Krystal Biotech (KRYS) AI Stock Analysis

• Market Cap: $7.80B
• Dividend Yield: N/A
• Average Volume (3M): 289.77K
• Price to Earnings (P/E): 39.8
• 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): 1.70
• Shares Outstanding: 29,232,190
• 10 Day Avg. Volume: 354,959
• 30 Day Avg. Volume: 289,766
• PEG Ratio: 0.27
• Price to Book (P/B): 5.85
• Price to Sales (P/S): 18.34
• P/FCF Ratio: 37.77
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 19.22
• Enterprise Value/Gross Profit: 20.75
• Enterprise Value/Ebitda: 44.56
• 1Y Price Target: $324.30
• Price Target Upside: 19.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 7.69
• Revenue Forecast (FY): $529.15M

• Rating: 81 Outperform
• Price Target: $319.00 ▲(17.06% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Score is driven primarily by strong financial performance (profitability and cash flow improvement with minimal leverage) and a constructive earnings outlook (high-margin guidance, strong cash runway, and positive pipeline/regulatory progress). Offsetting factors are premium valuation (P/E ~41.5) and some near-term execution/visibility risks (higher planned spend and European pricing/revenue timing), while technicals remain positive but not strongly overextended.

Positive Factors

Balance sheet health

Extremely low leverage and materially higher equity provide durable financial flexibility. This balance sheet supports multi-year commercial rollouts, funds pipeline milestones without near-term refinancing, and reduces solvency risk—important for a biotech scaling global launches and R&D spend.

Robust cash generation

High operating cash flow and near-complete free cash flow conversion mean earnings are largely cash-backed. That sustains self-funding for launches and registrational studies, lowers dilution risk, and provides a multi-quarter runway to execute strategy even with stepped-up investment.

Platform & clinical progress

Demonstrated gene delivery in pulmonary tissue validates the HSV-1 Skin TARGET platform's versatility beyond dermatology. Positive molecular and safety readouts plus planned repeat-dosing/registrational steps materially expand addressable markets and support a multi-product growth thesis over coming years.

Negative Factors

Rising operating expense guidance

Planned step-up in combined R&D and SG&A is structural as the company scales international launches and multiple registrational programs. If top-line growth or European reimbursement lags, higher fixed operating costs could compress margins and slow free cash flow expansion.

Higher non‑U.S. COGS & Europe pricing risk

Rising unit costs outside the U.S. and unresolved European pricing create durable margin and revenue-recognition uncertainty. International launch economics and reimbursement timing will materially affect profitability and predictability as the company pursues broader geographic rollouts.

Limited track record & data inconsistencies

Recent profitability is encouraging but short-lived relative to earlier loss years, and noted margin field anomalies in 2025 introduce modeling risk. Biotech outcomes and commercial execution can swing results; durability of margins and earnings requires monitoring across cycles.

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

Strong financial inflection with rapid revenue scaling and robust profitability/cash generation in 2024–2025, alongside very low leverage and growing equity. Main offsets are the short track record of sustained profitability and noted data-quality inconsistencies in 2025 margin fields that warrant validation.

Income Statement

Revenue scaled sharply from $50.7M (2023) to $290.5M (2024) and $389.1M (2025), with very strong profitability in 2025 (net margin ~52.6% and EBITDA margin ~41.5%). The business has clearly inflected from earlier loss years (2020–2022 had no revenue and sizable losses). Key watch-out: 2025 gross profit and several margin fields appear recorded as zero despite strong earnings, which introduces data-quality noise; additionally, profitability is still relatively new, so investors should expect more volatility than in mature businesses.

Balance Sheet

The balance sheet looks conservatively levered with extremely low debt versus equity (debt-to-equity ~0.15% in 2025 and <1% in 2024), and equity has grown materially alongside profitability (equity $1.22B in 2025 vs. $0.95B in 2024). Returns improved meaningfully (return on equity ~16.8% in 2025 vs. ~9.4% in 2024) after negative returns in 2020–2022. Main risk is less about leverage and more about business durability—this is a biotech profile where fundamentals can swing with product/market execution, even if the balance sheet is currently strong.

Cash Flow

Cash generation strengthened significantly: operating cash flow rose to $200.9M (2025) from $123.4M (2024), and free cash flow reached $188.9M (2025) from $119.2M (2024). Free cash flow conversion versus net income is solid (~94% in 2025 and ~97% in 2024), suggesting earnings are largely cash-backed. The key weakness is historical volatility—cash flows were meaningfully negative in 2020–2023—so the current strong profile is relatively recent and should be monitored through cycles.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	389.13M	290.51M	50.70M	0.00	0.00
Gross Profit	360.36M	270.45M	47.60M	0.00	0.00
EBITDA	167.85M	109.91M	-91.32M	-116.81M	-66.23M
Net Income	204.83M	89.16M	10.93M	-139.97M	-69.57M
Balance Sheet
Total Assets	1.33B	1.06B	818.36M	558.45M	626.29M
Cash, Cash Equivalents and Short-Term Investments	827.79M	597.52M	532.18M	379.17M	438.10M
Total Debt	9.34M	7.26M	8.09M	8.93M	8.02M
Total Liabilities	114.23M	109.46M	39.71M	36.22M	32.72M
Stockholders Equity	1.22B	946.38M	778.64M	522.23M	593.58M
Cash Flow
Free Cash Flow	188.91M	119.18M	-100.60M	-153.55M	-116.27M
Operating Cash Flow	200.87M	123.42M	-88.80M	-100.57M	-47.94M
Investing Cash Flow	-58.42M	-163.44M	82.64M	-114.08M	-226.77M
Financing Cash Flow	8.71M	27.01M	202.75M	35.35M	347.69M

Krystal Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 272.50
• 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 272.5 is below the 20-day moving average (MA) of 273.75, above the 50-day MA of 265.48, and above the 200-day MA of 188.97, indicating a neutral trend. The MACD of 1.07 indicates Positive momentum. The RSI at 51.04 is Neutral, neither overbought nor oversold. The STOCH value of 40.97 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	81 Outperform	$7.80B	39.81	18.91%	―	54.51%	275.94%
ALKS	66 Neutral	$5.51B	21.68	14.72%	―	1.08%	3.40%
PTCT	65 Neutral	$5.71B	8.76	―	―	97.54%	―
MLTX	55 Neutral	$1.30B	-5.17	-60.51%	―	―	-157.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CRSP	47 Neutral	$5.45B	-8.47	-30.18%	―	-81.10%	-99.21%
ACLX	40 Underperform	$6.58B	-29.03	-47.18%	―	-76.96%	-425.41%

Krystal Biotech Corporate Events

Krystal Biotech outlines rare disease growth strategy update

On January 11, 2026, Krystal Biotech reported selected preliminary, unaudited 2025 results and a strategic business update ahead of its presentation at the 44th Annual J.P. Morgan Healthcare Conference, highlighting that VYJUVEK generated an estimated $106–107 million in net product revenue in the fourth quarter of 2025 and $388–389 million for the full year, with cash, cash equivalents and investments of about $955 million as of December 31, 2025. Management outlined an aggressive rare disease growth strategy built on its HSV-1 platform, including plans to accelerate development of key pipeline candidates KB803, KB801, KB407 and KB111, expand VYJUVEK’s global footprint, and pursue at least four marketed rare disease medicines treating more than 10,000 patients by 2030, while maintaining profitability and investing in larger indications such as alpha-1 antitrypsin deficiency and non-small cell lung cancer, signaling confidence in sustained growth and a multibillion-dollar opportunity set for investors and stakeholders.

The most recent analyst rating on (KRYS) stock is a Buy with a $310.00 price target. To see the full list of analyst forecasts on Krystal Biotech stock, see the KRYS Stock Forecast page.

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.