Scholar Rock Holding Corporation (SRRK)
NEUTRALFundamental
36
Price
$58.82
Market Cap
$6.84B
Part 1 · What the company is worth
Overview
Scholar Rock is a clinical-stage biotechnology company with no approved product yet on the market. Its lead candidate, apitegromab, targets spinal muscular atrophy, a rare genetic disease that weakens muscles; a second program, SRK-181, is being tested in cancer, and an earlier-stage compound, SRK-439, targets a similar muscle pathway. The company runs the clinical trials required to prove a drug works and is safe, then would need FDA approval before it could sell anything.
How it makes money
Scholar Rock does not yet sell a product, so it has essentially no ongoing revenue: it is funded by cash raised from investors and, in the past, from pharmaceutical partners paying for rights to its science, such as a now-ended collaboration with Gilead. If apitegromab is approved, the company would earn revenue from prescription sales in the US and other markets it can access, but until then its finances are spending, not selling.
Key risks
- No approved product, no revenue — The company depends entirely on apitegromab and its earlier-stage pipeline succeeding in clinical trials and being approved; failure at any stage leaves it with no product to sell.
- Regulatory approval is not guaranteed — The FDA review process is lengthy and unpredictable, and the company has already had one review cycle for apitegromab complicated by a manufacturing-facility issue rather than the drug itself.
- Clinical trial risk — Proving a drug is safe and effective requires large, expensive trials whose results are inherently uncertain, and a disappointing readout in an ongoing study could stall the whole pipeline.
- Continued need for capital — As a company with no product revenue, Scholar Rock must keep raising cash to fund years of further trials, which can dilute existing shareholders or become harder in a weak market.
The case for
Buyers argue that apitegromab's Phase 3 results in spinal muscular atrophy were positive and that the setback in its first FDA review was tied to a contract manufacturer's facility rather than the drug's safety or efficacy, leaving a resubmitted approval path with a clear precedent of trial success behind it.
The case against
Sellers worry that the company still has no approved product and no revenue after years of development, that a second regulatory setback of any kind would be costly given how much cash the company would need to keep going, and that its future depends on a single lead asset succeeding.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
0
Fiscal year ended 12/31/2025
Net Income
$-378M
Fiscal year ended 12/31/2025
Free Cash Flow
$-301M
Total Equity
$245M
Total Liabilities
$159M
Current Ratio
7.02
Interest Coverage
38.02
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$44.78
Current Price
$58.82
Margin of Safety
-31.4%
Fair Value Range
$29.11 - $60.45
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-154.0%
P/B Ratio
27.93
P/FCF
-
Gross Margin
-
ROIC
-71.1%
Profitability Radar
Value Creation (Economic Moat)
ROIC
-71.1%
WACC
7.8%
ROIC − WACC
-79.0 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (7)
- EPS shows upward trend
- Price CAGR 11.91%
- Debt/Equity ratio
- Current Ratio
- Interest Coverage
- Low reliance on intangibles
- Analyst Consensus 96% Buy
Failed (10)
- ROIC -71.1%
- P/B Ratio 27.93
- Operating Margin -Infinity%
- Positive Free Cash Flow
- Return on Tangible Assets
- DCF valuation (Overvalued)
- ROE -159.1%
- Earnings Surprise avg -0.4%
- Share Dilution 15.2%
- Piotroski F-Score 1/9
Unavailable (10)
- Gross Margin NaN%
- P/FCF NaN
- Dividend Payout NaN%
- CapEx intensity
- Debt/EBITDA
- Price below Graham Number
- Revenue Growth 5Y (Finnhub)
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
- Net Margin Trend (invalid data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Issuing new shares, diluting ownership
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. David L. Hallal | CEO & Chairman of the Board | 59 |
| Mr. Vikas Sinha C.A., CPA, M.B.A. | CFO & Treasurer | 62 |
| Mr. Robert Keith Woods | Chief Operating Officer | 57 |
| Dr. Akshay Krishnadas Vaishnaw M.D., Ph.D. | President of R&D, Member of Scientific Advisory Board and Director | 62 |
| Ms. Erin Moore CPA | Interim Principal Financial & Accounting Officer | 50 |
| Ms. Lisa Wyman M.S. | Chief Technical & Quality Officer | 47 |
| Mr. Mo Qatanani Ph.D. | Chief Scientific Officer | 52 |
| Ms. Rushmie Nofsinger | Vice President of Corporate Affairs & Investor Relations | - |
| Ms. Junlin Ho J.D. | General Counsel & Corporate Secretary | 46 |
| Ms. Caryn Parlavecchio | Chief Human Resources Officer | 53 |
Audit Risk
6
Board Risk
9
Compensation Risk
10
Shareholder Rights Risk
8
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for SRRK, sourced from Markets Gazette.
- 3/3/2026NEUTRALScholar Rock (SRRK) Q4 2025 Earnings Transcript
Scholar Rock Holding Corporation has announced the release of its Fourth Quarter 2025 earnings call transcript. While specific financial results are not yet available, this event is a critical moment for investors and analysts to understand the company's past performance and future outlook. Earnings call transcripts provide direct insights into management's strategy, product pipeline progress, and operational challenges. Investors will closely monitor this information to assess Scholar Rock's growth trajectory within the biotechnology sector and to anticipate any potential impacts on its stock valuation.
- 2/22/2026POSITIVEBiotech Fund Doubles Down With $49 Million Scholar Rock Buy as Shares Climb 26%
Scholar Rock, a biotech firm developing therapies for neuromuscular and oncological diseases, has secured a substantial $49 million investment from a biotech fund. This additional financial backing, following a 26% surge in its share price, underscores investor confidence in the company's proprietary platform. Scholar Rock's ability to address unmet medical needs positions it favorably for future growth and innovation in the pharmaceutical sector, making it an attractive prospect for those seeking biotech exposure.
via Markets Gazette