Company Overview
Keros Therapeutics, Inc. operates as a clinical-stage biopharmaceutical company focused on developing and commercializing novel therapeutics for patients with disorders linked to dysfunctional signaling of the transforming growth factor-beta family of proteins within the United States. The company specifically develops rinvatercept, a therapeutic agent designed to address these specific physiological signaling issues. This entity functions within the Healthcare sector, specifically under the Biotechnology industry, which typically involves high research and development costs and regulatory scrutiny before products reach the market. The company's current scale is defined by a market capitalization of $345.49M and an annual revenue of $244.06M, supported by a workforce of 78 employees. These valuation and revenue figures suggest the company holds a mid-sized position in the biotechnology landscape, possessing sufficient market capitalization to fund operations while maintaining a relatively lean operational structure with fewer than 100 employees to drive its clinical-stage development pipeline.
Financial Health
The company reported revenue of $244.06M over the trailing twelve months, generating a net income of $87.01M and an EBITDA of $72.08M during the same period. The significant gap between the reported revenue of $244.06M and the net income of $87.01M reveals a cost structure where operating expenses, while substantial, have not consumed the entire revenue stream, resulting in a positive bottom line. The company generated free cash flow of $66.24M, which indicates a strong capacity to fund internal operations, invest in clinical trials, or pursue strategic opportunities without relying heavily on external financing. When analyzing profitability metrics, the gross margin stands at 47.9%, indicating that the company retains slightly less than half of its revenue after accounting for the direct costs of producing its therapeutics. However, the operating margin is reported as -7576.6%, a figure that highlights that operating expenses significantly exceeded operating revenue in this specific reporting context, while the profit margin remains positive at 35.7%, reflecting the efficiency of converting revenue into net earnings. The balance sheet shows a cash position of $287.42M against total debt of $16.88M, resulting in a debt-to-equity ratio of 5.57, which suggests the company maintains a highly conservative cash position relative to its debt obligations despite the leverage ratio. The current ratio is 15.45, a metric that indicates an exceptionally high level of short-term liquidity, meaning the company holds far more current assets than current liabilities and is well-positioned to meet immediate financial obligations. Furthermore, the return on equity is 19.9% and the return on assets is 9.2%, metrics that reveal management is effectively utilizing the shareholders' equity and the company's total asset base to generate substantial returns.
Valuation Assessment
The trailing twelve-month P/E ratio is 4.93, while the forward P/E ratio is -2.24, a divergence that implies the market expects earnings to fluctuate or that future earnings estimates differ significantly from current historical performance. The price-to-book ratio is 0.73, indicating that the market values the company at approximately 27% below its book value, which suggests the stock is trading at a discount relative to its net asset value. Alternative valuation metrics include a price-to-sales ratio of 1.42 and an EV/EBITDA of -0.65, figures that suggest the company is valued based on revenue multiples rather than traditional earnings multiples due to the specific characteristics of its financial profile. Regarding price levels, the 52-week high is $22.55 and the 52-week low is $9.12, establishing a trading range where the current market price sits in the middle-to-upper portion of the historical volatility band. The stock exhibits a beta of 0.90, meaning its price volatility generally moves in line with the broader market, showing slightly less sensitivity than the average stock in the S&P 500.
Growth & Income
The revenue growth year-over-year is -87.3%, while earnings growth is listed as N/A due to the lack of comparable prior period data for percentage calculation in the provided facts. The absence of a positive revenue growth rate indicates a contraction in sales or a change in the business model during the reporting period. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which implies that the company reinvests its earnings and cash flow into research and development and clinical operations rather than distributing returns to shareholders. Consequently, the overall growth and income profile is characterized by a focus on capital retention and operational scaling rather than dividend income, with the company prioritizing the advancement of its therapeutic pipeline to treat disorders linked to dysfunctional signaling of the transforming growth factor-beta family.