Karyopharm Therapeutics Inc. (NASDAQ: KPTI)

Sector: Healthcare Industry: Biotechnology CIK: 0001503802
Market Cap 102.78 Mn
P/B -0.35
P/E -0.52
P/S 0.70
ROIC (Qtr) 137.18
Div Yield % 0.00
Rev 1y % (Qtr) 11.58
Total Debt (Qtr) 233.61 Mn
Debt/Equity (Qtr) -0.80
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About

Karyopharm Therapeutics Inc. (KPTI) is a commercial-stage pharmaceutical company that operates in the biotechnology industry. The company specializes in the development and commercialization of innovative cancer therapies, with a particular focus on discovering, developing, and commercializing first-in-class drugs directed against nuclear export for the treatment of cancer and other diseases. KPTI's primary business activities involve the research and development of drugs that inhibit the nuclear export protein exportin 1 (XPO1). The company's...

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Investment thesis

Bull case

  • Healthy cash reserves of 60.89M provide 2.77x coverage of short-term debt 21.98M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust tangible asset base of 108.42M provides 9.78x coverage of working capital 11.09M, indicating strong operational backing.
  • Retained earnings of (1.76B) represent substantial 6.01x of equity (292.93M), indicating strong internal capital generation.
  • Robust R&D investment of 125.62M at 1.19x of SG&A 105.21M demonstrates strong commitment to innovation and future growth.
  • Cash reserves of 60.89M exceed inventory value of 4.04M by 15.08x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of (75.37M) barely covers its investment activities of 43.38M, with a coverage ratio of -1.74, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 43.38M provide weak support for R&D spending of 125.62M, which is 0.35x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (75.37M) shows concerning coverage of stock compensation expenses of 14.05M, with a -5.36 ratio indicating potential earnings quality issues.
  • High receivables of 26.18M relative to inventory of 4.04M (6.48 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of (150.15M) show weak coverage of depreciation charges of 296000, with a -507.25 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2025)

Consolidation Items Breakdown of Revenue (2025)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.41 11.06
EV to Cash from Ops. EV/CFO -3.47 26.32
EV to Debt EV to Debt 1.12 762.61
EV to EBIT EV/EBIT -1.74 -13.49
EV to EBITDA EV/EBITDA -2.89 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -3.47 25.66
EV to Market Cap EV to Market Cap 2.54 203.37
EV to Revenue EV/Rev 1.79 156.31
Price to Book Value [P/B] P/B -0.35 20.59
Price to Earnings [P/E] P/E -0.52 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.14
Interest Coverage Int. cover (Qtr) -3.27 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -3.06 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -285.35 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 24.09 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -285.56 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -156.66 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) -90.54 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 40.95 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.64 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.35 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.66 3.92
Current Ratio Curr Ratio (Qtr) 1.12 7.33
Debt to Equity Ratio Debt/Equity (Qtr) -0.80 0.48
Interest Cover Ratio Int Coverage (Qtr) -3.27 956.66
Times Interest Earned Times Interest Earned (Qtr) -3.27 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -102.60 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -102.79 -18,246.34
EBT Margin % EBT Margin % (Qtr) -134.18 -19,108.08
Gross Margin % Gross Margin % (Qtr) 95.90 -10.30
Net Profit Margin % Net Margin % (Qtr) -134.20 -19,056.96