Flow

Cash flow from operations remains negative, indicating cash burn issues. The free cash flow is also negative, although there has been significant financing inflow. The ratio of operating cash flow to net income is unfavorable, suggesting difficulties in converting revenue into cash flow. Continued negative cash flows pose a risk to liquidity.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
16.74M	8.78M	12.40M	0.00	0.00	0.00
	Gross Profit
12.19M	8.78M	8.87M	-2.23M	-1.93M	-450.00K
	EBIT
-117.30M	-114.77M	-104.36M	-86.06M	-53.04M	-35.68M
	EBITDA
-115.57M	-112.30M	-102.81M	-83.58M	-50.32M	-35.23M
	Net Income Common Stockholders
-105.46M	-104.70M	-93.11M	-84.71M	-50.61M	-28.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
105.40M	201.39M	229.59M	219.81M	287.31M	222.47M
	Total Assets
107.54M	228.34M	256.07M	238.87M	297.93M	228.75M
	Total Debt
0.00	2.06M	2.36M	1.51M	80.00K	0.00
	Net Debt
-105.40M	-189.38M	-111.20M	-143.39M	-287.23M	-222.47M
	Total Liabilities
2.47M	68.78M	71.22M	21.09M	11.85M	4.32M
	Stockholders Equity
105.07M	159.56M	184.85M	217.78M	286.08M	224.43M
Cash Flow		Free Cash Flow
-84.70M	-82.68M	-35.83M	-68.11M	-43.27M	-32.69M
	Operating Cash Flow
-84.31M	-81.07M	-31.87M	-66.91M	-42.22M	-31.05M
	Investing Cash Flow
-93.52M	105.95M	-45.88M	-76.43M	-1.05M	-1.63M
	Financing Cash Flow
137.87M	53.01M	46.41M	1.28M	108.11M	149.76M

Stoke Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STOK, the sentiment is Negative. The current price of 7.4 is below the 20-day moving average (MA) of 8.13, below the 50-day MA of 9.36, and below the 200-day MA of 12.28, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 35.86 is Neutral, neither overbought nor oversold. The STOCH value of 24.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STOK.

Stoke Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WVE	54 Neutral	$1.45B	―	-73.24%	―	-4.42%	-42.17%
STOK	51 Neutral	$418.56M	―	-45.80%	―	316.30%	29.18%
IONS	49 Neutral	$5.32B	―	-93.03%	―	-10.48%	-18.79%
Sector *	49 Neutral	$6.88B	0.82	-52.97%	2.48%	20.92%	1.17%
MRNA	48 Neutral	$12.15B	―	-28.77%	―	-52.75%	25.00%
ARWR	47 Neutral	$2.02B	―	-600.68%	―	-98.62%	-86.21%
NTLA	39 Underperform	$860.23M	―	-54.00%	―	59.55%	3.09%

Stoke Therapeutics Corporate Events

Stoke Therapeutics Announces 2024 Financial Results and Updates

On March 18, 2025, Stoke Therapeutics announced its financial results for 2024 and provided business updates, including the upcoming Phase 3 EMPEROR study of zorevunersen for Dravet syndrome. The company reported a strong financial position with $246.7 million in cash and anticipated funding from a Biogen collaboration to support operations until mid-2028. Dr. Edward M. Kaye will transition from CEO to an advisory role, and the company retains exclusive rights for zorevunersen in North America. Recent milestones, such as a Breakthrough Therapy Designation and positive data, have advanced their efforts in treating Dravet syndrome.

Stoke Therapeutics Partners with Biogen for Zorevunersen

On February 14, 2025, Stoke Therapeutics entered into a License and Collaboration Agreement with Biogen for the development and commercialization of zorevunersen, a potential first-in-class treatment for Dravet syndrome. Biogen receives exclusive commercialization rights outside the US, Canada, and Mexico, while Stoke will receive $165 million upfront with potential for milestone payments up to $385 million. This collaboration aims to advance zorevunersen to Phase 3 with an expected data readout in late 2027, and funds from Biogen are projected to support Stoke’s operations through mid-2028. The partnership underscores Biogen’s strategy to expand its rare disease pipeline and Stoke’s commitment to developing treatments for genetic disorders, potentially providing significant treatment advances for patients with Dravet syndrome.

Stoke Therapeutics Gains Regulatory Alignment for Phase 3 Study

Stoke Therapeutics has secured alignment with global regulatory agencies for its Phase 3 EMPEROR study of zorevunersen, a potential first disease-modifying treatment for Dravet syndrome, with plans to begin the study by mid-2025. The study will evaluate the drug’s efficacy in reducing seizure frequency and improving cognitive and behavioral functions in children and adolescents, with a significant commercial opportunity for treating over 38,000 patients in major markets.