Sutro Biopharma Inc. Common Stock (STRO)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable earnings and a margin of safety, and Sutro does not fit that mold today. It is an oncology company with proprietary ADC platforms, XpressCF and XpressCF+, and a lead candidate, STRO-004, in tissue-factor solid tumors. That science may have value, but a moat is unproven. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $9.8M and net loss was $38.5M, or diluted EPS -$2.33. That compares poorly with fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $63.7M and net loss was $11.5M. Full-year fiscal 2025 revenue was $102.5M with a $191.1M net loss; fiscal 2024 revenue was $62.0M with a $227.5M net loss; fiscal 2023 revenue was $153.7M with a $106.8M net loss. Those are not steady owner earnings. Financial health is weak: trailing free cash flow was -$145.6M, and the FairStock FCF yield was -79.8%. At the 2026-10-13 close of $11.01, the market cap was $182.6M; FairStock's P/E was -0.64, P/B was N/A, ROCE was -36.08%, Piotroski was 3/9, Altman Z was -6.92, and FairStock score was 26/100. The computed Lynch category is none because of losses in each of the last four years. The price bounced within a 52-week range of $7.15 to $43.85, but no margin of safety is visible. Until revenue and cash flow inflect, this is a speculative clinical story, not a Graham-style bargain.

In plain English: The company is a small cancer-drug developer. It has not made a profit and is spending more cash than it brings in, and its recent sales are far below where they were a year earlier. At the current share price, the business does not look like a bargain; it looks like a risky bet on future drugs.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer