Akero Therapeutics (AKRO) AI Stock Analysis

• Market Cap: $3.49B
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: N/A
• EPS Growth: -31.37%
• Country: US
• Employees: 56
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -3.75
• Shares Outstanding: 79,620,125
• 10 Day Avg. Volume: 973,606
• 30 Day Avg. Volume: 1,279,416
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -12.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $74.00
• Price Target Upside: 61.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Akero's stock score reflects strong technical momentum and positive corporate developments, which are key drivers. However, financial challenges with no current revenue and operational losses weigh down the overall score. The promising clinical trial results provide a potential catalyst for future growth.

Positive Factors

Clinical Trial Success

Positive 96-week data from the Phase IIb SYMMETRY study in F4 cirrhotic MASH was recently reported.

Financial Position

Akero reported a cash position of $797.8M, showing financial stability.

Negative Factors

Market Competition

Strategic interest for Akero’s FGF21 analog remains high, particularly as large biopharma look to build out their respective MASH portfolios.

Akero Therapeutics Business Overview & Revenue Model

Company Description

Akero Therapeutics, Inc. operates as a biotechnology company. The firm specializes in transformational treatments for non-alcoholic steatohepatitis (NASH) and other serious metabolic diseases. The company was founded by Jonathan Young and Timothy Rolph on January 24, 2017 and is headquartered in South San Francisco, CA.

How the Company Makes Money

Akero Therapeutics makes money through the development and commercialization of its drug candidates, primarily targeting NASH. The company aims to generate revenue through the successful approval and subsequent sales of its lead product candidate, Efruxifermin (EFX). Akero may also engage in partnerships or collaborations with other pharmaceutical companies to co-develop or license its technology, which can provide additional revenue streams and funding for its research and development activities. As a clinical-stage company, Akero currently does not generate significant revenue from product sales but relies on funding through public offerings, private investments, grants, and collaborations to finance its operations and continue the development of its pipeline.

Akero Therapeutics Financial Statement Overview

Summary

Akero Therapeutics is in a growth phase typical of biotech companies, prioritizing R&D over immediate profitability. Strong equity and cash reserves provide a cushion against the high cash burn. However, the absence of revenue and continued operational losses pose risks that need addressing for long-term sustainability.

Income Statement

Akero Therapeutics has consistently reported zero revenue, indicating a focus on R&D typical for biotech firms in early stages. The company faces widening net losses, with the latest year showing a significant increase in EBIT and EBITDA losses. Despite this, the company is investing in future growth, reflected by its increasing expenditures.

Balance Sheet

The balance sheet reveals strong equity with a debt-to-equity ratio close to zero, signifying low leverage and strong financial foundation. The company's cash reserves have increased, supporting operations without significant debt reliance, although equity dilution might be a concern.

Cash Flow

Operating cash flow remains negative, highlighting ongoing cash burn. However, cash position is bolstered by substantial financing activities, indicating effective capital raising strategies. Free cash flow growth is negative, reflecting increased operational investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-29.00K	-260.00K	-244.00K	-213.00K
	EBIT
-285.42M	-172.87M	-115.16M	-100.89M	-80.15M
	EBITDA
-285.42M	-148.63M	-111.03M	-100.53M	-78.99M
	Net Income Common Stockholders
-252.06M	-151.76M	-108.91M	-100.74M	-79.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
743.08M	550.01M	351.45M	188.26M	268.39M
	Total Assets
825.89M	580.27M	356.57M	195.55M	273.34M
	Total Debt
529.00K	26.30M	10.95M	1.52M	1.81M
	Net Debt
-339.71M	-207.90M	-238.83M	-148.97M	-185.43M
	Total Liabilities
75.77M	44.97M	30.01M	26.44M	14.63M
	Stockholders Equity
750.11M	535.31M	326.56M	169.11M	258.71M
Cash Flow		Free Cash Flow
-230.11M	-145.37M	-92.52M	-79.68M	-70.95M
	Operating Cash Flow
-230.11M	-145.37M	-92.52M	-79.68M	-70.80M
	Investing Cash Flow
-109.71M	-223.62M	-63.83M	42.28M	-9.76M
	Financing Cash Flow
445.85M	353.32M	255.63M	602.00K	203.11M

Akero Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKRO, the sentiment is Positive. The current price of 45.85 is below the 20-day moving average (MA) of 47.28, above the 50-day MA of 41.10, and above the 200-day MA of 30.60, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 32.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AKRO.

Akero Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNMD	71 Outperform	$1.91B	14.57	14.74%	1.29%	4.98%	104.60%
AKRO	60 Neutral	$3.49B	―	-39.22%	―	―	-31.37%
MDGL	54 Neutral	$7.41B	―	-80.35%	―	―	-10.89%
Sector *	49 Neutral	$6.90B	0.02	-54.05%	2.46%	24.91%	-3.14%
VKTX	42 Neutral	$2.98B	―	-17.90%	―	―	-10.27%
RDHL	41 Neutral	$3.56M	―	1155.92%	―	―	―
GALT	36 Underperform	$99.69M	―	48.74%	―	―	4.53%

Akero Therapeutics Corporate Events

Akero Therapeutics Reports Promising Phase 2b Study Results

On January 27, 2025, Akero Therapeutics reported promising preliminary results from their Phase 2b SYMMETRY study, which evaluated the efficacy of efruxifermin (EFX) in patients with compensated cirrhosis due to MASH. The study showed significant improvements in fibrosis without worsening MASH, with 39% of patients in the 50mg EFX group showing positive results compared to 15% in the placebo group. These findings underscore the potential of EFX as a transformative treatment, marking a notable advancement in addressing cirrhosis caused by MASH and enhancing Akero’s position in the metabolic disease treatment landscape. The treatment was generally well-tolerated, and no serious adverse events related to EFX were reported.