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Keros Therapeutics Inc

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Keros Therapeutics Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-31

Snapshot

  • Cash of 693M is 84% of market cap (827M) - trading near cash value with profitable operations generating 87M FCF TTM[Cash and Equivalents]
  • Rare profitable biotech: 18% operating margin TTM vs industry median of 0% - shifted from cash-burn to self-funding[Operating Margin TTM]
  • Revenue 5Y CAGR of 151% with 36% 1Y growth TTM - commercial traction accelerating while maintaining profitability[Total Revenue 5Y Growth TTM]

Watch Triggers

  • Operating Margin TTM: Falls below 10% or turns negativeProfitability is key differentiator; margin compression signals return to cash-burn biotech model
  • Cash and Equivalents: Drops below 500M without acquisitionCash floor thesis depends on fortress balance sheet; unexpected burn destroys margin of safety
  • Total Revenue 1Y Growth: Decelerates below 15%36% growth TTM justifies R&D spend; slowing growth questions commercial execution

Bull Case

Trading at EV of 151M with 693M cash and 87M annual FCF - effectively paying negative value for a profitable, growing biotech with active pipeline

Enterprise ValueCash and EquivalentsFree Cash Flow TTM

ROE of 10.4% and ROIC of 10.1% TTM exceptional for biotech - management deploying capital productively while peers burn cash

ROE TTMROIC TTMOperating Margin TTM

Bear Case

Revenue concentration risk - 247M TTM likely from limited products/partnerships; single trial failure could reverse profitability

Total Revenue TTMResearch and Development TTM

Small cap (827M) with 41M shares - any negative catalyst creates liquidity risk; biotech sentiment can gap stock below cash value

Market Cap TTMShares Outstanding

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
70%

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Forward Thesis

Cash fortress + profitability creates asymmetric risk/reward - downside protected by 693M cash floor

1-3yhigh
  • EV of only 151M implies market pricing in minimal pipeline value
  • FCF positive (87M TTM) extends runway indefinitely
  • Debt/equity of 0.02 eliminates dilution pressure
Cash 693M vs market cap 827MFCF margin 35% TTMNet income 64M TTM positive

R&D intensity (64% of revenue) positions for pipeline catalysts that could re-rate EV dramatically

1-3ymed
  • 157M R&D spend TTM on 247M revenue
  • Self-funded trials reduce binary financing risk
  • Low EV (151M) means any success is upside
R&D 157M TTMOperating income 45M TTM despite R&DEV/Revenue 0.6x vs industry 4x median

Valuation Context

Caveats

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