Korro Bio (KRRO) AI Stock Analysis

• Market Cap: $163.74M
• Dividend Yield: N/A
• Average Volume (3M): 83.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.98
• Revenue Growth: N/A
• EPS Growth: 85.19%
• Country: US
• Employees: 104
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -9.38
• Shares Outstanding: 9,388,902
• 10 Day Avg. Volume: 118,515
• 30 Day Avg. Volume: 83,681
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 98.23
• Price to Cash Flow (P/CF): -7.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $133.00
• Price Target Upside: 662.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Korro Bio's stock is currently under pressure due to significant financial challenges typical of early-stage biotech firms, such as high R&D costs leading to losses and reliance on external funding. The technical indicators also suggest a bearish trend, and the company's negative P/E ratio highlights its unprofitability. While some revenue growth is promising, operational cost management is crucial for future profitability.

Positive Factors

Clinical Trials

The completion of dosing the first two healthy volunteer cohorts may hint at positive safety results for KRRO-110.

Market Opportunities

The market-cap difference between KRRO (~$230M) and BEAM (~$2,300M) is seen as an arbitrage opportunity and would be KRRO buyers.

Regulatory Advantages

KRRO-110 received orphan drug designation from the FDA, which would provide seven years market exclusivity if approved among other advantages.

Negative Factors

Competition

The opportunity for KRRO-110 in AATD could potentially be similar or superior to BEAM-302, highlighting competition in the market.

Financial Performance

Korro reported a fourth quarter 2024 net loss of $21.2 million, or $2.38 per share, which beat the consensus estimate of $23.5 million.

Market Risks

Absence of AEs with up to 5mpk LNP dose in NHPs increases confidence in KRRO-110 LNP safety/utilization, which is the main investor pushback.

Korro Bio Business Overview & Revenue Model

Company Description

Korro Bio, Inc., a biopharmaceutical company, discovers, develops, and commercializes genetic medicines based on editing RNA for the treatment of rare and highly prevalent diseases. Korro Bio, Inc. is based in Cambridge, Massachusetts.

How the Company Makes Money

Korro Bio makes money primarily through the development and commercialization of its RNA editing therapies. The company generates revenue by partnering with pharmaceutical and biotechnology companies for licensing its technology, as well as through research collaborations. These partnerships often involve upfront payments, milestone payments based on development progress, and royalties on sales of any resulting therapies. Additionally, Korro Bio may receive funding from grants and research initiatives focused on advancing genetic medicine. The company's revenue streams are significantly influenced by its ability to advance its therapies through clinical development and regulatory approval, which in turn attract investment and partnering opportunities.

Korro Bio Financial Statement Overview

Summary

Korro Bio faces significant operational and financial challenges, with declining revenue and consistent negative income. Cash reserves provide a financial buffer, but high debt levels and cash burn pose risks without revenue recovery.

Income Statement

Korro Bio has faced declining revenue over the years, with a notable decrease in total revenue to zero in recent periods. The company has consistently reported negative EBIT and net income, pointing to operational challenges. Gross profit and EBITDA margins are also negative, indicating issues with cost management and efficiency. Despite these challenges, the biotechnology sector often faces long R&D phases before profitability, which contextualizes some of these financial trends.

Balance Sheet

The balance sheet reveals a declining equity position, with stockholders' equity becoming negative in 2022. The debt-to-equity ratio is high due to substantial liabilities relative to equity. However, the company's cash reserves remain significant, which provides a buffer. The equity ratio is weak, suggesting heavy reliance on debt and liabilities, which could pose risks if cash reserves dwindle without revenue recovery.

Cash Flow

Negative operating cash flows and free cash flows are a concern, highlighting ongoing cash burn. The company has managed to sustain operations through significant financing activities, indicating investor support. However, the reliance on external financing without corresponding revenue presents sustainability challenges, unless new revenue streams are developed or costs are curtailed.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	14.07M	36.98M	28.95M
	Gross Profit
-3.20M	-3.63M	-2.51M	10.23M	35.40M	12.13M
	EBIT
-108.40M	-84.53M	-59.00M	-35.49M	-27.55M	-20.68M
	EBITDA
-102.99M	-80.90M	-56.49M	-33.90M	-24.90M	-17.93M
	Net Income Common Stockholders
-101.60M	-81.17M	-58.03M	-21.96M	-26.51M	-18.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
130.71M	166.15M	55.25M	118.53M	220.34M	217.35M
	Total Assets
185.36M	221.66M	73.74M	127.58M	264.72M	223.22M
	Total Debt
45.60M	33.21M	3.13M	45.60M	45.99M	0.00
	Net Debt
-34.04M	-132.94M	-33.20M	-37.89M	-174.35M	-200.16M
	Total Liabilities
54.53M	51.75M	172.77M	169.78M	72.23M	55.86M
	Stockholders Equity
130.82M	169.91M	-99.03M	-42.21M	192.49M	167.36M
Cash Flow		Free Cash Flow
-116.69M	-75.12M	-58.86M	-36.54M	-51.86M	33.15M
	Operating Cash Flow
-92.50M	-67.28M	-53.65M	-32.09M	-45.19M	34.22M
	Investing Cash Flow
-140.95M	11.16M	11.06M	-39.50M	10.40M	-18.26M
	Financing Cash Flow
270.32M	187.76M	18.00K	115.94M	56.69M	142.01M

Korro Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRRO, the sentiment is Negative. The current price of 17.44 is below the 20-day moving average (MA) of 22.06, below the 50-day MA of 28.25, and below the 200-day MA of 41.11, indicating a bearish trend. The MACD of -2.50 indicates Positive momentum. The RSI at 30.50 is Neutral, neither overbought nor oversold. The STOCH value of 10.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRRO.

Korro Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEAM	50 Neutral	$2.22B	―	-43.94%	―	-83.18%	-144.95%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	19.94%	1.20%
CRSP	46 Neutral	$3.17B	―	-19.20%	―	-89.95%	-123.71%
KRRO	45 Neutral	$163.74M	―	-50.61%	―	―	85.19%
EDIT	39 Underperform	$103.72M	―	-98.10%	―	-58.64%	-40.05%
NTLA	39 Underperform	$835.39M	―	-54.00%	―	59.55%	3.09%
VERV	39 Underperform	$463.51M	―	-36.36%	―	174.98%	25.06%

Korro Bio Corporate Events

Korro Bio CFO Returns from Medical Leave

Korro Bio, Inc. announced that Vineet Agarwal, the Chief Financial Officer, has returned from a temporary medical leave of absence and resumed his duties effective March 27, 2025. The Board of Directors has reappointed him as the principal financial officer. Additionally, Oliver Dolan has been appointed as the principal accounting officer, and he received a stock option award as part of his new role.

Korro Bio Appoints Interim CFO Amid Medical Leave

Effective February 11, 2025, Korro Bio, Inc. announced that Vineet Agarwal, the company’s Chief Financial Officer, will be taking a temporary medical leave of absence. In his absence, the Board of Directors has appointed Dr. Ram Aiyar, the President and CEO, as interim principal financial officer, and Mr. Oliver Dolan, Senior Vice President of Finance, as interim principal accounting officer. This reshuffling of responsibilities is a strategic move to ensure continuity in leadership and maintain operational stability during Agarwal’s absence.