Keros Therapeutics (KROS) AI Stock Analysis

• Market Cap: $586.78M
• Dividend Yield: N/A
• Average Volume (3M): 540.61K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.75
• Revenue Growth: 37798.31%
• EPS Growth: N/A
• Country: US
• Employees: 163
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.18
• Shares Outstanding: 30,466,068
• 10 Day Avg. Volume: 414,106
• 30 Day Avg. Volume: 540,607
• PEG Ratio: 0.82
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 166.94
• P/FCF Ratio: -3.64
• Enterprise Value/Market Cap: -0.06
• Enterprise Value/Revenue: -0.14
• Enterprise Value/Gross Profit: -0.14
• Enterprise Value/Ebitda: -0.41
• 1Y Price Target: $21.20
• Price Target Upside: 12.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -3.55
• Revenue Forecast (FY): $15.76M

• Rating: 62 Neutral
• Price Target: $19.50 ▲(3.39% Upside)

The score is driven primarily by improving financial performance and a strong, low-leverage balance sheet, supported by reasonable valuation and positive corporate actions (capital return and strategy updates). These positives are tempered by weaker near-term technical momentum (negative MACD, RSI below 50, and price below the 20-day average).

Positive Factors

Strategic pipeline expansion (rinvatercept)

Broadening the pipeline toward neuromuscular indications like Duchenne via rinvatercept diversifies the company’s addressable market and reduces single-program concentration risk. If clinical programs succeed, this strategic shift builds durable competitive positioning and potential multiple revenue streams.

Low leverage balance sheet

Extremely low leverage provides long-term financial flexibility to fund R&D, pursue strategic partnerships, or weather clinical setbacks without excessive refinancing risk. A strong capital structure supports sustained development cadence and disciplined capital allocation over multiple clinical cycles.

Improved cash generation

Marked improvement in free cash flow and strong cash conversion enhances the company’s ability to self-fund development and lowers dilution risk from frequent equity raises. Sustained cash generation supports longer-term program advancement and shareholder-return initiatives like buybacks or tender offers.

Negative Factors

No commercial products; pipeline-dependent

Being clinical-stage means revenues and long-term value hinge on successful trials and approvals, making cash flow and growth binary and timeline-driven. Dependence on partnerships and milestone payments increases execution risk and exposes the firm to long development lead times and regulatory uncertainty.

Historical cash flow and revenue volatility

Past volatility in cash flows and intermittent negative cash flows create uncertainty in budgeting for multi-year clinical programs and may force episodic financing. This structural variability raises the probability of dilution or reprioritization of programs if future cash generation softens.

Modest capital returns on equity

A low ROE reflects limited current ability to convert invested capital into shareholder returns, typical of pre-commercial biotechs but nonetheless structural. Persistently modest ROE means value creation is heavily dependent on high-impact clinical successes rather than operational efficiency.

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 eventual commercialization of its therapeutic candidates. The company does not currently have products on the market; however, it aims to monetize its pipeline through partnerships, collaborations, and licensing agreements with larger pharmaceutical companies. Additionally, Keros may receive milestone payments and royalties based on the performance of its products once they are commercialized. The company also funds its operations through equity financing and grants, which support its research and development activities.

Keros Therapeutics Financial Statement Overview

Summary

Keros Therapeutics shows a positive financial trajectory with improved profitability and strong balance sheet metrics. The company has effectively managed costs and leverage, resulting in better margins and financial stability. However, historical volatility in revenue and cash flows suggests the need for cautious optimism moving forward.

Income Statement

Keros Therapeutics has shown a significant improvement in its income statement metrics over the TTM period. The gross profit margin is exceptionally high at 99.56%, indicating strong cost management. The net profit margin has turned positive at 8.06%, a significant improvement from previous negative margins, reflecting better profitability. Revenue growth rate of 5.96% in the TTM suggests a positive trajectory, although the company has experienced volatility in revenue growth in prior years.

Balance Sheet

The balance sheet of Keros Therapeutics is strong, with a low debt-to-equity ratio of 0.025, indicating minimal leverage and financial risk. The return on equity (ROE) is modest at 2.96%, showing a positive return to shareholders. The equity ratio is healthy, reflecting a solid capital structure with a high proportion of equity financing.

Cash Flow

The cash flow statement shows a robust free cash flow growth rate of 64.06% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 1.59, suggesting strong cash conversion. However, historical cash flow volatility and negative cash flows in prior years highlight potential risks in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	246.72M	3.55M	151.00K	0.00	20.10M	0.00
Gross Profit	245.62M	3.55M	151.00K	0.00	20.10M	-605.00K
EBITDA	82.39M	-185.82M	-152.18M	-104.00M	-56.35M	-44.92M
Net Income	64.45M	-187.35M	-152.99M	-104.68M	-58.74M	-45.36M
Balance Sheet
Total Assets	742.78M	615.89M	370.02M	306.78M	255.25M	269.44M
Cash, Cash Equivalents and Short-Term Investments	693.47M	559.93M	331.15M	279.05M	230.04M	265.88M
Total Debt	17.43M	18.86M	14.44M	13.27M	1.09M	899.00K
Total Liabilities	39.20M	44.33M	37.81M	29.36M	12.08M	7.72M
Stockholders Equity	703.58M	571.55M	332.21M	277.42M	243.17M	261.72M
Cash Flow
Free Cash Flow	87.08M	-162.80M	-126.97M	-71.30M	-63.17M	-37.19M
Operating Cash Flow	88.79M	-160.87M	-124.51M	-70.06M	-62.15M	-36.89M
Investing Cash Flow	-1.71M	-1.93M	-2.46M	-1.24M	-1.02M	-294.00K
Financing Cash Flow	75.70M	391.82M	178.96M	120.31M	28.55M	296.04M

Keros Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.86
• 50DMA: Negative
• 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 KROS, the sentiment is Neutral. The current price of 18.86 is below the 20-day moving average (MA) of 19.67, below the 50-day MA of 18.96, and above the 200-day MA of 15.51, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 71.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KROS.

Keros Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KROS	62 Neutral	$586.78M	12.22	10.43%	―	37798.31%	―
KALV	57 Neutral	$756.17M	-3.65	―	―	―	-13.14%
GYRE	56 Neutral	$699.86M	201.57	8.06%	―	―	―
BCAX	56 Neutral	$914.31M	―	-26.64%	―	―	-103.95%
NRIX	54 Neutral	$1.91B	―	-65.35%	―	48.32%	-1.91%
PVLA	52 Neutral	$1.23B	-7.91	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Keros Therapeutics Corporate Events

Keros Therapeutics Highlights Rinvatercept Strategy in Updated Presentation

On January 9, 2026, Keros Therapeutics updated its corporate presentation for investors and analysts, outlining the company’s strategic focus on TGF-β superfamily modulation and highlighting its lead investigational asset, rinvatercept (KER-065), as a modified activin receptor type II ligand trap with potential to improve muscle regeneration, reduce fibrosis and inflammation, decrease fat accumulation and enhance bone health across multiple rare neuromuscular diseases, including Duchenne muscular dystrophy. The presentation underscored the high unmet need in DMD despite existing gene therapies, exon-skipping drugs, glucocorticoids and HDAC inhibitors, and positioned rinvatercept—supported by robust preclinical data showing gains in muscle mass and strength, mitigation of glucocorticoid side effects and improved dystrophic pathology—as a candidate that could broaden Keros’s footprint in neuromuscular and related indications and potentially strengthen its competitive standing in the rare disease biopharma space if its clinical program succeeds.

The most recent analyst rating on (KROS) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Keros Therapeutics stock, see the KROS Stock Forecast page.

Keros Therapeutics Announces $375M Capital Return Program

On October 15, 2025, Keros Therapeutics announced a $375 million capital return program, including repurchasing shares from ADAR1 Capital Management and Pontifax Venture Capital for approximately $181 million. This move, alongside a planned tender offer for additional shares, reflects Keros’ confidence in its financial position and clinical strategy, particularly for its KER-065 program. The resignations of board members Tomer Kariv and Ran Nussbaum were also announced, with Jean-Jacques Bienaimé appointed as the new Chair of the Nominating and Corporate Governance Committee. The company plans to distribute part of its Takeda licensing revenue to shareholders, aiming to enhance long-term stockholder value.

The most recent analyst rating on (KROS) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Keros Therapeutics stock, see the KROS Stock Forecast page.