Nkarta Inc. Common Stock (NKTX)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

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

Mr. Market is offering Nkarta at $2.10, a $150.4 million market value, and a price-to-book of 0.61. At first glance, that looks like a Graham bargain. But Graham demanded a margin of safety in earnings and assets. Here there are no revenue or earnings: the company is clinical-stage, with no product sales, and it lost $104.1 million in fiscal 2025, the year ended 2025-12-31, after $108.8 million in fiscal 2024, the year ended 2024-12-31, and $117.5 million in fiscal 2023, the year ended 2023-12-31. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was -$27.8 million, or -$0.37 per diluted share, and in fiscal Q2 2026, the quarter ended 2026-06-30, the loss widened to -$40.4 million, or -$0.54 per diluted share. Trailing free cash flow is -$93.9 million, a FairStock-calculated FCF yield of -62.4%. That means the company consumes cash rapidly, and book value may be spent on trials rather than returned to owners. The Piotroski F-Score is 0/9 and Altman Z-Score is -1.38, both FairStock calculations, signaling weak financial quality. Debt to equity is 0.30 and beta 0.97, so not highly levered, but equity returns are negative: ROE -38.76% and ROCE -19.57%. The business may have a scientific moat if its CAR-NK platform succeeds, but today the competitive moat is unproven. Growth is not commercial growth; it is pipeline progress paid for by shareholder capital. The stock can look cheap on assets, but a value investor should recognize that it fails the tests of profitability, predictable cash flow, and margin of safety. I would need to see clinical validation and a funding path before calling this anything more than a speculative option.

In plain English: Nkarta is a small healthcare company testing new cell treatments for cancer and autoimmune diseases. It has no product sales yet and has lost money every recent year, including a $104.1 million loss in fiscal 2025 and another $40.4 million loss in the quarter ended 2026-06-30. The stock looks inexpensive compared with the value of its assets on paper, but because it burns cash and has no profits, it is a very speculative situation rather than a proven bargain.

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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