Keros Therapeutics, Inc. (NASDAQ:KROS) Signals Near-Term Downside Despite Strong Cash Position

Keros shows corporate momentum via milestone receipts and board additions while technical momentum and valuation metrics point toward near-term pressure. Pipeline milestones coexist with negative earnings and mixed directional indicators.

Recent News

On June 25, 2026 the company appointed Anne Prener, M.D., Ph.D., to its board of directors. In late July the company triggered a $20 million development milestone payment from a partner, reported on July 30, 2026. The company announced its chief financial officer resigned effective in early August 2026 and an interim finance lead was named.

Technical Analysis

ADX: ADX at 26.63 indicates a strong trend strength; that strength increases the likelihood that current directional signals will influence price action over the coming weeks, amplifying bias from other momentum measures.

DI+ / DI-: DI+ at 24.21 with a dip & reversal signals a bullish directional swing; DI- at 13.22 with a dip & reversal signals concurrent bearish pressure. Those opposing dip-and-reversal readings produce a mixed directional picture that often compresses price into a tight range before a decisive move.

MACD: MACD at 0.13 with a peak & reversal signals bearish momentum; MACD sits at parity with its signal line, so no confirmed bullish MACD cross exists to negate that momentum signal.

MRO: MRO at 2.71 (positive) indicates the market price sits above the model target and faces downward pressure; that valuation-derived pressure aligns with WMDST’s over-valued rating and suggests mean reversion risk.

RSI: RSI at 50.69 with a peak & reversal describes waning upward momentum from neutral levels, supporting a view of limited upside conviction until momentum indicators rotate back into a bullish posture.

Price Versus Moving Averages and Bands: Last close at $11.08 trades below the 200-day average of $13.53 while sitting essentially level with short-term averages (20-day avg $11.17, 50-day avg $10.83). Bollinger band breadth remains narrow (upper ~ $11.39–$11.61; lower ~ $10.73–$10.95), consistent with compressed near-term range and a higher probability of a directional breakout once momentum resolves.

 


Fundamental Analysis

Earnings And Per-Share Metrics: Reported EPS of -$1.45 missed the estimate of -$1.24 by -$0.21, an EPS surprise of -16.94%. Forward EPS stands at -$1.654 with a forward P/E of -7.15; current P/E reads -7.60, reflecting negative earnings and the limitations of P/E interpretation for this clinical-stage company.

Liquidity, Cash Flow, And Capital Structure: Cash and short-term investments total $257,606,000 while operating cash flow for the period measured -$27,985,000 and free cash flow measured -$20,576,000. Current assets exceed current liabilities sharply (current ratio 21.96; cash ratio 21.20), and total debt remains modest at $15,724,000 (debt-to-assets 5.47%, debt-to-equity 5.99%). Those metrics indicate significant liquidity on the balance sheet relative to near-term obligations, even as operating cash burn continues.

Profitability And Growth Metrics: EBIT stood at -$30,937,000 and EBITDA at -$30,535,000. Return on assets at -9.57% and return on equity at -10.95% indicate negative profitability while earnings growth registers +19.84% overall yet shows -51.26% quarter-over-quarter and -116.39% year-over-year in the provided change metrics; revenue growth YoY shows -94.89%, reflecting material top-line contraction versus the prior comparable period.

Valuation Ratios Versus Peers: Book-to-price and market multiples show contrasts to peers: price-to-book at 0.83 sits well below the industry peer mean of 8.20 and median of 6.33, and within the industry peer range provided. Price targets among analysts span a low of $6.32, a mean of $10.87, and a high of $19.33; the firm’s market cap stands at $218,394,097 while enterprise value registers negative $23,487,903, reflecting a net-cash posture on a market-cap basis. The current valuation as determined by WMDST: over-valued.

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: 90.978
median: 22.007
mean: 11.544
KROS: 0.769
low: -129.549
 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: 1.088
mean: 0.143
KROS: 0.055
median: 0.018
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: 0.136
KROS: 0.06
median: 0.037
low: -1.043
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: 19.854
mean: 8.197
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: 76.582
mean: -2.654
KROS: -7.596
median: -19.402
low: -132.822
 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: 3.002
median: 1.265
low: 0.026
 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: 672.667
mean: -15.961
median: -59.087
low: -1866.8
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: 330.841 %
mean: 15.686 %
median: 13.924 %
KROS: -4.675 %
low: -242.388 %
 Earnings Growth 19.835 %
Earnings Growth QoQ -51.263 %
Earnings Growth YoY -116.393 %
Earnings Growth IPRWA high: 168.75 %
KROS: 19.835 %
median: 10.345 %
mean: 10.026 %
low: -155.294 %
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: 29.465 %
median: 0.852 %
mean: 0.264 %
KROS: -9.422 %
low: -48.052 %
 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: 185.644 %
median: 24.96 %
mean: 20.847 %
low: -209.632 %
 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: 34.781 %
mean: -8.875 %
KROS: -9.572 %
median: -13.258 %
low: -66.894 %
 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: 0.746
KROS: -0.109
mean: -0.177
median: -0.259
low: -1.177
 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

Technical indicators project a period of compressed trading range with downside tilt. Momentum readings (MACD peak & reversal, RSI peak & reversal) and a positive MRO suggest mean-reversion risk, while ADX indicates any resolved move could carry conviction. Liquidity and a $257.6M cash position reduce insolvency risk but do not eliminate price sensitivity to pipeline news and developer milestones. Expect consolidated action near the mid-$10s with elevated sensitivity to any material operational news or partner milestone announcements that would re-rate sentiment.

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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