NasdaqGM:STRO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

Risks

  • Sutro Biopharma has significant price volatility in the past 3 months.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

15.8%

NasdaqGM:STRO

0.4%

US Biotechs

1.2%

US Market


1 Year Return

n/a

NasdaqGM:STRO

-10.8%

US Biotechs

1.7%

US Market

No trading data on STRO.

No trading data on STRO.


Share holder returns

STROIndustryMarket
7 Day15.8%0.4%1.2%
30 Day26.4%0.3%4.9%
90 Day-1.1%1.6%3.7%
1 Yearn/a-10.1%-10.8%3.9%1.7%
3 Yearn/a7.3%3.6%47.2%37.7%
5 Yearn/a2.9%-2.0%60.0%42.4%

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

Valuation

Is Sutro Biopharma undervalued based on future cash flows and its price relative to the stock market?

2.11x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Sutro Biopharma to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Sutro Biopharma to establish if it is available at substantial discount.


Price Based on Earnings

Sutro Biopharma is loss making, we can't compare its value to the US Biotechs industry average.

Sutro Biopharma is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Sutro Biopharma, we can't assess if its growth is good value.


Price Based on Value of Assets

Sutro Biopharma is good value based on assets compared to the US Biotechs industry average.


Next Steps

Future Growth

How is Sutro Biopharma expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

-19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sutro Biopharma's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Sutro Biopharma is not considered high growth as it is expected to be loss making for the next 1-3 years.

Sutro Biopharma's revenue growth is positive but not above the United States of America market average.

Unable to compare Sutro Biopharma's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Sutro Biopharma's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Sutro Biopharma will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Sutro Biopharma performed over the past 5 years?

1.4%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sutro Biopharma does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.

Unable to compare Sutro Biopharma's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Sutro Biopharma's 1-year growth to the US Biotechs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Sutro Biopharma has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Sutro Biopharma has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Sutro Biopharma improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Sutro Biopharma's financial position?


Financial Position Analysis

Sutro Biopharma is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sutro Biopharma's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sutro Biopharma's level of debt (10.7%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Sutro Biopharma's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 12.7x 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.

Whilst loss making Sutro Biopharma has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Sutro Biopharma has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -82.4% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Sutro Biopharma's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Sutro Biopharma's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Sutro Biopharma has not reported any payouts.

Unable to verify if Sutro Biopharma's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Sutro Biopharma has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Sutro Biopharma's salary, the management and board of directors tenure and is there insider trading?

6.7yrs

Average management tenure


CEO

Bill Newell (61yo)

10.7yrs

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

Bill's remuneration is higher than average for companies of similar size in United States of America.

Bill's compensation has increased whilst company is loss making.


Management Age and Tenure

6.7yrs

Average Tenure

61yo

Average Age

The average tenure for the Sutro Biopharma management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.6yrs

Average Tenure

63yo

Average Age

The tenure for the Sutro Biopharma board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$9,999,99002 Oct 18
Merck & Co., Inc.
EntityCompany
Shares666,666
Max PriceUS$15.00

Ownership Breakdown


Management Team

  • Bill Newell (61yo)

    CEO & Director

    • Tenure: 10.7yrs
    • Compensation: US$8.68m
  • Ed Albini (61yo)

    CFO & Secretary

    • Tenure: 6.7yrs
  • Linda Fitzpatrick (62yo)

    Chief People & Communications Officer

    • Tenure: 11.7yrs
  • Shabbir Anik (66yo)

    Chief Technical Operations Officer

    • Tenure: 3.5yrs
  • Steve Worsley (56yo)

    Chief Business Officer

    • Tenure: 1yrs
  • Trevor Hallam (60yo)

    Chief Scientific Officer

    • Tenure: 8.8yrs
    • Compensation: US$4.40m
  • Arturo Molina (60yo)

    Chief Medical Officer

    • Tenure: 3.6yrs
    • Compensation: US$3.35m
  • James Swartz

    Founder and Member of Scientific Advisory Board

    • Tenure: 7.7yrs
  • Nicki Vasquez

    Senior Vice President of Alliance Management

    • Tenure: 0yrs

Board Members

  • Bill Newell (61yo)

    CEO & Director

    • Tenure: 10.7yrs
    • Compensation: US$8.68m
  • Connie Matsui (65yo)

    Chair of the Board

    • Tenure: 0.3yrs
  • Jim Wells (69yo)

    Chairman of Scientific Advisory Board

    • Tenure: 7.7yrs
  • John Freund (65yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$398.07k
  • Dan Petree (63yo)

    Director

    • Tenure: 10.1yrs
    • Compensation: US$1.04m
  • V. Lawlis (67yo)

    Director

    • Tenure: 15.7yrs
    • Compensation: US$421.20k
  • Shalini Sharp (44yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$316.61k
  • James Swartz

    Founder and Member of Scientific Advisory Board

    • Tenure: 7.7yrs
  • Mike Dybbs (44yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$398.70k
  • Joe Lobacki (61yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$420.57k

Company Information

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


Key Information

  • Name: Sutro Biopharma, Inc.
  • Ticker: STRO
  • Exchange: NasdaqGM
  • Founded: 2003
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$252.206m
  • Shares outstanding: 22.93m
  • 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 c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 01:36
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.