Scholar Rock Holding Corporation (NASDAQ:SRRK) Set For Near-Term Rebound Ahead Of Regulatory Catalyst

Regulatory momentum and improving technicals align to create a tangible near-term upside bias. Strong cash reserves and a clear development path underpin the company’s valuation disconnect with market multiples.

Recent News

On June 22, 2026 the company resubmitted its Biologics License Application (BLA) for apitegromab for the treatment of children and adults with spinal muscular atrophy. On May 5, 2026 Scholar Rock published its 2026 strategic priorities outlining supply readiness, timing expectations and development priorities tied to apitegromab and its pipeline.

Technical Analysis

Directional indicators show a bullish signal: DI+ at 32.25 (increasing) with DI- at 13.37 (decreasing) and ADX at 29.11, indicating a strong non-directional trend strength that favors upward price bias given the DI configuration.

MACD sits at 1.6 with the MACD signal at 0.6 and the MACD trend increasing; the MACD currently trades above its signal line, a bullish momentum confirmation that supports near-term continuation of the advance.

MRO reads 28.33 and is increasing; because MRO is positive, price sits above its target and faces a technical probability of near-term mean reversion, adding pullback risk to the prevailing upside bias.

RSI at 55.96 and rising indicates moderate bullish momentum without immediate overbought stress. Price equals $55.00 and trades above the 20-day ($49.29), 50-day ($47.99) and 200-day ($42.85) averages, with the 12-day EMA rising—these align with a trending price structure that corroborates the bullish MACD/DI picture while leaving room for short-term consolidation near upper Bollinger levels.

 


Fundamental Analysis

Profitability and operating results remain loss-making: net income totaled -$105,510,000 and EBIT equaled -$103,208,000 for the period ending March 31, 2026. EPS actual registered -$0.83 versus an estimate of -$0.78, an EPS surprise of -6.41%.

Cash and liquidity stand out: cash and short-term investments total $479,944,000 and beginning-to-end period cash flow rose by $107,016,000; operating cash flow registered -$106,260,000 and free cash flow was -$82,169,000. The current ratio stands at 8.64x and the cash ratio at 8.05x, reflecting a deep near-term liquidity cushion despite negative operating cash flow.

Leverage sits at total debt $205,674,000 with debt-to-equity 0.75 and debt-to-assets 0.384; interest expense remained modest relative to capital. Returns show pressure from development costs: return on assets -22.46% and return on equity -38.23%.

Market multiples present a mixed picture: price-to-book equals 19.89x, which falls above the industry peer mean of 7.478 and the industry peer median of 5.4691; the trailing PE stands negative at -55.54 while forward PE sits at -72.66. PEG metrics show divergence: PEG equals 9.78 with a QoQ decline in PEG of -56.54% and a YoY contraction of -296.30%. QoQ and YoY movements: P/B rose ~2.38% QoQ and ~99.56% YoY; current ratio improved ~24.31% QoQ but declined ~15.74% YoY; reported earnings growth jumped ~155.72% QoQ while falling ~157.77% YoY.

WMDST values the stock as under-valued based on the firm’s cash runway, pipeline readouts and the company’s development-stage optionality despite negative earnings and a P/B that sits above the industry peer mean and median.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2026-03-31
REPORT DATE: 2026-05-07
NEXT REPORT DATE: 2026-08-06
CASH FLOW  Begin Period Cash Flow $ 327.3 M
 Operating Cash Flow $ -106.26 M
 Capital Expenditures $ -68.00 K
 Change In Working Capital $ 84.0 K
 Dividends Paid —
 Cash Flow Delta $ 107.0 M
 End Period Cash Flow $ 434.4 M
 
INCOME STATEMENT REVENUE
 Total Revenue —
 Forward Revenue —
COSTS
 Cost Of Revenue —
 Depreciation $ 335.0 K
 Depreciation and Amortization $ 335.0 K
 Research and Development $ 51.8 M
 Total Operating Expenses $ 102.0 M
PROFITABILITY
 Gross Profit —
 EBITDA $ -102.87 M
 EBIT $ -103.21 M
 Operating Income $ -102.02 M
 Interest Income $ 2.9 M
 Interest Expense $ 2.3 M
 Net Interest Income $ 633.0 K
 Income Before Tax $ -105.51 M
 Tax Provision —
 Tax Rate —
 Net Income $ -105.51 M
 Net Income From Continuing Operations $ -105.51 M
EARNINGS
 EPS Estimate $ -0.78
 EPS Actual $ -0.83
 EPS Difference $ -0.05
 EPS Surprise -6.41 %
 Forward EPS $ -0.59
 
BALANCE SHEET ASSETS
 Total Assets $ 535.3 M
 Intangible Assets —
 Net Tangible Assets $ 276.0 M
 Total Current Assets $ 515.3 M
 Cash and Short-Term Investments $ 479.9 M
 Cash $ 430.5 M
 Net Receivables —
 Inventory —
 Long-Term Investments $ 3.8 M
LIABILITIES
 Accounts Payable $ 9.2 M
 Short-Term Debt —
 Total Current Liabilities $ 59.6 M
 Net Debt —
 Total Debt $ 205.7 M
 Total Liabilities $ 259.2 M
EQUITY
 Total Equity $ 276.0 M
 Retained Earnings $ -1.41 B
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share $ 2.32
 Shares Outstanding 119.104 M
 Revenue Per-Share —
VALUATION
 Market Capitalization $ 5.5 B
 Enterprise Value $ 5.2 B
 Enterprise Multiple -50.71
Enterprise Multiple QoQ -1.084 %
Enterprise Multiple YoY 38.292 %
Enterprise Multiple IPRWA high: 75.51
median: 27.492
mean: 7.581
SRRK: -50.71
low: -128.217
 EV/R —
CAPITAL STRUCTURE
 Asset To Equity 1.939
 Asset To Liability 2.065
 Debt To Capital 0.427
 Debt To Assets 0.384
Debt To Assets QoQ 42.626 %
Debt To Assets YoY 148.015 %
Debt To Assets IPRWA high: 1.112
SRRK: 0.384
mean: 0.167
median: 0.031
low: 0.0
 Debt To Equity 0.745
Debt To Equity QoQ 67.954 %
Debt To Equity YoY 268.581 %
Debt To Equity IPRWA high: 1.864
SRRK: 0.745
mean: 0.192
median: 0.051
low: -1.094
PRICE-BASED VALUATION
 Price To Book (P/B) 19.894
Price To Book QoQ 2.377 %
Price To Book YoY 99.558 %
Price To Book IPRWA high: 20.93
SRRK: 19.894
mean: 7.478
median: 5.469
low: -11.267
 Price To Earnings (P/E) -55.545
Price To Earnings QoQ 11.136 %
Price To Earnings YoY 13.396 %
Price To Earnings IPRWA high: 74.242
mean: -1.846
median: -14.301
SRRK: -55.545
low: -121.28
 PE/G Ratio 9.776
 Price To Sales (P/S) —
Price To Sales QoQ —
Price To Sales YoY —
Price To Sales IPRWA —
FORWARD MULTIPLES
Forward P/E -72.663
Forward PE/G 12.788
Forward P/S —
EFFICIENCY OPERATIONAL
 Operating Leverage —
ASSET & SALES
 Asset Turnover Ratio —
Asset Turnover Ratio QoQ —
Asset Turnover Ratio YoY —
Asset Turnover Ratio IPRWA —
 Receivables Turnover —
Receivables Turnover Ratio QoQ —
Receivables Turnover Ratio YoY —
Receivables Turnover Ratio IPRWA —
 Inventory Turnover —
Inventory Turnover Ratio QoQ —
Inventory Turnover Ratio YoY —
Inventory Turnover Ratio IPRWA —
 Days Sales Outstanding (DSO) —
CASH CYCLE
 Cash Conversion Cycle Days (CCC) —
Cash Conversion Cycle Days QoQ —
Cash Conversion Cycle Days YoY —
Cash Conversion Cycle Days IPRWA high: 499.798
mean: 219.741
median: 208.031
SRRK: 0
low: -303.652
CAPITAL DEPLOYMENT
 Cash Conversion Ratio —
 CapEx To Revenue —
 CapEx To Depreciation -0.203
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital $ 472.6 M
 Net Invested Capital $ 472.6 M
 Invested Capital $ 472.6 M
 Net Tangible Assets $ 276.0 M
 Net Working Capital $ 455.6 M
LIQUIDITY
 Cash Ratio 8.047
 Current Ratio 8.639
Current Ratio QoQ 24.314 %
Current Ratio YoY -15.737 %
Current Ratio IPRWA high: 32.587
SRRK: 8.639
mean: 3.933
median: 2.409
low: 0.016
 Quick Ratio —
Quick Ratio QoQ —
Quick Ratio YoY —
Quick Ratio IPRWA —
COVERAGE & LEVERAGE
 Debt To EBITDA -1.999
 Cost Of Debt 1.463 %
 Interest Coverage Ratio -44.834
Interest Coverage Ratio QoQ 28.472 %
Interest Coverage Ratio YoY -34.281 %
Interest Coverage Ratio IPRWA high: 604.866
median: -14.753
SRRK: -44.834
mean: -78.094
low: -1789.522
 Operating Cash Flow Ratio -1.782
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) —
DIVIDENDS
 Dividend Coverage Ratio —
 Dividend Payout Ratio —
 Dividend Rate —
 Dividend Yield —
PERFORMANCE GROWTH
 Asset Growth Rate 32.399 %
 Revenue Growth —
Revenue Growth QoQ —
Revenue Growth YoY —
Revenue Growth IPRWA —
 Earnings Growth -5.682 %
Earnings Growth QoQ 155.716 %
Earnings Growth YoY -157.767 %
Earnings Growth IPRWA high: 215.789 %
median: -5.479 %
SRRK: -5.682 %
mean: -13.601 %
low: -250.0 %
MARGINS
 Gross Margin —
Gross Margin QoQ —
Gross Margin YoY —
Gross Margin IPRWA —
 EBIT Margin —
EBIT Margin QoQ —
EBIT Margin YoY —
EBIT Margin IPRWA —
 Return On Sales (ROS) —
Return On Sales QoQ —
Return On Sales YoY —
Return On Sales IPRWA —
CASH FLOW
 Free Cash Flow (FCF) $ -82.17 M
 Free Cash Flow Yield -1.496 %
Free Cash Flow Yield QoQ -5.496 %
Free Cash Flow Yield YoY -41.009 %
Free Cash Flow Yield IPRWA high: 11.709 %
median: 0.11 %
mean: -0.512 %
SRRK: -1.496 %
low: -45.34 %
 Free Cash Growth 8.793 %
Free Cash Growth QoQ -6.952 %
Free Cash Growth YoY -85.19 %
Free Cash Growth IPRWA high: 253.163 %
SRRK: 8.793 %
mean: 4.265 %
median: -16.897 %
low: -249.577 %
 Free Cash To Net Income 0.779
 Cash Flow Margin —
 Cash Flow To Earnings 1.007
VALUE & RETURNS
 Economic Value Added —
 Return On Assets (ROA) -22.46 %
Return On Assets QoQ 0.736 %
Return On Assets YoY 32.625 %
Return On Assets IPRWA high: 38.074 %
median: -8.157 %
mean: -13.731 %
SRRK: -22.46 %
low: -67.817 %
 Return On Capital Employed (ROCE) -21.7 %
 Return On Equity (ROE) -0.382
Return On Equity QoQ 3.16 %
Return On Equity YoY 59.781 %
Return On Equity IPRWA high: 0.797
median: -0.11
mean: -0.344
SRRK: -0.382
low: -1.265
 DuPont ROE —
 Return On Invested Capital (ROIC) —
Return On Invested Capital QoQ —
Return On Invested Capital YoY —
Return On Invested Capital IPRWA —

Six-Week Outlook

Near-term price bias skews upward: directional indicators and momentum point toward continuation while positive MRO and proximity to upper Bollinger levels signal pullback risk that could produce short consolidations. Event flow—regulatory resubmission and ongoing supply-readiness commentary—should increase headline-driven volatility and raise the information asymmetry around directional moves. Monitor momentum persistence and cash-driven fundamentals as the primary drivers of directional conviction; short-term reversals remain plausible given MRO’s above-target reading and the elevated price-to-book multiple versus the industry peer mean and median.

About Scholar Rock Holding Corporation

Scholar Rock Holding Corporation (NASDAQ:SRRK) develops innovative biopharmaceutical solutions targeting serious diseases influenced by protein growth factor signaling. The company advances Apitegromab, a myostatin activation inhibitor, currently undergoing Phase 3 clinical trials aimed at treating spinal muscular atrophy. Scholar Rock also progresses SRK-181, which has completed Phase 1 trials, targeting cancers resistant to checkpoint inhibitor therapies, including anti-PD-1 and anti-PD-L1 antibody therapies. Their pipeline includes potential treatments for neuromuscular disorders, cardiometabolic disorders, cancer, fibrosis, and iron-restricted anemia. Founded in 2012, Scholar Rock operates from its headquarters in Cambridge, Massachusetts, driving forward the development of novel therapeutic candidates to address unmet medical needs.



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