Kezar Life Sciences (KZR) AI Stock Analysis

• Market Cap: $42.78M
• Dividend Yield: N/A
• Average Volume (3M): 28.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: -100.00%
• EPS Growth: -8.52%
• Country: US
• Employees: 58
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -13.15
• Shares Outstanding: 7,300,000
• 10 Day Avg. Volume: 27,830
• 30 Day Avg. Volume: 28,686
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.11
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.00
• Price Target Upside: 54.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Kezar Life Sciences' stock score reflects significant financial difficulties, including negative income and cash flow, despite manageable leverage. The technical analysis indicates bearish momentum, and the negative P/E ratio highlights potential overvaluation. Uncertainty from the earnings call further impacts investor confidence. These factors result in a below-average stock score, emphasizing the need for strategic improvements to enhance financial health and investor sentiment.

Positive Factors

Potential of Zeto in AIH

Zeto’s ability to impact multiple cell types, including reduction in auto-antibody production and auto-reactive T cells, strongly supports the potential for zeto in AIH.

Risk/Reward and Financial Position

Kezar shares trade at a discount to cash on hand and the blockbuster opportunity in AIH suggests a very favorable risk/reward heading into the PORTOLA trial results.

Negative Factors

Safety Concerns and FDA Hold

A partial clinical hold has been placed on Phase 2a of zetomipzomib in autoimmune hepatitis by the FDA, adding uncertainty to the program.

Kezar Life Sciences Business Overview & Revenue Model

Company Description

Kezar Life Sciences (KZR) is a biotechnology company focused on the discovery and development of novel small molecule therapeutics to address unmet medical needs in autoimmune diseases and cancer. Headquartered in South San Francisco, California, Kezar targets protein homeostasis pathways to modulate the immune system and inhibit cancer progression. Its lead product candidate, KZR-616, is a selective immunoproteasome inhibitor being developed for the treatment of various autoimmune disorders.

How the Company Makes Money

Kezar Life Sciences generates revenue primarily through the development and potential commercialization of its drug candidates. The company is in the clinical stage of developing its lead product, KZR-616, and other pipeline candidates. Revenue is expected to be derived from the successful advancement of these candidates through clinical trials and potential partnerships or licensing agreements with larger pharmaceutical companies. Kezar may also earn revenue through collaborations, grants, or other strategic partnerships that provide funding for research and development activities. However, as a clinical-stage company, it may not have significant revenue streams until its drug candidates are approved and commercialized.

Kezar Life Sciences Financial Statement Overview

Summary

Kezar Life Sciences faces financial challenges with consistently negative net income and revenue, alongside negative EBIT and EBITDA margins. Though leverage is manageable, declining equity and asset values raise financial stability concerns. Cash burn issues are evident due to negative free cash flow, requiring strategic financial management improvements.

Income Statement

Kezar Life Sciences has shown inconsistent revenue generation, with recent revenue turning negative in the TTM period, indicating financial challenges. The company has consistently experienced negative net income, resulting in unfavorable net profit margins. EBIT and EBITDA margins remain negative, reflecting ongoing operational losses. The lack of positive revenue growth trends suggests a need for strategic adjustments.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, suggesting manageable leverage. However, the persistent reduction in stockholders' equity and declining total assets raise concerns about financial stability. The equity ratio indicates reasonable reliance on equity financing, but the decreasing ROE demonstrates ineffective capital utilization.

Cash Flow

The cash flow statement highlights negative free cash flow and operating cash flow, indicating cash burn issues. While there is a slight improvement in free cash flow growth, the ratios of cash flow to net income are concerning, reflecting operational inefficiencies. Cash reserves, while significant, may not sustain long-term without improved cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
-5.43M	7.00M	0.00	0.00	0.00	0.00
	Gross Profit
-6.23M	5.93M	-1.02M	-1.51M	-1.54M	-1.30M
	EBIT
-97.44M	-105.24M	-71.16M	-54.66M	-42.95M	-37.34M
	EBITDA
-95.41M	-99.25M	-66.11M	-52.96M	-40.26M	-34.42M
	Net Income Common Stockholders
-95.78M	-101.87M	-65.32M	-53.28M	-38.99M	-31.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
201.37M	201.37M	276.56M	208.35M	140.45M	78.21M
	Total Assets
221.24M	221.24M	299.57M	217.93M	151.84M	89.51M
	Total Debt
18.93M	18.93M	21.26M	14.04M	5.46M	6.36M
	Net Debt
-16.56M	-16.56M	-19.19M	-48.84M	-15.76M	-8.59M
	Total Liabilities
33.66M	33.66M	29.70M	21.06M	10.86M	11.47M
	Stockholders Equity
187.57M	187.57M	269.87M	196.88M	140.98M	78.05M
Cash Flow		Free Cash Flow
-76.39M	-83.45M	-60.42M	-42.75M	-37.14M	-30.48M
	Operating Cash Flow
-76.37M	-81.64M	-58.85M	-42.44M	-36.95M	-29.88M
	Investing Cash Flow
84.56M	76.05M	-91.39M	-28.44M	-56.50M	20.42M
	Financing Cash Flow
115.00K	638.00K	127.86M	112.58M	99.64M	272.00K

Kezar Life Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KZR, the sentiment is Negative. The current price of 5.83 is below the 20-day moving average (MA) of 5.95, below the 50-day MA of 6.22, and below the 200-day MA of 6.61, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KZR.

Kezar Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARGX	70 Outperform	$35.63B	45.56	-7.20%	―	101.07%	51.16%
RARE	54 Neutral	$3.55B	―	-214.50%	―	29.01%	23.93%
Sector *	49 Neutral	$6.84B	0.05	-53.14%	2.48%	24.49%	-3.26%
CRSP	46 Neutral	$3.63B	―	-19.20%	―	-89.95%	-123.71%
XENE	43 Neutral	$2.72B	―	-27.85%	―	―	-10.19%
KZR	41 Neutral	$42.78M	―	-54.72%	―	-100.00%	-8.52%
IMVT	38 Underperform	$3.25B	―	-74.17%	―	―	-43.10%