Krystal Biotech Inc. Common Stock (KRYS)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

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

Krystal Biotech is a commercial-stage biotech with a real product, VYJUVEK, and a focused pipeline. In fiscal 2023 it reported revenue of $50.7M and net income of $10.9M; by fiscal 2025 revenue reached $389.1M and net income $204.8M. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $119.2M and net income $54.8M, up from $96.0M and $38.3M in fiscal Q2 2025. That is rapid growth, and the latest quarterly net margin of 45.94% is excellent. The balance sheet is conservative: D/E is 0.01, Altman Z-Score is 41.38, and trailing free cash flow is $257.8M. Return on equity is 20.12%, though ROCE of 9.37% suggests capital efficiency is not yet exceptional relative to the valuation. The moat likely rests on the difficulty of developing and manufacturing genetic medicines and on the rarity of the disease, but this is not a wide-moat consumer franchise. FairStock labels it a TURNAROUND because it returned to profit after a loss within the last three years. At the 2026-10-13 close of $321.16, FairStock calculations show a P/E of 40.25, P/B of 6.99, EV/EBITDA of 44.45, FCF yield of 2.7%, and Graham Number of $90.80—a margin of safety of -253.70%. PEG is 0.94, which is not demanding if growth persists, but the price is rich on asset and cash-flow measures. Piotroski is 5/9 and FairStock Score is 52/100. I would want the pipeline and VYJUVEK sales to justify the price before calling it cheap.

In plain English: Krystal Biotech is a healthcare company that makes genetic medicines, including a treatment for a rare skin condition called dystrophic epidermolysis bullosa. The business looks strong: revenue and profit have grown quickly, it has little debt, and it produces cash. But at $321.16 a share, the price looks expensive compared with the company’s accounting value and current earnings, so the stock already seems to reflect a lot of future success.

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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