Nkarta (NKTX) AI Stock Analysis

• Market Cap: $148.45M
• Dividend Yield: N/A
• Average Volume (3M): 612.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• 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: -0.35
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 0.51
• 1Y Price Target: $12.33
• Price Target Upside: 465.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $2.00 ▼(-8.26% Downside)

The score is primarily held back by weak financial performance (no revenue, large losses, and heavy ongoing cash burn), only partially offset by a comparatively supportive balance sheet with moderate leverage. Technicals are mixed with a neutral momentum profile but a weaker longer-term trend, while valuation signals are limited due to a negative P/E and no dividend yield data.

Positive Factors

Strong Cash Position

A strong cash position allows Nkarta to continue funding its R&D efforts, crucial for advancing its NK cell therapies and achieving long-term growth.

Strategic Restructuring

The restructuring aims to extend the cash runway into 2029, allowing Nkarta to focus on key clinical milestones and improve financial stability.

Leadership Changes

New leadership can bring fresh perspectives and strategies, potentially enhancing Nkarta's operational efficiency and competitive positioning.

Negative Factors

No Revenue Generation

The lack of revenue generation poses a risk to long-term sustainability, as the company relies heavily on external funding and partnerships.

Negative Cash Flow

Negative cash flow is a concern as it indicates the company is not yet self-sustaining, relying on external financing to support operations.

Rising Leverage

Increasing leverage can strain financial flexibility, potentially limiting Nkarta's ability to invest in new opportunities or weather financial downturns.

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

Nkarta's financial performance reflects the typical challenges of an early-stage biotech firm, with no revenue generation and significant losses due to high operational and development costs. The company does maintain a strong equity base and substantial cash reserves, which supports its financial stability despite ongoing negative cash flows and income.

Income Statement

Nkarta's income statement reveals persistent challenges typical in early-stage biotech firms, with no revenue generation and growing losses. The company has consistently reported negative EBIT and EBITDA, and its net income is significantly in the red, reflecting high operational and development costs without offsetting revenues.

Balance Sheet

The balance sheet shows a strong equity base, with a high equity ratio indicating financial stability. However, the debt-to-equity ratio has increased over time, indicating rising leverage. Despite this, the company maintains a substantial cash position, which provides a cushion for ongoing R&D activities.

Cash Flow

Nkarta's cash flow statement highlights negative operating cash flow, a common scenario for biotech firms in development stages. While free cash flow is negative, the company has been able to sustain operations through financing activities, bolstering its cash reserves.

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: Positive
• Last Price: 2.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKTX, the sentiment is Positive. The current price of 2.18 is above the 20-day moving average (MA) of 1.89, above the 50-day MA of 1.89, and above the 200-day MA of 1.96, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 74.57 is Negative, neither overbought nor oversold. The STOCH value of 79.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NKTX.

Nkarta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVCT	54 Neutral	$216.70M	-6.21	-158.88%	―	―	-16.26%
STTK	53 Neutral	$300.58M	-4.50	-57.84%	―	-84.46%	33.32%
CGEN	52 Neutral	$175.85M	-6.62	-52.95%	―	-88.47%	-1658.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NKTX	48 Neutral	$148.45M	-1.57	-26.69%	―	―	25.84%
CCCC	44 Neutral	$207.40M	-1.27	-59.98%	―	-10.57%	1.98%
TVGN	41 Neutral	$77.29M	-1.83	―	―	―	-234.46%