Kura Oncology (KURA) AI Stock Analysis

• Market Cap: $705.66M
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: N/A
• EPS Growth: -1.26%
• Country: US
• Employees: 192
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -0.75
• Shares Outstanding: 86,797,190
• 10 Day Avg. Volume: 1,873,087
• 30 Day Avg. Volume: 1,724,843
• 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: -0.15
• Enterprise Value/Revenue: -1.27
• Enterprise Value/Gross Profit: -1.28
• Enterprise Value/Ebitda: 0.51
• 1Y Price Target: $23.70
• Price Target Upside: 188.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 47 Neutral
• Price Target: ―

Kura Oncology faces challenges typical of biotech firms in transition, with positive revenue growth yet struggling profitability. Significant milestones in drug applications and a strong cash position are positive, but technical indicators and valuation metrics present caution. The company's stock performance reflects these mixed factors.

Positive Factors

Clinical Development

Upcoming milestones include potential approval of ziftomenib for relapsed/refractory NPM1 mutated acute myeloid leukemia and data presentations at key medical congresses.

Financial Position

The company ended the quarter financially strong with $630.7 million in cash, which management believes provides runway into 2027.

Strategic Execution

Analyst reiterates an Outperform (OP) rating, indicating confidence in KURA's strategic execution and future potential.

Negative Factors

Commercial Performance

The Kyowa Kirin profit split may prevent investors from fully valuing Kura's commercial performance, even if the launch is more successful than anticipated.

Investor Skepticism

Investors are rightfully skeptical given the early stage nature of KURA's renewed FTI efforts, limited clinical data available to date for KO-2806, and past disappointments in the FTI space overall.

Market Competition

Kura Oncology may struggle to drive value in the short term due to existing competition in the market for a smaller patient population.

Kura Oncology Business Overview & Revenue Model

Company Description

Kura Oncology, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer in the United States. The company's pipeline consists of small molecule product candidates that target cancer. Its lead product candidates are ziftomenib, a small molecule inhibitor of the menin-Lysine K-specific Methyltransferase 2A protein-protein interaction for the treatment of genetically defined subsets of acute leukemias, including acute myeloid leukemia and acute lymphoblastic leukemia; and tipifarnib, an orally bioavailable inhibitor of farnesyl transferase that is in Phase II clinical trials for the treatment of solid tumors and hematologic indications. The company has a clinical collaboration with Novartis to evaluate the combination of tipifarnib and alpelisib in patients with head and neck squamous cell carcinoma whose tumors have HRAS overexpression or PIK3CA mutation and/or amplification. Kura Oncology, Inc. was founded in 2014 and is headquartered in San Diego, California.

How the Company Makes Money

Kura Oncology generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company finances its operations through public offerings, partnerships, and collaborations with other pharmaceutical companies. Kura's earnings are significantly influenced by milestone payments and potential royalties from licensing agreements as its drug candidates progress through clinical trials and, if successful, receive regulatory approval. Additionally, the company may engage in strategic partnerships to co-develop or out-license its therapies, which can provide upfront payments and shared revenue streams from eventual product sales.

Kura Oncology Financial Statement Overview

Summary

Kura Oncology is experiencing revenue growth, yet profitability remains a challenge with negative margins. Strong liquidity is offset by historical financial distress and high leverage. Cash flow management shows improvement, but overall financial health is impacted by ongoing losses.

Income Statement

Kura Oncology showed positive revenue growth in TTM, moving from no revenues to generating income. However, margins remain negative with a net profit margin of -267.57% and an EBIT margin of -299.21%, reflecting ongoing profitability challenges common in early-stage biotech companies.

Balance Sheet

The company maintains strong liquidity with significant cash reserves but faces high leverage with a debt-to-equity ratio of 0.03. The equity ratio at 48.98% indicates moderate financial stability, yet the negative equity in prior years signals historical financial distress.

Cash Flow

Kura Oncology shows a slight improvement in cash flow management with positive operating cash flow in the TTM. The free cash flow to net income ratio is strong despite negative net income, indicating efficient cash management amidst ongoing losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.28M	53.88M	0.00	0.00	0.00	0.00
Gross Profit	82.64M	53.03M	-849.00K	-759.00K	-558.00K	-194.00K
EBITDA	-207.74M	-169.50M	-164.96M	-134.85M	-129.71M	-88.85M
Net Income	-197.17M	-173.98M	-152.63M	-136.07M	-129.91M	-89.43M
Balance Sheet
Total Assets	682.42M	760.16M	448.94M	456.31M	534.05M	647.21M
Cash, Cash Equivalents and Short-Term Investments	630.73M	727.39M	423.96M	437.99M	517.96M	633.32M
Total Debt	12.96M	16.59M	17.20M	14.02M	6.88M	14.98M
Total Liabilities	376.94M	346.52M	51.66M	36.03M	27.44M	36.31M
Stockholders Equity	305.49M	413.64M	397.27M	420.28M	506.61M	610.90M
Cash Flow
Free Cash Flow	122.86M	133.84M	-124.99M	-110.69M	-105.70M	-72.00M
Operating Cash Flow	124.99M	134.32M	-124.82M	-110.06M	-104.55M	-69.83M
Investing Cash Flow	-91.89M	-101.59M	15.56M	32.63M	-126.83M	-99.94M
Financing Cash Flow	3.67M	154.42M	94.78M	38.56M	-3.44M	469.33M

Kura Oncology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KURA, the sentiment is Positive. The current price of 8.22 is above the 20-day moving average (MA) of 7.32, above the 50-day MA of 6.61, and above the 200-day MA of 7.47, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 66.51 is Neutral, neither overbought nor oversold. The STOCH value of 77.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KURA.

Kura Oncology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KROS	66 Neutral	$631.57M	49.63	3.33%	―	85820.30%	―
SEPN	61 Neutral	$629.54M	―	-32.78%	―	-13.37%	-1025.90%
PHAT	60 Neutral	$851.32M	―	181.41%	―	1049.81%	7.85%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
KURA	47 Neutral	$705.66M	―	-51.11%	―	―	-1.26%
ORKA	41 Neutral	$560.64M	―	-53.15%	―	―	39.03%
TYRA	41 Neutral	$647.03M	―	-31.21%	―	―	-5.63%

Kura Oncology Corporate Events

Kura Oncology Announces Leadership Changes and Appointments

Stephen Dale, M.D. resigned as Chief Medical Officer of Kura Oncology to focus on personal health, leading to a settlement agreement entitling him to compensation and extended stock option exercise periods. Following his resignation, Kura Oncology appointed Mollie Leoni, M.D. as Chief Medical Officer and Francis Burrows, Ph.D. as Chief Scientific Officer, indicating a strategic leadership change.