One-glance verdict
Within fair range
$24.92 our estimate vs market $27.71
Wall Street consensus: $46.38 (86.2% higher than our fair-value estimate)
11% above our estimate
Fundamentals snapshot
Stoke Therapeutics, Inc.
STOK · NMS · Healthcare · Biotechnology
Current price
$27.71
52-week range
$21.81 - $40.22
Market cap
$1.81B
Balance sheet
Healthy
-1.50x Concerning
Net cash $317.27M. 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 -73.6% last year — the company lost money on shareholders' equity.
What this company does
Stoke Therapeutics, Inc.
Stoke Therapeutics is creating new medicines for genetic diseases by helping the body make more of a specific protein that's missing or not working right. Their main income comes from partnerships with larger drug companies like Biogen and Acadia, who help fund the development and will share in the profits if the medicines are successful. This is important because it means Stoke has financial backing to move its promising drug candidates, like one for a rare seizure disorder called Dravet syndrome, through testing and hopefully to patients.
How the company got here
Stoke Therapeutics was founded in 2014 with the goal of developing treatments for severe genetic diseases by increasing the body's natural production of essential proteins. The company's core innovation is its proprietary TANGO (Targeted Augmentation of Nuclear Gene Output) platform, which uses a specific type of molecule called antisense oligonucleotides (ASOs) to boost protein levels from healthy genes. This approach was developed based on groundbreaking science in RNA biology. Stoke Therapeutics was formerly known as ASOthera Pharmaceuticals, Inc., and changed its name in May 2016 to reflect its focus on "stoking" protein production.
What it actually does
Stoke Therapeutics develops medicines for rare genetic diseases, focusing on conditions where a person has one healthy copy of a gene and one mutated copy. This genetic imbalance means the body doesn't produce enough of a crucial protein, leading to disease. Stoke's TANGO platform creates specialized molecules (ASOs) that tell the healthy gene copy to make more protein, aiming to restore normal levels and treat the underlying cause of the disease. This is different from gene therapy, as it doesn't alter the DNA itself but rather enhances the output of existing healthy genes.
Zorevunersen (STK-001) for Dravet Syndrome
This is Stoke's lead product candidate, an investigational medicine designed to treat Dravet syndrome, a severe and progressive form of genetic epilepsy. Dravet syndrome occurs when there's a significant reduction in a specific protein (NaV1.1), leading to frequent and prolonged seizures, as well as cognitive and behavioral issues. Zorevunersen works by using the TANGO platform to increase the production of this crucial protein from the healthy copy of the SCN1A gene. The company is currently evaluating zorevunersen in Phase 3 clinical trials, with data expected to support regulatory submissions. Stoke plans to market zorevunersen in the U.S., Canada, and Mexico, while partnering with Biogen for commercialization in other regions.
STK-002 for Autosomal Dominant Optic Atrophy (ADOA)
This program targets Autosomal Dominant Optic Atrophy (ADOA), the most common inherited disorder affecting the optic nerve, which leads to progressive vision loss. ADOA is often caused by mutations in the OPA1 gene, resulting in insufficient OPA1 protein and impaired mitochondrial function. STK-002, also developed using the TANGO platform, aims to increase OPA1 protein levels by boosting production from the healthy gene copy. The company is currently conducting Phase 1 clinical trials for STK-002, with initial data anticipated in the near future. The U.S. Food and Drug Administration (FDA) has granted STK-002 orphan drug designation, recognizing its potential to treat a rare disease.
SYNGAP1-related disorders
Stoke Therapeutics is also collaborating with Acadia Pharmaceuticals to discover and develop novel RNA-based medicines for severe and rare genetic neurodevelopmental diseases, including those related to SYNGAP1. SYNGAP1 is a rare neurological disorder characterized by moderate to severe intellectual disability. While this collaboration is in earlier stages, it represents Stoke's broader strategy to apply its TANGO platform to a range of central nervous system (CNS) disorders caused by genetic mutations.
What management is betting on now
Stoke's primary strategic focus is to successfully advance its lead candidate, zorevunersen, through Phase 3 trials and secure regulatory approval for Dravet syndrome. The company is also heavily invested in the development of STK-002 for ADOA, aiming to demonstrate its potential as a first-in-class therapy. Management is betting on the TANGO platform's ability to be a repeatable engine for treating various haploinsufficiency diseases, leveraging its collaborations with Biogen and Acadia to expand its pipeline and reach more patients. The company aims to validate its platform's broad applicability and translate its scientific innovation into meaningful treatments for severe genetic conditions.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-23.23M
FY2025 Q1
$131.68M
FY2025 Q2
$-25.58M
FY2025 Q3
$-30.50M
FY2025 Q4
$-30.69M
FY2026 Q1
$-60.94M
FY2026 Q2
$-58.56M
FY2026 Q3
$-65.54M
Revenue
$11.26M
Net income
$-73.64M
Diluted EPS
-1.08
Operating cash flow
$-62.69M
Free cash flow
$-65.54M
Fetching…
Sources
Revenue
$9.32M
Net income
$-61.62M
Diluted EPS
-0.93
Operating cash flow
$-56.59M
Free cash flow
$-58.56M
Fetching…
Sources
Revenue
$6.23M
Net income
$-50.00M
Diluted EPS
-0.79
Operating cash flow
$-60.58M
Free cash flow
$-60.94M
Fetching…
Sources
Revenue
$1.40M
Net income
$-57.93M
Diluted EPS
-0.97
Operating cash flow
$-30.45M
Free cash flow
$-30.69M
Fetching…
Sources
Revenue
$10.63M
Net income
$-38.35M
Diluted EPS
-0.65
Operating cash flow
$-30.37M
Free cash flow
$-30.50M
Fetching…
Sources
Revenue
$13.82M
Net income
$-23.48M
Diluted EPS
-0.40
Operating cash flow
$-25.42M
Free cash flow
$-25.58M
Fetching…
Sources
Revenue
$158.57M
Net income
$112.88M
Diluted EPS
1.90
Operating cash flow
$131.83M
Free cash flow
$131.68M
Fetching…
Sources
Revenue
$22.61M
Net income
$-10.48M
Diluted EPS
-0.15
Operating cash flow
$-23.19M
Free cash flow
$-23.23M
Fetching…
Sources
Is it cheap or expensive?
Fair value $24.92 vs current price $27.71
Wall Street consensus is the average analyst price target: $46.38 (86.2% higher than our fair-value estimate).
Our most-likely fair value is $24.92 a share — about 10.1% away from today's price of $27.71, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $317.3M - more cash than debt. Interest coverage -1.5x.
Net debt
$-317.27M
Interest coverage
-1.50x
Stoke Therapeutics, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
STOK
BASELINE
Stoke Therapeutics, Inc.
Total debt $1.92M Interest coverage -1.50x This is the baseline the peer rows are being compared against.
Total debt $230.14M Interest coverage -15.10x Neither company has much profit cushion over interest right now.
Total debt $203.83M Interest coverage -55.80x Neither company has much profit cushion over interest right now.
Total debt $160.23M Interest coverage -5.56x Neither company has much profit cushion over interest right now.
Total debt $106.18M Interest coverage -9.33x Neither company has much profit cushion over interest right now.
What you should know
The case for and against STOK
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -73.6% 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
-6.78x
P/B
5.09x
P/S
64.25x
EV/EBITDA
-5.84x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
100.0%
Operating margin
-686.9%
Net margin
0.0%
ROE
-73.6%
ROA
-42.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
7.24x
Quick ratio
6.72x
Total debt
$1.92M
Total cash
$319.19M
Growth
How the business has been compounding
Revenue TTM
$28.21M
Revenue 5Y CAGR
145.9%
EPS TTM
-3.81
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-210.31M
Free CF TTM
$44.91M
FCF margin
159.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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