Kura Oncology (KURA) AI Stock Analysis

• Market Cap: $864.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: N/A
• EPS Growth: -5.18%
• Country: US
• Employees: 192
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.85
• Shares Outstanding: 86,797,190
• 10 Day Avg. Volume: 2,254,858
• 30 Day Avg. Volume: 1,976,039
• PEG Ratio: 1.50
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 13.93
• P/FCF Ratio: 5.61
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: -1.08
• 1Y Price Target: $26.22
• Price Target Upside: 163.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• 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

NDA Submission

The NDA submission for ziftomenib marks a critical milestone in Kura's clinical development, potentially accelerating market entry and revenue generation if approved.

Strong Financial Position

A robust cash position provides Kura with the financial flexibility to fund ongoing R&D and clinical trials, supporting long-term strategic initiatives and growth.

Clinical Trial Progress

Progress in clinical trials, including data presentations, enhances Kura's pipeline credibility and potential for successful drug development, driving future growth.

Negative Factors

Increased R&D Expenses

Rising R&D expenses reflect higher costs in advancing the pipeline, which could pressure margins and extend the timeline to profitability if not managed effectively.

Net Loss

Ongoing net losses highlight profitability challenges, common in biotech, which may impact long-term financial health and necessitate further financing.

Trial Response Challenges

Challenges in achieving high response rates in trials may affect the perceived efficacy of drug candidates, impacting regulatory approval prospects and market potential.

Kura Oncology Business Overview & Revenue Model

Company Description

Kura Oncology, Inc. (KURA) is a biopharmaceutical company focused on the discovery and development of precision medicines for the treatment of cancer. The company is involved in the research and development of small molecule drug candidates primarily targeting genetically defined patient populations. Its core products include tipifarnib, ziftomenib, and KO-2806, which are in various stages of clinical trials for different types of cancer, such as acute myeloid leukemia and other solid tumors.

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	104.03M	53.88M	0.00	0.00	0.00	0.00
Gross Profit	83.08M	53.03M	-849.00K	-759.00K	-558.00K	-194.00K
EBITDA	-226.80M	-169.50M	-164.96M	-134.85M	-129.71M	-88.85M
Net Income	-216.88M	-173.98M	-152.63M	-136.07M	-129.91M	-89.43M
Balance Sheet
Total Assets	649.38M	760.16M	448.94M	456.31M	534.05M	647.21M
Cash, Cash Equivalents and Short-Term Investments	549.66M	727.39M	423.96M	437.99M	517.96M	633.32M
Total Debt	14.13M	16.59M	17.20M	14.02M	6.88M	14.98M
Total Liabilities	406.84M	346.52M	51.66M	36.03M	27.44M	36.31M
Stockholders Equity	242.54M	413.64M	397.27M	420.28M	506.61M	610.90M
Cash Flow
Free Cash Flow	83.11M	133.84M	-124.99M	-110.69M	-105.70M	-72.00M
Operating Cash Flow	87.80M	134.32M	-124.82M	-110.06M	-104.55M	-69.83M
Investing Cash Flow	-43.46M	-101.59M	15.56M	32.63M	-126.83M	-99.94M
Financing Cash Flow	1.46M	154.42M	94.78M	38.56M	-3.44M	469.33M

Kura Oncology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.94
• 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 KURA, the sentiment is Positive. The current price of 9.94 is below the 20-day moving average (MA) of 9.99, above the 50-day MA of 9.12, and above the 200-day MA of 7.34, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 46.71 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	$473.75M	49.63	3.33%	―	85820.30%	―
PHAT	61 Neutral	$959.66M	―	―	―	460.30%	33.03%
SEPN	52 Neutral	$867.63M	―	-32.78%	―	-13.37%	-1025.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
KURA	47 Neutral	$864.50M	―	-65.10%	―	―	-5.18%
ORKA	41 Neutral	$1.33B	-7.54	-53.15%	―	―	39.03%
TYRA	41 Neutral	$799.46M	-8.39	-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.