Sutro Biopharma, Inc. (STRO) AI Stock Analysis

Sutro Biopharma, Inc., based in South San Francisco, California, is a clinical-stage drug discovery, development, and manufacturing company. It utilizes its XpressCF+ platform, which combines cell-free protein synthesis with site-specific conjugation technologies, to generate protein therapeutics for cancer and autoimmune disorders. Its pipeline includes STRO-001, an antibody-drug conjugate targeting CD74 for multiple myeloma and non-Hodgkin lymphoma, and STRO-002, targeting folate receptor-alpha for ovarian and endometrial cancers. Both candidates are in Phase 1 clinical trials. The company also maintains strategic research collaborations and licensing agreements with Merck and Celgene Corporation to develop cytokine derivatives, bispecific antibodies, and antibody-drug conjugates.

Sutro Biopharma posted a five-year revenue CAGR of 19.1% from FY2020 to FY2025. Annual revenue fluctuated significantly, moving from $61.9M in FY2021 to $153.7M in FY2023, before declining to $62.0M in FY2024 and rebounding 65.2% to $102.5M in FY2025. Gross margin remained high at 92.9% in FY2025, though operating margin stood at -102.4% due to $166.4M in research and development expenses. Net income was -$191.1M in FY2025, representing an EPS of -$19.18. In the trailing twelve months ending June 30, 2026, revenue stood at $45.7M, with quarterly revenue falling 84.6% year-over-year and an operating margin of -301.7%.

As of June 30, 2026, Sutro Biopharma held $164.3M in cash and short-term investments against $10.8M in total debt, resulting in net cash of $153.6M. Total assets were $194.5M, and the current ratio was 3.32. However, the company reported negative shareholders' equity of -$103.3M. In FY2025, free cash flow was -$178.9M, operating cash flow was -$177.2M, and capital expenditures were $1.7M. Over the past five years, the company's share count increased by 259.0%.

With a market capitalization of $181.4M and an enterprise value of $113.9M, Sutro Biopharma trades at a forward P/E of 10.0x, below the 17.3x median of its US-listed Healthcare peers. Its price-to-sales multiple is 4.0x compared to the peer median of 4.1x, while its EV/EBITDA stands at 41.7x versus the peer median of 12.0x. Over the past year, the stock returned 24.2%, outperforming the S&P 500 ETF's 16.8% gain. Over five years, the stock is down 94.2%, trailing the S&P 500 ETF's return of 83.0%.

Sutro Biopharma holds 10 Strong Buy, 3 Buy, and 1 Sell ratings from analysts. The mean price target is $47.23, representing a 331.7% premium over the last close of $10.94. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $51.6M and an EPS of -$7.77. For the next fiscal year, estimates project revenue of $31.6M, a decline of 38.7%, and an EPS of -$6.21. The company has beaten EPS estimates in 1 of the last 4 quarters, with the next earnings release scheduled for November 5, 2026.

This page is an AI-written research summary of Sutro Biopharma, Inc. (STRO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: STRO income statement, STRO balance sheet, STRO key metrics, STRO analyst forecast, STRO chart. See the STRO stock overview for the latest quote and news.