Nkarta (NKTX) AI Stock Analysis

• Market Cap: $153.42M
• Dividend Yield: N/A
• Average Volume (3M): 612.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: N/A
• EPS Growth: 25.84%
• Country: US
• Employees: 157
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 71,029,510
• 10 Day Avg. Volume: 602,298
• 30 Day Avg. Volume: 612,228
• PEG Ratio: 0.05
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.62
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -1.59
• 1Y Price Target: $12.33
• Price Target Upside: 455.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $2.00 ▼(-9.91% Downside)

The score is primarily held back by weak financial performance (no revenue, large ongoing losses, and persistent cash burn), partially offset by a relatively supportive balance sheet for an early-stage biotech. Technicals show positive momentum with the price above key moving averages, but overbought indicators raise near-term risk. Valuation is constrained by negative earnings and no dividend yield.

Positive Factors

Supportive Balance Sheet

Moderate leverage and meaningful equity provide a multi-quarter runway typical for clinical-stage biotechs, reducing immediate refinancing pressure. This financial buffer supports continued clinical programs and partnership discussions, preserving strategic optionality while development milestones are pursued.

Off-the-shelf NK Platform

A differentiated, off-the-shelf NK cell platform can scale faster and cost-effectively versus individualized autologous therapies. If clinical efficacy is demonstrated, the approach confers manufacturing and commercial advantages, enhancing competitive positioning in hematologic oncology and potential expansion into solid tumors.

Stable Loss Trend

Consistent loss levels suggest disciplined R&D and controlled operational spending relative to prior years, enabling more predictable cash planning. For an early-stage developer, a steady burn versus runaway losses improves visibility into financing needs and milestone pacing over the medium term.

Negative Factors

No Revenue

The absence of product revenue means the company lacks internally generated, durable cash flow and remains fully dependent on external financing or partnerships. This extends the timeline to self-sustaining operations and raises execution risk tied to clinical success and deal-making.

Sustained Cash Burn

Persistent negative operating and free cash flow requires recurrent capital raises or partnership income to fund development. Ongoing cash burn constrains strategic flexibility, can dilute existing shareholders, and may force suboptimal financing terms if clinical progress lags or market conditions tighten.

Equity Erosion / Funding Risk

Declining shareholder equity reflects cumulative losses and likely financing activity, signaling potential dilution risk ahead. Reduced equity cushions limit long-term balance-sheet resilience and increase the probability of future equity issuance if clinical timelines require additional capital to reach commercialization.

Nkarta Business Overview & Revenue Model

Company Description

Nkarta, Inc., a a clinical-stage biopharmaceutical company, develops and commercializes cell therapies for cancer treatment. The company's approach for cellular immunotherapy involves chimeric antigen receptors on the surface of a natural killer (NK) cell that enable the cell to recognize specific proteins or antigens that are present on the surface of tumor cells. Its two co-lead product candidates are NKX101, which is in Phase I clinical trials for the treatment of relapsed/refractory acute myeloid leukemia or higher risk myelodysplastic syndromes; and NKX019, a pre-clinical product, which is based on the ability to treat various B cell malignancies by targeting the CD19 antigen found on these types of cancerous cells. The company has a research collaboration agreement with CRISPR Therapeutics AG. Nkarta, Inc. was incorporated in 2015 and is based in South San Francisco, California.

How the Company Makes Money

Nkarta makes money primarily through the development and commercialization of its NK cell therapy products. The company generates revenue through partnerships and collaborations with other biopharmaceutical companies that help advance its therapeutic candidates through clinical trials and towards regulatory approval. These partnerships often include milestone payments and royalties based on the success of the development process and eventual commercialization. Additionally, Nkarta may receive funding through grants and equity investments, which support its research and development activities. The company's revenue is significantly influenced by its ability to progress its therapies through clinical stages and secure strategic partnerships that provide financial support and market access.

Nkarta Financial Statement Overview

Summary

Income statement and cash flow are weak with no revenue, sizable ongoing losses (TTM EBIT about -$122M; net loss about -$103M), and sustained cash burn (TTM FCF about -$94M). The balance sheet is comparatively supportive for an early-stage biotech with moderate leverage (debt-to-equity ~0.22) and meaningful equity, but equity has declined, implying ongoing funding/dilution risk.

Income Statement

TTM (Trailing-Twelve-Months) results show no revenue and continued heavy losses (EBIT of about -$122M and net loss of about -$103M), broadly consistent with prior annual periods where losses have remained sizeable (roughly -$86M to -$118M net losses since 2021). With no revenue base, profitability is structurally weak and operating leverage is not yet evident; the main positive is that losses have not meaningfully accelerated versus recent years.

Balance Sheet

The balance sheet is relatively supportive for an early-stage biotech: leverage is moderate with TTM debt-to-equity around 0.22 and total debt of about $77M against equity of about $338M. However, equity has stepped down from 2024 (about $408M) to TTM (about $338M), consistent with ongoing losses and cash burn, and returns on equity remain materially negative, highlighting continued dilution/erosion risk if funding needs persist.

Cash Flow

Cash generation remains a clear weak point: TTM operating cash flow is about -$92M and free cash flow about -$94M, with TTM free cash flow growth negative (declining year over year). While free cash flow roughly tracks net income (free cash flow to net income ~1.03 in TTM), the overall picture is sustained cash burn that likely requires continued balance-sheet funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	-5.87M	0.00	0.00	0.00
EBITDA	-102.06M	-119.04M	-120.48M	-116.32M	-84.67M	-50.72M
Net Income	-102.61M	-108.79M	-117.50M	-113.84M	-86.08M	-91.36M
Balance Sheet
Total Assets	427.24M	501.20M	378.88M	472.94M	273.90M	337.65M
Cash, Cash Equivalents and Short-Term Investments	282.33M	267.35M	248.19M	352.14M	238.09M	314.91M
Total Debt	76.63M	80.27M	88.34M	82.93M	12.46M	8.92M
Total Liabilities	89.34M	93.23M	105.60M	100.73M	22.94M	16.43M
Stockholders Equity	337.90M	407.98M	273.29M	372.21M	250.97M	321.22M
Cash Flow
Free Cash Flow	-93.55M	-104.11M	-114.31M	-104.11M	-72.95M	-51.02M
Operating Cash Flow	-91.80M	-99.70M	-86.16M	-57.00M	-67.93M	-43.51M
Investing Cash Flow	94.70M	-129.56M	79.02M	-184.69M	32.53M	-210.08M
Financing Cash Flow	261.00K	226.08M	691.00K	219.01M	1.20M	329.82M

Nkarta Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKTX, the sentiment is Neutral. The current price of 2.22 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 1.98, and above the 200-day MA of 2.01, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 17.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NKTX.

Nkarta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CGEN	56 Neutral	$169.30M	―	-52.95%	―	-88.47%	-1658.33%
NVCT	54 Neutral	$214.14M	-6.43	-158.88%	―	―	-16.26%
STTK	53 Neutral	$243.63M	-3.82	-57.84%	―	-84.46%	33.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NKTX	47 Neutral	$153.42M	-1.60	-26.69%	―	―	25.84%
CCCC	47 Neutral	$182.20M	-1.20	-59.98%	―	-10.57%	1.98%
TVGN	41 Neutral	$59.79M	-1.58	―	―	―	-234.46%