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Kezar Life Sciences Inc (KZR)
NASDAQ:KZR

Kezar Life Sciences (KZR) AI Stock Analysis

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KZ

Kezar Life Sciences

(NASDAQ:KZR)

41Neutral
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 (KZR) vs. S&P 500 (SPY)

Kezar Life Sciences Business Overview & Revenue Model

Company DescriptionKezar 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 MoneyKezar 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
35
Negative
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
45
Neutral
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
40
Negative
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
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
-5.43M7.00M0.000.000.000.00
Gross Profit
-6.23M5.93M-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 SheetCash, Cash Equivalents and Short-Term Investments
201.37M201.37M276.56M208.35M140.45M78.21M
Total Assets
221.24M221.24M299.57M217.93M151.84M89.51M
Total Debt
18.93M18.93M21.26M14.04M5.46M6.36M
Net Debt
-16.56M-16.56M-19.19M-48.84M-15.76M-8.59M
Total Liabilities
33.66M33.66M29.70M21.06M10.86M11.47M
Stockholders Equity
187.57M187.57M269.87M196.88M140.98M78.05M
Cash FlowFree 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
84.56M76.05M-91.39M-28.44M-56.50M20.42M
Financing Cash Flow
115.00K638.00K127.86M112.58M99.64M272.00K

Kezar Life Sciences Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.83
Price Trends
50DMA
6.22
Negative
100DMA
6.75
Negative
200DMA
6.61
Negative
Market Momentum
MACD
-0.11
Negative
RSI
43.71
Neutral
STOCH
43.33
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 Risk Analysis

Kezar Life Sciences disclosed 63 risk factors in its most recent earnings report. Kezar Life Sciences reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Kezar Life Sciences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$35.63B45.56-7.20%101.07%51.16%
54
Neutral
$3.55B-214.50%29.01%23.93%
49
Neutral
$6.84B0.05-53.14%2.48%24.49%-3.26%
46
Neutral
$3.63B-19.20%-89.95%-123.71%
43
Neutral
$2.72B-27.85%-10.19%
KZKZR
41
Neutral
$42.78M-54.72%-100.00%-8.52%
38
Underperform
$3.25B-74.17%-43.10%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KZR
Kezar Life Sciences
5.83
-2.67
-31.41%
RARE
Ultragenyx Pharmaceutical
39.25
-7.40
-15.86%
XENE
Xenon
35.18
-8.49
-19.44%
CRSP
Crispr Therapeutics AG
41.99
-30.02
-41.69%
ARGX
Argenx Se
581.21
202.57
53.50%
IMVT
Immunovant
18.79
-11.91
-38.79%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.