Kiniksa Pharmaceuticals, Ltd.
Kiniksa Pharmaceuticals, Ltd. Fundamental Analysis
Kiniksa Pharmaceuticals, Ltd. (KNSA) shows moderate financial fundamentals with a PE ratio of 57.44, profit margin of 8.71%, and ROE of 11.48%. The company generates $0.7B in annual revenue with strong year-over-year growth of 56.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze KNSA's fundamental strength across five key dimensions:
Efficiency Score
WeakKNSA struggles to generate sufficient returns from assets.
Valuation Score
ModerateKNSA shows balanced valuation metrics.
Growth Score
ModerateKNSA shows steady but slowing expansion.
Financial Health Score
ExcellentKNSA maintains a strong and stable balance sheet.
Profitability Score
WeakKNSA struggles to sustain strong margins.
Key Financial Metrics
Is KNSA Expensive or Cheap?
P/E Ratio
KNSA trades at 57.44 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KNSA's PEG of 0.91 indicates potential undervaluation.
Price to Book
The market values Kiniksa Pharmaceuticals, Ltd. at 5.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 41.51 times EBITDA. This signals the market has high growth expectations.
How Well Does KNSA Make Money?
Net Profit Margin
For every $100 in sales, Kiniksa Pharmaceuticals, Ltd. keeps $8.71 as profit after all expenses.
Operating Margin
Core operations generate 11.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.48 in profit for every $100 of shareholder equity.
ROA
Kiniksa Pharmaceuticals, Ltd. generates $7.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kiniksa Pharmaceuticals, Ltd. produces operating cash flow of $137.99M, showing steady but balanced cash generation.
Free Cash Flow
Kiniksa Pharmaceuticals, Ltd. generates strong free cash flow of $136.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.84 in free cash annually.
FCF Yield
KNSA converts 4.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
57.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.002
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How KNSA Stacks Against Its Sector Peers
| Metric | KNSA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 57.44 | 28.25 | Worse (Expensive) |
| ROE | 11.48% | 780.00% | Weak |
| Net Margin | 8.71% | -20122.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 3.79 | 4.66 | Strong Liquidity |
| ROA | 7.73% | -14687.00% (disorted) | Weak |
KNSA outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kiniksa Pharmaceuticals, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
79.81%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
112.28%
Industry Style: Defensive, Growth, Innovation
High Growth