One-glance verdict
Undervalued
$116.11 our estimate vs market $10.76
Wall Street consensus: $32.00 (-72.4% lower than our fair-value estimate)
91% below our estimate, below the bear case
Fundamentals snapshot
Kura Oncology, Inc.
KURA · NMS · Healthcare · Biotechnology
Current price
$10.76
52-week range
$7.36 - $13.90
Market cap
$957.22M
Balance sheet
Healthy
-200.81x Concerning
Net cash $494.57M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 14.4% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -167.7% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 1.4% (peer median: 1.6%).
What this company does
Kura Oncology, Inc.
Kura Oncology is a medical research company developing new medicines to treat cancer. Because its drugs are still being tested on patients (a process known as the clinical stage), the company does not yet have products approved for sale and therefore generates very little revenue. Its future success depends almost entirely on whether its main drug candidates pass these trials and get approved by regulators, which would allow them to be sold to the public.
How the company got here
Kura Oncology was founded in 2014 with a focus on developing targeted cancer therapies. A key moment in their history was in-licensing (acquiring the rights to develop and sell) a drug candidate called tipifarnib. The company's strategy has been to concentrate on a few high-potential programs that target specific genetic markers in cancers. A major turning point was the U.S. Food and Drug Administration (FDA) approval of their first commercial product, KOMZIFTI (ziftomenib), in late 2025 for a specific type of leukemia. This shifted them from a purely research-focused company to one that also sells a product.
What it actually does
Kura Oncology is a biopharmaceutical company that develops and sells medicines for treating cancer. Think of them as a company that creates highly specific treatments designed to attack cancer cells with particular genetic characteristics, an approach called precision medicine. Their main focus is on creating 'small molecule' drugs, which are medicines taken as pills that can get inside cells to disrupt the processes that help cancer grow. They currently have one approved drug on the market and several others in development for various types of blood cancers and solid tumors (cancers in organs like the lungs or kidneys).
Menin Inhibitors
This is the company's most important business area right now. It's centered around their drug KOMZIFTI (the scientific name is ziftomenib), which is a type of drug called a menin inhibitor. This drug works by blocking the interaction of two proteins that, when stuck together, help certain kinds of leukemia cells survive and multiply. The company's first approved product, KOMZIFTI, is for adult patients with a specific type of recurring acute myeloid leukemia (AML), a cancer of the blood and bone marrow. While this is a very specific group of patients, the company is also testing ziftomenib in combination with other cancer drugs to potentially treat a much larger portion of AML patients and even some solid tumors.
Farnesyl Transferase Inhibitors (FTIs)
This is another key area of research and development for Kura Oncology. Farnesyl transferase is an enzyme (a type of protein that speeds up chemical reactions in the body) that plays a role in cellular pathways that can help tumors resist treatment. By blocking this enzyme, their FTI drug candidates aim to make cancers more vulnerable to other treatments. Their main drug in this category is darlifarnib, which is being tested in combination with other targeted therapies for solid tumors like kidney and lung cancer. This part of the business doesn't generate sales yet but represents a significant part of the company's future growth strategy.
Next-Generation Menin Inhibitors
Building on their success with ziftomenib, Kura is also developing new and improved menin inhibitors. One of these, called KO-7246, is being explored for a completely different purpose: treating diabetes and other metabolic disorders. The idea is that blocking menin could also help regenerate insulin-producing cells. To advance this, Kura has established a separate company called Caspian Therapeutics, which will focus on developing these treatments for non-cancer conditions. This represents a small but potentially very large future opportunity for the company's technology.
What management is betting on now
Management's primary focus is on making their newly approved drug, KOMZIFTI, a success and expanding its use. They are heavily invested in clinical trials (studies in people) to test ziftomenib in combination with other standard cancer therapies, which could make it a foundational treatment for a much larger group of leukemia patients. Another key bet is on their farnesyl transferase inhibitor, darlifarnib, as a combination therapy to overcome treatment resistance in solid tumors. Finally, they are exploring the potential of their menin inhibitor technology beyond cancer, specifically in diabetes, which could open up a whole new market for the company.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-43.44M
FY2024 Q4
$268.76M
FY2025 Q1
$-72.22M
FY2025 Q2
$-30.23M
FY2025 Q3
$-83.19M
FY2025 Q4
$114.95M
FY2026 Q1
$-85.98M
FY2026 Q2
$-63.20M
Revenue
$20.87M
Net income
$-68.33M
Diluted EPS
-0.77
Operating cash flow
$-62.55M
Free cash flow
$-63.20M
Fetching…
Sources
Revenue
$18.27M
Net income
$-73.33M
Diluted EPS
-0.83
Operating cash flow
$-85.85M
Free cash flow
$-85.98M
Fetching…
Sources
Revenue
$17.34M
Net income
$-81.00M
Diluted EPS
-0.92
Operating cash flow
$117.27M
Free cash flow
$114.95M
Fetching…
Sources
Revenue
$20.75M
Net income
$-74.12M
Diluted EPS
-0.85
Operating cash flow
$-80.63M
Free cash flow
$-83.19M
Fetching…
Sources
Revenue
$15.29M
Net income
$-66.12M
Diluted EPS
-0.75
Operating cash flow
$-28.78M
Free cash flow
$-30.23M
Fetching…
Sources
Revenue
$14.11M
Net income
$-57.43M
Diluted EPS
-0.66
Operating cash flow
$-71.93M
Free cash flow
$-72.22M
Fetching…
Sources
Revenue
$53.88M
Net income
$-19.22M
Diluted EPS
-0.21
Operating cash flow
$269.13M
Free cash flow
$268.76M
Fetching…
Sources
Revenue
—
Net income
$-54.40M
Diluted EPS
-0.63
Operating cash flow
$-43.44M
Free cash flow
$-43.44M
Fetching…
Sources
Is it cheap or expensive?
Fair value $116.11 vs current price $10.76
Wall Street consensus is the average analyst price target: $32.00 (-72.4% lower than our fair-value estimate).
Our most-likely fair value is $116.11 a share — about 979.1% above today's price of $10.76, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $494.6M - more cash than debt. Interest coverage -200.8x.
Net debt
$-494.57M
Interest coverage
-200.81x
Kura Oncology, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
KURA
BASELINE
Kura Oncology, Inc.
Total debt $24.45M Interest coverage -200.81x This is the baseline the peer rows are being compared against.
Total debt $589.38M Interest coverage -8.08x Neither company has much profit cushion over interest right now.
Total debt $30.66M Interest coverage -11.20x Neither company has much profit cushion over interest right now.
Total debt $29.31M Interest coverage -3.49x Neither company has much profit cushion over interest right now.
Total debt $31.99M Interest coverage -19.77x Neither company has much profit cushion over interest right now.
What you should know
The case for and against KURA
2 Rewards
2 Risks
Rewards
-
Revenue grew 14.4% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -167.7% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 1.4% (peer median: 1.6%).
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)
—
Forward P/E
-4.69x
P/B
19.78x
P/S
12.40x
EV/EBITDA
-1.46x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
-236.7%
Operating margin
-349.8%
Net margin
0.0%
ROE
-167.7%
ROA
-31.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.50x
Current ratio
4.73x
Quick ratio
4.50x
Total debt
$24.45M
Total cash
$519.02M
Growth
How the business has been compounding
Revenue TTM
$77.22M
Revenue 5Y CAGR
—
EPS TTM
-3.32
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-111.76M
Free CF TTM
$-70.70M
FCF margin
-91.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—