Keros Therapeutics (KROS) AI Stock Analysis

• Market Cap: $634.41M
• Dividend Yield: N/A
• Average Volume (3M): 450.49K
• Price to Earnings (P/E): 49.9
• Beta (1Y): 0.84
• Revenue Growth: 85820.30%
• EPS Growth: N/A
• Country: US
• Employees: 163
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.76
• Shares Outstanding: 40,615,414
• 10 Day Avg. Volume: 324,383
• 30 Day Avg. Volume: 450,487
• 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: -0.21
• Enterprise Value/Revenue: -0.56
• Enterprise Value/Gross Profit: -0.56
• Enterprise Value/Ebitda: -5.19
• 1Y Price Target: $22.20
• Price Target Upside: 42.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $17.50 ▲(12.04% Upside)

Keros Therapeutics scores well due to strong financial performance and positive corporate events, which indicate potential for future growth. The technical analysis supports a bullish outlook, although the high P/E ratio suggests the stock may be overvalued. Overall, the company's strategic advancements in clinical trials and regulatory milestones are significant positives.

Positive Factors

FDA Orphan Drug Designation

The FDA Orphan Drug designation provides Keros with benefits such as tax credits and market exclusivity, enhancing its competitive position and potential profitability in the rare disease market.

Strong Balance Sheet

A strong balance sheet with low leverage ensures financial stability, providing Keros with the flexibility to invest in R&D and withstand market fluctuations.

Positive Cash Flow Trend

Improved cash generation enhances Keros' ability to fund operations and strategic initiatives, supporting long-term growth and sustainability.

Negative Factors

Leadership Changes

Frequent leadership changes can lead to strategic uncertainty and disrupt ongoing projects, potentially impacting long-term strategic execution.

Historical Profitability Issues

Past profitability issues highlight potential risks in maintaining consistent financial performance, which could affect long-term investor confidence.

CMO Resignation

The resignation of a key executive like the CMO can disrupt clinical development processes and slow down progress in critical R&D areas.

Keros Therapeutics Business Overview & Revenue Model

Company Description

Keros Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of novel treatments for patients suffering from hematological and musculoskeletal disorders with high unmet medical need. The company's lead protein therapeutic product candidate is KER-050, which is being developed for the treatment of low blood cell counts, or cytopenias, including anemia and thrombocytopenia in patients with myelodysplastic syndromes, and in patients with myelofibrosis. It is also developing small molecule product candidate KER-047 that is being developed for the treatment of anemia, and is currently in Phase 1 clinical trial; and KER-012, which is in Phase 1 clinical trial to treat disorders associated with bone loss, such as osteoporosis and osteogenesis imperfecta, and for the treatment of pulmonary arterial hypertension. The company was incorporated in 2015 and is headquartered in Lexington, Massachusetts.

How the Company Makes Money

Keros Therapeutics generates revenue primarily through the development and commercialization of its therapeutic products. The company may engage in partnerships and collaborations with larger pharmaceutical firms, which can provide funding and resources for research and development in exchange for shared profits or licensing agreements. Additionally, Keros Therapeutics may receive milestone payments as it progresses through various stages of clinical trials and regulatory approvals. If successful, the company would earn revenue from product sales once its therapies are approved and brought to market.

Keros Therapeutics Financial Statement Overview

Summary

Keros Therapeutics shows significant revenue growth but remains unprofitable with negative EBIT and net profit margins. The balance sheet is strong with a high equity ratio and low debt, but negative operating cash flow indicates reliance on external financing, typical for early-stage biotech firms.

Income Statement

Keros Therapeutics has experienced significant revenue growth, with an increase from $151K in 2023 to $3.55M in 2024. However, the company remains unprofitable with a negative EBIT margin of -5937% and a net profit margin of -5277% in 2024. This highlights ongoing challenges in managing operating expenses relative to revenues, typical of early-stage biotech firms.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of 92.8% and a low debt-to-equity ratio of 0.03. However, the company consistently incurs losses, which could affect its ability to sustain this financial structure long-term without additional financing.

Cash Flow

Operating cash flow is negative, indicating the company is not generating sufficient cash from its operations. The free cash flow to net income ratio is positive but reflects heavy reliance on external financing, as seen in the substantial financing cash flow in 2024. This is a common situation for biotech companies investing heavily in R&D.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	232.84M	3.55M	151.00K	0.00	20.10M	0.00
Gross Profit	231.83M	3.55M	-664.00K	-1.61M	19.20M	-605.00K
EBITDA	25.08M	-185.82M	-152.18M	-103.06M	-56.37M	-44.92M
Net Income	18.77M	-187.35M	-152.99M	-104.68M	-58.74M	-45.36M
Balance Sheet
Total Assets	757.16M	615.89M	370.02M	306.78M	255.25M	269.44M
Cash, Cash Equivalents and Short-Term Investments	690.22M	559.93M	331.15M	279.05M	230.04M	265.88M
Total Debt	17.95M	18.86M	14.44M	13.27M	1.09M	899.00K
Total Liabilities	50.43M	44.33M	37.81M	29.36M	12.08M	7.72M
Stockholders Equity	706.73M	571.55M	332.21M	277.42M	243.17M	261.72M
Cash Flow
Free Cash Flow	53.08M	-162.80M	-126.97M	-71.30M	-63.17M	-37.19M
Operating Cash Flow	55.04M	-160.87M	-124.51M	-70.06M	-62.15M	-36.89M
Investing Cash Flow	-1.96M	-1.93M	-2.46M	-1.24M	-1.02M	-294.00K
Financing Cash Flow	231.51M	391.82M	178.96M	120.31M	28.55M	296.04M

Keros Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KROS, the sentiment is Positive. The current price of 15.62 is above the 20-day moving average (MA) of 15.42, above the 50-day MA of 14.71, and below the 200-day MA of 16.00, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KROS.

Keros Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KROS	72 Outperform	$634.41M	49.86	3.33%	―	85820.30%	―
TBPH	66 Neutral	707.58M	60.07	5.80%	―	24.49%	0.00%
MGTX	41 Neutral	589.68M	-3.60	-5321.11%	―	366.84%	-35.87%
TYRA	41 Neutral	647.56M	-6.80	0.00%	―	0.00%	-5.63%
MNMD	40 Neutral	728.16M	-6.54	0.00%	―	0.00%	39.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Keros Therapeutics Corporate Events

Keros Therapeutics Presents Promising Phase 1 Trial Data

On September 8, 2025, Keros Therapeutics announced the presentation of additional clinical data from its Phase 1 trial of KER-065 at the American Society of Bone and Mineral Research 2025 Annual Meeting. The trial, conducted in healthy male volunteers, showed that KER-065 was generally well-tolerated and demonstrated promising results in increasing bone mineral density, suggesting potential benefits for patients with Duchenne muscular dystrophy and bone disorders. The data indicated that KER-065 could balance osteoblast and osteoclast activity, with improvements in bone biomarkers and sustained increases in bone mineral density observed through Day 141.

Keros Therapeutics CEO to Speak at Healthcare Conferences

On August 28, 2025, Keros Therapeutics announced that its President and CEO, Jasbir Seehra, will participate in two upcoming healthcare conferences. These events include a fireside chat at the Wells Fargo Healthcare Conference on September 4, 2025, and a corporate presentation at the H.C. Wainwright Global Investment Conference on September 9, 2025. The participation in these conferences highlights Keros’ ongoing efforts to engage with the investment community and stakeholders, potentially impacting its industry positioning and visibility.

Keros Therapeutics Gains FDA Orphan Drug Designation

On August 20, 2025, Keros Therapeutics announced that the U.S. FDA granted Orphan Drug designation to KER-065 for treating Duchenne muscular dystrophy (DMD). This designation highlights the unmet medical need for DMD patients and marks a significant milestone for Keros as they advance KER-065 into a Phase 2 clinical trial. The Orphan Drug status offers potential benefits like tax credits and market exclusivity, which could enhance Keros’ market positioning and operational strategy in developing treatments for rare diseases.

Keros Therapeutics Announces Strategic Realignment and Leadership Changes

On August 6, 2025, Keros Therapeutics announced a strategic realignment to focus on the development of its key clinical program, KER-065, while discontinuing the development of cibotercept. This decision follows the analysis of safety and efficacy data from the TROPOS Phase 2 clinical trial in pulmonary arterial hypertension. The company also announced several leadership changes, including the promotion of Lorena Lerner to Chief Scientific Officer and the appointment of Jean-Jacques Bienaimé as Chair of the Board. These changes aim to streamline operations and support Keros’ focus on advancing KER-065, which has shown promising results in a Phase 1 clinical trial and is expected to enter Phase 2 trials for Duchenne muscular dystrophy in early 2026.

Keros Therapeutics Begins Phase 3 Trial for Elritercept

On July 17, 2025, Keros Therapeutics announced the dosing of the first patient in the Phase 3 RENEW clinical trial of elritercept for adults with transfusion-dependent anemia and myelodysplastic syndromes. This milestone activates a $10 million payment from Takeda Pharmaceuticals under their global license agreement, highlighting Keros’ progress in developing elritercept as a potentially differentiated therapy for MDS patients. The trial aims to evaluate elritercept’s efficacy in reducing red blood cell transfusions, with Keros eligible for further milestone payments and royalties, potentially exceeding $1.1 billion.

Keros Therapeutics Announces CMO Resignation

On July 9, 2025, Keros Therapeutics announced the resignation of their Chief Medical Officer, Dr. Yung H. Chyung, effective August 1, 2025. Dr. Chyung’s departure is voluntary and not due to any disagreement with the company. Keros has begun the search for a new Chief Medical Officer, acknowledging Dr. Chyung’s contributions to the company.

Keros Therapeutics Concludes Strategic Alternatives Review

On June 4, 2025, Keros Therapeutics held its Annual Meeting of Stockholders, where stockholders voted on three proposals, including the election of directors, ratification of Deloitte & Touche LLP as the independent auditor, and approval of executive compensation. Subsequently, on June 9, 2025, Keros announced the conclusion of its strategic alternatives review, deciding to return $375 million in excess capital to stockholders. This decision reflects a thorough review of capital requirements and stockholder feedback, while the company continues to focus on developing KER-065 for neuromuscular diseases.