Core Insights - Keros Therapeutics, Inc. (KROS) is currently rated as a Strong Buy (1) by Zacks Rank, while Novozymes A/S (NVZMY) is rated as a Sell (4), indicating a stronger earnings outlook for KROS compared to NVZMY [3] - KROS has a Value grade of A, while NVZMY has a Value grade of C, suggesting that KROS is perceived as a better investment opportunity based on valuation metrics [6] Valuation Metrics - KROS has a forward P/E ratio of 9.02, significantly lower than NVZMY's forward P/E of 26.74, indicating that KROS may be undervalued relative to NVZMY [5] - The PEG ratio for KROS is 0.38, which is lower than NVZMY's PEG ratio of 1.22, suggesting that KROS offers better value when considering expected earnings growth [5] - KROS has a P/B ratio of 0.75, compared to NVZMY's P/B ratio of 2.38, further supporting the notion that KROS is undervalued [6]

Group 1 - Keros Therapeutics, Inc. (KROS) shares have increased by 14.1% over the past four weeks, closing at $17.32, with a mean price target of $23.25 indicating a potential upside of 34.2% [1] - The average price targets from analysts range from a low of $16.00 to a high of $35.00, with a standard deviation of $5.95, suggesting variability in estimates [2] - Analysts show strong agreement on KROS's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][11] Group 2 - The Zacks Consensus Estimate for KROS's current year earnings has increased by 484% over the past month, with six estimates revised upward and no negative revisions [12] - KROS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] - While the consensus price target may not be a reliable indicator of the stock's potential gain, it does provide a directional guide for price movement [14]

Core Points - Keros Therapeutics, Inc. announced the final results of its cash tender offer to repurchase up to 10,950,165 shares of common stock at a fixed price of $17.75 per share, totaling approximately $194.4 million [1][3] - The tender offer expired on November 18, 2025, and was part of a larger $375 million capital return program [1] - A total of 17,712,262 shares were validly tendered, leading to a pro rata acceptance of shares at a final proration factor of approximately 62.30% [2][3] Company Overview - Keros is a clinical-stage biopharmaceutical company focused on developing novel therapeutics targeting disorders linked to dysfunctional signaling of the TGF-ß family of proteins [6] - The company is recognized for its understanding of TGF-ß proteins, which regulate the growth and maintenance of various tissues [6] - Keros' lead product candidate, KER-065, targets neuromuscular diseases, particularly Duchenne muscular dystrophy, while its advanced candidate, elritercept, addresses cytopenias in patients with myelodysplastic syndrome and myelofibrosis [6]

Core Points - Keros Therapeutics, Inc. announced the preliminary results of its cash tender offer to repurchase up to 10,950,165 shares of common stock at a fixed price of $17.75 per share, totaling approximately $194.4 million [1][3] - The tender offer expired on November 18, 2025, and was part of a previously announced $375 million capital return program [1] - A total of approximately 16,659,732 shares were validly tendered, with an additional 1,186,829 shares tendered through notice of guaranteed delivery [2] Tender Offer Details - Keros expects to accept for payment 10,950,165 shares on a pro rata basis due to the oversubscription of shares tendered [3] - The shares to be acquired represent approximately 35.91% of Keros' outstanding common stock as of the expiration date [3] - The final number of shares purchased will be confirmed after the completion of the confirmation process by the Depositary [4] Company Overview - Keros Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel therapeutics targeting disorders linked to dysfunctional signaling of the TGF-ß family of proteins [6] - The company is recognized for its understanding of TGF-ß proteins, which are crucial for the growth and maintenance of various tissues [6] - Keros' lead product candidate, KER-065, targets neuromuscular diseases, particularly Duchenne muscular dystrophy, while its advanced candidate, elritercept, addresses cytopenias in myelodysplastic syndrome and myelofibrosis patients [6]

Core Insights - Value investors traditionally use the price-to-earnings (P/E) ratio to identify value stocks, but for loss-making companies, the price-to-sales (P/S) ratio is more relevant. The price-to-book (P/B) ratio is also a useful tool for identifying undervalued stocks with high return potential [1][5][9]. Valuation Ratios - The P/B ratio is calculated as market capitalization divided by book value of equity, helping to identify low-priced stocks with high growth prospects [2][5]. - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [5][6]. - The P/B ratio is particularly useful for industries with tangible assets, such as finance and manufacturing, but can be misleading for companies with high R&D expenses or significant debt [8]. Book Value Definition - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [3][4]. Screening Parameters - Stocks with a P/B ratio lower than the industry median are considered to have potential for price appreciation [11]. - Additional screening criteria include a P/S ratio below the industry median, a P/E ratio below the industry median, a PEG ratio less than 1, a current price of at least $5, an average 20-day volume of at least 100,000, and a Zacks Rank of 1 or 2 [12][13][14]. Selected Stocks - Five stocks identified with low P/B ratios and solid growth potential include: - **StoneCo (STNE)**: Financial technology solutions provider with a projected 3-5 year EPS growth rate of 30.3% and a Zacks Rank of 2 [15]. - **Great Lakes Dredge & Dock (GLDD)**: Largest U.S. dredging services provider with a projected EPS growth rate of 12.0% and a Zacks Rank of 1 [16]. - **EnerSys (ENS)**: Manufacturer of industrial batteries with a projected EPS growth rate of 15.0% and a Zacks Rank of 2 [17]. - **MillerKnoll (MLKN)**: Design solutions provider with a projected EPS growth rate of 12.0% and a Zacks Rank of 2 [17]. - **Keros Therapeutics (KROS)**: Clinical-stage biotech with a projected EPS growth rate of 23.6% and a Zacks Rank of 1 [18].

Core Insights - Keros Therapeutics, Inc. (KROS) is currently more attractive to value investors compared to argenex SE (ARGX) based on various financial metrics and analyst outlooks [1][3][7] Valuation Metrics - KROS has a forward P/E ratio of 10.55, significantly lower than ARGX's forward P/E of 50.00, indicating KROS is potentially undervalued [5] - The PEG ratio for KROS is 0.45, while ARGX has a PEG ratio of 0.89, suggesting KROS offers better value relative to its expected earnings growth [5] - KROS's P/B ratio stands at 0.7, compared to ARGX's P/B of 8.58, further highlighting KROS's undervaluation [6] Analyst Outlook - KROS holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while ARGX has a Zacks Rank of 3 (Hold) [3] - KROS's stronger estimate revision activity and more attractive valuation metrics suggest it is the superior option for value investors at this time [7]

Core Viewpoint - Keros Therapeutics, Inc. (KROS) shows potential for significant upside, with a mean price target of $23.13 indicating a 42.8% increase from the current trading price of $16.2 [1] Price Targets and Analyst Estimates - The mean estimate consists of eight short-term price targets with a standard deviation of $5.87, indicating variability among analysts; the lowest estimate suggests a 1.2% decline, while the highest predicts a 116.1% increase to $35.00 [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement direction [9] Earnings Estimates and Analyst Sentiment - Analysts are optimistic about KROS's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 366.9% over the past month, with four estimates increasing and no negative revisions [12] - KROS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13] Caution on Price Targets - While price targets are commonly referenced by investors, they can often mislead; empirical research shows that they rarely indicate actual stock price movements [7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Financial Performance - Keros Therapeutics reported a quarterly loss of $0.18 per share, significantly better than the Zacks Consensus Estimate of a loss of $1.11, representing an earnings surprise of +83.78% [1] - The company posted revenues of $14.26 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 86.04%, compared to revenues of $0.39 million in the same quarter last year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$1.11 on revenues of $7.67 million, while for the current fiscal year, the estimate is $0.33 on revenues of $235.61 million [7] - The estimate revisions trend for Keros Therapeutics was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - Keros Therapeutics operates within the Zacks Medical - Biomedical and Genetics industry, which is currently ranked in the top 40% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - The performance of Keros Therapeutics' stock may be influenced by the overall industry outlook, as the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - The company reported a net loss of $7.3 million for the three months ended September 30, 2025, and a net income of $110.5 million for the nine months ended September 30, 2025, primarily driven by revenue from the license agreement with Takeda [111]. - Total revenue for the three months ended September 30, 2025, was $14.3 million, a significant increase from $388,000 in the same period in 2024, primarily due to the Takeda Agreement [142]. - Total revenue for the nine months ended September 30, 2025, was $243.7 million, a significant increase from $0.5 million in the same period of 2024, primarily driven by $205.4 million in license revenue from the Takeda Agreement [150]. - Net income for the nine months ended September 30, 2025, was $110.5 million, compared to a net loss of $141.3 million in the same period of 2024, marking a turnaround in financial performance [156]. - The company recognized $10.0 million in license revenue related to a development milestone under the Takeda Agreement for the three months ended September 30, 2025 [143]. - The income tax benefit for the three months ended September 30, 2025, was $1.4 million, attributed to taxable income generated from the Takeda Agreement [148]. - The company incurred an income tax provision of $6.4 million for the nine months ended September 30, 2025, attributed to taxable income from the Takeda Agreement [155]. Cash and Cash Equivalents - As of September 30, 2025, the company had an accumulated deficit of $458.3 million and cash and cash equivalents of $693.5 million [111]. - Cash and cash equivalents as of September 30, 2025, were $693.5 million, with expectations to fund operations into the first half of 2028 after accounting for planned repurchases [162]. - As of September 30, 2025, cash and cash equivalents totaled $693.5 million, up from $559.9 million as of December 31, 2024 [178]. Research and Development - The company is developing KER-065 for the treatment of Duchenne muscular dystrophy, with a Phase 2 clinical trial expected to start in Q1 2026 [104]. - The company expects research and development expenses to continue to fluctuate based on clinical trial activities and anticipates a decrease in elritercept-related expenses once transitioned to Takeda [135]. - The company expects to continue incurring substantial expenses related to ongoing research and development activities, particularly for clinical trials [157]. - Research and development expenses decreased to $19.5 million for the three months ended September 30, 2025, from $49.2 million in 2024, a reduction of $29.7 million [145]. - Research and development expenses decreased to $111.7 million for the nine months ended September 30, 2025, down from $128.0 million in 2024, reflecting a reduction in expenses related to KER-065 and cibotercept [152]. - The company has not generated any revenue from product sales as none of its product candidates have been approved for commercialization [106]. - The company has not yet approved any products for sale and does not anticipate generating revenue from product sales until successful development and regulatory approval [158]. Agreements and Payments - The company entered into a license agreement with Takeda Pharmaceuticals in December 2024, receiving a $200 million upfront payment and a $10 million milestone payment upon dosing the first patient in the Phase 3 RENEW clinical trial [120]. - The company is entitled to receive up to $1.1 billion in potential milestone payments from Takeda based on the achievement of specified development and commercial milestones [120]. - The company received a net upfront payment of $18.0 million in January 2022 under the Hansoh Agreement, with potential additional payments of up to $23.5 million for development milestones and $144.0 million for net sales thresholds [125]. - The company recognized $0.1 million in service revenue related to the Hansoh Agreement for the three months ended September 30, 2025, compared to $0.4 million in 2024 [143]. - The company plans to distribute 25% of any net cash proceeds received from the Takeda license agreement to stockholders by December 31, 2028 [115]. Stock and Financing Activities - The company has sold a total of 4,290,096 shares under the ATM Offering for aggregate net proceeds of approximately $228.6 million as of September 30, 2025 [109]. - The company initiated a stock repurchase plan, repurchasing 10,176,595 shares at a price of $17.75 per share for an aggregate purchase price of $180.6 million [113]. - Net cash provided by financing activities was $316.3 million for the nine months ended September 30, 2024, primarily from a public offering of common stock and an ATM program [171]. Other Income and Expenses - Total other income, net was $6.7 million for the three months ended September 30, 2025, an increase of $1.0 million from $5.7 million in 2024, driven by higher dividend income [146]. - Total other income, net increased to $20.0 million for the nine months ended September 30, 2025, from $16.3 million in 2024, driven by a rise in dividend income [154]. - General and administrative expenses increased to $10.1 million for the three months ended September 30, 2025, compared to $9.8 million in 2024, reflecting a net increase in professional fees and other costs [146]. - General and administrative expenses increased to $35.1 million for the nine months ended September 30, 2025, from $30.1 million in 2024, primarily due to higher professional fees [153]. Cash Flow and Investments - Net cash provided by operating activities was $134.8 million for the nine months ended September 30, 2025, driven by net income and non-cash charges [165]. - Cash used in investing activities was $1.4 million for the nine months ended September 30, 2025, and $1.6 million for the nine months ended September 30, 2024, due to purchases of property and equipment [169]. - The company experienced a $5.0 million cash outflow in prepaid expenses and other assets due to timing of expense recognition for research and development costs [168]. Risk and Accounting Policies - The company had no debt outstanding subject to interest rate variability as of September 30, 2025, mitigating interest rate risk related to debt [179]. - The company is exposed to market risks primarily due to interest rate sensitivities, but does not expect significant effects from changes in market interest rates [178]. - There have been no significant changes to critical accounting policies from those described in the Annual Report [175].

Core Insights - Keros Therapeutics reported a significant reduction in net loss for Q3 2025, amounting to $7.3 million compared to a net loss of $53.0 million in Q3 2024, primarily due to revenue from a license agreement with Takeda Pharmaceuticals [2][10]. - The company is advancing its clinical pipeline, with plans for a Phase 3 trial of elritercept in myelodysplastic syndromes and a Phase 2 trial of KER-065 for Duchenne muscular dystrophy [2][6]. Financial Performance - Total revenue for Q3 2025 was $14.3 million, a substantial increase from $388,000 in Q3 2024, driven by $10 million in license revenue from Takeda [10]. - Research and development expenses decreased to $19.5 million in Q3 2025 from $49.2 million in Q3 2024, largely due to the transition of elritercept-related expenses to Takeda [3][10]. - General and administrative expenses rose slightly to $10.1 million in Q3 2025 from $9.8 million in Q3 2024, attributed to increased external expenses despite a reduction in compensation costs [4][10]. Cash Position - As of September 30, 2025, Keros had cash and cash equivalents of $693.5 million, up from $559.9 million at the end of 2024, which is expected to fund operations into the first half of 2028 after accounting for $375 million earmarked for stockholder returns [5][12]. Product Development - Keros is focused on developing therapeutics targeting disorders linked to dysfunctional signaling of the TGF-ß protein family, with KER-065 aimed at neuromuscular diseases and elritercept targeting cytopenias in myelodysplastic syndromes [6][10].