Nkarta (NKTX) AI Stock Analysis

• Market Cap: $129.85M
• Dividend Yield: N/A
• Average Volume (3M): 460.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: N/A
• EPS Growth: 30.76%
• Country: US
• Employees: 157
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 70,957,560
• 10 Day Avg. Volume: 368,094
• 30 Day Avg. Volume: 460,878
• PEG Ratio: -0.29
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.51
• Enterprise Value/Market Cap: 2.40
• Enterprise Value/Revenue: 14.75
• Enterprise Value/Gross Profit: -137.51
• Enterprise Value/Ebitda: -0.66
• 1Y Price Target: $12.50
• Price Target Upside: 583.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 39 Underperform
• Price Target: ―

Nkarta's overall stock score is low, reflecting its stage as a development-phase biotech company facing substantial financial challenges with no revenue and significant R&D expenses. The technical analysis indicates neutral momentum, while the valuation is problematic due to negative earnings. Investors should be cautious, focusing on the company's future revenue potential and strategic financing.

Positive Factors

Clinical Trials

Adding fludarabine to the lymphodepletion regimen is expected to improve enrollment in Nkarta's ongoing trials.

Efficacy

Fludarabine and cyclophosphamide are expected to provide deeper B-cell reduction, potentially boosting efficacy and maximizing the trials' chances of success.

Treatment Options

Including fludarabine in the lymphodepletion regimen allows for a more direct comparison to competitor programs and provides clinicians with more options.

Negative Factors

Financial Assessment

Analyst maintains a Buy rating but lowers the Target to $10 for Nkarta.

Safety Concerns

The change to include fludarabine gives up a key point of safety differentiation for NKX019 among a crowded field of cell therapies and T cell engagers.

Nkarta Business Overview & Revenue Model

Company Description

Nkarta, Inc. (NKTX) is a biotechnology company that specializes in the development of engineered natural killer (NK) cell therapies to treat cancer. Operating in the biopharmaceutical sector, Nkarta leverages its proprietary platform to enhance the anti-tumor activity and persistence of NK cells. The company's core products are focused on innovative immuno-oncology treatments that harness the innate ability of NK cells to combat cancerous cells.

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	-2.26M	0.00	-5.87M	-6.57M	-2.12M	-1.05M
EBITDA	-125.10M	-99.64M	-120.48M	-116.32M	-83.95M	-90.31M
Net Income	-111.25M	-108.79M	-117.50M	-113.84M	-83.95M	-50.41M
Balance Sheet
Total Assets	470.61M	501.20M	378.88M	472.94M	273.90M	337.65M
Cash, Cash Equivalents and Short-Term Investments	265.51M	267.35M	248.19M	354.89M	240.19M	315.33M
Total Debt	78.91M	80.27M	88.34M	87.18M	12.46M	8.92M
Total Liabilities	91.80M	93.23M	105.60M	100.73M	22.94M	16.43M
Stockholders Equity	378.81M	407.98M	273.29M	372.21M	250.97M	321.22M
Cash Flow
Free Cash Flow	-105.55M	-104.11M	-114.31M	-104.11M	-72.95M	-51.02M
Operating Cash Flow	-100.80M	-99.70M	-86.16M	-57.00M	-67.93M	-43.51M
Investing Cash Flow	-96.70M	-129.56M	79.02M	-184.69M	32.53M	-210.08M
Financing Cash Flow	-182.00K	226.08M	691.00K	219.01M	1.20M	329.82M

Nkarta Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.83 is above the 20-day moving average (MA) of 1.77, above the 50-day MA of 1.82, and below the 200-day MA of 2.37, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 90.83 is Negative, 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
NKTR	60 Neutral	$432.69M	―	-189.46%	―	-3.24%	31.00%
LRMR	49 Neutral	$216.41M	―	-50.77%	―	―	-54.29%
Sector *	46 Neutral	C$202.00M	-3.18	-23.14%	2.74%	21.17%	-0.61%
NKTX	39 Underperform	$129.85M	―	-26.10%	―	―	30.76%
RAPT	39 Underperform	$139.90M	―	-75.60%	―	―	-2.29%
KOD	35 Underperform	$239.02M	―	-108.92%	―	―	32.58%
NMRA	33 Underperform	$208.65M	―	-79.05%	―	―	-0.42%

Nkarta Corporate Events

Nkarta Announces Major Restructuring and Leadership Changes

On March 26, 2025, Nkarta announced a significant restructuring plan, including a 34% reduction in its workforce, to streamline operations and focus resources on the development of NKX019 for autoimmune diseases. This strategic move is expected to extend the company’s cash runway into 2029 and ensure financial stability to achieve key clinical milestones, with preliminary data from ongoing trials anticipated in the second half of 2025. The company also announced the transition of its Chief Financial and Business Officer, Alyssa Levin, who will continue as a consultant post-termination, and the appointment of Nadir Mahmood as the new principal financial officer. These changes are part of Nkarta’s efforts to maintain its competitive position in the evolving landscape of cellular therapies for autoimmune diseases.