Korro Bio (KRRO) AI Stock Analysis

• Market Cap: $361.83M
• Dividend Yield: N/A
• Average Volume (3M): 222.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.17
• Revenue Growth: N/A
• EPS Growth: 61.73%
• Country: US
• Employees: 112
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -2.74
• Shares Outstanding: 9,390,903
• 10 Day Avg. Volume: 192,088
• 30 Day Avg. Volume: 222,259
• 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: 0.18
• Enterprise Value/Revenue: 10.28
• Enterprise Value/Gross Profit: 15.31
• Enterprise Value/Ebitda: -0.68
• 1Y Price Target: $107.33
• Price Target Upside: 181.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 45 Neutral
• Price Target: ―

Korro Bio's stock score reflects its current position as a developmental biotech firm. Financial performance is the most significant factor, showing the challenges of high R&D costs and reliance on external funding. The technical analysis suggests short-term downward pressure, while valuation is impacted by its negative earnings and lack of dividends. The company needs to focus on operational efficiency and revenue growth to improve its stock performance.

Positive Factors

Strong Cash Reserves

Strong cash reserves provide Korro Bio with the financial flexibility to continue investing in R&D and support its growth strategy without immediate liquidity concerns.

Positive Revenue Turnaround

The shift from zero to some revenue indicates initial market traction for Korro Bio's products, suggesting potential for future revenue growth as their RNA editing therapies gain acceptance.

Leadership Stability

The return of the CFO ensures continuity in financial leadership, which is crucial for strategic planning and maintaining investor confidence during critical growth phases.

Negative Factors

High R&D Costs

High R&D costs can strain financial resources, impacting profitability and necessitating ongoing external funding, which may dilute existing shareholders over time.

Negative Cash Flow

Negative cash flows highlight operational inefficiencies and reliance on external financing, which could limit Korro Bio's ability to sustain long-term growth without additional capital.

Substantial Losses

Ongoing substantial losses indicate that Korro Bio's current revenue is insufficient to cover its operational costs, posing a risk to financial sustainability if not addressed.

Korro Bio Business Overview & Revenue Model

Company Description

Korro Bio, Inc. is a biotechnology company focused on the development of RNA editing technologies to treat a wide array of genetic diseases. The company operates in the biopharmaceutical sector, leveraging its proprietary platform to create transformative therapies that can precisely edit RNA to correct mutations at the RNA level. Korro Bio's core products include its pipeline of RNA editing therapies aimed at addressing unmet medical needs across multiple therapeutic areas.

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 biotech profile with high R&D costs and reliance on external financing. The income statement shows a recent move from zero revenue to some revenue, but with substantial losses. The balance sheet is mixed, with strong cash reserves but past equity concerns. Cash flow is negative, highlighting operational struggles.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.28M	2.27M	0.00	0.00	14.07M	36.98M
Gross Profit	4.22M	2.27M	-3.63M	-2.51M	10.23M	35.40M
EBITDA	-95.21M	-88.34M	-80.90M	-56.49M	-33.90M	-24.90M
Net Income	-91.36M	-83.58M	-81.17M	-58.03M	-21.96M	-26.51M
Balance Sheet
Total Assets	180.43M	226.24M	221.66M	73.74M	127.58M	264.72M
Cash, Cash Equivalents and Short-Term Investments	96.36M	126.09M	166.15M	55.25M	118.53M	220.34M
Total Debt	44.63M	44.77M	33.21M	3.13M	45.60M	45.99M
Total Liabilities	65.32M	65.83M	51.75M	172.77M	169.78M	72.23M
Stockholders Equity	115.10M	160.41M	169.91M	-99.03M	-42.21M	192.49M
Cash Flow
Free Cash Flow	-73.86M	-77.98M	-75.12M	-58.86M	-36.54M	-51.86M
Operating Cash Flow	-67.27M	-60.07M	-67.28M	-53.65M	-32.09M	-45.19M
Investing Cash Flow	6.14M	-123.35M	11.16M	11.06M	-39.50M	10.40M
Financing Cash Flow	1.84M	69.36M	187.76M	18.00K	115.94M	56.69M

Korro Bio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRRO, the sentiment is Positive. The current price of 38.15 is above the 20-day moving average (MA) of 31.72, above the 50-day MA of 22.88, and above the 200-day MA of 23.55, indicating a bullish trend. The MACD of 4.13 indicates Negative momentum. The RSI at 70.90 is Negative, neither overbought nor oversold. The STOCH value of 78.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KRRO.

Korro Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADCT	54 Neutral	400.50M	-2.20	77.89%	―	15.73%	38.73%
RGLS	52 Neutral	520.01M	-8.96	-60.67%	―	―	44.85%
FDMT	52 Neutral	394.17M	-2.27	-31.51%	―	―	―
KRRO	45 Neutral	$361.83M	―	-58.34%	―	―	61.73%
SLN	44 Neutral	242.78M	-2.99	-33.81%	―	-40.10%	-16.60%
KLRS	28 Underperform	75.82M	-0.63	―	―	―	73.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.