📊 KROS Key Takeaways
Is Keros Therapeutics, Inc. (KROS) a Good Investment?
Keros Therapeutics demonstrates exceptional financial health with outstanding profitability (35.7% net margin), fortress-like liquidity (15.45x current ratio), and robust free cash flow generation (43.4% FCF margin). However, flat revenue growth (-0.1% YoY) in a pharmaceutical company is concerning and suggests potential business maturity, product challenges, or market saturation that outweighs the strength of current operations and balance sheet.
Keros shows exceptional profitability and cash generation with a debt-free, cash-rich balance sheet, reflected in high margins, ROE/ROA, and strong free cash flow. However, flat revenue YoY and net income exceeding operating income suggest a meaningful contribution from non-operating items and/or potentially non-recurring collaboration revenues, raising durability questions. On balance, the financial strength supports a Buy, while closely monitoring the quality and persistence of earnings.
Why Buy Keros Therapeutics, Inc. Stock? KROS Key Strengths
- Exceptional net margin of 35.7% with strong operating efficiency (27.7% operating margin)
- Fortress balance sheet with zero long-term debt, $287.4M cash position, and 15.45x current ratio
- Outstanding free cash flow generation of $106M annually (43.4% FCF margin) with minimal capex requirements
- Strong returns on equity (28.7%) and assets (25.7%) demonstrating effective capital deployment
- Asset-light business model evidenced by only $1.6M annual capital expenditure
- Debt-free, cash-rich balance sheet with 15.45x current ratio
- Strong profitability: 27.7% operating margin, 35.7% net margin, high ROE/ROA
- Robust cash generation: 43.4% FCF margin and positive OCF
KROS Stock Risks: Keros Therapeutics, Inc. Investment Risks
- Flat revenue growth (-0.1% YoY) raises concerns about product pipeline, market demand, or business maturity
- Stagnant net income (+0.0% YoY) despite 146% EPS growth suggests shareholder dilution reduction rather than earnings expansion
- Gross margin not disclosed, limiting visibility into pricing power, cost structure, and product mix health
- Excessive cash accumulation at 85% of total assets suggests capital allocation challenges or uncertainty about growth investments
- 11 insider Form 4 filings in 90 days require monitoring for sentiment indicators
- Revenue quality/sustainability risk from potential milestone or collaboration-driven sales
- Earnings buoyed by non-operating items (net > operating), sensitive to interest income
- Biopharma execution risk (clinical/regulatory) that could require higher R&D spend and compress margins
Key Metrics to Watch
- Revenue growth rate and new product commercialization timeline
- Gross margin trends and gross profit disclosure
- Free cash flow sustainability as business potentially matures
- Capital allocation strategy and cash deployment decisions
- Operating cash flow consistency and working capital management
- Revenue mix: recurring product vs one-time collaboration/milestones
- Operating cash flow and FCF margin trend
Keros Therapeutics, Inc. (KROS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 43.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 15.45x current ratio provides a solid financial cushion.
KROS Profit Margin, ROE & Profitability Analysis
KROS vs Healthcare Sector: How Keros Therapeutics, Inc. Compares
How Keros Therapeutics, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Keros Therapeutics, Inc. Stock Overvalued? KROS Valuation Analysis 2026
Based on fundamental analysis, Keros Therapeutics, Inc. appears fundamentally strong relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Keros Therapeutics, Inc. Balance Sheet: KROS Debt, Cash & Liquidity
KROS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Keros Therapeutics, Inc.'s revenue has grown significantly by 1,114% over the 5-year period, indicating strong business expansion. The most recent EPS of $-5.00 indicates the company is currently unprofitable.
KROS Revenue Growth, EPS Growth & YoY Performance
KROS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $388.0K | -$7.3M | $-0.18 |
| Q2 2025 | $37.0K | -$30.7M | $-0.76 |
| Q1 2025 | $83.0K | -$43.1M | $-1.21 |
| Q3 2024 | $8.0K | -$35.8M | $-1.33 |
| Q2 2024 | N/A | -$35.8M | $-1.25 |
| Q1 2024 | N/A | -$35.8M | $-1.21 |
| Q3 2023 | N/A | -$23.5M | $-0.92 |
| Q3 2022 | N/A | -$15.6M | $-0.87 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Keros Therapeutics, Inc. Dividends, Buybacks & Capital Allocation
KROS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Keros Therapeutics, Inc. (CIK: 0001664710)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KROS
What is the AI rating for KROS?
Keros Therapeutics, Inc. (KROS) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KROS's key strengths?
Claude: Exceptional net margin of 35.7% with strong operating efficiency (27.7% operating margin). Fortress balance sheet with zero long-term debt, $287.4M cash position, and 15.45x current ratio. ChatGPT: Debt-free, cash-rich balance sheet with 15.45x current ratio. Strong profitability: 27.7% operating margin, 35.7% net margin, high ROE/ROA.
What are the risks of investing in KROS?
Claude: Flat revenue growth (-0.1% YoY) raises concerns about product pipeline, market demand, or business maturity. Stagnant net income (+0.0% YoY) despite 146% EPS growth suggests shareholder dilution reduction rather than earnings expansion. ChatGPT: Revenue quality/sustainability risk from potential milestone or collaboration-driven sales. Earnings buoyed by non-operating items (net > operating), sensitive to interest income.
What is KROS's revenue and growth?
Keros Therapeutics, Inc. reported revenue of $243.9M.
Does KROS pay dividends?
Keros Therapeutics, Inc. does not currently pay dividends.
Where can I find KROS SEC filings?
Official SEC filings for Keros Therapeutics, Inc. (CIK: 0001664710) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KROS's EPS?
Keros Therapeutics, Inc. has a diluted EPS of $2.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KROS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Keros Therapeutics, Inc. has a BUY rating with 73% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is KROS stock overvalued or undervalued?
Valuation metrics for KROS: ROE of 28.7% (sector avg: 15%), net margin of 35.7% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy KROS stock in 2026?
Our dual AI analysis gives Keros Therapeutics, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is KROS's free cash flow?
Keros Therapeutics, Inc.'s operating cash flow is $107.5M, with capital expenditures of $1.6M. FCF margin is 43.4%.
How does KROS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 35.7% (avg: 12%), ROE 28.7% (avg: 15%), current ratio 15.45 (avg: 2).
Why is KROS's return on equity (ROE) so high?
Keros Therapeutics, Inc. has a return on equity of 28.7%, significantly above the Healthcare sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 35.7% net margin.