Keros Therapeutics, Inc (NASDAQ:KROS) Repositions Pipeline While Near-Term Valuation Remains Elevated

Keros pursues clinical progress across multiple programs while balance-sheet strength contrasts with deep YoY revenue contraction; technicals suggest range-bound action with modest upside potential. A combination of bullish momentum signals and recent indicator reversals frames a cautious near-term view.

Recent News

On June 25, 2026 the company announced the appointment of Anne Prener, M.D., Ph.D., to the board of directors. On July 30, 2026 Keros disclosed it will receive a development milestone payment from Takeda. On August 3, 2026 Keros published second-quarter 2026 financial results and a business update for the quarter ended June 30, 2026.

Technical Analysis

ADX at 24.91 indicates an emerging trend strength; that strength argues for a definable near-term directional bias rather than random noise, but does not imply a sustained long-term trend.

DI+ shows a peak-and-reversal (bearish); DI- shows a dip-and-reversal (bearish). Those directional indicator signals favor downside pressure relative to the recent rally and raise the probability that short-term strength will meet resistance from sellers.

MACD stands positive at 0.13 and currently sits above its 0.08 signal line (a bullish crossover), yet MACD trend shows a peak-and-reversal, indicating momentum growth recently slowed and momentum may roll over even with the crossover present.

MRO reads -4.49 (negative), which signals the current price sits below the regression target and therefore leaves room for potential upward mean reversion; the MRO trend shows a peak-and-reversal, which tempers the immediacy of that mean-reversion.

RSI at 50.09 with an increasing trend signals neutral momentum shifting toward the bullish side; that supports modest upside in the near term but no clear overbought condition.

Price sits at $11.08, slightly above the 12-day EMA ($10.99 increasing) and trading below the 200-day average ($13.78). Short-term averages (20-day $10.93, 50-day $10.78) sit below price, which suggests near-term price support near $10.9 while the 200-day average marks significant overhead resistance.

Bollinger bands show 1x upper/lower at $11.36/$10.50 and 2x at $11.79/$10.07; recent range compression implies narrowing volatility and the potential for a directional breakout once liquidity returns. Volume sits below 10- and 50-day averages, reducing conviction behind recent moves.

 


Fundamental Analysis

Earnings: EPS actual equals -$1.45 versus an estimate of -$1.24, producing an EPS surprise of -$0.21, or -16.94% versus estimate. Forward EPS stands at -$1.654 and forward PE remains negative at -7.15, reflecting ongoing losses rather than positive earnings multiples.

Revenue contracted sharply year-over-year: YoY revenue growth measures -94.89%, with negligible QoQ change; that YoY decline reflects one-time or program timing effects rather than sustained top-line expansion this quarter.

Profitability and cash flow: Net loss equals -$28,710,000 with operating cash flow at -$27,985,000 and free cash flow at -$20,576,000 for the period. Research and development totaled $22,331,000. Cash and short-term investments total $257,606,000 and beginning-to-end period cash flow declined by $23,891,000, supporting continued clinical investment.

Liquidity and leverage: Current ratio stands at 21.96 and cash ratio at 21.20, driven by $266,883,000 in current assets versus $12,153,000 in current liabilities; total debt equals $15,724,000 and debt-to-assets equals 5.47%, indicating a low-leverage capital structure.

Returns: Return on assets equals -9.57% and return on equity equals -10.95%; earnings growth shows 19.84% but YoY earnings growth reads -116.39% (reflecting base effects). Free cash growth displays a multi-period positive figure of 4.71% but recent QoQ free cash growth fell -6.42%.

Valuation context: WMDST values the stock as over‑valued. Price-to-book equals 0.83, which sits below the industry peer mean of 8.39 and the industry peer median of 6.33 while remaining inside the industry peer range from -9.25 to 18.33. Enterprise multiple reads 0.77 versus an industry peer mean near 19.86. Those relative gaps reflect a low priced book and enterprise multiple versus peers, driven largely by negative earnings and a strong cash position.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2026-06-30
REPORT DATE: 2026-08-03
NEXT REPORT DATE: 2026-11-02
CASH FLOW  Begin Period Cash Flow 282.9 M
 Operating Cash Flow -27.98 M
 Capital Expenditures -155.00 K
 Change In Working Capital 1.9 M
 Dividends Paid
 Cash Flow Delta -23.89 M
 End Period Cash Flow 259.1 M
 
INCOME STATEMENT REVENUE
 Total Revenue
 Forward Revenue
COSTS
 Cost Of Revenue
 Depreciation 402.0 K
 Depreciation and Amortization 402.0 K
 Research and Development 22.3 M
 Total Operating Expenses 30.9 M
PROFITABILITY
 Gross Profit
 EBITDA -30.54 M
 EBIT -30.94 M
 Operating Income -30.94 M
 Interest Income
 Interest Expense
 Net Interest Income
 Income Before Tax -28.71 M
 Tax Provision
 Tax Rate
 Net Income -28.71 M
 Net Income From Continuing Operations -28.71 M
EARNINGS
 EPS Estimate -1.24
 EPS Actual -1.45
 EPS Difference -0.21
 EPS Surprise -16.935 %
 Forward EPS -1.65
 
BALANCE SHEET ASSETS
 Total Assets 287.6 M
 Intangible Assets
 Net Tangible Assets 262.3 M
 Total Current Assets 266.9 M
 Cash and Short-Term Investments 257.6 M
 Cash 257.6 M
 Net Receivables
 Inventory
 Long-Term Investments 1.4 M
LIABILITIES
 Accounts Payable 1.8 M
 Short-Term Debt
 Total Current Liabilities 12.2 M
 Net Debt
 Total Debt 15.7 M
 Total Liabilities 25.3 M
EQUITY
 Total Equity 262.3 M
 Retained Earnings -534.18 M
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 13.23
 Shares Outstanding 19.827 M
 Revenue Per-Share
VALUATION
 Market Capitalization 218.4 M
 Enterprise Value -23.49 M
 Enterprise Multiple 0.769
Enterprise Multiple QoQ 40.16 %
Enterprise Multiple YoY -65.49 %
Enterprise Multiple IPRWA high: 148.972
median: 38.141
mean: 19.86
KROS: 0.769
low: -178.99
 EV/R
CAPITAL STRUCTURE
 Asset To Equity 1.096
 Asset To Liability 11.377
 Debt To Capital 0.057
 Debt To Assets 0.055
Debt To Assets QoQ 4.672 %
Debt To Assets YoY 130.578 %
Debt To Assets IPRWA high: 0.833
mean: 0.281
median: 0.223
KROS: 0.055
low: 0.0
 Debt To Equity 0.06
Debt To Equity QoQ 4.955 %
Debt To Equity YoY 135.984 %
Debt To Equity IPRWA high: 1.719
mean: 0.307
median: 0.098
KROS: 0.06
low: -0.777
PRICE-BASED VALUATION
 Price To Book (P/B) 0.833
Price To Book QoQ -5.336 %
Price To Book YoY 0.694 %
Price To Book IPRWA high: 18.326
mean: 8.386
median: 6.334
KROS: 0.833
low: -9.25
 Price To Earnings (P/E) -7.596
Price To Earnings QoQ -27.797 %
Price To Earnings YoY -59.273 %
Price To Earnings IPRWA high: 160.554
median: 40.973
mean: 20.569
KROS: -7.596
low: -176.575
 PE/G Ratio -0.383
 Price To Sales (P/S)
Price To Sales QoQ
Price To Sales YoY
Price To Sales IPRWA
FORWARD MULTIPLES
Forward P/E -7.153
Forward PE/G -0.361
Forward P/S
EFFICIENCY OPERATIONAL
 Operating Leverage
ASSET & SALES
 Asset Turnover Ratio
Asset Turnover Ratio QoQ
Asset Turnover Ratio YoY
Asset Turnover Ratio IPRWA
 Receivables Turnover
Receivables Turnover Ratio QoQ
Receivables Turnover Ratio YoY
Receivables Turnover Ratio IPRWA
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO)
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
Cash Conversion Cycle Days QoQ
Cash Conversion Cycle Days YoY
Cash Conversion Cycle Days IPRWA high: 564.313
median: 244.94
mean: 168.335
KROS: 0
low: -329.732
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue
 CapEx To Depreciation -0.386
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 262.3 M
 Net Invested Capital 262.3 M
 Invested Capital 262.3 M
 Net Tangible Assets 262.3 M
 Net Working Capital 254.7 M
LIQUIDITY
 Cash Ratio 21.197
 Current Ratio 21.96
Current Ratio QoQ -2.897 %
Current Ratio YoY 4.007 %
Current Ratio IPRWA high: 31.351
KROS: 21.96
mean: 4.797
median: 3.163
low: 0.34
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA -0.515
 Cost Of Debt 0.059 %
 Interest Coverage Ratio -3093.7
Interest Coverage Ratio QoQ 19.554 %
Interest Coverage Ratio YoY -22.302 %
Interest Coverage Ratio IPRWA high: 533.0
mean: 42.178
median: 2.337
low: -1501.103
KROS: -3093.7
 Operating Cash Flow Ratio -2.303
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio
 Dividend Payout Ratio
 Dividend Rate
 Dividend Yield
PERFORMANCE GROWTH
 Asset Growth Rate -7.907 %
 Revenue Growth -4.675 %
Revenue Growth QoQ -0.0 %
Revenue Growth YoY -94.885 %
Revenue Growth IPRWA high: 278.717 %
mean: 15.344 %
median: 11.617 %
KROS: -4.675 %
low: -242.388 %
 Earnings Growth 19.835 %
Earnings Growth QoQ -51.263 %
Earnings Growth YoY -116.393 %
Earnings Growth IPRWA high: 185.714 %
KROS: 19.835 %
median: 13.636 %
mean: 10.746 %
low: -220.0 %
MARGINS
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin
EBIT Margin QoQ
EBIT Margin YoY
EBIT Margin IPRWA
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF) -20.58 M
 Free Cash Flow Yield -9.422 %
Free Cash Flow Yield QoQ 557.043 %
Free Cash Flow Yield YoY 81.437 %
Free Cash Flow Yield IPRWA high: 13.067 %
median: 0.852 %
mean: 0.546 %
KROS: -9.422 %
low: -26.527 %
 Free Cash Growth 471.238 %
Free Cash Growth QoQ -642.488 %
Free Cash Growth YoY -496.355 %
Free Cash Growth IPRWA KROS: 471.238 %
high: 175.34 %
mean: 20.27 %
median: 1.424 %
low: -249.171 %
 Free Cash To Net Income 0.717
 Cash Flow Margin
 Cash Flow To Earnings 0.975
VALUE & RETURNS
 Economic Value Added
 Return On Assets (ROA) -9.572 %
Return On Assets QoQ 31.285 %
Return On Assets YoY 140.382 %
Return On Assets IPRWA high: 20.575 %
median: 0.317 %
mean: -4.025 %
KROS: -9.572 %
low: -44.847 %
 Return On Capital Employed (ROCE) -11.232 %
 Return On Equity (ROE) -0.109
Return On Equity QoQ 31.867 %
Return On Equity YoY 152.015 %
Return On Equity IPRWA high: 0.462
median: 0.006
mean: -0.103
KROS: -0.109
low: -0.887
 DuPont ROE
 Return On Invested Capital (ROIC)
Return On Invested Capital QoQ
Return On Invested Capital YoY
Return On Invested Capital IPRWA

Six-Week Outlook

Expect range-bound action with a bias toward modest appreciation conditional on improving momentum. Positive features include a negative MRO that allows mean reversion upward and an RSI that trends higher; offsetting features include DI+ peak reversal and MACD peak reversal, which increase downside risk if momentum falters. Short-term resistance centers near the 200-day average at $13.78 and 1x–2x Bollinger upper bands near $11.36–$11.79; support clusters sit around $10.9 and the super-trend lower level at $10.13. Monitor volume and MACD direction for confirmation of any breakout from the current banded range.

About Keros Therapeutics, Inc.

Keros Therapeutics, Inc. (NASDAQ:KROS) develops and commercializes innovative therapeutics targeting disorders associated with dysfunctional signaling of the transforming growth factor-beta family of proteins. Headquartered in Lexington, Massachusetts, this clinical-stage biopharmaceutical company advances its lead product candidate, KER-050, aimed at treating cytopenias, including anemia and thrombocytopenia, particularly in patients with myelodysplastic syndromes and myelofibrosis. Keros Therapeutics also progresses with KER-012, currently in Phase II clinical trials, designed to address pulmonary arterial hypertension and cardiovascular disorders. Additionally, KER-065 enters Phase I clinical trials targeting obesity and neuromuscular diseases. The company collaborates with Hansoh (Shanghai) Healthtech Co., Ltd., enhancing its capabilities to develop, manufacture, and commercialize KER-050 and related licensed products. Founded in 2015, Keros Therapeutics commits to advancing its pipeline and addressing unmet medical needs through targeted therapeutic development.



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