Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
Stoke Therapeutics, Inc. (STOK)
A forensic read on Stoke Therapeutics, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
5.3
Altman Z-score
Watch
Earnings quality
4
Forensic signals
-48.8%
ROE
$2.0B
Market cap
Stoke Therapeutics, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 5.3, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+90.6%Accruals ratio.Net operating assets grew +90.6% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -28% of net operating assets.
-6%Return on invested capital.Return on invested capital is -6% and rising from -74% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+17.4%/yrShare-count dilution.Diluted share count changed +52% over the last 3 years to FY2025 (+17.4%/yr). The count is GROWING — existing holders are being diluted. That's ~17.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~52%.
17% of revStock-based comp load.Stock-based compensation ran 17% of revenue and 72% of free cash flow in FY2025 — about $0.54 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
Key fundamentals
Net Margin-3.7%
Free Cash Flow$44.9M
Latest Revenue$184.4M
Return on Equity-2.0%
Revenue Growth YoY+404.5%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Stoke Therapeutics, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about STOK's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown