📊 KROS Key Takeaways
Is KROS a Good Investment? Thesis Analysis
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.
Why Buy 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
KROS Investment Risks to Consider
- 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
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
KROS Financial Metrics
💡 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 Profitability Ratios
KROS vs Healthcare Sector
How Keros Therapeutics, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KROS Overvalued or Undervalued?
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.
KROS Balance Sheet & Liquidity
KROS 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
KROS Quarterly 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.
KROS Capital Allocation
KROS SEC 10-K & 10-Q Filing 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 an AI rating of HOLD with 72% 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.
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.
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 HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. 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 HOLD 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).