Viking Therapeutics (VKTX) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: N/A
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: N/A
• EPS Growth: -23.84%
• Country: US
• Employees: 45
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.41
• Shares Outstanding: 112,309,550
• 10 Day Avg. Volume: 4,452,752
• 30 Day Avg. Volume: 3,354,108
• PEG Ratio: -0.42
• Price to Book (P/B): 4.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.92
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 788.04
• Enterprise Value/Gross Profit: -4.24K
• Enterprise Value/Ebitda: -1.18
• 1Y Price Target: $92.00
• Price Target Upside: 226.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 53 Neutral
• Price Target: ―

Viking Therapeutics' overall score reflects the typical profile of an early-stage biotech company. Strengths include a robust balance sheet and promising clinical trial results, but these are offset by high operational losses and cash burn. Technical indicators suggest short-term positive momentum, yet valuation concerns persist due to the absence of profitability. The earnings call provided a positive outlook with significant pipeline advancements.

Positive Factors

Clinical Trial Progress

The initiation of the Phase 3 Obesity VANQUISH studies with VK2735 reflects Viking Therapeutics' progress and the potential value in their obesity and metabolic disease programs.

Market Potential

The initiation of the Phase III VANQUISH program in obesity, with trials for both non-diabetic and type 2 diabetic patients, highlights the potential for VK2735 to impact a large patient population.

Supply Chain Management

The manufacturing deal with CordenPharma is seen positively as it secures supply for VK2735, supporting its commercialization with dedicated capacity for both injectable and oral formulations.

Negative Factors

Market Competition

A key bear case has centered on whether oral small molecules can achieve adequate absorption and match the efficacy of injectable GLP-1s.

Viking Therapeutics Business Overview & Revenue Model

Company Description

Viking Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel therapies for metabolic and endocrine disorders. The company's lead drug candidate is VK2809, an orally available tissue and receptor-subtype selective agonist of the thyroid hormone receptor beta (TRß), which is in Phase IIb clinical trials to treat patients with biopsy-confirmed non-alcoholic steatohepatitis, as well as NAFLD. It also develops VK5211, an orally available non-steroidal selective androgen receptor modulator that is in Phase II clinical trials for the treatment of patients recovering from non-elective hip fracture surgery; VK0612, an orally available Phase IIb-ready drug candidate for type 2 diabetes; and VK0214, an orally available tissue and receptor-subtype selective agonist of the TRß for X-linked adrenoleukodystrophy. The company was incorporated in 2012 and is headquartered in San Diego, California.

How the Company Makes Money

Viking Therapeutics makes money primarily through the development and potential commercialization of its drug candidates. The company generates revenue through strategic partnerships, collaborations, and licensing agreements with other pharmaceutical companies. These partnerships may involve upfront payments, milestone payments, and royalties based on the success and commercialization of its drug candidates. Currently, Viking Therapeutics does not have commercialized products on the market, so its revenue largely depends on funding from investors and partnerships with other companies in the biopharmaceutical industry.

Viking Therapeutics Financial Statement Overview

Summary

Viking Therapeutics has a strong balance sheet with low leverage, but significant operational losses and negative cash flow due to high R&D expenses. The company is in a pre-revenue stage, typical for biotech firms, and relies heavily on equity financing.

Income Statement

Viking Therapeutics shows consistent operational losses with no revenue generation, as expected in early-stage biotech companies. The continuous increase in EBIT and net losses over the years reflects high R&D and operational expenses without offsetting revenue. The absence of revenue growth remains a significant concern.

Balance Sheet

The company maintains a strong equity position with minimal debt, evidenced by a high equity ratio and low debt-to-equity ratio. However, the decreasing cash reserves, despite high stockholder equity, indicate potential future liquidity challenges if revenue generation doesn't commence.

Cash Flow

Operating cash flows are negative, reflecting the company's investment in R&D activities. The high financing cash flow in recent years suggests dependence on external funding. While free cash flow is negative, the company has managed substantial financing inflows, indicating investor confidence.

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	-162.00K	0.00	-292.00K	-291.00K	-296.00K	-277.00K
EBITDA	-172.21M	-109.52M	-100.83M	-70.36M	-55.39M	-42.66M
Net Income	-128.24M	-109.96M	-85.89M	-67.38M	-54.00M	-36.05M
Balance Sheet
Total Assets	866.99M	908.32M	368.49M	168.53M	210.66M	256.50M
Cash, Cash Equivalents and Short-Term Investments	851.86M	902.61M	362.08M	155.49M	202.10M	248.39M
Total Debt	1.00M	1.12M	1.26M	1.56M	29.00K	359.00K
Total Liabilities	20.07M	28.04M	20.07M	23.21M	8.78M	12.16M
Stockholders Equity	846.92M	880.28M	348.42M	145.32M	201.88M	244.34M
Cash Flow
Free Cash Flow	-133.99M	-87.79M	-73.38M	-48.40M	-47.59M	-21.78M
Operating Cash Flow	-133.99M	-87.79M	-73.38M	-48.40M	-47.59M	-21.78M
Investing Cash Flow	-30.33M	-553.37M	-179.09M	54.75M	37.96M	41.57M
Financing Cash Flow	6.78M	612.46M	271.38M	4.16M	6.88M	950.00K

Viking Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VKTX, the sentiment is Positive. The current price of 28.19 is above the 20-day moving average (MA) of 27.18, above the 50-day MA of 27.31, and below the 200-day MA of 39.85, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 55.39 is Neutral, neither overbought nor oversold. The STOCH value of 73.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VKTX.

Viking Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	78 Outperform	$3.55B	15.46	37.24%	―	22.42%	―
Sector *	64 Neutral	¥343.76B	10.59	-2.88%	2.57%	11.81%	-7.17%
VKTX	53 Neutral	$3.11B	―	-14.40%	―	―	-23.84%
APLS	53 Neutral	$2.24B	―	-103.82%	―	48.04%	48.16%
CRNX	51 Neutral	$2.76B	―	-30.84%	―	―	-1.20%
SRRK	50 Neutral	$3.38B	―	-106.71%	―	―	-22.34%
IMVT	45 Neutral	$2.87B	―	-62.46%	―	―	-43.10%

Viking Therapeutics Corporate Events

Viking Therapeutics’ Promising Results for Obesity Treatment

Viking Therapeutics has presented promising data from its VK2735 obesity program at ObesityWeek® 2024, showcasing up to 8.2% weight loss from baseline with an oral formulation over 28 days. The treatment demonstrated strong tolerability, with mild GI-related side effects, and the potential for longer-term weight loss. These findings are significant for those exploring innovative solutions in metabolic disorder treatments, with both oral and subcutaneous forms of VK2735 showing durable effects.