Korro Bio (KRRO) AI Stock Analysis

• Market Cap: $263.74M
• Dividend Yield: N/A
• Average Volume (3M): 150.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.20
• Revenue Growth: N/A
• EPS Growth: 61.73%
• Country: US
• Employees: 112
• Sector: Healthcare
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): -2.74
• Shares Outstanding: 9,390,903
• 10 Day Avg. Volume: 187,380
• 30 Day Avg. Volume: 150,449
• 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: 0.24
• Enterprise Value/Revenue: 10.28
• Enterprise Value/Gross Profit: 15.31
• Enterprise Value/Ebitda: -0.68
• 1Y Price Target: $100.50
• Price Target Upside: 202.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• 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

Orphan drug designation

KRRO-110 has been granted orphan drug designation by the European Medicines Agency, which is a positive development for its potential treatment of Alpha-1 Antitrypsin Deficiency.

RNA editing potential

RNA editing holds significant potential based on preclinical data and Korro is one of the leaders in the field.

Safety profile

More than 80% of planned healthy volunteers have now been dosed across multiple single-ascending-dose cohorts, with no treatment-emergent serious adverse events or dose-limiting toxicities observed.

Negative Factors

Long-term dilution risk

Possible long-term dilution risk is a concern for Korro Bio, Inc.

Pipeline delays

Risks include delays in advancing pipeline candidates into and through clinical assessment and failure to generate favorable clinical data from ongoing programs.

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: 33.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 33.18 is above the 20-day moving average (MA) of 21.15, above the 50-day MA of 16.95, and above the 200-day MA of 24.57, indicating a bullish trend. The MACD of 3.19 indicates Negative momentum. The RSI at 84.04 is Negative, neither overbought nor oversold. The STOCH value of 90.55 is Negative, 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	$382.50M	―	123.38%	―	15.73%	38.73%
RGLS	52 Neutral		―		―	―	44.85%
FDMT	52 Neutral	$308.70M	―	-38.87%	―	―	―
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
SLN	49 Neutral	$247.03M	―	-99.23%	―	-40.10%	-16.60%
KRRO	45 Neutral	$263.74M	―	-58.34%	―	―	61.73%
KLRS	28 Underperform	$78.00M	―	-50.68%	―	―	73.18%

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.