Keros Therapeutics, Inc. (NASDAQ: KROS)

Sector: Healthcare Industry: Biotechnology CIK: 0001664710
Market Cap 773.39 Mn
P/B 1.10
P/E 12.00
P/S 3.13
ROIC (Qtr) 5.04
Div Yield % 0.00
Rev 1y % (Qtr) 3,575.77
Total Debt (Qtr) 17.43 Mn
Debt/Equity (Qtr) 0.02

About

Keros Therapeutics, Inc., also known by its stock symbol KROS, is a clinical-stage biopharmaceutical company operating within the healthcare and life sciences industry. The company is renowned for its expertise in the transforming growth factor-beta (TGF-β) family of proteins, a critical component in the development of various tissues such as blood, bone, skeletal muscle, adipose, and heart tissue. Keros Therapeutics is committed to developing novel therapeutics that address a wide range of disorders linked to dysfunctional signaling of the TGF-β...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 88.79M provides robust 5.09x coverage of total debt 17.43M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 694.92M provide 299.79x coverage of short-term debt 2.32M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 742.78M provides 42.62x coverage of total debt 17.43M, indicating robust asset backing and low credit risk.
  • Tangible assets of 742.78M provide exceptional 4792.15x coverage of deferred revenue 155000, showing strong service capability backing.
  • Robust free cash flow of 87.08M exceeds capital expenditure of 1.71M by 51.05x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 88.79M barely covers its investment activities of (1.71M), with a coverage ratio of -52.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.71M) provide weak support for R&D spending of 157.36M, which is -0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 88.79M shows concerning coverage of stock compensation expenses of 30.59M, with a 2.90 ratio indicating potential earnings quality issues.
  • Tangible assets of 742.78M provide limited backing for working capital of 695.22M, which is 1.07x, suggesting increased operational risk in market downturns.
  • Tax assets of 0 provide limited offset against tax liabilities of 4.15M, which is 0x, indicating potential future cash flow pressure from tax obligations.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,511.45 Bn -1,640.00 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 463.25 Bn 6,757.80 93.16 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 119.13 Bn 32.42 10.16 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.93 Bn 18.33 5.89 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.97 Bn 1,284.81 17.44 3.21 Bn
6 ARGX Argenx Se 47.47 Bn 31.51 24,751.70 -
7 BNTC Benitec Biopharma Inc. 41.27 Bn -986.67 0.00 0.00 Bn
8 INSM INSMED Inc 33.76 Bn -28.52 75.53 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.13 13.39
EV to Cash from Ops. EV/CFO 1.12 23.02
EV to Debt EV to Debt 5.72 789.59
EV to EBIT EV/EBIT 1.40 -11.14
EV to EBITDA EV/EBITDA 2.10 7.05
EV to Free Cash Flow [EV/FCF] EV/FCF 1.14 21.44
EV to Market Cap EV to Market Cap 0.13 72.36
EV to Revenue EV/Rev 0.40 194.41
Price to Book Value [P/B] P/B 1.10 23.19
Price to Earnings [P/E] P/E 12.00 -11.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
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 -0.15
Interest Coverage Int. cover (Qtr) 0.00 856.48
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 21.85 -27.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 30.59 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 135.50 -48.05
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 123.54 -1.94
EBIT Growth (1y) % EBIT 1y % (Qtr) 139.18 -57.64
EBT Growth (1y) % EBT 1y % (Qtr) 139.18 -14.19
EPS Growth (1y) % EPS 1y % (Qtr) 130.71 -30.71
FCF Growth (1y) % FCF 1y % (Qtr) 161.11 -32.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 37,798.31 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.33 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 28.84 3.79
Current Ratio Curr Ratio (Qtr) 29.86 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 856.48
Times Interest Earned Times Interest Earned (Qtr) 0.00 856.48
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 30.40 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 28.84 -18,862.18
EBT Margin % EBT Margin % (Qtr) 28.84 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) 26.10 -19,732.60