Breaking Down Kazia Therapeutics Limited (KZIA) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Are you curious about the financial stability of biotech firms like Kazia Therapeutics? For the fiscal year ending June 30, 2024, Kazia Therapeutics reported a revenue of $1.65 million, but also a net loss of AUD 26.78 million. With a market capitalization of $5.48 million and a weak financial health score of 1.46, is Kazia a risky bet or an opportunity waiting to be discovered? Dive in as we dissect Kazia Therapeutics' financial performance, providing you with key insights to inform your investment decisions.

Kazia Therapeutics Limited (KZIA) Revenue Analysis

As a pharmaceutical company focused on oncology, understanding Kazia Therapeutics Limited's revenue streams is crucial for investors. Given its stage of development, it's important to examine its sources of income and how they contribute to the company's financial stability.

Here's a breakdown of what to consider regarding Kazia Therapeutics Limited's revenue streams:

• Primary Revenue Sources: Kazia Therapeutics Limited, being a clinical-stage oncology-focused pharmaceutical company, primarily generates revenue through strategic collaborations, licensing agreements, and milestone payments related to its drug development programs rather than from direct product sales.
• Year-over-Year Revenue Growth Rate: Investors should closely monitor the company's historical revenue trends to gauge its growth trajectory. Revenue growth is typically tied to the achievement of clinical milestones and the progression of its drug candidates through the development pipeline. The percentage increase or decrease in revenue from year to year provides insights into the success of its collaborations and licensing activities.
• Contribution of Business Segments: Kazia Therapeutics Limited focuses on the development of innovative oncology therapies. The revenue contribution from its programs depends on the stage of development, licensing agreements, and partnership deals associated with each drug candidate.
• Significant Changes in Revenue Streams: Any substantial changes in Kazia Therapeutics Limited's revenue streams should be carefully analyzed. These shifts could be due to new licensing agreements, the termination of existing partnerships, or the achievement of significant clinical milestones that trigger revenue recognition.

For more detailed insights, you can explore Breaking Down Kazia Therapeutics Limited (KZIA) Financial Health: Key Insights for Investors.

Kazia Therapeutics Limited (KZIA) Profitability Metrics

Analyzing Kazia Therapeutics Limited's profitability requires a detailed look at several key metrics. These include gross profit, operating profit, and net profit margins, which together paint a picture of the company's financial health and efficiency. Understanding these elements helps investors gauge how well Kazia Therapeutics manages its costs and generates profit from its revenue.

As of the fiscal year 2024, here’s a breakdown of crucial profitability aspects:

• Gross Profit: Gross profit is calculated by deducting the cost of goods sold (COGS) from the total revenue. It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit is derived by subtracting operating expenses (such as administrative and research costs) from the gross profit. This metric reflects the profitability of the company’s core business operations before interest and taxes.
• Net Profit: Net profit is what remains after all expenses, including interest and taxes, are deducted from the total revenue. It represents the actual profit available to the company’s owners or shareholders.

Unfortunately, specific figures for these metrics as of fiscal year 2024 are not available in the search results. Typically, to evaluate these figures effectively, one would:

• Examine trends in profitability over several periods to identify improvements or declines.
• Compare Kazia Therapeutics' profitability ratios with those of its industry peers to assess its relative performance.
• Analyze operational efficiency by focusing on cost management and gross margin trends to understand how well the company controls its expenses and maximizes its earnings.

Without precise 2024 numbers, a general approach involves looking at historical data and industry benchmarks to infer the company's financial standing. Investors often scrutinize these metrics during earnings reports and investor presentations.

For more insights into the investor side of things, check out: Exploring Kazia Therapeutics Limited (KZIA) Investor Profile: Who’s Buying and Why?

Kazia Therapeutics Limited (KZIA) Debt vs. Equity Structure

Understanding how Kazia Therapeutics Limited (KZIA) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and its approach to balancing debt and equity funding.

Here’s a breakdown of KZIA's debt and equity situation:

• Debt Levels: As of the latest data, KZIA has a relatively low level of debt.
• Short-term debt: The company's most recent total debt is reported at approximately $634,000 as of June 30, 2024.
• Long-term debt: In a report from December 2024, KZIA's long-term debt was $0 million.

The company's cash and debt position results in a net cash position of $682,546, or $0.61 per share.

The company's balance sheet as of June 30, 2024, shows:

Debt-to-Equity Ratio: KZIA's debt-to-equity ratio is not applicable due to its negative equity. As of a report in March 2025, the KZIA maintains more cash than debt on its balance sheet. A more recent debt-to-equity ratio reported in April 2025 is -6.3%.

Recent Financing Activities:

• Equity Offerings: KZIA has recently utilized equity financing.
• In January 2025, KZIA closed a registered direct offering, raising approximately $2 million.
• In February 2023, Kazia completed an equity financing round, raising approximately AU$7.1 million.

Balancing Debt and Equity: KZIA strategically balances debt and equity to fund its operations. While it maintains a low debt profile, the company actively engages in equity offerings to raise capital for research, clinical development, and general corporate purposes.

For insights into the company's goals, see: Mission Statement, Vision, & Core Values of Kazia Therapeutics Limited (KZIA).

Kazia Therapeutics Limited (KZIA) Liquidity and Solvency

Analyzing Kazia Therapeutics Limited's financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term liabilities.

Assessing Kazia Therapeutics Limited's Liquidity:

• Current and Quick Ratios: These ratios provide insight into Kazia Therapeutics Limited's ability to cover its short-term liabilities with its current assets. A current ratio of greater than 1 indicates that the company has more current assets than current liabilities. The quick ratio, which excludes inventory, offers a more conservative view of liquidity.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps to identify whether the company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: A review of the cash flow statements, specifically focusing on cash flow from operating, investing, and financing activities, is crucial. Positive cash flow from operations indicates that the company is generating cash from its core business activities, which is a positive sign for liquidity.
• Potential Liquidity Concerns or Strengths: Any significant changes in these metrics should be investigated further to determine if there are any potential liquidity concerns or strengths.

As of the financial year 2024, it's essential to consider the following aspects based on the latest available data:

Cash Flow Statements Overview

Cash flow statements are critical for understanding the movement of cash both into and out of Kazia Therapeutics. Analyzing the trends in operating, investing, and financing cash flows provides a comprehensive view of the company's financial activities.

• Operating Cash Flow: Look for trends in cash generated from the company's core business activities. Positive operating cash flow indicates that the company's primary operations are a source of cash, which can be used to fund investments or repay debt.
• Investing Cash Flow: This section includes cash flow from the purchase and sale of long-term assets. Significant outflows in this area might indicate investments in future growth, while inflows could signal divestitures.
• Financing Cash Flow: This involves cash flow related to debt, equity, and dividends. Monitoring this section can reveal how the company is funding its operations and whether it's relying more on debt or equity.

By examining these cash flow trends, investors can gain a deeper understanding of Kazia Therapeutics Limited's financial stability and its capacity to fund future growth initiatives.

While specific figures for 2024 are not available, examining historical reports and releases will provide a clearer picture of Kazia Therapeutics Limited's financial trajectory. Furthermore, understanding the company's Mission Statement, Vision, & Core Values of Kazia Therapeutics Limited (KZIA). can provide context for its strategic financial decisions.

Kazia Therapeutics Limited (KZIA) Valuation Analysis

Determining whether Kazia Therapeutics Limited (KZIA) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock performance analysis, and analyst opinions. Let's delve into the key indicators to assess KZIA's valuation.

Is Kazia Therapeutics Limited (KZIA) Overvalued or Undervalued?

To assess whether KZIA is overvalued or undervalued, consider the following:

• Price-to-earnings (P/E) Ratio: KZIA's P/E ratio is reported as -1.1x. Given that the company currently has negative earnings, the P/E ratio is not particularly useful for valuation at this time.
• Price-to-book (P/B) Ratio: The price-to-book ratio for KZIA is -2.9x. A negative P/B ratio can indicate financial distress or negative book value, requiring careful interpretation.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is not applicable (n/a), likely due to negative EBITDA.

Stock Price Trends

Analyzing the stock price trends provides insights into market sentiment and investor confidence:

• 12-Month Range: Over the past year, KZIA's stock price has fluctuated significantly, with a 52-week high of $79.00 and a low of $2.86.
• Recent Performance: As of April 17, 2025, the stock price was around $3.30. Recent performance indicates volatility, with significant fluctuations over the past months. For instance, the stock price decreased by -77.32% in the last 52 weeks.

Additional Valuation Metrics

Here are some additional metrics to consider:

• Market Capitalization: KZIA has a market cap of approximately $3.69 million.
• Enterprise Value: The enterprise value is around $3.01 million.
• Price to Sales Ratio: The price-to-sales ratio is 1.15x.

Analyst Consensus

Analyst ratings provide a sense of market sentiment:

• Overall Consensus: The consensus among analysts is a 'Buy'.
• Price Target: The average analyst price target is approximately $2.99. However, individual forecasts vary, with some analysts having higher price targets. For example, one analyst has a high estimate of $3.00.

Financial Health Indicators

Key financial health indicators include:

• Current Ratio: A current ratio of 0.24 indicates potential liquidity issues.
• Debt and Cash Position: KZIA has approximately $1.11 million in cash and $423,005 in debt.

Here is a summary of Kazia Therapeutics Limited (KZIA) ratios:

For further insights, you can read more at: Breaking Down Kazia Therapeutics Limited (KZIA) Financial Health: Key Insights for Investors

Kazia Therapeutics Limited (KZIA) Risk Factors

Several factors, both internal and external, can significantly impact Kazia Therapeutics Limited's (KZIA) financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Here's an overview of key risk areas:

• Industry Competition: The biotechnology sector is intensely competitive. Kazia Therapeutics Limited faces competition from larger pharmaceutical companies with greater resources, as well as smaller biotech firms. Successful development and commercialization of new therapies depend on securing patents, demonstrating clinical efficacy, and navigating regulatory pathways more effectively than competitors.
• Regulatory Changes: The development and commercialization of pharmaceutical products are heavily regulated. Changes in regulations by bodies such as the FDA in the United States or similar organizations in other countries can significantly affect the timeline and cost of bringing new drugs to market.
• Market Conditions: Economic downturns or shifts in healthcare spending can impact the demand for new therapies. Market acceptance of new drugs also depends on factors such as pricing, reimbursement policies by insurance companies, and the perceived benefits relative to existing treatments.

Operational, financial, and strategic risks are often highlighted in Kazia Therapeutics Limited's earnings reports and filings. These can include:

• Clinical Trial Risks: The failure of clinical trials is a significant risk. Drug development is a lengthy and uncertain process, and promising preclinical results do not always translate into successful clinical outcomes.
• Financial Risks: Biotech companies often require substantial capital to fund research and development. Kazia Therapeutics Limited may need to raise additional funds through equity or debt financing, which can dilute existing shareholders' ownership or increase the company's debt burden.
• Strategic Risks: Strategic risks involve decisions related to product development, partnerships, and market entry. Poor strategic choices can lead to wasted resources and missed opportunities.

Mitigation strategies or plans to address these risks may include:

• Diversification of Pipeline: Developing a portfolio of drug candidates targeting different indications can reduce the risk associated with the failure of any single product.
• Strategic Partnerships: Collaborating with larger pharmaceutical companies can provide financial resources and expertise in drug development and commercialization.
• Careful Financial Management: Maintaining a strong balance sheet and managing cash flow effectively can help Kazia Therapeutics Limited weather periods of uncertainty.

For more insights into Kazia Therapeutics Limited's (KZIA) financial health, you can read the full analysis here: Breaking Down Kazia Therapeutics Limited (KZIA) Financial Health: Key Insights for Investors

Kazia Therapeutics Limited (KZIA) Growth Opportunities

Kazia Therapeutics Limited, a company focused on developing innovative oncology therapies, faces both opportunities and challenges in its pursuit of growth. The company's future prospects are tied to its ability to navigate the complexities of clinical trials, regulatory approvals, and market dynamics.

Here's an analysis of the key growth drivers, projections, strategic initiatives, and competitive advantages that could shape Kazia's future:

• Product Innovations: Kazia's lead program is paxalisib, a brain-penetrant inhibitor of the PI3K / Akt / mTOR pathway, being developed for various forms of brain cancer. Paxalisib has been the subject of ten clinical trials.
• Market Expansions: Kazia has licensed Greater China rights for paxalisib to Simcere Pharmaceutical Group. Simcere will handle certain development activities and commercialization of the drug in that territory.
• Strategic Initiatives: Kazia is exploring the potential of paxalisib in combination with immunotherapy for advanced breast cancer. A Phase 1b study will evaluate paxalisib with KEYTRUDA® or LYNPARZA® in women with triple-negative breast cancer.
• Partnerships:
  • Genentech: Kazia has a worldwide exclusive license agreement with Genentech for paxalisib.
  • Evotec SE: Kazia has a worldwide exclusive license agreement with Evotec SE to develop and commercialize EVT801.

Here's a look at some financial forecasts and estimates:

However, it's important to note that another source projects a quarterly revenue of 0 MM by June 30, 2023, representing a -98.11% change, and a consensus EPS forecast for the fiscal quarter 2025 (Q4) is -$1.39.

Despite the potential, Kazia faces financial challenges. In the last 12 months, it had revenue of $1.66 million and losses of -$17.87 million. The loss per share was -$33.88.

One Wall Street analyst estimates that Kazia Therapeutics's share price could reach $3.00 by Feb 6, 2026. The average Kazia Therapeutics stock price prediction forecasts a potential upside of 323.73% from the current KZIA share price of $0.71.

Kazia's financial efficiency metrics reveal a return on equity (ROE) of -2,634.33% and a return on invested capital (ROIC) of -797.17%.

Kazia has a market cap or net worth of $3.69 million and an enterprise value of $3.01 million.

The company's revenue growth forecast for the next 5 years is 80.61%.

Strategic moves like the sale of Cantrixil IP for $1 million provide non-dilutive funding to advance its clinical-stage pipeline.

For more insights into Kazia Therapeutics Limited (KZIA) financial health, you can refer to this in-depth analysis: Breaking Down Kazia Therapeutics Limited (KZIA) Financial Health: Key Insights for Investors