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Nkarta (NKTX)
NASDAQ:NKTX
US Market

Nkarta (NKTX) AI Stock Analysis

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Nkarta

(NASDAQ:NKTX)

39Underperform
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 Development
Nkarta retains sufficient manufacturing scale for future clinical development, plus early commercial scale.
Operational Efficiency
Nkarta's decision to restructure and reduce their workforce is aimed at streamlining operations to focus on NKX019's clinical development for autoimmune diseases, extending their operational runway into 2029.
Strategic Focus
Nkarta is now exclusively focusing on autoimmune disease, which is seen as prudent given exciting early evidence of potential immune reset.
Negative Factors
Financial Performance
Nkarta reported a net loss of $108.8 million, or $1.60 per share.
Leadership Change
The company views Peter Marks' departure as a meaningful loss for the agency and awaits future clarity as the situation at CBER develops.

Nkarta (NKTX) vs. S&P 500 (SPY)

Nkarta Business Overview & Revenue Model

Company DescriptionNkarta, 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 MoneyNkarta 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
25
Negative
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
40
Negative
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
35
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.00
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 SheetCash, Cash Equivalents and Short-Term Investments
267.35M248.19M354.89M240.19M315.33M
Total Assets
501.20M378.88M472.94M273.90M337.65M
Total Debt
80.27M88.34M87.18M12.46M8.92M
Net Debt
52.40M57.30M49.69M-48.36M-87.77M
Total Liabilities
93.23M105.60M100.73M22.94M16.43M
Stockholders Equity
407.98M273.29M372.21M250.97M321.22M
Cash FlowFree 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
-129.56M79.02M-184.69M32.53M-210.08M
Financing Cash Flow
226.08M691.00K219.01M1.20M329.82M

Nkarta Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.05
Price Trends
50DMA
1.78
Positive
100DMA
2.06
Positive
200DMA
3.30
Negative
Market Momentum
MACD
0.10
Negative
RSI
58.29
Neutral
STOCH
58.99
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 2.05 is above the 20-day moving average (MA) of 1.86, above the 50-day MA of 1.78, and below the 200-day MA of 3.30, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 58.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NKTX.

Nkarta Risk Analysis

Nkarta disclosed 78 risk factors in its most recent earnings report. Nkarta 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

Nkarta Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$5.28B3.75-42.72%2.86%17.70%2.03%
50
Neutral
$145.18M-124.10%9.22%60.01%
49
Neutral
$183.12M-50.77%-55.32%
39
Underperform
$111.76M-31.94%30.76%
39
Underperform
$120.81M-77.09%-2.29%
KOKOD
35
Underperform
$236.91M-84.70%32.58%
33
Underperform
$124.77M-64.48%-0.42%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NKTX
Nkarta
2.09
-5.31
-71.76%
NKTR
Nektar Therapeutics
0.75
-0.82
-52.23%
LRMR
Larimar Therapeutics
2.97
-4.79
-61.73%
KOD
Kodiak Sciences
4.49
0.72
19.10%
RAPT
RAPT Therapeutics
0.97
-7.36
-88.36%
NMRA
Neumora Therapeutics, Inc.
0.77
-8.48
-91.68%

Nkarta Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Nkarta Announces Major Restructuring and Leadership Changes
Neutral
Mar 26, 2025

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.

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.