Scholar Rock Holding Corporation
$44.64
+0.24%Scholar Rock Holding Corporation, a biopharmaceutical company, focuses on the discovery and development of medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The company develops Apitegromab, an inhibitor of the activation of latent myostatin that has completed the Phase 3 clinical trials for the treatment of spinal muscular atrophy; and SRK-181, which is in Phase 1 clinical trials for the treatment of cancers that are resistant to checkpoint inhibitor therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies. It is also developing a pipeline of novel product candidates with potential to transform the lives of patients suffering from a range of serious diseases, including neuromuscular disorders, cancer, and fibrosis. The company has a collaboration agreement with Gilead Sciences, Inc. to discover and develop specific inhibitors of transforming growth factor beta activation for the treatment of fibrotic diseases. Scholar Rock Holding Corporation was founded in 2012 and is headquartered in Cambridge, Massachusetts.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -13.6).
Valuation inputs: P/E -13.6, earnings yield N/A, momentum +0.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -1.5%, ROIC -1.1%).
Profitability stack: net margin 0.0%, ROE -1.5%, ROIC -1.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +39.3%, momentum +0.2%, net margin 0.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Scholar Rock Holding Corporation Market vs Earnings Trajectory
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Scholar Rock Holding Corporation Fair Value Envelope
Scholar Rock Holding Corporation Profit Bridge
Profitability Analysis
Scholar Rock Holding Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Scholar Rock Holding Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Scholar Rock Holding Corporation Street Expectations Map
Wall Street analysts project that SRRK stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 59.17, with estimates ranging from a low of 55.00 to a high of 65.00.
The consensus 1-year price target stands at 59.17, with estimates ranging from a low of 55.00 to a high of 65.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Scholar Rock Holding Corporation Insider Positioning
During the last 12 months, insiders have purchased $1.27M and sold $20.34M worth of SRRK shares, resulting in $19.07M of net selling activity.
3 Months
0
0.00
63.5K
3.15M
-3.1M
-$3.15M
3-6 Months
0
0.00
194.4K
8.54M
-8.5M
-$8.54M
6-9 Months
33.8K
1.27M
143.1K
6.38M
-5.1M
-$5.11M
9-12 Months
0
0.00
65.9K
2.27M
-2.3M
-$2.27M
Top Buyers
Akkaraju Srinivas
Director
$1.27M
Top Sellers
Qatanani Mo
Officer: Chief Scientific Officer
$9.11M
Hallal David
Director, Officer: Chief Executive Officer
$3.97M
Vaishnaw Akshay
Director, Officer: President Of R&D
$1.48M
Sinha Vikas
Officer: Chief Financial Officer
$1.23M
Woods Keith
Officer: Chief Operating Officer
$1.22M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $19.07M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
SRRK has not reported any dividend yield values in the available annual periods.
srrk Dividend History
Learning Layer
Related Guides
Build conviction on SRRK by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.