One-glance verdict
Overvalued
$26.60 our estimate vs market $108.39
Wall Street consensus: $139.35 (423.8% higher than our fair-value estimate)
307% above our estimate, beyond the bull case
Fundamentals snapshot
Kymera Therapeutics, Inc.
KYMR · NGM · Healthcare · Biotechnology
Current price
$108.39
52-week range
$55.26 - $130.05
Market cap
$8.92B
Balance sheet
Healthy
-933.90x Concerning
Net cash $612.43M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 167.8% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -24.2% last year — the company lost money on shareholders' equity.
What this company does
Kymera Therapeutics, Inc.
Kymera Therapeutics is a company that develops new medicines designed to target and remove specific proteins in the body that cause diseases. Their main source of money comes from developing these experimental drugs, and they have partnerships with larger pharmaceutical companies like Sanofi to help fund and advance their research. This matters because if their drugs are successful, they could offer new treatments for serious conditions like autoimmune diseases and cancer.
How the company got here
Kymera Therapeutics was founded in 2015 by a team focused on a novel approach to drug discovery called targeted protein degradation (TPD). [5, 8] This method harnesses the body's natural system for clearing out unneeded proteins to eliminate disease-causing ones. [5, 10] The company went public with an IPO in 2020 and established major collaborations with large pharmaceutical companies like Sanofi and Gilead in the same year and 2022, respectively. [1] These partnerships helped validate Kymera's platform and provided funding for its research and development efforts. [1]
What it actually does
Kymera Therapeutics is a biotechnology company that develops medicines using a technology called targeted protein degradation (TPD). [1, 10] Instead of just blocking a harmful protein, TPD uses small molecules to signal the body's natural cellular machinery to break down and remove that protein entirely. [5, 10] This approach is particularly useful for tackling diseases caused by proteins that are difficult or impossible to address with traditional medicines. [5, 10] Kymera's focus is on creating oral medications (pills) that can offer convenient and effective treatments for various diseases. [13]
Immunology Programs
Kymera is heavily invested in developing treatments for immunological and inflammatory diseases. [2, 14] One key program is KT-621, an oral drug designed to target STAT6, a protein involved in allergic reactions and inflammation. [3, 7, 14] This drug is being tested in clinical trials for conditions like atopic dermatitis (eczema) and asthma, aiming to provide a more convenient oral alternative to existing injectable biologic treatments. [3, 7, 12, 13] Another significant area is the IRAK4 program, which targets a protein that plays a crucial role in the immune system's response to inflammation. [7, 14] This program, partly developed with Sanofi, aims to treat a range of inflammatory conditions. [1, 7]
Oncology Programs
While Kymera's primary focus is on immunology, it also has programs targeting cancer. [1, 13] These efforts involve developing drugs that degrade specific proteins implicated in cancer growth, particularly those that are difficult to target with conventional therapies. [5, 13] One such program is a collaboration with Gilead Sciences focusing on a CDK2 degrader, which has potential applications in treating certain types of breast cancer and other solid tumors. [7] This approach aims to create new ways to fight cancer by eliminating disease-driving proteins. [13]
What management is betting on now
Kymera's management is focused on advancing its pipeline of oral small molecule degraders, particularly in the field of immunology. [2, 10] They aim to establish Kymera as a leader in targeted protein degradation by translating its platform into clinically successful and commercially viable medicines. [1] A key strategy involves developing wholly owned programs to retain long-term value while also pursuing partnerships to fund development and expand the reach of their therapies. [1] The company is prioritizing the development of convenient, highly effective oral therapies that can potentially replace injectable treatments and address significant unmet patient needs. [2, 10, 13]
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
$-50.38M
FY2024 Q4
$-62.72M
FY2025 Q1
$-79.62M
FY2025 Q2
$-60.58M
FY2025 Q3
$-27.29M
FY2025 Q4
$-66.85M
FY2026 Q1
$-89.27M
FY2026 Q2
$-54.54M
Revenue
$65.00M
Net income
$-61.21M
Diluted EPS
-0.62
Operating cash flow
$-54.06M
Free cash flow
$-54.54M
Fetching…
Sources
Revenue
$34.37M
Net income
$-69.23M
Diluted EPS
-0.71
Operating cash flow
$-88.84M
Free cash flow
$-89.27M
Fetching…
Sources
Revenue
$2.87M
Net income
$-86.98M
Diluted EPS
-0.98
Operating cash flow
$-66.75M
Free cash flow
$-66.85M
Fetching…
Sources
Revenue
$2.76M
Net income
$-82.17M
Diluted EPS
-0.94
Operating cash flow
$-27.11M
Free cash flow
$-27.29M
Fetching…
Sources
Revenue
$11.48M
Net income
$-76.61M
Diluted EPS
-0.95
Operating cash flow
$-59.88M
Free cash flow
$-60.58M
Fetching…
Sources
Revenue
$22.10M
Net income
$-65.58M
Diluted EPS
-0.82
Operating cash flow
$-79.15M
Free cash flow
$-79.62M
Fetching…
Sources
Revenue
$7.39M
Net income
$-70.75M
Diluted EPS
-0.89
Operating cash flow
$-61.78M
Free cash flow
$-62.72M
Fetching…
Sources
Revenue
$3.74M
Net income
$-62.49M
Diluted EPS
-0.82
Operating cash flow
$-50.19M
Free cash flow
$-50.38M
Fetching…
Sources
Is it cheap or expensive?
Fair value $26.60 vs current price $108.39
Wall Street consensus is the average analyst price target: $139.35 (423.8% higher than our fair-value estimate).
Our most-likely fair value is $26.60 a share — about 75.5% below today's price of $108.39, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $612.4M - more cash than debt. Interest coverage -933.9x.
Net debt
$-612.43M
Interest coverage
-933.90x
Kymera Therapeutics, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
KYMR
BASELINE
Kymera Therapeutics, Inc.
Total debt $78.56M Interest coverage -933.90x This is the baseline the peer rows are being compared against.
Total debt $47.19M Interest coverage -9.94x Neither company has much profit cushion over interest right now.
Total debt $224.69M Interest coverage -25.81x Neither company has much profit cushion over interest right now.
Total debt $1.38B Interest coverage 1.10x This peer still has a real interest-payment cushion, while KYMR does not.
Total debt $1.42B Interest coverage -5.89x Neither company has much profit cushion over interest right now.
Total debt $8.36B Interest coverage 9.23x This peer still has a real interest-payment cushion, while KYMR does not.
What you should know
The case for and against KYMR
2 Rewards
1 Risk
Rewards
-
Revenue grew 167.8% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -24.2% last year — the company lost money on shareholders' equity.
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
-21.26x
P/B
5.95x
P/S
84.91x
EV/EBITDA
-25.62x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
-257.7%
Operating margin
-116.3%
Net margin
-285.3%
ROE
-24.2%
ROA
-15.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
10.34x
Quick ratio
9.97x
Total debt
$78.56M
Total cash
$690.99M
Growth
How the business has been compounding
Revenue TTM
$105.00M
Revenue 5Y CAGR
-14.3%
EPS TTM
-3.25
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-236.76M
Free CF TTM
$-234.34M
FCF margin
-223.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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