Keros Therapeutics (KROS) AI Stock Analysis

• Market Cap: $605.58M
• Dividend Yield: N/A
• Average Volume (3M): 482.26K
• Price to Earnings (P/E): 49.5
• Beta (1Y): 0.83
• Revenue Growth: 85820.30%
• EPS Growth: N/A
• Country: US
• Employees: 163
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -0.76
• Shares Outstanding: 40,615,414
• 10 Day Avg. Volume: 545,673
• 30 Day Avg. Volume: 482,256
• 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: $23.29
• Price Target Upside: 50.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 66 Neutral
• Price Target: $15.50 ▼(-0.13% Downside)

Keros Therapeutics' overall score reflects strong financial performance and positive corporate events, offset by valuation concerns and technical indicators suggesting potential overbought conditions. The strategic realignment and workforce reduction add uncertainty, impacting the overall score.

Positive Factors

Clinical Data

The preclinical and early clinical data show promising activity across multiple DMD-relevant pathways including muscle regeneration, bone health, fibrosis reversal, and fat mass reduction.

Clinical Development

Keros has officially narrowed its focus to a single internal clinical program: KER-065 for Duchenne muscular dystrophy (DMD).

Financial Position

With $690M in cash and a planned $375M return of capital, Keros retains significant operational runway through 1H28.

Negative Factors

Clinical Uncertainty

A dose-dependent hemoglobin increase creates uncertainties in the safety profile.

Program Discontinuation

The discontinuation of cibotercept following an unfavorable safety profile in PAH removes a previous value driver.

Valuation Concerns

The addition of the program into valuation continues to appear premature as many details of the Ph2 study remain to be finalized.

Keros Therapeutics Business Overview & Revenue Model

Company Description

Keros Therapeutics, Inc. (KROS) is a biopharmaceutical company dedicated to the discovery, development, and commercialization of novel treatments for hematological and musculoskeletal disorders. The company's primary focus is on developing therapies that target the transforming growth factor-beta (TGF-β) family of proteins, which are implicated in various diseases. Keros Therapeutics' core products aim to treat conditions such as anemia, thrombocytopenia, and bone diseases by modulating these protein pathways to improve patient outcomes.

How the Company Makes Money

Keros Therapeutics generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company earns money by advancing its pipeline of therapeutic candidates through clinical trials and eventually bringing successful treatments to market, where they can be sold to healthcare providers and patients. Key revenue streams include potential product sales, milestone payments, and royalties from licensing agreements with larger pharmaceutical companies. Additionally, strategic partnerships and collaborations with other biotech and pharmaceutical firms may provide Keros with funding support and shared resources, contributing to its revenue generation and financial growth.

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: 15.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 15.52 is above the 20-day moving average (MA) of 14.41, above the 50-day MA of 14.13, and below the 200-day MA of 19.08, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 62.15 is Neutral, neither overbought nor oversold. The STOCH value of 62.21 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	66 Neutral	$605.58M	49.54	3.33%	―	85820.30%	―
TBPH	66 Neutral	$694.99M	59.00	6.23%	―	24.49%	―
SAGE	54 Neutral		―		―	-27.59%	34.00%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
MGTX	41 Neutral	$603.36M	―	-379.53%	―	366.84%	-35.87%
TYRA	41 Neutral	$673.68M	―	-31.21%	―	―	-5.63%
MNMD	40 Neutral	$760.12M	―	-59.11%	―	―	39.66%

Keros Therapeutics Corporate Events

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.

Keros Therapeutics CEO to Speak at Healthcare Conference

On June 6, 2025, Keros Therapeutics announced that its Chair and CEO, Jasbir Seehra, will participate in a fireside chat at the Goldman Sachs 46th Annual Global Healthcare Conference on June 9, 2025. This participation highlights Keros’ engagement with the healthcare investment community and may impact its visibility and industry positioning.

Keros Therapeutics Announces Major Workforce Reduction Plan

On May 28, 2025, Keros Therapeutics‘ Board of Directors approved a plan to reduce the company’s workforce by approximately 45%, aiming to align operations with strategic priorities and achieve cost savings. This reorganization, expected to be completed by the fourth quarter of 2025, follows the discontinuation of cibotercept development in pulmonary arterial hypertension due to safety concerns observed in the TROPOS trial. The company is evaluating strategic alternatives, including potential business transactions, to maximize shareholder value.