One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Sutro Biopharma, Inc.
STRO · NGM · Healthcare · Biotechnology
Current price
$10.17
52-week range
$7.15 - $43.85
Market cap
$168.63M
Balance sheet
Healthy
-2.50x Concerning
Net cash $153.56M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
1 Risk
0 rewards · 1 risks
View details ↓What this company does
Sutro Biopharma, Inc.
Sutro Biopharma develops specialized cancer drugs called antibody-drug conjugates, which are like targeted arrows that deliver medicine directly to cancer cells. The company makes money primarily through partnerships and licensing deals with larger pharmaceutical companies to develop and sell these new treatments. This matters because these collaborations provide funding and expertise to help bring their potentially life-saving drugs to patients.
How the company got here
Sutro Biopharma was founded in 2003, originally as Fundamental Applied Biology, Inc., and later changed its name to Sutro Biopharma in 2009. The company's journey began with a focus on developing innovative protein therapeutics for cancer and autoimmune disorders. A key turning point was the development and refinement of its proprietary cell-free protein synthesis platform, known as XpressCF, and its site-specific conjugation platform, XpressCF+. These platforms allow for the rapid and precise creation of complex protein-based drugs, which has become the cornerstone of Sutro's strategy. The company has since evolved into a clinical-stage oncology company, leveraging these technological advancements to build a pipeline of novel drug candidates.
What it actually does
Sutro Biopharma is a biotechnology company that focuses on discovering, developing, and manufacturing new medicines, primarily for cancer. They use a special technology called a "cell-free protein synthesis platform" (XpressCF) to create complex protein-based drugs. Think of it like a highly advanced biological factory that can build very specific molecules. These molecules are designed to target diseases like cancer by either directly attacking cancer cells or by helping the body's own immune system fight the disease. Sutro's main goal is to create treatments that are more effective and have fewer side effects than current options.
Antibody-Drug Conjugates (ADCs)
Sutro Biopharma's primary focus is on developing Antibody-Drug Conjugates, or ADCs. An ADC is like a guided missile for treating cancer. It's made of three parts: an antibody (which acts like a homing device to find cancer cells), a linker (which connects the antibody to the drug), and a potent drug (the "warhead" that kills cancer cells). Sutro's unique technology allows them to create ADCs in a very precise way, ensuring the drug is delivered directly to the cancer cells. This precision aims to maximize the drug's effectiveness while minimizing harm to healthy tissues. Several of Sutro's lead product candidates, such as STRO-001, STRO-002, STRO-003, STRO-004, and STRO-006, are ADCs currently in various stages of clinical development.
Pneumococcal Conjugate Vaccines
While Sutro Biopharma's main focus is on cancer treatments, it also has a history in developing vaccines. The company's technology platform was instrumental in the creation of VAX-24 and VAX-31, which are pneumococcal conjugate vaccines. These vaccines are designed to protect against invasive pneumococcal disease, a serious infection caused by bacteria. Although Sutro's vaccine development efforts were largely spun out into a separate company called Vaxcyte, Sutro's foundational technology played a crucial role in their creation. This demonstrates the versatility of Sutro's platform in developing different types of biological therapies.
What management is betting on now
Sutro Biopharma is heavily investing in advancing its pipeline of antibody-drug conjugates (ADCs) for cancer treatment. Their strategy centers on leveraging their proprietary XpressCF and XpressCF+ platforms to create next-generation ADCs with improved precision, efficacy, and safety profiles. Management is focused on progressing their lead candidates, such as STRO-004 (targeting Tissue Factor) and STRO-003 (targeting ROR1), through clinical trials. They are also exploring novel ADC formats, including dual-payload ADCs and immunostimulatory ADCs, which aim to overcome treatment resistance and enhance the body's immune response against cancer. Strategic collaborations with larger pharmaceutical companies are also a key part of their plan to accelerate development and reach more patients.
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.
Revenue
$9.84M
Net income
$-38.53M
Diluted EPS
-2.33
Operating cash flow
$-38.29M
Free cash flow
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Revenue
$14.52M
Net income
$-38.48M
Diluted EPS
-2.94
Operating cash flow
$-42.26M
Free cash flow
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Revenue
$11.65M
Net income
$-46.76M
Diluted EPS
-20.77
Operating cash flow
$-26.43M
Free cash flow
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Revenue
$9.69M
Net income
$-56.86M
Diluted EPS
-0.67
Operating cash flow
$-38.19M
Free cash flow
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Revenue
$63.74M
Net income
$-11.50M
Diluted EPS
-0.14
Operating cash flow
$-44.72M
Free cash flow
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Revenue
$17.40M
Net income
$-75.97M
Diluted EPS
-0.91
Operating cash flow
$-67.88M
Free cash flow
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Revenue
$14.81M
Net income
$-72.44M
Diluted EPS
-0.83
Operating cash flow
$-71.74M
Free cash flow
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Revenue
$8.52M
Net income
$-48.79M
Diluted EPS
-0.59
Operating cash flow
$-64.52M
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Is it cheap or expensive?
Fair value — vs current price $10.17
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $153.6M - more cash than debt. Interest coverage -2.5x.
Net debt
$-153.56M
Interest coverage
-2.50x
Sutro Biopharma, 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.
Healthy
Worse cushion
Baseline
Better cushion
STRO
BASELINE
Sutro Biopharma, Inc.
Total debt $10.78M Interest coverage -2.50x This is the baseline the peer rows are being compared against.
Total debt $419.59M Interest coverage -2.08x Neither company has much profit cushion over interest right now.
Total debt $4.39M Interest coverage -4.30x Neither company has much profit cushion over interest right now.
What you should know
The case for and against STRO
0 Rewards
1 Risk
Rewards
Risks
-
Operating margin compressed from -190.3% to -301.7% over 3 years.
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
-1.67x
P/B
-1.63x
P/S
3.69x
EV/EBITDA
-0.12x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
-216.7%
Operating margin
-301.7%
Net margin
0.0%
ROE
—
ROA
-36.1%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
3.32x
Quick ratio
3.22x
Total debt
$10.78M
Total cash
$164.35M
Growth
How the business has been compounding
Revenue TTM
$45.70M
Revenue 5Y CAGR
13.4%
EPS TTM
-17.28
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-145.17M
Free CF TTM
$-178.93M
FCF margin
-391.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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