Krystal Biotech (KRYS) AI Stock Analysis

• Market Cap: $7.22B
• Dividend Yield: N/A
• Average Volume (3M): 279.14K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.75
• Revenue Growth: 54.51%
• EPS Growth: 275.94%
• Country: US
• Employees: 275
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 2.66
• Shares Outstanding: 28,997,519
• 10 Day Avg. Volume: 236,460
• 30 Day Avg. Volume: 279,142
• PEG Ratio: 0.07
• Price to Book (P/B): 4.73
• Price to Sales (P/S): 15.42
• P/FCF Ratio: 37.58
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 12.18
• Enterprise Value/Gross Profit: 12.97
• Enterprise Value/Ebitda: 26.55
• 1Y Price Target: $279.25
• Price Target Upside: 12.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $282.00 ▲(13.29% Upside)

The score is driven primarily by strong financial quality (high margins, minimal leverage) and favorable technical trend (price above major moving averages with positive MACD). Earnings updates and recent corporate milestones add support via strong VYJUVEK execution and encouraging pipeline progress, while a premium valuation (P/E ~36.95) and recent free-cash-flow growth decline temper the upside.

Positive Factors

High Profitability

Sustained, very high margins indicate durable pricing power and efficient cost structure typical for approved rare-disease gene therapies. Strong gross and net margins support continued R&D and commercial investment, improve cash generation potential, and provide buffer versus commercialization scaling risks.

Strong Balance Sheet & Cash

A large cash position combined with minimal leverage materially reduces financing risk and funds ongoing commercial scale-up and multiple registrational programs. This provides durable optionality to invest in international launches, platform trials, and manufacturing without near-term capital raises.

Regulatory Platform Designation

Platform designation can materially streamline development and regulatory interactions across multiple programs, accelerating timelines and lowering marginal regulatory burden. That structural regulatory benefit can reduce time and cost to market for follow-on gene therapies, improving program economics.

Negative Factors

Free Cash Flow Decline

A sustained decline in free cash flow growth weakens internal funding capacity for pipeline and commercialization. Even with strong operating conversion ratios, negative FCF trends can force slower program pacing or future financings, reducing financial flexibility during critical multi-program development.

International Margin Risk

Manufacturing processes driving very high U.S. margins are not yet approved internationally, creating a structural risk as revenue mix shifts abroad. Lower margins on international sales could erode consolidated profitability and cash generation as global launches scale over months to years.

Long Path to Full Penetration

Achieving high penetration in a rare-disease market requires sustained prescriber adoption, reimbursement expansion, and patient identification. The multi-year adoption curve makes revenue ramp sensitive to execution, and delays in penetration slow durable cash flow and return on commercialization investments.

Krystal Biotech Business Overview & Revenue Model

Company Description

Krystal Biotech, Inc., a clinical stage biotechnology company, engages in the field of redosable gene therapy to treat serious rare diseases in the United States. Its lead product candidate is beremagene geperpavec (B-VEC), which is in Phase III clinical study to treat dystrophic epidermolysis bullosa. The company is also involved in developing KB105 that is in Phase I/II clinical study for treating patients with deficient autosomal recessive congenital ichthyosis; KB301, which is in Phase I/II clinical stage for treating wrinkles and other presentations of aged or damaged skin; KB407 that is in preclinical stage for cystic fibrosis; and KB104, which is in preclinical stage for netherton syndrome. Its discovery stage product candidates include KB5xx for treating chronic skin diseases, KB3xx to treat aesthetic skin conditions, and KB3xx product. Krystal Biotech, Inc. was founded in 2015 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Krystal Biotech generates revenue primarily through the commercialization of its gene therapy products. This includes product sales from approved therapies, which can be substantial given the high demand for effective treatments in rare diseases. Additionally, the company may enter into strategic partnerships with pharmaceutical companies or research institutions to develop and market its products, which can provide upfront payments, milestone payments, and royalties based on future sales. The ongoing development of new therapies and potential expansions into additional markets also contribute to their revenue streams.

Krystal Biotech Financial Statement Overview

Summary

Krystal Biotech demonstrates strong financial health with impressive revenue growth and profitability metrics. The balance sheet is robust with minimal leverage, enhancing financial stability. While cash flow metrics show some decline in free cash flow growth, the company maintains strong cash generation capabilities. Overall, the financial statements reflect a company on a positive growth trajectory with solid operational and financial management.

Income Statement

Krystal Biotech has shown impressive revenue growth with a 3.89% increase in TTM, following a 4.73% growth in the previous year. The company maintains strong profitability with a TTM gross profit margin of 68.78% and a net profit margin of 53.30%. The EBIT and EBITDA margins are also robust at 33.32% and 45.67%, respectively, indicating efficient operational management. However, the company has transitioned from negative EBIT in earlier years, reflecting a significant turnaround in profitability.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio of 0.0015 in TTM, indicating minimal leverage and financial risk. The return on equity (ROE) has improved significantly to 19.36% in TTM, showcasing effective use of equity to generate profits. The equity ratio stands at a healthy level, reflecting a solid capital structure with a high proportion of equity financing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 10.71% in TTM, which could be a concern. However, the operating cash flow to net income ratio is strong at 1.93, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.94, suggesting that the company is effectively converting its earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	373.16M	290.51M	50.70M	0.00	0.00	0.00
Gross Profit	350.36M	270.45M	47.60M	0.00	0.00	-1.85M
EBITDA	171.17M	109.91M	-91.32M	-116.81M	-66.23M	-30.32M
Net Income	198.91M	89.16M	10.93M	-139.97M	-69.57M	-32.17M
Balance Sheet
Total Assets	1.24B	1.06B	818.36M	558.45M	626.29M	310.84M
Cash, Cash Equivalents and Short-Term Investments	731.07M	597.52M	532.18M	379.17M	438.10M	271.26M
Total Debt	9.51M	7.26M	8.09M	8.93M	8.02M	11.55M
Total Liabilities	102.22M	109.46M	39.71M	36.22M	32.72M	18.76M
Stockholders Equity	1.14B	946.38M	778.64M	522.23M	593.58M	292.08M
Cash Flow
Free Cash Flow	165.59M	119.18M	-100.60M	-153.55M	-116.27M	-40.93M
Operating Cash Flow	176.20M	123.42M	-88.80M	-100.57M	-47.94M	-26.08M
Investing Cash Flow	-153.36M	-163.44M	82.64M	-114.08M	-226.77M	-11.18M
Financing Cash Flow	-4.53M	27.01M	202.75M	35.35M	347.69M	118.02M

Krystal Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 248.91
• 50DMA: Positive
• 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 KRYS, the sentiment is Positive. The current price of 248.91 is above the 20-day moving average (MA) of 245.67, above the 50-day MA of 223.22, and above the 200-day MA of 171.60, indicating a bullish trend. The MACD of 7.21 indicates Positive momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 41.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KRYS.

Krystal Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	79 Outperform	$7.22B	37.33	19.66%	―	54.51%	275.94%
ALKS	72 Outperform	$4.89B	14.64	22.35%	―	1.08%	3.40%
PTCT	68 Neutral	$6.17B	8.98	―	―	97.54%	―
MLTX	55 Neutral	$1.02B	-4.31	-54.17%	―	―	-157.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CRSP	40 Underperform	$5.37B	―	-25.33%	―	-81.10%	-99.21%
ACLX	40 Underperform	$3.72B	-16.41	-47.18%	―	-76.96%	-425.41%

Krystal Biotech Corporate Events

Krystal Biotech advances KB407 with positive CF trial data

On January 8, 2026, Krystal Biotech reported positive interim results from the highest-dose cohort of its Phase 1 CORAL-1 study of KB407 in cystic fibrosis patients, confirming successful delivery and expression of wild-type CFTR protein in conducting airway cells via inhalation across both modulator-eligible and modulator-ineligible patients, with 29.4% to 42.1% of conducting airway cells transduced in those with successful bronchoscopies and all suitable biopsies showing CFTR or viral marker expression. KB407 was generally well tolerated at the highest dose, with adverse events mostly mild to moderate and one procedure-related serious adverse event resolving within five days, and, on the back of these molecular and safety findings, Krystal has submitted the design of its repeat-dosing, registrational-intent CORAL-3 study to the FDA, targeting alignment on the protocol in early 2026 and enrollment beginning in the first half of 2026, a step that could significantly advance its competitive position in CF gene therapy and offer a potential disease-modifying option for patients who cannot benefit from current modulators.

The most recent analyst rating on (KRYS) stock is a Buy with a $309.00 price target. To see the full list of analyst forecasts on Krystal Biotech stock, see the KRYS Stock Forecast page.

Krystal Biotech announces resignation of longtime board member

On December 22, 2025, Krystal Biotech announced that board member Kirti Ganorkar had submitted his resignation from the company’s Board of Directors, effective December 31, 2025. Ganorkar, who has served on the board since Krystal’s public listing in September 2017, is stepping down due to time constraints following his recent promotion to Managing Director at Sun Pharma, with the company emphasizing that his departure is not related to any disagreement over its operations, policies, or practices and publicly thanking him for his years of service and contributions.

The most recent analyst rating on (KRYS) stock is a Buy with a $278.00 price target. To see the full list of analyst forecasts on Krystal Biotech stock, see the KRYS Stock Forecast page.

Krystal Biotech Launches VYJUVEK® in Japan

On October 22, 2025, Krystal Biotech‘s subsidiary in Japan launched VYJUVEK® for treating dystrophic epidermolysis bullosa, following its inclusion in Japan’s National Health Insurance Drug Price List. This marks a significant step in Krystal Biotech’s expansion into the Japanese market, potentially enhancing its industry positioning and offering new treatment options for patients.

The most recent analyst rating on (KRYS) stock is a Buy with a $255.00 price target. To see the full list of analyst forecasts on Krystal Biotech stock, see the KRYS Stock Forecast page.