Korro Bio (KRRO) AI Stock Analysis

• Market Cap: $121.12M
• Dividend Yield: N/A
• Average Volume (3M): 101.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.15
• Revenue Growth: N/A
• EPS Growth: 85.19%
• Country: US
• Employees: 104
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -9.38
• Shares Outstanding: 9,388,902
• 10 Day Avg. Volume: 117,620
• 30 Day Avg. Volume: 101,348
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 98.23
• Price to Cash Flow (P/CF): -7.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $127.50
• Price Target Upside: 888.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Korro Bio scores low overall due to significant financial and technical challenges. High R&D costs are impacting profitability, and the technical indicators show a stock under pressure. The lack of profitability and external financing reliance are notable risks. However, strong cash reserves and low leverage provide some stability.

Positive Factors

Clinical Trials

The successful dosing completion of the first two healthy volunteer cohorts in the KRRO-110 trial indicates positive safety outcomes.

Market Position

Korro Bio's significant potential in RNA editing positions it as a leader in the field, enhancing investor confidence.

Negative Factors

Financial Performance

Korro Bio reported a fourth-quarter net loss of $21.2 million, which, despite beating estimates, highlights ongoing financial challenges.

Market Competition

The large market-cap difference between Korro Bio and competitors like BEAM suggests significant competitive pressure.

Korro Bio Business Overview & Revenue Model

Company Description

Korro Bio, Inc., a biopharmaceutical company, discovers, develops, and commercializes genetic medicines based on editing RNA for the treatment of rare and highly prevalent diseases. Korro Bio, Inc. is based in Cambridge, Massachusetts.

How the Company Makes Money

Korro Bio makes money primarily through the development and commercialization of its RNA editing therapies. The company generates revenue by partnering with pharmaceutical and biotechnology companies for licensing its technology, as well as through research collaborations. These partnerships often involve upfront payments, milestone payments based on development progress, and royalties on sales of any resulting therapies. Additionally, Korro Bio may receive funding from grants and research initiatives focused on advancing genetic medicine. The company's revenue streams are significantly influenced by its ability to advance its therapies through clinical development and regulatory approval, which in turn attract investment and partnering opportunities.

Korro Bio Financial Statement Overview

Summary

Korro Bio's financials reflect a typical early-stage biotech profile with high R&D costs leading to losses and reliance on external financing. While revenue has started to come in, the company needs to manage operational costs for profitability.

Income Statement

Korro Bio has seen significant challenges in generating revenue, with a recent turnaround from zero revenue to a small amount. However, the company continues to face substantial losses with a negative net profit margin. The gross profit margin is positive, but EBIT and EBITDA margins are deeply negative, indicating high operational costs that outweigh revenue.

Balance Sheet

The balance sheet presents a mixed picture. On one hand, the company has a strong equity position and cash reserves, with a low debt-to-equity ratio suggesting limited leverage. However, the negative stockholders' equity in earlier years poses a concern about financial stability, though recent improvements are visible.

Cash Flow

Cash flow analysis indicates that the company is struggling with negative operating and free cash flows, which is common for biotech firms focusing on R&D. There is, however, a significant inflow from financing activities, suggesting reliance on external funding to support operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.27M	0.00	0.00	14.07M	36.98M
	Gross Profit
2.27M	-3.63M	-2.51M	10.23M	35.40M
	EBIT
-91.91M	-84.53M	-59.00M	-35.49M	-27.55M
	EBITDA
-91.91M	-80.90M	-56.49M	-33.90M	-24.90M
	Net Income Common Stockholders
-83.58M	-81.17M	-58.03M	-21.96M	-26.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
126.09M	166.15M	55.25M	118.53M	220.34M
	Total Assets
226.24M	221.66M	73.74M	127.58M	264.72M
	Total Debt
44.77M	33.21M	3.13M	45.60M	45.99M
	Net Debt
-10.88M	-132.94M	-33.20M	-37.89M	-174.35M
	Total Liabilities
65.83M	51.75M	172.77M	169.78M	72.23M
	Stockholders Equity
160.41M	169.91M	-99.03M	-42.21M	192.49M
Cash Flow		Free Cash Flow
-77.98M	-75.12M	-58.86M	-36.54M	-51.86M
	Operating Cash Flow
-60.07M	-67.28M	-53.65M	-32.09M	-45.19M
	Investing Cash Flow
-123.35M	11.16M	11.06M	-39.50M	10.40M
	Financing Cash Flow
69.36M	187.76M	18.00K	115.94M	56.69M

Korro Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRRO, the sentiment is Negative. The current price of 12.9 is below the 20-day moving average (MA) of 18.18, below the 50-day MA of 23.89, and below the 200-day MA of 39.96, indicating a bearish trend. The MACD of -2.78 indicates Positive momentum. The RSI at 27.75 is Positive, neither overbought nor oversold. The STOCH value of 12.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRRO.

Korro Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RGLS	53 Neutral	$113.94M	―	-95.00%	―	―	44.85%
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%
SLN	47 Neutral	$102.19M	―	-99.23%	―	-40.10%	-16.60%
KRRO	46 Neutral	$121.12M	―	-50.61%	―	―	85.19%
ADCT	41 Neutral	$121.00M	―	123.38%	―	1.84%	43.40%
KLRS	41 Neutral	$122.35M	―	-45.37%	―	―	72.12%
FDMT	27 Underperform	$119.92M	―	-25.95%	―	―	―

Korro Bio Corporate Events

Korro Bio CFO Returns from Medical Leave

Korro Bio, Inc. announced that Vineet Agarwal, the Chief Financial Officer, has returned from a temporary medical leave of absence and resumed his duties effective March 27, 2025. The Board of Directors has reappointed him as the principal financial officer. Additionally, Oliver Dolan has been appointed as the principal accounting officer, and he received a stock option award as part of his new role.

Korro Bio Appoints Interim CFO Amid Medical Leave

Effective February 11, 2025, Korro Bio, Inc. announced that Vineet Agarwal, the company’s Chief Financial Officer, will be taking a temporary medical leave of absence. In his absence, the Board of Directors has appointed Dr. Ram Aiyar, the President and CEO, as interim principal financial officer, and Mr. Oliver Dolan, Senior Vice President of Finance, as interim principal accounting officer. This reshuffling of responsibilities is a strategic move to ensure continuity in leadership and maintain operational stability during Agarwal’s absence.