Viking Therapeutics (VKTX) AI Stock Analysis

• Market Cap: $2.98B
• Dividend Yield: N/A
• Average Volume (3M): 5.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.97
• Revenue Growth: N/A
• EPS Growth: -10.27%
• Country: US
• Employees: 27
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -1.01
• Shares Outstanding: 112,247,810
• 10 Day Avg. Volume: 4,447,309
• 30 Day Avg. Volume: 5,021,299
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -25.20
• 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: $101.62
• Price Target Upside: 283.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

Viking Therapeutics' stock score is driven by its strong equity position and successful clinical trial results, which provide a foundation for future growth. However, the lack of revenue, persistent losses, and bearish technical indicators weigh heavily on the stock's current valuation. The company's robust cash reserves offer some security, but the high risk associated with its unprofitable status and negative market momentum results in a lower overall score.

Positive Factors

Manufacturing Agreement

The manufacturing agreement with CordenPharma secures future supply for VK2735, which is crucial for Viking Therapeutics as it prepares for potential commercialization.

Market Positioning

Securing large-scale production capacity early strengthens Viking’s positioning in the obesity treatment space, a market that continues to expand in the U.S. and globally.

Negative Factors

Clinical Trials and Funding

Factors that could impede reaching the price target include failed or inconclusive clinical trials or the inability of the company to secure adequate funding to progress its drugs.

Viking Therapeutics Business Overview & Revenue Model

Company Description

Viking Therapeutics, Inc. is a biopharmaceutical company focused on the development of novel therapies for metabolic and endocrine disorders. The company is engaged in research and development activities aimed at advancing its portfolio of drug candidates, which target conditions such as liver disease, muscle wasting, and other metabolic disorders. Viking Therapeutics' strategy involves leveraging its expertise in drug discovery and development to address unmet medical needs with its innovative small molecule therapeutics.

How the Company Makes Money

Viking Therapeutics makes money primarily through the development and potential commercialization of its drug candidates. The company generates revenue through strategic partnerships, collaborations, and licensing agreements with other pharmaceutical companies. These partnerships may involve upfront payments, milestone payments, and royalties based on the success and commercialization of its drug candidates. Currently, Viking Therapeutics does not have commercialized products on the market, so its revenue largely depends on funding from investors and partnerships with other companies in the biopharmaceutical industry.

Viking Therapeutics Financial Statement Overview

Summary

Viking Therapeutics shows a strong equity position and low leverage, indicating financial stability. However, the absence of revenue and persistent losses highlight significant operational challenges, and the company relies heavily on financing activities due to negative cash flows.

Income Statement

Viking Therapeutics has consistently reported zero revenue across multiple years, indicating no commercial product sales yet. The company operates at a loss, with a deteriorating net income from -$25.7 million in 2019 to -$110 million in 2024. The lack of revenue growth is a significant concern, along with negative EBIT and EBITDA margins, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a strong equity position with a high equity ratio, indicating financial stability. However, the absence of revenue raises concerns about the sustainability of operations without external financing. The debt-to-equity ratio is low, suggesting minimal leverage, which mitigates financial risk. The high cash reserves further bolster the balance sheet.

Cash Flow

Viking Therapeutics exhibits negative operating and free cash flows, indicative of ongoing cash burn due to lack of revenue. The company relies heavily on financing activities, as evidenced by substantial cash inflows from financing in recent years. However, the inability to generate positive cash flow from operations is a critical weakness.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-292.00K	-291.00K	-296.00K	-277.00K
	EBIT
-150.92M	-100.83M	-70.36M	-55.68M	-42.66M
	EBITDA
-150.92M	-100.83M	-70.36M	-55.39M	-42.66M
	Net Income Common Stockholders
-109.96M	-85.89M	-67.38M	-54.00M	-36.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
902.61M	362.08M	155.49M	202.10M	248.39M
	Total Assets
908.32M	368.49M	168.53M	210.66M	256.50M
	Total Debt
1.12M	1.26M	1.56M	29.00K	359.00K
	Net Debt
-25.56M	-54.26M	-35.07M	-26.34M	-28.76M
	Total Liabilities
28.04M	20.07M	23.21M	8.78M	12.16M
	Stockholders Equity
880.28M	348.42M	145.32M	201.88M	244.34M
Cash Flow		Free Cash Flow
-87.79M	-73.38M	-48.40M	-47.59M	-21.78M
	Operating Cash Flow
-87.79M	-73.38M	-48.40M	-47.59M	-21.78M
	Investing Cash Flow
-553.37M	-179.09M	54.75M	37.96M	41.57M
	Financing Cash Flow
612.46M	271.38M	4.16M	6.88M	950.00K

Viking Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VKTX, the sentiment is Negative. The current price of 26.52 is below the 20-day moving average (MA) of 29.17, below the 50-day MA of 33.28, and below the 200-day MA of 51.78, indicating a bearish trend. The MACD of -1.73 indicates Negative momentum. The RSI at 38.63 is Neutral, neither overbought nor oversold. The STOCH value of 56.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VKTX.

Viking Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBIX	68 Neutral	$11.05B	33.69	14.16%	―	24.81%	33.67%
AKRO	60 Neutral	$3.32B	―	-39.22%	―	―	-31.37%
MDGL	54 Neutral	$7.41B	―	-80.35%	―	―	-10.89%
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
PRTG	45 Neutral	$4.67M	―	-194.84%	―	―	48.91%
ALT	45 Neutral	$405.09M	―	-59.86%	―	-95.31%	18.58%
VKTX	42 Neutral	$2.98B	―	-17.90%	―	―	-10.27%

Viking Therapeutics Corporate Events

Viking Therapeutics’ Promising Results for Obesity Treatment

Viking Therapeutics has presented promising data from its VK2735 obesity program at ObesityWeek® 2024, showcasing up to 8.2% weight loss from baseline with an oral formulation over 28 days. The treatment demonstrated strong tolerability, with mild GI-related side effects, and the potential for longer-term weight loss. These findings are significant for those exploring innovative solutions in metabolic disorder treatments, with both oral and subcutaneous forms of VK2735 showing durable effects.