📊 KRYS Key Takeaways
Is Krystal Biotech, Inc. (KRYS) a Good Investment?
Krystal Biotech demonstrates exceptional fundamental strength with 48.1% net margins, 33.9% revenue growth, and explosive 129.7% net income growth driven by strong operating leverage. The company maintains a fortress balance sheet with $501.3M cash, minimal debt, and excellent free cash flow generation ($73.2M, 62.9% FCF margin), positioning it to weather biotech headwinds and fund long-term growth.
Krystal Biotech shows standout fundamentals with 33.9% revenue growth, exceptional operating (41.5%) and net (52.6%) margins, strong ROE/ROA, and a 48.5% FCF margin. A cash-rich, near-debt-free balance sheet supports continued investment, with upside if revenue proves recurring rather than milestone-driven.
Why Buy Krystal Biotech, Inc. Stock? KRYS Key Strengths
- Exceptional profitability: 48.1% net margin and 46.1% operating margin indicate strong pricing power and cost control
- Outstanding cash generation: $73.2M free cash flow with 62.9% margin demonstrates revenue quality and sustainability
- Fortress balance sheet: $501.3M cash, only $4.3M debt, minimal financial risk with 9.46x current ratio
- Accelerating bottom-line growth: Net income growth (129.7% YoY) outpacing revenue growth (33.9%) shows operating leverage
- Low capex intensity: Only $7.1M capex needed relative to cash generation suggests efficient, asset-light model
- Exceptional profitability and cash generation (operating margin 41.5%, FCF margin 48.5%).
- Robust liquidity and minimal leverage (current ratio 9.95x; negligible debt).
- Healthy returns on capital (ROE 16.8%, ROA 15.4%).
KRYS Stock Risks: Krystal Biotech, Inc. Investment Risks
- Capital efficiency concerns: ROE of 4.4% and ROA of 4.0% despite strong profitability suggests underdeployed capital and excess cash accumulation
- Biotech-specific risks: Regulatory approval uncertainties, product pipeline execution, and potential competitive threats inherent to sector
- Margin sustainability risk: 48.1% net margin may not be sustainable if product mix shifts or competitive pressures increase
- Incomplete profitability visibility: Gross margin data unavailable prevents full assessment of product-level profitability
- Growth deceleration potential: Whether 33.9% revenue growth can be sustained remains uncertain; net income growth appears non-linear
- Revenue durability and concentration risk typical of early commercial biotechs.
- Potential non-recurring or milestone revenue inflating margins (gross margin N/A).
- Pricing/reimbursement and regulatory/manufacturing execution could pressure growth.
Key Metrics to Watch
- Gross margin trends and product-level profitability
- Quarterly revenue growth sustainability and any signs of deceleration
- Operating cash flow consistency and working capital management
- Strategic deployment or capital allocation of accumulated $501.3M cash reserve
- Regulatory approval progress and product pipeline advancement
- Revenue mix: recurring product vs one-time/milestone.
- Operating margin sustainability (target >=35%).
Krystal Biotech, Inc. (KRYS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 62.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 9.46x current ratio provides a solid financial cushion.
KRYS Profit Margin, ROE & Profitability Analysis
KRYS vs Healthcare Sector: How Krystal Biotech, Inc. Compares
How Krystal Biotech, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Krystal Biotech, Inc. Stock Overvalued? KRYS Valuation Analysis 2026
Based on fundamental analysis, Krystal Biotech, Inc. has mixed fundamental signals 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.
Krystal Biotech, Inc. Balance Sheet: KRYS Debt, Cash & Liquidity
KRYS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Krystal Biotech, Inc.'s revenue has grown significantly by 668% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.39 reflects profitable operations.
KRYS Revenue Growth, EPS Growth & YoY Performance
KRYS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $88.2M | $35.7M | $1.20 |
| Q3 2025 | $83.8M | $932.0K | $0.91 |
| Q2 2025 | $70.3M | $932.0K | $0.53 |
| Q1 2025 | $45.3M | $932.0K | $0.03 |
| Q3 2024 | $8.6M | $932.0K | $0.08 |
| Q2 2024 | N/A | $932.0K | $0.53 |
| Q1 2024 | N/A | $932.0K | $0.03 |
| Q3 2023 | N/A | $2.2M | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Krystal Biotech, Inc. Dividends, Buybacks & Capital Allocation
KRYS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Krystal Biotech, Inc. (CIK: 0001711279)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KRYS
What is the AI rating for KRYS?
Krystal Biotech, Inc. (KRYS) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KRYS's key strengths?
Claude: Exceptional profitability: 48.1% net margin and 46.1% operating margin indicate strong pricing power and cost control. Outstanding cash generation: $73.2M free cash flow with 62.9% margin demonstrates revenue quality and sustainability. ChatGPT: Exceptional profitability and cash generation (operating margin 41.5%, FCF margin 48.5%).. Robust liquidity and minimal leverage (current ratio 9.95x; negligible debt)..
What are the risks of investing in KRYS?
Claude: Capital efficiency concerns: ROE of 4.4% and ROA of 4.0% despite strong profitability suggests underdeployed capital and excess cash accumulation. Biotech-specific risks: Regulatory approval uncertainties, product pipeline execution, and potential competitive threats inherent to sector. ChatGPT: Revenue durability and concentration risk typical of early commercial biotechs.. Potential non-recurring or milestone revenue inflating margins (gross margin N/A)..
What is KRYS's revenue and growth?
Krystal Biotech, Inc. reported revenue of $116.4M.
Does KRYS pay dividends?
Krystal Biotech, Inc. does not currently pay dividends.
Where can I find KRYS SEC filings?
Official SEC filings for Krystal Biotech, Inc. (CIK: 0001711279) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KRYS's EPS?
Krystal Biotech, Inc. has a diluted EPS of $1.83.
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 KRYS a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Krystal Biotech, Inc. has a BUY rating with 82% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is KRYS stock overvalued or undervalued?
Valuation metrics for KRYS: ROE of 4.4% (sector avg: 15%), net margin of 48.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KRYS stock in 2026?
Our dual AI analysis gives Krystal Biotech, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is KRYS's free cash flow?
Krystal Biotech, Inc.'s operating cash flow is $80.4M, with capital expenditures of $7.1M. FCF margin is 62.9%.
How does KRYS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 48.1% (avg: 12%), ROE 4.4% (avg: 15%), current ratio 9.46 (avg: 2).