DB:S09

Stock Analysis Report

Executive Summary

Sutro Biopharma, Inc. operates as clinical stage drug discovery, development, and manufacturing company.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has Sutro Biopharma's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: S09's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.0%

S09

3.3%

DE Biotechs

2.2%

DE Market


1 Year Return

-12.6%

S09

-11.2%

DE Biotechs

-17.2%

DE Market

Return vs Industry: S09 underperformed the German Biotechs industry which returned -8.1% over the past year.

Return vs Market: S09 exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

S09IndustryMarket
7 Day16.0%3.3%2.2%
30 Day5.5%-6.5%-15.7%
90 Day-9.8%-23.1%-24.0%
1 Year-12.6%-12.6%-11.0%-11.2%-14.9%-17.2%
3 Yearn/a14.9%13.6%-16.4%-23.3%
5 Yearn/a-8.0%-10.3%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is Sutro Biopharma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sutro Biopharma undervalued compared to its fair value and its price relative to the market?

2.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate S09's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate S09's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: S09 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: S09 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate S09's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: S09 is good value based on its PB Ratio (2.4x) compared to the DE Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Sutro Biopharma forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-27.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: S09 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: S09 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: S09 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: S09's revenue (16.1% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: S09's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: S09 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Sutro Biopharma performed over the past 5 years?

-57.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: S09 is currently unprofitable.

Growing Profit Margin: S09 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if S09's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare S09's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: S09 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (8.7%).


Return on Equity

High ROE: S09 has a negative Return on Equity (-57%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sutro Biopharma's financial position?


Financial Position Analysis

Short Term Liabilities: S09's short term assets ($128.6M) exceed its short term liabilities ($33.0M).

Long Term Liabilities: S09's short term assets ($128.6M) exceed its long term liabilities ($25.6M).


Debt to Equity History and Analysis

Debt Level: S09's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if S09's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: S09 has a low level of unsold assets or inventory.

Debt Coverage by Assets: S09's debt is covered by short term assets (assets are 13x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: S09 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: S09 has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of -16.1% each year.


Next Steps

Dividend

What is Sutro Biopharma's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate S09's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate S09's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if S09's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if S09's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of S09's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Bill Newell (61yo)

11.17s

Tenure

US$8,684,598

Compensation

Mr. William J. Newell, also known as Bill, J.D. has been the Chief Executive Officer and Director of Sutro Biopharma, Inc. since January 2009. Mr. Newell has over 15 years of senior management experience i ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD8.68M) is above average for companies of similar size in the German market ($USD731.58K).

Compensation vs Earnings: Bill's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
William Newell
CEO & Director11.17yrsUS$8.68m0.60% $1.3m
Trevor Hallam
Chief Scientific Officer9.25yrsUS$4.40m0.094% $201.3k
Arturo Molina
Chief Medical Officer4yrsUS$3.35m0.024% $52.3k
Shabbir Anik
Chief Technical Operations Officer4yrsno data0.024% $52.3k
James Swartz
Founder and Member of Scientific Advisory Board8.17yrsno datano data
Edward Albini
CFO & Secretary7.17yrsno data0.028% $59.3k
Linda Fitzpatrick
Chief People & Communications Officer12.17yrsno data0.070% $150.2k
Nicki Vasquez
Senior Vice President of Alliance Managementno datano datano data
Stephen Worsley
Chief Business Officer1.5yrsno datano data

7.2yrs

Average Tenure

61yo

Average Age

Experienced Management: S09's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Newell
CEO & Director11.17yrsUS$8.68m0.60% $1.3m
James Swartz
Founder and Member of Scientific Advisory Board8.17yrsno datano data
Connie Matsui
Chair of the Board0.75yrno datano data
James Wells
Chairman of Scientific Advisory Board8.17yrsno datano data
John Freund
Independent Director6yrsUS$398.07kno data
Daniel Petree
Director10.58yrsUS$1.04m0.018% $37.6k
V. Lawlis
Independent Director16.17yrsUS$421.20k0.011% $23.0k
Shalini Sharp
Independent Director1.33yrsUS$316.61kno data
Michael Dybbs
Independent Director1.67yrsUS$398.70kno data
Joseph Lobacki
Independent Director3yrsUS$420.57kno data

7.1yrs

Average Tenure

63yo

Average Age

Experienced Board: S09's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 298.7%.


Top Shareholders

Company Information

Sutro Biopharma, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sutro Biopharma, Inc.
  • Ticker: S09
  • Exchange: DB
  • Founded: 2003
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$236.764m
  • Listing Market Cap: US$214.603m
  • Shares outstanding: 23.10m
  • Website: https://www.sutrobio.com

Number of Employees


Location

  • Sutro Biopharma, Inc.
  • 310 Utah Avenue
  • Suite 150
  • South San Francisco
  • California
  • 94080
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STRONasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDSep 2018
S09DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2018

Biography

Sutro Biopharma, Inc. operates as clinical stage drug discovery, development, and manufacturing company. It focuses on creating protein therapeutics for cancer and autoimmune disorders through integrated cell-free protein synthesis platform, XpressCF. The company’s product candidates include STRO-001, an antibody-drug conjugate (ADC) directed against the cancer target CD74 for multiple myeloma and non-Hodgkin lymphoma; and STRO-002, an ADC directed against folate receptor-alpha for patients with ovarian and endometrial cancers. It has collaboration and license agreement with Celgene Corporation to discover and develop bispecific antibodies and/or ADCs focused primarily on the field of immuno-oncology. The company was formerly known as Fundamental Applied Biology, Inc. Sutro Biopharma, Inc. was incorporated in 2003 and is headquartered in South San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 23:48
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.