Nkarta (NKTX) AI Stock Analysis

• Market Cap: $124.18M
• Dividend Yield: N/A
• Average Volume (3M): 600.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: N/A
• EPS Growth: 30.76%
• Country: US
• Employees: 157
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 70,957,560
• 10 Day Avg. Volume: 464,908
• 30 Day Avg. Volume: 600,925
• PEG Ratio: -0.12
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.36
• 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: $12.50
• Price Target Upside: 614.29% 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 Trial Enrollment

Management believes that adding fludarabine will improve enrollment in their ongoing trials.

Financial Stability

Nkarta has $352M cash and recent restructuring extends runway into 2029, ensuring the company is fully funded well past initial POC readouts across several autoimmune indications.

Strategic Decision

Nkarta made the right strategic decision in adding fludarabine to the lymphodepletion regimen for their autoimmune disease development, which improves the setup for NKX019’s first clinical read-out.

Negative Factors

Protocol Modification Concerns

Ntrust Protocol Modification Gives Us Pause; Downgrading to Market Perform.

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., 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 profile is typical for a biotech in its development phase: no revenue, significant R&D costs, and growing losses. The company has a strong equity base and cash reserves, but faces challenges with negative cash flows and rising leverage.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-5.87M	-6.57M	-2.12M	-1.05M
	EBIT
-128.19M	-131.65M	-118.95M	-86.43M	-51.51M
	EBITDA
-128.19M	-120.48M	-107.27M	-83.95M	-90.31M
	Net Income Common Stockholders
-108.79M	-117.50M	-119.42M	-83.95M	-50.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
267.35M	248.19M	354.89M	240.19M	315.33M
	Total Assets
501.20M	378.88M	472.94M	273.90M	337.65M
	Total Debt
80.27M	88.34M	87.18M	12.46M	8.92M
	Net Debt
52.40M	57.30M	49.69M	-48.36M	-87.77M
	Total Liabilities
93.23M	105.60M	100.73M	22.94M	16.43M
	Stockholders Equity
407.98M	273.29M	372.21M	250.97M	321.22M
Cash Flow		Free Cash Flow
-104.11M	-114.31M	-104.11M	-72.95M	-51.02M
	Operating Cash Flow
-99.70M	-86.16M	-57.00M	-67.93M	-43.51M
	Investing Cash Flow
-129.56M	79.02M	-184.69M	32.53M	-210.08M
	Financing Cash Flow
226.08M	691.00K	219.01M	1.20M	329.82M

Nkarta Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKTX, the sentiment is Negative. The current price of 1.75 is below the 20-day moving average (MA) of 1.88, below the 50-day MA of 1.79, and below the 200-day MA of 2.94, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 23.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NKTX.

Nkarta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
LRMR	49 Neutral	$119.73M	―	-50.77%	―	―	-54.29%
NKTR	46 Neutral	$125.53M	―	-189.46%	―	-3.24%	31.00%
NKTX	39 Underperform	$124.18M	―	-26.10%	―	―	30.76%
RAPT	39 Underperform	$162.72M	―	-75.60%	―	―	-2.29%
KOD	35 Underperform	$181.51M	―	-108.92%	―	―	32.58%
NMRA	33 Underperform	$109.94M	―	-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.