One-glance verdict
Overvalued
$9.30 our estimate vs market $18.62
Wall Street consensus: $21.64 (132.6% higher than our fair-value estimate)
100% above our estimate, beyond the bull case
Fundamentals snapshot
Sarepta Therapeutics, Inc.
SRPT · NMS · Healthcare · Biotechnology
Current price
$18.62
52-week range
$14.68 - $24.68
Market cap
$1.97B
Balance sheet
Distressed
-17.25x Concerning
Net debt $273.92M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -9.5% last year — the company lost money on shareholders' equity.
What this company does
Sarepta Therapeutics, Inc.
Sarepta Therapeutics sells medicines that treat rare genetic diseases, mainly for Duchenne muscular dystrophy, and their income comes from selling these specialized treatments. This is important because it shows their business relies on getting these specific drugs approved and to patients who desperately need them.
How the company got here
Sarepta Therapeutics, Inc. was founded in 1980 and has undergone several name changes, from AntiVirals to AVI BioPharma before becoming Sarepta Therapeutics in 2012. Initially, the company explored treatments for viral diseases, but it strategically shifted its focus to rare genetic diseases, particularly Duchenne muscular dystrophy (DMD). A significant turning point was the FDA approval of its first DMD drug, Exondys 51, in 2016. This paved the way for further approvals and the development of gene therapies, positioning Sarepta as a leader in genetic medicine for rare neuromuscular disorders. The company has since expanded its focus to include other rare diseases and is actively developing new therapeutic modalities.
What it actually does
Sarepta Therapeutics is a biopharmaceutical company that focuses on creating genetic medicines for rare diseases. Think of them as specialized doctors for very specific, often inherited, conditions that don't affect many people. Their main goal is to develop treatments that target the underlying genetic cause of these diseases, rather than just managing symptoms. They use advanced scientific approaches like RNA-targeted therapies and gene therapy to try and correct or compensate for faulty genes.
RNA-Targeted Therapies for Duchenne Muscular Dystrophy
This is Sarepta's most established business line, focusing on Duchenne muscular dystrophy (DMD), a rare genetic disorder causing progressive muscle weakness. They offer several FDA-approved treatments, including Exondys 51, Vyondys 53, and Amondys 45. These therapies work by targeting specific genetic mutations in patients with DMD, aiming to help muscles produce a functional protein called dystrophin, which is essential for muscle health. This segment represents a significant portion of Sarepta's revenue and has been crucial in establishing the company's expertise in treating DMD.
Gene Therapy for Duchenne Muscular Dystrophy
Sarepta's gene therapy offering, ELEVIDYS (delandistrogene moxeparvovec-rokl), is a groundbreaking treatment for DMD. It's a one-time infusion designed to deliver a functional gene to muscle cells, enabling them to produce a micro-dystrophin protein. This represents a newer, but rapidly growing, part of Sarepta's business, with ELEVIDYS becoming a key growth driver for the company. The development and approval of ELEVIDYS marked a major advancement in Sarepta's transition into a leading gene therapy company.
Pipeline Programs for Other Rare Diseases
Beyond DMD, Sarepta is actively developing a broad pipeline of investigational therapies for other rare diseases, including various forms of Limb-Girdle Muscular Dystrophy (LGMD), Facioscapulohumeral muscular dystrophy (FSHD), Huntington's disease, and others. These programs utilize various genetic medicine platforms, including gene therapy and RNA-targeted approaches like RNA interference (RNAi). This diversification aims to leverage Sarepta's core scientific expertise to address a wider range of unmet medical needs in rare genetic conditions.
What management is betting on now
Sarepta's current strategy focuses on prioritizing high-impact programs and leveraging its expertise in genetic medicine to drive long-term sustainable growth. Management is emphasizing the advancement of its RNA-targeted therapies, particularly its siRNA (small interfering RNA) platform, for near- and mid-term opportunities. They are also continuing to develop and expand their gene therapy offerings, while exploring strategic partnerships for programs that may not be directly funded. This approach aims to ensure financial flexibility and maintain the company's mission of delivering innovative treatments for rare diseases.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-107.96M
FY2024 Q4
$53.96M
FY2025 Q1
$-627.09M
FY2025 Q2
$229.54M
FY2025 Q3
$-37.52M
FY2025 Q4
$127.61M
FY2026 Q1
$-204.76M
FY2026 Q2
$196.51M
Revenue
$401.25M
Net income
$-4.89M
Diluted EPS
-0.05
Operating cash flow
$197.07M
Free cash flow
$196.51M
Fetching…
Sources
Revenue
$730.80M
Net income
$330.96M
Diluted EPS
2.88
Operating cash flow
$-202.68M
Free cash flow
$-204.76M
Fetching…
Sources
Revenue
$442.93M
Net income
$-412.23M
Diluted EPS
-3.93
Operating cash flow
$131.21M
Free cash flow
$127.61M
Fetching…
Sources
Revenue
$399.36M
Net income
$-179.95M
Diluted EPS
-1.80
Operating cash flow
$-14.59M
Free cash flow
$-37.52M
Fetching…
Sources
Revenue
$611.09M
Net income
$196.89M
Diluted EPS
1.89
Operating cash flow
$261.34M
Free cash flow
$229.54M
Fetching…
Sources
Revenue
$744.86M
Net income
$-447.51M
Diluted EPS
-4.60
Operating cash flow
$-583.44M
Free cash flow
$-627.09M
Fetching…
Sources
Revenue
$658.41M
Net income
$159.05M
Diluted EPS
1.50
Operating cash flow
$92.05M
Free cash flow
$53.96M
Fetching…
Sources
Revenue
$467.17M
Net income
$33.61M
Diluted EPS
0.34
Operating cash flow
$-70.70M
Free cash flow
$-107.96M
Fetching…
Sources
Is it cheap or expensive?
Fair value $9.30 vs current price $18.62
Wall Street consensus is the average analyst price target: $21.64 (132.6% higher than our fair-value estimate).
Our most-likely fair value is $9.30 a share — about 50.0% below today's price of $18.62, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $273.9M. Interest coverage -17.2x.
Net debt
$273.92M
Interest coverage
-17.25x
Sarepta Therapeutics, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
SRPT
BASELINE
Sarepta Therapeutics, Inc.
Total debt $1.06B Interest coverage -17.25x This is the baseline the peer rows are being compared against.
Total debt $4.20B Interest coverage 37.57x This peer still has a real interest-payment cushion, while SRPT does not.
Total debt $2.19B Interest coverage -4.53x Neither company has much profit cushion over interest right now.
Total debt $2.94B Interest coverage 5.63x This peer still has a real interest-payment cushion, while SRPT does not.
Total debt $1.20B Interest coverage -8.63x Neither company has much profit cushion over interest right now.
Total debt $3.00B Interest coverage 1.99x This peer still has a real interest-payment cushion, while SRPT does not.
What you should know
The case for and against SRPT
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -9.5% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
7.60x
P/B
1.29x
P/S
1.00x
EV/EBITDA
-127.80x
PEG ratio
-0.09x
Profitability
How much profit each dollar creates
Gross margin
19.1%
Operating margin
13.0%
Net margin
-6.9%
ROE
-9.5%
ROA
-1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.70x
Current ratio
4.42x
Quick ratio
2.44x
Total debt
$1.06B
Total cash
$788.49M
Growth
How the business has been compounding
Revenue TTM
$1.97B
Revenue 5Y CAGR
33.0%
EPS TTM
-1.57
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$111.01M
Free CF TTM
$-307.45M
FCF margin
-15.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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