Cytokinetics (CYTK) AI Stock Analysis

• Market Cap: $4.08B
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 2635.74%
• EPS Growth: 4.66%
• Country: US
• Employees: 498
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): -1.12
• Shares Outstanding: 119,657,160
• 10 Day Avg. Volume: 1,192,758
• 30 Day Avg. Volume: 1,308,668
• PEG Ratio: 2.56
• Price to Book (P/B): -38.91
• Price to Sales (P/S): 285.13
• P/FCF Ratio: -13.18
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 205.29
• Enterprise Value/Gross Profit: -15.10
• Enterprise Value/Ebitda: -7.65
• 1Y Price Target: $72.31
• Price Target Upside: 117.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 46 Neutral
• Price Target: $33.00 ▼(-0.69% Downside)

Cytokinetics' stock score is primarily impacted by its weak financial performance, with negative profitability and high leverage posing significant risks. Technical analysis indicates bearish momentum, while valuation metrics suggest overvaluation. The earnings call provided some optimism with regulatory progress and commercial readiness, but financial challenges remain a concern.

Positive Factors

Clinical Trials

The primary data from the MAPLE study met its endpoints and will be presented in a 'Hot Line Session' at the European Society of Cardiology.

Financial Position

Cytokinetics ended the quarter with $1.04 billion in cash and cash equivalents, providing a strong financial position.

Regulatory Progress

Key corporate updates focused on FDA discussions and commercial preparation, indicating progress towards regulatory approval.

Negative Factors

Market Challenges

Initial uptake in China may be slow due to the need for a national reimbursed drug listing, but acceleration is expected thereafter.

R&D Expenses

Cytokinetics reported increased R&D expenses, up 41.5% year-over-year, which could impact profitability.

Regulatory Review

The FDA extended the PDUFA date for aficamten's oHCM to provide additional time to review the proposed REMS.

Cytokinetics Business Overview & Revenue Model

Company Description

Cytokinetics, Inc. is a clinical-stage biopharmaceutical company focused on discovering, developing, and commercializing novel muscle activators and other therapeutics to treat debilitating diseases and medical conditions that affect muscle function. The company operates primarily in the sectors of neuromuscular diseases and cardiovascular diseases, with core products that include its lead drug candidates designed to enhance muscle contractility and improve overall muscle performance.

How the Company Makes Money

Cytokinetics generates revenue primarily through collaborations and partnerships with other pharmaceutical companies, as well as potential future sales of its drug candidates upon successful commercialization. The company engages in licensing agreements, where it may receive upfront payments, milestone payments based on clinical and regulatory progress, and royalties on future product sales. Additionally, Cytokinetics may also secure funding through grants or government programs aimed at supporting innovative research in the biopharmaceutical sector. The company's partnerships with larger pharmaceutical firms can also provide significant financial support and resources, enhancing its ability to advance its drug candidates through the development pipeline.

Cytokinetics Financial Statement Overview

Summary

Cytokinetics is facing significant financial challenges. The income statement shows negative profitability with declining revenue and margins. The balance sheet is highly leveraged with negative equity, posing solvency risks. Cash flows are negative, indicating operational inefficiencies and reliance on external financing.

Income Statement

The company is experiencing negative profitability with a declining trend in key metrics. The gross profit margin is significantly negative, indicating cost issues relative to revenue. Net income is deeply negative, and the net profit margin has deteriorated. Revenue growth showed inconsistency with a significant drop recently, impacting the company's ability to cover expenses.

Balance Sheet

The balance sheet reveals high leverage with a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is unmanageable due to negative equity, posing a risk of solvency issues. Total assets have not seen significant growth, and the equity ratio is negative, indicating more liabilities than assets.

Cash Flow

Cash flow metrics indicate operational struggles with consistent negative operating and free cash flow. The operating cash flow to net income ratio is concerning due to substantial negative income. Despite positive financing cash flows, free cash flow remains negative, reflecting challenges in generating cash from core operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.22M	18.47M	7.53M	94.59M	70.43M	55.83M
Gross Profit	-261.27M	-320.93M	-322.59M	-146.22M	-89.51M	-41.12M
EBITDA	-516.03M	-493.48M	-456.68M	-329.40M	-176.34M	-86.78M
Net Income	-615.26M	-589.53M	-526.24M	-388.95M	-215.31M	-127.29M
Balance Sheet
Total Assets	1.26B	1.40B	824.32M	1.01B	841.32M	533.80M
Cash, Cash Equivalents and Short-Term Investments	938.22M	1.08B	614.82M	782.58M	471.64M	464.06M
Total Debt	791.05M	788.68M	755.77M	749.34M	269.93M	138.94M
Total Liabilities	1.53B	1.54B	1.21B	1.12B	597.46M	420.42M
Stockholders Equity	-266.41M	-135.37M	-386.32M	-107.90M	243.86M	113.38M
Cash Flow
Free Cash Flow	-409.32M	-399.80M	-415.75M	-310.85M	-191.39M	-2.11M
Operating Cash Flow	-398.00M	-395.89M	-414.33M	-299.52M	-142.52M	8.94M
Investing Cash Flow	-479.78M	-553.10M	239.25M	-262.13M	-147.78M	-196.51M
Financing Cash Flow	831.57M	930.61M	221.32M	516.17M	319.98M	234.12M

Cytokinetics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYTK, the sentiment is Negative. The current price of 33.23 is below the 20-day moving average (MA) of 36.67, below the 50-day MA of 34.85, and below the 200-day MA of 42.36, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 35.94 is Neutral, neither overbought nor oversold. The STOCH value of 10.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CYTK.

Cytokinetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRNA	68 Neutral	$9.05B	―	-36.38%	―	―	34.29%
Sector *	65 Neutral	¥339.25B	10.33	-0.16%	2.41%	10.20%	-8.92%
IONS	54 Neutral	$6.51B	―	-59.83%	―	16.04%	30.61%
ZLAB	54 Neutral	$3.84B	―	-28.39%	―	32.56%	33.33%
AXSM	51 Neutral	$5.23B	―	-280.68%	―	69.83%	22.16%
PCVX	50 Neutral	$3.85B	―	-21.65%	―	―	11.84%
CYTK	46 Neutral	$4.08B	―	435.49%	―	2635.74%	4.66%

Cytokinetics Corporate Events

Cytokinetics Announces Key Decisions at Annual Meeting

At its Annual Meeting of Stockholders on May 14, 2025, Cytokinetics announced several key decisions. Stockholders elected three Class III Directors, approved amendments to increase shares under the 2004 Equity Incentive Plan and the Certificate of Incorporation, ratified Ernst & Young LLP as the independent accounting firm for 2025, and endorsed executive compensation. These decisions reflect strategic adjustments in governance and financial structuring, potentially impacting the company’s operational capacity and shareholder value.

The most recent analyst rating on (CYTK) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Cytokinetics stock, see the CYTK Stock Forecast page.