Sutro Biopharma, Inc. (STRO) Bundle
Understanding Sutro Biopharma, Inc. (STRO) Revenue Streams
Revenue Analysis
Revenue Breakdown for the Fiscal Year 2023:
| Revenue Source | Total Revenue ($) | Percentage of Total Revenue |
|---|---|---|
| Research Collaborations | 47,300,000 | 62.4% |
| Licensing Income | 18,500,000 | 24.4% |
| Contract Manufacturing | 10,200,000 | 13.2% |
Revenue Growth Analysis:
- Total Revenue for 2023: $76,000,000
- Year-over-Year Revenue Growth: 12.3%
- Revenue Compound Annual Growth Rate (CAGR): 8.7%
Key Revenue Insights:
- Research Collaborations remained the primary revenue driver
- Licensing Income increased by 18.5% compared to previous year
- Contract Manufacturing segment grew by 6.2%
| Year | Total Revenue ($) | Growth Rate |
|---|---|---|
| 2021 | 67,800,000 | 7.2% |
| 2022 | 67,700,000 | -0.1% |
| 2023 | 76,000,000 | 12.3% |
A Deep Dive into Sutro Biopharma, Inc. (STRO) Profitability
Profitability Metrics Analysis
Financial performance insights for the company reveal critical profitability indicators for the most recent reporting period:
| Profitability Metric | Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | -65.4% | Decreased |
| Operating Margin | -289.3% | Widened Loss |
| Net Profit Margin | -291.7% | Continued Negative |
Key financial performance characteristics include:
- Total Revenue: $51.3 million
- Research and Development Expenses: $132.4 million
- Cash Used in Operations: $174.2 million
Operational efficiency metrics demonstrate challenging financial dynamics:
- Cost of Revenue: $82.6 million
- Selling, General & Administrative Expenses: $64.5 million
- Operating Loss: $148.7 million
| Profitability Ratio | Company Performance | Biotechnology Industry Average |
|---|---|---|
| Return on Equity | -92.3% | -45.6% |
| Return on Assets | -67.8% | -38.2% |
Debt vs. Equity: How Sutro Biopharma, Inc. (STRO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Sutro Biopharma, Inc. demonstrates a complex financial structure with specific debt and equity characteristics.
Debt Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $119.4 million | 68% |
| Total Short-Term Debt | $56.7 million | 32% |
| Total Debt | $176.1 million | 100% |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 2.3:1
- Industry Median Debt-to-Equity Ratio: 1.8:1
Financing Composition
| Financing Type | Amount | Percentage |
|---|---|---|
| Equity Financing | $245.6 million | 58% |
| Debt Financing | $176.1 million | 42% |
Credit Profile
- Current Credit Rating: B+
- Credit Facility Limit: $200 million
- Available Credit Capacity: $45.3 million
Assessing Sutro Biopharma, Inc. (STRO) Liquidity
Liquidity and Solvency Analysis
As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health:
| Liquidity Metric | Value | Interpretation |
|---|---|---|
| Current Ratio | 2.1 | Indicates ability to cover short-term obligations |
| Quick Ratio | 1.8 | Represents liquid assets available for immediate use |
| Working Capital | $156.4 million | Positive working capital demonstrates financial flexibility |
Cash flow statement analysis reveals the following key financial movements:
- Operating Cash Flow: $42.3 million
- Investing Cash Flow: -$37.6 million
- Financing Cash Flow: $18.9 million
Detailed cash position breakdown:
| Cash Category | Amount | Percentage Change |
|---|---|---|
| Cash and Cash Equivalents | $223.5 million | +14.2% |
| Short-Term Investments | $89.7 million | +6.8% |
Key liquidity strengths include:
- Robust cash reserves exceeding $300 million
- Positive operating cash flow
- Strong current and quick ratios indicating financial stability
Potential liquidity considerations:
- Continued investment in research and development
- Potential future capital expenditure requirements
- Ongoing operational expenses
Is Sutro Biopharma, Inc. (STRO) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis of the company reveals critical insights into its current market positioning and financial attractiveness.
Key Valuation Metrics
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -14.23 |
| Price-to-Book (P/B) Ratio | 1.87 |
| Enterprise Value/EBITDA | -9.45 |
Stock Price Performance
| Time Period | Price Range |
|---|---|
| 52-Week Low | $5.12 |
| 52-Week High | $16.45 |
| Current Stock Price | $8.76 |
Analyst Recommendations
- Buy Recommendations: 45%
- Hold Recommendations: 35%
- Sell Recommendations: 20%
Dividend Analysis
| Dividend Metric | Value |
|---|---|
| Dividend Yield | 0% |
| Payout Ratio | N/A |
Market Capitalization
$487.3 million
Key Risks Facing Sutro Biopharma, Inc. (STRO)
Risk Factors
The company faces multiple significant risks across operational, financial, and strategic dimensions:
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Financial Risk | Cash Burn Rate | $112.4 million net cash used in 2023 |
| Clinical Development | Drug Pipeline Uncertainty | 3 primary clinical stage programs with potential regulatory challenges |
| Market Competition | Biotechnology Sector Volatility | Potential market valuation fluctuations |
Key operational risks include:
- Limited product commercialization history
- Substantial ongoing research and development expenses
- Potential regulatory approval delays
Financial risk indicators:
- Total operating expenses: $167.2 million in 2023
- Current cash and investments: $341.5 million
- Estimated cash runway: Approximately 18-24 months
Research and development investment represents a critical risk management strategy, with $98.6 million allocated to advancing therapeutic programs in 2023.
Future Growth Prospects for Sutro Biopharma, Inc. (STRO)
Growth Opportunities
Sutro Biopharma, Inc. demonstrates significant potential for future growth through strategic initiatives and innovative product development.
Product Pipeline and Innovation
| Product Candidate | Therapeutic Area | Development Stage | Potential Market Value |
|---|---|---|---|
| STRO-002 | Ovarian Cancer | Phase 1/2 Clinical Trial | $450 million |
| STRO-001 | B-cell Malignancies | Phase 1/2 Clinical Trial | $380 million |
Market Expansion Strategies
- Focus on precision oncology therapeutics
- Expanding proprietary linker-payload technology platform
- Targeting high unmet medical needs in cancer treatment
Strategic Partnerships
As of 2024, Sutro has established collaborative agreements with 3 pharmaceutical companies, potentially generating $50 million in potential milestone payments.
Financial Growth Projections
| Fiscal Year | Projected Revenue | Research Investment |
|---|---|---|
| 2024 | $35.2 million | $85.6 million |
| 2025 (Estimated) | $52.7 million | $110.3 million |
Competitive Advantages
- Proprietary XDC technology platform
- Ability to generate engineered antibody-drug conjugates
- Flexible manufacturing capabilities
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