Keros Therapeutics Inc. Common Stock (KROS)

FairStock Score: 85/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first for durable competitive advantages and financial strength, and Keros is a clinical-stage biotech with neither proven at scale. It is developing rinvatercept in Phase 1 for Duchenne muscular dystrophy and ALS and elritercept, so the value depends on trials, not on a moat I can underwrite. The financials are contradictory. In FY2025, the year ended 2025-12-31, revenue was $244.1M, net income $87.0M, and diluted EPS $2.30, a sharp reversal from FY2024, when revenue was $3.5M, net loss $187.4M, and diluted EPS -$5.00. But the recent filed quarters show renewed losses: fiscal Q1 2026, quarter ended 2026-03-31, revenue $367,000, net loss $23.7M, and diluted EPS -$1.21; fiscal Q2 2026, quarter ended 2026-06-30, net loss $28.7M and diluted EPS -$1.45, with revenue N/A. Trailing free cash flow is -$48.5M and FCF yield is -21.8%, while the FairStock Piotroski F-Score is only 2/9. On the asset side, debt is low with D/E 0.06, the FairStock Altman Z-Score is 3.45, and at the 2026-10-13 close of $11.23, the FairStock P/B is 0.85. FairStock Score is 85/100, and the computed Lynch category is TURNAROUND because it returned to profit after a loss within three years. That is speculative optionality, not a proven margin of safety. Cheap on book, expensive on cash burn.

In plain English: Keros Therapeutics is a small drug company working on new treatments for muscle and nerve diseases. The business looks weak right now: it lost money in the latest reported quarters, even though it had one profitable year in 2025 after earlier losses. Its stock price looks low compared with the value of its assets on paper, but the company is using cash and has very little current sales, so the low price may reflect real risk.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer