Taking everything into account, STOK scores 5 out of 10 in our fundamental rating. STOK was compared to 525 industry peers in the Biotechnology industry. STOK has an excellent financial health rating, but there are some minor concerns on its profitability. STOK has a correct valuation and a medium growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

STOK had positive earnings in the past year.
STOK had a positive operating cash flow in the past year.
STOK had negative earnings in each of the past 5 years.
STOK had a negative operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 11.39%, STOK belongs to the best of the industry, outperforming 94.10% of the companies in the same industry.
STOK's Return On Equity of 13.32% is amongst the best of the industry. STOK outperforms 94.10% of its industry peers.
With an excellent Return On Invested Capital value of 6.66%, STOK belongs to the best of the industry, outperforming 92.95% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	11.39%
ROE	13.32%
ROIC	6.66%

ROA(3y)-39.36%

ROA(5y)-34.31%

ROE(3y)-53.05%

ROE(5y)-43.36%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Profit Margin of STOK (19.96%) is better than 93.52% of its industry peers.
Looking at the Operating Margin, with a value of 13.06%, STOK belongs to the top of the industry, outperforming 92.57% of the companies in the same industry.

		Industry Rank	Sector Rank
OM	13.06%
PM (TTM)	19.96%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STOK is destroying value.
Compared to 1 year ago, STOK has more shares outstanding
The number of shares outstanding for STOK has been increased compared to 5 years ago.
STOK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

STOK has an Altman-Z score of 19.62. This indicates that STOK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 19.62, STOK belongs to the top of the industry, outperforming 88.76% of the companies in the same industry.
STOK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	19.62

ROIC/WACC0.75

WACC8.9%

2.3 Liquidity

STOK has a Current Ratio of 6.53. This indicates that STOK is financially healthy and has no problem in meeting its short term obligations.
STOK has a Current ratio of 6.53. This is in the better half of the industry: STOK outperforms 66.67% of its industry peers.
STOK has a Quick Ratio of 6.53. This indicates that STOK is financially healthy and has no problem in meeting its short term obligations.
STOK has a better Quick ratio (6.53) than 67.43% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	6.53
Quick Ratio	6.53

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 135.71% over the past year.
STOK shows a strong growth in Revenue. In the last year, the Revenue has grown by 1128.17%.

EPS 1Y (TTM)135.71%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-38.3%

Revenue 1Y (TTM)1128.17%

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%117.25%

3.2 Future

Based on estimates for the next years, STOK will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.08% on average per year.
The Revenue is expected to grow by 75.70% on average over the next years. This is a very strong growth

EPS Next Y110.25%

EPS Next 2Y-37.88%

EPS Next 3Y-14.81%

EPS Next 5Y17.08%

Revenue Next Year941.71%

Revenue Next 2Y37.42%

Revenue Next 3Y52.87%

Revenue Next 5Y75.7%

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 40.07 indicates a quite expensive valuation of STOK.
Compared to the rest of the industry, the Price/Earnings ratio of STOK indicates a rather cheap valuation: STOK is cheaper than 91.81% of the companies listed in the same industry.
STOK is valuated rather expensively when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for STOK. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	40.07
Fwd PE	N/A

4.2 Price Multiples

STOK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STOK is cheaper than 91.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STOK is valued cheaper than 93.90% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	32.66
EV/EBITDA	45.34

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STOK's earnings are expected to decrease with -14.81% in the coming years. This may justify a cheaper valuation.