Krystal Biotech (KRYS) AI Stock Analysis

• Market Cap: $4.69B
• Dividend Yield: N/A
• Average Volume (3M): 325.72K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.77
• Revenue Growth: 116.09%
• EPS Growth: 35.29%
• Country: US
• Employees: 275
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 1.29
• Shares Outstanding: 28,942,982
• 10 Day Avg. Volume: 437,262
• 30 Day Avg. Volume: 325,723
• PEG Ratio: 0.07
• Price to Book (P/B): 4.73
• Price to Sales (P/S): 15.42
• P/FCF Ratio: 37.58
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 9.51
• Enterprise Value/Gross Profit: 10.24
• Enterprise Value/Ebitda: 22.58
• 1Y Price Target: $200.56
• Price Target Upside: 19.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: $177.00 ▲(5.47% Upside)

Krystal Biotech's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. Technical analysis indicates a stable trend, while valuation concerns slightly temper the overall outlook. The company's strategic expansion plans and robust cash position support a favorable long-term growth trajectory.

Positive Factors

Regulatory Approval

The FDA's approval to expand VYJUVEK's eligible patient population enhances its market potential, reinforcing its leadership in treating DEB and potentially increasing revenue streams.

Global Expansion

Krystal Biotech's strategic global expansion into Japan and Europe positions the company for significant market growth, diversifying its revenue base and enhancing its competitive position.

Financial Health

Krystal Biotech's solid balance sheet and strong cash flow generation provide financial stability and flexibility to invest in growth opportunities and withstand market fluctuations.

Negative Factors

Revenue Decline

Anticipated revenue decline in Q3 due to seasonal factors may impact short-term financial performance, posing a challenge to maintaining consistent growth momentum.

Operational Challenges

Ongoing challenges in scaling the sales force could delay the company's ability to fully capitalize on market opportunities, potentially affecting revenue growth and market penetration.

Market Entry Delays

Potential delays in entering European and Japanese markets could hinder Krystal Biotech's global expansion efforts, affecting its ability to capture new revenue streams promptly.

Krystal Biotech Business Overview & Revenue Model

Company Description

Krystal Biotech, Inc., a clinical stage biotechnology company, engages in the field of redosable gene therapy to treat serious rare diseases in the United States. Its lead product candidate is beremagene geperpavec (B-VEC), which is in Phase III clinical study to treat dystrophic epidermolysis bullosa. The company is also involved in developing KB105 that is in Phase I/II clinical study for treating patients with deficient autosomal recessive congenital ichthyosis; KB301, which is in Phase I/II clinical stage for treating wrinkles and other presentations of aged or damaged skin; KB407 that is in preclinical stage for cystic fibrosis; and KB104, which is in preclinical stage for netherton syndrome. Its discovery stage product candidates include KB5xx for treating chronic skin diseases, KB3xx to treat aesthetic skin conditions, and KB3xx product. Krystal Biotech, Inc. was founded in 2015 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Krystal Biotech generates revenue primarily through the development and commercialization of its gene therapy products. The company's revenue model is based on potential product sales upon regulatory approval and market introduction of its therapies. Additionally, Krystal may engage in collaborative partnerships with pharmaceutical companies for research, development, and distribution, which can provide upfront payments, milestone payments, and royalties on sales. The company is also exploring avenues for funding through grants and research collaborations that support its clinical programs, enhancing its financial stability as it advances its product pipeline.

Krystal Biotech Financial Statement Overview

Summary

Krystal Biotech demonstrates strong financial health with significant revenue and profit growth, robust margins, and improved cash flow generation. The transition from losses to profitability and efficient capital management are notable. Maintaining this trajectory is crucial for sustained growth.

Income Statement

Krystal Biotech has shown impressive financial performance with a significant increase in total revenue from $50.7 million in 2023 to $290.5 million in 2024, indicating a strong revenue growth rate. The gross profit margin is robust at 93.1% for 2024, and the net profit margin stands at 30.7%, reflecting high profitability. Despite earlier losses, the company has turned profitable, with both EBIT and EBITDA margins improving significantly.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.008, indicating low leverage risk. The return on equity is 9.4%, reflecting efficient use of equity to generate profits. The equity ratio is high at 89.6%, suggesting a strong capital structure with a majority of assets financed by equity.

Cash Flow

The cash flow analysis reveals a positive turnaround with a free cash flow of $119.2 million in 2024 compared to negative figures in previous years. The operating cash flow to net income ratio is 1.38, indicating effective cash generation relative to net income. The company has managed to sustain positive cash flow, enhancing its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	359.20M	290.51M	50.70M	0.00	0.00	0.00
Gross Profit	333.84M	270.45M	47.60M	-4.05M	-2.77M	-1.85M
EBITDA	151.31M	109.91M	17.90M	-145.20M	-65.31M	-30.32M
Net Income	146.72M	89.16M	10.93M	-139.97M	-69.57M	-32.17M
Balance Sheet
Total Assets	1.14B	1.06B	818.36M	558.45M	626.29M	310.84M
Cash, Cash Equivalents and Short-Term Investments	681.99M	597.52M	532.18M	379.17M	438.10M	271.26M
Total Debt	1.62M	7.26M	8.09M	8.93M	8.02M	11.55M
Total Liabilities	97.75M	109.46M	39.71M	36.22M	32.72M	18.76M
Stockholders Equity	1.04B	946.38M	778.64M	522.23M	593.58M	292.08M
Cash Flow
Free Cash Flow	185.44M	119.18M	-100.60M	-153.55M	-116.27M	-40.93M
Operating Cash Flow	195.40M	123.42M	-88.80M	-100.57M	-47.94M	-26.08M
Investing Cash Flow	-183.40M	-163.44M	82.64M	-114.08M	-226.77M	-11.18M
Financing Cash Flow	-4.88M	27.01M	202.75M	35.35M	347.69M	118.02M

Krystal Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 167.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRYS, the sentiment is Positive. The current price of 167.82 is above the 20-day moving average (MA) of 153.43, above the 50-day MA of 149.49, and above the 200-day MA of 155.47, indicating a bullish trend. The MACD of 4.93 indicates Negative momentum. The RSI at 66.96 is Neutral, neither overbought nor oversold. The STOCH value of 80.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KRYS.

Krystal Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	78 Outperform	$4.69B	32.78	15.61%	―	116.09%	35.29%
ALKS	77 Outperform	4.60B	13.39	25.06%	―	-0.17%	23.84%
PTCT	58 Neutral	4.69B	8.46	-304.62%	―	96.00%	―
ACLX	51 Neutral	4.42B	-23.36	-23.60%	―	-60.63%	-216.87%
CRSP	49 Neutral	5.61B	-11.37	-18.96%	―	-81.18%	-69.19%
MLTX	41 Neutral	3.98B	-22.22	―	―	―	-208.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%