NasdaqGM:KRTX

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Executive Summary

Karuna Therapeutics, Inc., a clinical-stage biopharmaceutical company, primarily focuses on developing novel therapies to address disabling neuropsychiatric disorders and pain.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KRTX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.1%

KRTX

-0.7%

US Biotechs

2.0%

US Market


1 Year Return

n/a

KRTX

23.4%

US Biotechs

7.1%

US Market

Return vs Industry: Insufficient data to determine how KRTX performed against the US Biotechs industry.

Return vs Market: Insufficient data to determine how KRTX performed against the US Market.


Shareholder returns

KRTXIndustryMarket
7 Day5.1%-0.7%2.0%
30 Day4.5%3.3%6.0%
90 Day0.8%14.4%-0.05%
1 Yearn/a24.6%23.4%9.5%7.1%
3 Yearn/a34.6%30.1%30.7%22.1%
5 Yearn/a-3.1%-8.9%55.6%38.0%

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

Valuation

Is Karuna Therapeutics undervalued compared to its fair value and its price relative to the market?

5.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KRTX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KRTX's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KRTX is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: KRTX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KRTX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KRTX is overvalued based on its PB Ratio (6x) compared to the US Biotechs industry average (3.7x).


Next Steps

Future Growth

How is Karuna Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRTX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: KRTX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: KRTX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if KRTX's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if KRTX's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KRTX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Karuna Therapeutics performed over the past 5 years?

-48.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: KRTX is currently unprofitable.

Growing Profit Margin: KRTX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if KRTX's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare KRTX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KRTX is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.5%).


Return on Equity

High ROE: KRTX has a negative Return on Equity (-10.55%), as it is currently unprofitable.


Next Steps

Financial Health

How is Karuna Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: KRTX's short term assets ($386.7M) exceed its short term liabilities ($2.7M).

Long Term Liabilities: KRTX's short term assets ($386.7M) exceed its long term liabilities ($2.1M).


Debt to Equity History and Analysis

Debt Level: KRTX is debt free.

Reducing Debt: KRTX had no debt 5 years ago.


Balance Sheet


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.

Stable Cash Runway: KRTX has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: KRTX has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 60.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KRTX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KRTX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KRTX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KRTX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KRTX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Steve Paul (68yo)

1.75yrs

Tenure

US$10,050,749

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

Compensation vs Market: Steve's total compensation ($USD10.05M) is above average for companies of similar size in the US market ($USD4.80M).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Paul
CEO, President & Chairman1.75yrsUS$10.05m0.41% $9.4m
Andrew Miller
Co-Founder & COOno dataUS$1.45mno data
Troy Ignelzi
CFO & Secretary1.17yrsUS$1.01mno data
Jason Brown
Vice President of Corporate Financeno datano datano data
Mia Kelley
Vice President of Legal Affairs0.33yrno datano data
Sharon Sawchak
Vice President of Clinical Operations & Compliance0.33yrno datano data
Stephanie Moore
Vice President of Human Resources0.33yrno datano data
Alan Breier
Chair of Scientific Advisory Board & Chief Clinical Advisorno datano datano data
Stephen Brannan
Chief Medical Officer3.17yrsUS$507.62k0.038% $879.7k
James Audia
Head of Medicinal Chemistry & Senior Adviserno datano datano data

0.8yrs

Average Tenure

63yo

Average Age

Experienced Management: KRTX's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Paul
CEO, President & Chairman1.75yrsUS$10.05m0.41% $9.4m
Alan Breier
Chair of Scientific Advisory Board & Chief Clinical Advisorno datano datano data
Robert Taylor Nelsen
Independent Director1.75yrsUS$77.68kno data
James Healy
Independent Director0.92yrUS$140.36kno data
Jeffrey Jonas
Director1.58yrsUS$132.52kno data
Edmund Harrigan
Independent Director9.17yrsUS$1.26m0.40% $9.3m
Christopher Coughlin
Independent Director0.083yrno datano data
Atul Pande
Independent Director & Member of Scientific Advisory Boardno dataUS$160.94kno data
Heather Preston
Independent Director1.17yrsUS$82.93k0.021% $479.5k
Richard Keefe
Member of Scientific Advisory Boardno datano datano data

1.6yrs

Average Tenure

65yo

Average Age

Experienced Board: KRTX's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KRTX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: KRTX only recently listed within the past 12 months.


Top Shareholders

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$2.299b
  • Shares outstanding: 26.13m
  • 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 disorders and pain. Its lead product candidate is KarXT, an oral modulator that has completed Phase II clinical trial for the treatment of acute psychosis in patients with schizophrenia; and in Phase Ib clinical trial for the treatment of central nervous system disorders, such as negative and cognitive symptoms of schizophrenia and psychosis, Alzheimer’s, and pain, as well as for the treatment of dementia-related psychosis. The company also focuses on developing other muscarinic-targeted drug candidates. Karuna Therapeutics, Inc. has a license agreement with Eli Lilly and Company; patent license agreement with PureTech Health LLC; and drug discovery partnership with Charles River Laboratories. The company was formerly known as Karuna Pharmaceuticals, Inc. and changed its name to Karuna Therapeutics, Inc. in March 2019. Karuna Therapeutics, Inc. was founded in 2009 and is headquartered in Boston, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 06:13
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.