Cytokinetics (CYTK) AI Stock Analysis

• Market Cap: $4.23B
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: 2635.74%
• EPS Growth: 4.66%
• Country: US
• Employees: 498
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -1.12
• Shares Outstanding: 119,657,160
• 10 Day Avg. Volume: 1,772,765
• 30 Day Avg. Volume: 1,516,691
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 46.01
• Enterprise Value/Gross Profit: -20.27
• Enterprise Value/Ebitda: -7.81
• 1Y Price Target: $74.15
• Price Target Upside: 109.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 47 Neutral
• Price Target: $35.00 ▼(-0.93% Downside)

Cytokinetics faces significant financial challenges with high leverage and negative equity, impacting its overall score. Despite promising advancements in clinical trials and regulatory progress, the delayed PDUFA date and financial instability weigh heavily. Technical indicators suggest potential bearish momentum, while valuation metrics highlight ongoing profitability issues. The earnings call provided some optimism with strategic initiatives, but financial hurdles remain a concern.

Positive Factors

Clinical trial results

The MAPLE-HCM data is highly positive, providing clear evidence of the superiority of monotherapy aficamten to monotherapy metoprolol on all clinically relevant endpoints and its potential utility as a first-line therapy for oHCM.

Financial position

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

Safety and tolerability

The integrated safety analysis showed that treatment with aficamten was well-tolerated with an adverse event profile similar to placebo, indicating its safety for oHCM patients.

Negative Factors

Competitiveness

CYTK shares have been pressured given renewed concerns over the competitiveness of CMI aficamten, its main value driver.

Market impact

Despite 'winning', payers/logistics would limit the practical impact of MAPLE, leading to modest early-line use.

Profitability concerns

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

Cytokinetics Business Overview & Revenue Model

Company Description

Cytokinetics, Incorporated, a late-stage biopharmaceutical company, focuses on discovering, developing, and commercializing muscle activators and inhibitors as potential treatments for debilitating diseases. The company develops small molecule drug candidates primarily engineered to impact muscle function and contractility. Its drug candidates include omecamtiv mecarbil, a novel cardiac myosin activator that is in Phase III clinical trial in patients with heart failure; and reldesemtiv, a skeletal muscle troponin activator, which is in Phase III clinical trial to treat amyotrophic lateral sclerosis and spinal muscular atrophy. The company also develops CK-136, a novel cardiac troponin activator that is in Phase I clinical trial; aficamten, a novel cardiac myosin inhibitor, which is in Phase III clinical trial for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy; and CK-3772271, a small molecule cardiac myosin inhibitor that is in Phase I clinical trial. Cytokinetics, Incorporated has a strategic alliance with Astellas Pharma Inc. The company was incorporated in 1997 and is headquartered in South San Francisco, California.

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 reveals high leverage and negative equity, posing solvency risks. Cash flows are negative, indicating operational inefficiencies and reliance on external financing. Overall, the company needs strategic adjustments to improve financial health.

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	85.74M	18.47M	7.53M	94.59M	70.43M	55.83M
Gross Profit	-194.63M	-320.93M	-322.59M	-146.22M	-89.51M	-41.12M
EBITDA	-504.83M	-493.48M	-456.68M	-329.40M	-176.34M	-86.78M
Net Income	-606.31M	-589.53M	-526.24M	-388.95M	-215.31M	-127.29M
Balance Sheet
Total Assets	1.23B	1.40B	824.32M	1.01B	841.32M	533.80M
Cash, Cash Equivalents and Short-Term Investments	858.13M	1.08B	614.82M	782.58M	471.64M	464.06M
Total Debt	858.06M	788.68M	755.77M	749.34M	269.93M	138.94M
Total Liabilities	1.59B	1.54B	1.21B	1.12B	597.46M	420.42M
Stockholders Equity	-368.72M	-135.37M	-386.32M	-107.90M	243.86M	113.38M
Cash Flow
Free Cash Flow	-440.48M	-399.80M	-415.75M	-310.85M	-191.39M	-2.11M
Operating Cash Flow	-426.92M	-395.89M	-414.33M	-299.52M	-142.52M	8.94M
Investing Cash Flow	224.65M	-553.10M	239.25M	-262.13M	-147.78M	-196.51M
Financing Cash Flow	89.10M	930.61M	221.32M	516.17M	319.98M	234.12M

Cytokinetics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 35.33 is below the 20-day moving average (MA) of 36.76, below the 50-day MA of 36.18, and below the 200-day MA of 41.27, indicating a bearish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 20.10 is Neutral, 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	$9.11B	―	-36.38%	―	―	34.29%
AXSM	58 Neutral	$6.05B	―	-280.68%	―	69.83%	22.16%
ZLAB	54 Neutral	$3.67B	―	-28.39%	―	32.56%	33.33%
IONS	52 Neutral	$6.80B	―	-59.83%	―	16.04%	30.61%
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%
PCVX	50 Neutral	$4.00B	―	-21.65%	―	―	11.84%
CYTK	47 Neutral	$4.23B	―	435.49%	―	2635.74%	4.66%

Cytokinetics Corporate Events

Cytokinetics Appoints James M. Daly to Board

On August 19, 2025, Cytokinetics appointed James M. Daly to its Board of Directors as a Class III member, with his term expiring in 2028. Mr. Daly, determined to be independent under corporate governance guidelines, will also serve on the Compliance Committee and participate in the company’s non-employee director compensation arrangements, including stock options and restricted stock units.