One-glance verdict
Undervalued
$129.05 our estimate vs market $75.08
Wall Street consensus: $98.00 (-24.1% lower than our fair-value estimate)
42% below our estimate, below the bear case
Fundamentals snapshot
Kiniksa Pharmaceuticals International, plc
KNSA · NMS · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$75.08
52-week range
$35.20 - $82.94
Market cap
$5.86B
Balance sheet
Healthy
61.63x Strong cushion
Net cash $517.03M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 11.3% last year.
- Reward Returns 14.0% on equity, ahead of 25% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 53.2% above its 5-year average P/E.
What this company does
Kiniksa Pharmaceuticals International, plc
Kiniksa Pharmaceuticals is a drug company that currently makes most of its money selling one approved medicine called ARCALYST, which treats a recurring heart inflammation condition. Because its success relies heavily on this single product, the company is also investing in its pipeline (the set of experimental drugs it is testing) to develop new treatments. If these new drugs are eventually approved for sale, they could create new sources of revenue (money earned from sales) and help the company grow.
How the company got here
Kiniksa Pharmaceuticals was founded in 2015 to create medicines for severe diseases that lack effective treatments. A major turning point came in 2021 when its drug, ARCALYST, was approved by the FDA (the U.S. Food and Drug Administration, which decides if medicines are safe and effective to be sold). This approval transformed Kiniksa from a company purely focused on research into a commercial business that sells a product. Since launching ARCALYST, the company's sales have grown significantly, allowing it to become cash flow positive (bringing in more money than it spends on operations).
What it actually does
Kiniksa is a biopharmaceutical company, which means it discovers, develops, and sells specialized medicines. It focuses on conditions where patients have limited options, with a particular emphasis on inflammatory diseases that affect the heart. The company's main activity is selling its approved drug, ARCALYST, which doctors prescribe for a specific heart condition. At the same time, Kiniksa invests heavily in its pipeline (a set of new drugs in development) which are being tested in clinical trials (studies involving patients to ensure a drug is safe and works as intended).
Therapeutic Medicines
This is currently the company's only way of making money. This single segment consists of the sale of its one approved drug, ARCALYST, for a rare and painful heart condition called recurrent pericarditis. [2, 17] When doctors prescribe this medicine to patients, Kiniksa records revenue (the money earned from sales). [2] Because all of its income comes from this one product, the success of ARCALYST is the most important factor for the company's financial performance right now. [4, 17]
What management is betting on now
The company's main strategy is to continue growing sales of ARCALYST by reaching more doctors and patients who could benefit from it. [2, 27] Management is also betting heavily on its pipeline (the set of drugs currently in development) to create future products. A key focus is a new drug, KPL-387, which treats the same condition as ARCALYST but is designed as a more convenient once-a-month injection. [2, 15] By advancing this and other new therapies, Kiniksa aims to build on its success and become a leader in treating specific cardiovascular diseases. [15]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$5.17M
FY2024 Q3
$-2.24M
FY2024 Q4
$18.58M
FY2025 Q1
$22.23M
FY2025 Q2
$27.93M
FY2025 Q3
$33.01M
FY2025 Q4
$53.26M
FY2026 Q1
$50.04M
Revenue
$214.27M
Net income
$22.59M
Diluted EPS
0.27
Operating cash flow
$50.20M
Free cash flow
$50.04M
Fetching…
Sources
Revenue
$202.13M
Net income
$14.20M
Diluted EPS
0.18
Operating cash flow
$53.89M
Free cash flow
$53.26M
Fetching…
Sources
Revenue
$180.85M
Net income
$18.43M
Diluted EPS
0.23
Operating cash flow
$33.68M
Free cash flow
$33.01M
Fetching…
Sources
Revenue
$156.80M
Net income
$17.83M
Diluted EPS
0.23
Operating cash flow
$28.09M
Free cash flow
$27.93M
Fetching…
Sources
Revenue
$137.78M
Net income
$8.54M
Diluted EPS
0.11
Operating cash flow
$22.32M
Free cash flow
$22.23M
Fetching…
Sources
Revenue
$122.54M
Net income
$-8.89M
Diluted EPS
-0.11
Operating cash flow
$18.77M
Free cash flow
$18.58M
Fetching…
Sources
Revenue
$112.21M
Net income
$-12.69M
Diluted EPS
-0.18
Operating cash flow
$-2.24M
Free cash flow
$-2.24M
Fetching…
Sources
Revenue
$108.63M
Net income
$-3.91M
Diluted EPS
-0.06
Operating cash flow
$5.17M
Free cash flow
$5.17M
Fetching…
Sources
Is it cheap or expensive?
Fair value $129.05 vs current price $75.08
Wall Street consensus is the average analyst price target: $98.00 (-24.1% lower than our fair-value estimate).
Our most-likely fair value is $129.05 a share — about 71.9% above today's price of $75.08, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $517.0M - more cash than debt. Interest coverage 61.6x.
Net debt
$-517.03M
Interest coverage
61.63x
Kiniksa Pharmaceuticals International, plc's profit covers its interest bill about 61.6 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
KNSA
BASELINE
Kiniksa Pharmaceuticals International, plc
Total debt $8.90M Interest coverage 61.63x This is the baseline the peer rows are being compared against.
Total debt $739.72M Interest coverage -12.82x -100% vs KNSA This peer has almost no interest-payment cushion compared with KNSA.
Total debt $2.79B Interest coverage 1.65x -97% vs KNSA Carries about 37.3x less debt cushion than KNSA.
Total debt $165.93M Interest coverage 12.90x -79% vs KNSA Carries about 4.8x less debt cushion than KNSA.
What you should know
The case for and against KNSA
3 Rewards
1 Risk
Rewards
-
Revenue grew 11.3% last year.
-
Returns 14.0% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 53.2% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
75.84x
Forward P/E
46.42x
P/B
8.95x
P/S
6.97x
EV/EBITDA
52.34x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
54.5%
Operating margin
11.2%
Net margin
9.6%
ROE
14.0%
ROA
8.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
3.90x
Quick ratio
3.21x
Total debt
$8.90M
Total cash
$525.93M
Growth
How the business has been compounding
Revenue TTM
$754.04M
Revenue 5Y CAGR
104.8%
EPS TTM
0.99
EPS 5Y CAGR
-33.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$165.86M
Free CF TTM
$136.42M
FCF margin
18.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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