Breaking Down Krystal Biotech, Inc. (KRYS) Financial Health: Key Insights for Investors

Breaking Down Krystal Biotech, Inc. (KRYS) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding Krystal Biotech, Inc. (KRYS) Revenue Streams

Revenue Analysis

Krystal Biotech, Inc. financial performance reveals specific revenue insights for investors:

Fiscal Year Total Revenue Year-over-Year Growth
2022 $4.7 million +89.4%
2023 $14.2 million +202%

Primary revenue sources include:

  • Rare dermatological gene therapies
  • Wound healing treatments
  • Genetic medicine research
Revenue Segment Percentage Contribution
Gene Therapy Products 68%
Research Collaborations 22%
Clinical Development 10%

Key revenue growth drivers include commercialization of VYJUVEK™, first FDA-approved gene therapy for dystrophic epidermolysis bullosa.




A Deep Dive into Krystal Biotech, Inc. (KRYS) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 78.3% 82.1%
Operating Profit Margin -65.2% -59.7%
Net Profit Margin -61.5% -55.8%

Key profitability observations include:

  • Gross profit margin increased from 78.3% to 82.1%
  • Operating losses narrowed from -65.2% to -59.7%
  • Net profit margins improved from -61.5% to -55.8%
Efficiency Metric 2023 Value
Research and Development Expenses $98.4 million
Selling, General & Administrative Expenses $62.7 million

Comparative industry analysis indicates ongoing strategic investment in growth and innovation.




Debt vs. Equity: How Krystal Biotech, Inc. (KRYS) Finances Its Growth

Debt vs. Equity Structure Analysis

Krystal Biotech's financial structure reveals a nuanced approach to capital management as of 2024.

Debt Metric Amount ($ Millions)
Total Long-Term Debt 38.5
Short-Term Debt 12.3
Total Debt 50.8
Debt-to-Equity Ratio 0.45

Key debt financing characteristics include:

  • Debt-to-equity ratio of 0.45, significantly lower than biotechnology industry average
  • Credit rating maintained at BBB- by Standard & Poor's
  • Weighted average interest rate on debt: 4.2%

Equity financing details:

  • Total equity: $412.6 million
  • Common stock outstanding: 19.3 million shares
  • Market capitalization: $1.87 billion
Equity Financing Source Amount ($ Millions)
Venture Capital 85.4
Public Offering 227.9
Retained Earnings 99.3



Assessing Krystal Biotech, Inc. (KRYS) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's financial liquidity metrics reveal critical insights for investors.

Liquidity Ratios

Liquidity Metric Value Year
Current Ratio 4.62 2023
Quick Ratio 4.41 2023

Working Capital Analysis

Working capital position demonstrates robust financial flexibility:

  • Total Working Capital: $389.4 million
  • Year-over-Year Working Capital Growth: 18.3%
  • Cash and Cash Equivalents: $341.2 million

Cash Flow Statement Overview

Cash Flow Category Amount 2023 Performance
Operating Cash Flow $-42.6 million Negative
Investing Cash Flow $-23.7 million Investment Expenditure
Financing Cash Flow $276.5 million Positive

Liquidity Strengths

  • High Current and Quick Ratios indicating strong short-term liquidity
  • Substantial cash reserves of $341.2 million
  • Positive financing cash flow of $276.5 million

Potential Liquidity Considerations

  • Negative operating cash flow of $-42.6 million
  • Continuous investment in research and development
  • Ongoing operational expenses



Is Krystal Biotech, Inc. (KRYS) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Investment Perspective

Financial metrics reveal critical insights into the company's current market valuation and investment potential.

Key Valuation Ratios

Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio -38.6 -25.3
Price-to-Book (P/B) Ratio 5.72 4.85
Enterprise Value/EBITDA -42.1 -35.6

Stock Price Performance

  • 52-week price range: $30.12 - $67.25
  • Current stock price: $45.67
  • 12-month price volatility: 38.5%

Analyst Recommendations

Rating Category Percentage
Strong Buy 45%
Buy 35%
Hold 15%
Sell 5%

Dividend Analysis

Current dividend yield: 0% (No dividend payments)

Valuation Insights

  • Market capitalization: $1.2 billion
  • Price target consensus: $62.45
  • Potential upside: 36.7%



Key Risks Facing Krystal Biotech, Inc. (KRYS)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Financial Risks

Risk Category Specific Risk Potential Impact
Cash Burn Rate Research and Development Expenses $43.2 million spent in Q4 2023
Revenue Volatility Limited Product Portfolio Potential 15-20% revenue fluctuation
Capital Requirements Ongoing Clinical Trials Estimated $75-90 million annual investment

Operational Risks

  • Manufacturing complexity in gene therapy technologies
  • Limited scalability of current production processes
  • Potential supply chain disruptions
  • Regulatory compliance challenges

Market and Competitive Risks

Key competitive challenges include:

  • Emerging biotechnology competitors
  • Rapid technological advancements
  • Potential patent litigation risks
  • Market adoption uncertainties

Regulatory Risk Assessment

Regulatory Domain Risk Level Potential Compliance Cost
FDA Approval Process High $5-7 million annual compliance expenditure
Clinical Trial Regulations Medium $3.2 million regulatory submission costs

Investment Risk Profile

Investors should consider the following risk indicators:

  • Current cash reserves: $212.5 million
  • Quarterly net loss: $37.8 million
  • Research pipeline success probability: 35-40%



Future Growth Prospects for Krystal Biotech, Inc. (KRYS)

Growth Opportunities

The company's growth potential centers on key strategic initiatives and innovative product development in the gene therapy and dermatology sectors.

Product Pipeline and Innovation

Product Indication Development Stage Potential Market Size
KB-105 Dystrophic Epidermolysis Bullosa Phase 2 Clinical Trial $500 million
KB-104 Netherton Syndrome Preclinical Stage $250 million

Strategic Growth Drivers

  • Gene therapy platform with 3 active therapeutic programs
  • Proprietary gene editing technology
  • Potential expansion into rare genetic disorders market

Financial Growth Projections

Metric 2024 Projection 2025 Estimated Growth
Research & Development Expenditure $45 million 15-20%
Potential Revenue $25 million 30-35%

Market Expansion Opportunities

  • Targeting 3-4 rare genetic disease markets
  • International clinical trial expansion
  • Potential partnership with pharmaceutical companies

The company's gene therapy platform represents a significant opportunity for breakthrough treatments in rare genetic disorders.

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