NasdaqGM:KRTX

Stock Analysis Report

Executive Summary

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, primarily focuses on developing novel therapies to address disabling neuropsychiatric conditions characterized by significant unmet medical needs.

Snowflake

Fundamentals

Flawless balance sheet with weak fundamentals.

Risks

  • Karuna Therapeutics has significant price volatility in the past 3 months.
  • Karuna Therapeutics is covered by less than 3 analysts.

Share Price & News

How has Karuna Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.3%

NasdaqGM:KRTX

3.3%

US Biotechs

2.9%

US Market


1 Year Return

n/a

NasdaqGM:KRTX

-8.8%

US Biotechs

0.2%

US Market

No trading data on KRTX.

No trading data on KRTX.


Share holder returns

KRTXIndustryMarket
7 Day-4.3%3.3%2.9%
30 Day2.3%2.4%-2.3%
90 Dayn/a3.4%3.1%
1 Yearn/a-8.1%-8.8%2.4%0.2%
3 Yearn/a12.0%8.2%41.7%32.4%
5 Yearn/a5.8%0.9%55.1%37.9%

Price Volatility Vs. Market

How volatile is Karuna Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Karuna Therapeutics undervalued based on future cash flows and its price relative to the stock market?


In this section, we usually try to help investors determine whether Karuna Therapeutics is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Karuna Therapeutics has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Karuna Therapeutics expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Karuna Therapeutics is high growth as no revenue estimate data is available.

Karuna Therapeutics is not considered high growth as it is expected to be loss making for the next 1-3 years.

Unable to compare Karuna Therapeutics's revenue growth to the United States of America market average as no estimate data is available.

Unable to compare Karuna Therapeutics's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Karuna Therapeutics's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Karuna Therapeutics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Karuna Therapeutics performed over the past 5 years?

-255.7%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Karuna Therapeutics does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.

Unable to compare Karuna Therapeutics's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Karuna Therapeutics's 1-year growth to the US Biotechs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Karuna Therapeutics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Karuna Therapeutics has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Karuna Therapeutics improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Karuna Therapeutics's financial position?


Financial Position Analysis

Karuna Therapeutics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Karuna Therapeutics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Karuna Therapeutics has no debt.

Karuna Therapeutics currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Low level of unsold assets.

Karuna Therapeutics has no debt, it does not need to be covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Karuna Therapeutics has sufficient cash runway for more than 3 years based on current free cash flow.

Karuna Therapeutics has sufficient cash runway for 2.1 years if free cash flow continues to grow at historical rates of 83.9% each year.


Next Steps

Dividend

What is Karuna Therapeutics's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Karuna Therapeutics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Karuna Therapeutics's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Karuna Therapeutics has not reported any payouts.

Unable to verify if Karuna Therapeutics's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Karuna Therapeutics has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Karuna Therapeutics's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Karuna Therapeutics's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Steve Paul (68yo)

1.0yrs

Tenure

US$973,799

Compensation

Dr. Steven M. Paul, also known as Steve, M.D. has been Chief Executive Officer of Karuna Pharmaceuticals Inc since August 15, 2018 and has been its Chairman since August 2018 and serves as its President. D ...


CEO Compensation Analysis

Steve's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Steve to compare compensation growth.


Management Age and Tenure

1.0yrs

Average Tenure

56.5yo

Average Age

The average tenure for the Karuna Therapeutics management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.3yrs

Average Tenure

60.5yo

Average Age

The average tenure for the Karuna Therapeutics board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Karuna Therapeutics individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$480,00005 Jul 19
Alexandria Venture Investments, LLC
EntityCompany
Shares30,000
Max PriceUS$16.00
BuyUS$212,14002 Jul 19
Bharatt Chowrira
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$21.88
BuyUS$3,200,00002 Jul 19
Arch Venture Partners, L.P.
EntityCompany
Shares200,000
Max PriceUS$16.00
BuyUS$11,200,00002 Jul 19
Sofinnova Investment, Inc.
EntityCompany
Shares700,000
Max PriceUS$16.00
BuyUS$230,42402 Jul 19
Steven Paul
EntityIndividual
Role
Chief Executive Officer
CEO, President & Chairman
Shares10,000
Max PriceUS$23.43

Ownership Breakdown


Management Team

  • Steve Paul (68yo)

    CEO, President & Chairman

    • Tenure: 1.0yrs
    • Compensation: US$973.80k
  • Alan Breier

    Chair of Scientific Advisory Board & Chief Clinical Advisor

    • Tenure: 0.0yrs
  • Troy Ignelzi (51yo)

    Chief Financial Officer

    • Tenure: 0.4yrs
  • Andrew Miller (37yo)

    Founder & COO

    • Tenure: 0.0yrs
    • Compensation: US$575.13k
  • Stephen Brannan (62yo)

    Chief Medical Officer

    • Tenure: 2.4yrs
    • Compensation: US$507.62k

Board Members

  • Bob Nelsen (57yo)

    Director

    • Tenure: 0.0yrs
  • Jim Healy (54yo)

    Director

    • Tenure: 0.1yrs
  • Jeff Jonas (66yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$232.75k
  • Ed Harrigan (66yo)

    Director

    • Tenure: 0.0yrs
    • Compensation: US$25.00k
  • Bharatt Chowrira (54yo)

    Director

    • Tenure: 0.0yrs
  • Steve Paul (68yo)

    CEO, President & Chairman

    • Tenure: 1.0yrs
    • Compensation: US$973.80k
  • Alan Breier

    Chair of Scientific Advisory Board & Chief Clinical Advisor

    • Tenure: 0.0yrs
  • Atul Pande (64yo)

    Director

    • Tenure: 0.1yrs
    • Compensation: US$25.00k
  • Heather Preston (53yo)

    Director

    • Tenure: 0.4yrs

Company Information

Karuna Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Karuna Therapeutics, Inc.
  • Ticker: KRTX
  • Exchange: NasdaqGM
  • Founded: 2009
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$488.624m
  • Shares outstanding: 23.41m
  • Website: https://www.karunatx.com

Number of Employees


Location

  • Karuna Therapeutics, Inc.
  • 33 Arch Street
  • Suite 3110
  • Boston
  • Massachusetts
  • 2110
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KRTXNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDJun 2019

Biography

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, primarily focuses on developing novel therapies to address disabling neuropsychiatric conditions characterized by significant unmet me ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:55
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.