Kura Oncology (KURA) AI Stock Analysis

• Market Cap: $524.25M
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: N/A
• EPS Growth: 2.90%
• Country: US
• Employees: 192
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -2.02
• Shares Outstanding: 80,777,640
• 10 Day Avg. Volume: 1,013,099
• 30 Day Avg. Volume: 1,338,466
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.60
• Price Target Upside: 248.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

Kura Oncology shows potential for growth with its strong cash position and advancements in clinical trials, but it faces challenges with ongoing unprofitability and bearish technical indicators. The earnings call provided positive sentiment and guidance, but the company's valuation is held back by its lack of profitability and dividend yield. The stock's overall score is tempered by these mixed factors, resulting in a moderate assessment.

Positive Factors

Regulatory Progress

Kura submitted an NDA on March 31 and has breakthrough drug status in this indication, suggesting the potential for an accelerated timeline for review.

Strategic Collaboration

Kura announced a global strategic collaboration with Kyowa Kirin to develop and commercialize ziftomenib in acute leukemias.

Trial Success

KURA announced that the trial had succeeded in achieving its primary endpoint, and management suggested ORR fell in the range of 21-29%.

Negative Factors

Cash Burn

The company's annualized cash burn is $247.1 million with approximately 2.5 years of cash remaining.

Conflict of Interest

Wedbush Securities seeks to do business with companies covered in its research reports, which may present a conflict of interest.

Drug Inactivity

Management notes that tipifarnib alone is inactive in the PI3KCA-dependent HNSCC setting, and alpelisib has only really ever shown stable disease.

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 shows improved financial performance with significant revenue growth and positive cash flow in 2024. While the strong cash position and improved equity are strengths, persistent operational losses and past negative equity pose risks.

Income Statement

Kura Oncology has shown a significant increase in revenue in 2024, reaching $53.88 million from $0 in previous years, indicating a positive development. However, the company continues to operate at a loss, with negative EBIT and net income margins. The high operating expenses relative to revenue suggest challenges in achieving profitability.

Balance Sheet

The company's balance sheet shows a healthy cash position with $727.395 million in cash and short-term investments, which is a strength. However, the debt-to-equity ratio is concerning due to negative stockholders' equity in previous years, although it improved to positive equity in 2024. The equity ratio has improved but still indicates potential risk.

Cash Flow

Kura Oncology has significantly improved its cash flow, with a positive operating cash flow of $134.317 million and free cash flow of $133.845 million in 2024. This reflects effective cash management and potential for future investment. The company has turned around from negative cash flows in prior years, indicating a positive trajectory.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.88M	0.00	0.00	0.00	0.00
	Gross Profit
53.88M	-849.00K	-759.00K	-558.00K	-194.00K
	EBIT
-193.19M	-165.80M	-140.62M	-131.82M	-92.09M
	EBITDA
-169.50M	-164.96M	-139.11M	-129.71M	-91.70M
	Net Income Common Stockholders
-173.98M	-152.63M	-136.07M	-129.91M	-89.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
727.39M	423.96M	437.99M	517.96M	633.32M
	Total Assets
760.16M	448.94M	456.31M	534.05M	647.21M
	Total Debt
16.59M	17.20M	14.02M	6.88M	14.98M
	Net Debt
-207.87M	-20.12M	-37.78M	-83.80M	-310.52M
	Total Liabilities
346.52M	51.66M	36.03M	27.44M	36.31M
	Stockholders Equity
413.64M	397.27M	-568.81M	-432.97M	-302.50M
Cash Flow		Free Cash Flow
133.84M	-124.99M	-110.69M	-105.70M	-72.00M
	Operating Cash Flow
134.32M	-124.82M	-110.06M	-104.55M	-69.83M
	Investing Cash Flow
-101.59M	15.56M	32.63M	-126.83M	-99.94M
	Financing Cash Flow
154.42M	94.78M	38.56M	-3.44M	469.33M

Kura Oncology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KURA, the sentiment is Negative. The current price of 6.49 is above the 20-day moving average (MA) of 6.11, below the 50-day MA of 6.93, and below the 200-day MA of 13.13, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 92.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KURA.

Kura Oncology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.38B	3.59	-41.63%	2.87%	17.72%	1.87%
KURA	49 Neutral	$524.25M	―	-42.91%	―	―	2.90%
BFLY	48 Neutral	$568.44M	―	-37.28%	―	24.51%	47.32%
MGTX	46 Neutral	$559.08M	―	-143.48%	―	137.42%	-34.13%
IMTX	44 Neutral	$607.75M	62.03	3.73%	―	188.64%	―
NNOX	39 Underperform	$320.72M	―	-27.83%	―	13.91%	15.46%
NUVB	35 Underperform	$764.25M	―	-106.27%	―	―	-551.08%

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.