Krystal Biotech, Inc.

KRYSdata completeness 88%10 fiscal years on file
The thesis, from the filings

Krystal Biotech, Inc. earns about -2% on invested capital, below its ~9% cost of capital, but has diluted owners by 35% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $3.78 and $93.17 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$01$02$50.7M3$290.5M3$389.1M3
Net income−$69.6M4−$140M5$10.9M6$89.2M6$204.8M6
Operating cash flow−$47.9M7−$100.6M8−$88.8M9$123.4M9$200.9M9
Capital expenditure$68.3M10$53M11$11.8M12$4.24M12$12M12
Free cash flow (derived)−$116.3M7−$153.5M8−$100.6M9$119.2M9$188.9M9
Total debt
Cash & equivalents$341.2M13$161.9M14$358.3M15$344.9M16$496.3M16
Diluted shares22.2M25.5M27.8M29.7M30.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$407.19
your share of equity
Profit it earned you last year
$68.39
Free cash flow it threw off
$63.07
Debt you’d be carrying

10 shares is a claim on $407.19 of net worth that earned you $68.39 and generated $63.07 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-2% avg · 5y
FY21 -21%FY22 -31%FY23 3%FY24 15%FY25 26%

It earned about -2% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+35% shares · 5y

Share count is up 35% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $3.78 and $93.17 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$93.17
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$119.2M
DCF · Growth Exit 5Y
$87.19
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$119.2M
Earnings Power Value
$3.78
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$10.9M
  • growthAssumed0.0%
Graham Number
$79.16
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $87.19
The three cases
Bear0.0%$73.42
Base5.0%$87.19
Bull10.0%$103.65

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001711279-24-000005 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001711279-25-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001711279-26-000016 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001711279-24-000005 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001711279-25-000008 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001711279-26-000016 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001711279-24-000005 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001711279-25-000008 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001711279-26-000016 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001711279-24-000005 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001711279-25-000008 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001711279-26-000016 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001711279-23-000008 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001711279-24-000005 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0001711279-25-000008 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001711279-26-000016 (CashAndCashEquivalentsAtCarryingValue)