Hello TÜV colleague,
This is Raketentoni from the test pit. I took your Krystal Biotech ($KRYS) onto the lift after you had almost stuck the sticker on it.
To anticipate: The engine purrs, but I have to take a closer look at the rating (PEG 0.6x) with a flashlight to see if someone has tweaked the speedometer.
Here is the official test report (as of March 2026, price ~275 USD):
1. the Raketentoni formula check
I ran my filters over it. Let's see if the euphoria holds up mathematically:
Core Quality Formula:
Sales growth: The thing continues to grow at around 30-35% (driven by VYJUVEK expansion in Europe).
Operating margin: You say 60% EBIT. Watch out! The gross margin is a fantastic 94%, but the real operating margin (after research & sales) is closer to 40-50%.
My score: 30 (growth) + 42 (margin) = 72.
Verdict: elite level. My rule says "> 25 is very good". This is Champions League. The company is printing money instead of burning it - an absolute exception in the biotech sector.
Cash flow quality (valuation):
FCF yield: This is where my system grumbles. With a market cap of almost USD 8 bn and an estimated free cash flow of ~ USD 250 m, we arrive at a yield of approx. 3.1 %.
Verdict: Too expensive for a "value investor" (I want > 5 %), but acceptable for a growth engine, as the "exclusion rule" (no story without figures) does not apply. The figures are there.
2. the critical "TÜV" comment (risk)
You write PEG 0.6x. That is a very sporty calculation.
The P/E ratio (trailing) is approx. 39.
For the PEG to fall to 0.6, profits would have to grow by over 60% per year. This is possible (due to operating leverage), but is already priced in very optimistically. I see the PEG more realistically at around 1.0 - which is still fair for this quality, but not a "theft".
3. future prospects (what's in the trunk?)
Why the stock remains exciting despite all-time highs is not because of what they are selling today (VYJUVEK for DEB patients), but because of the platform:
Europe rollout: Italy launches H2 2026, Germany/France follow suit. This is the fuel for 2026/27.
Pipeline (The Turbo):
KB407 (cystic fibrosis): This is the potential blockbuster. If the data here are good at the end of 2026, the store will double in size.
Oncology (KB707): Lung cancer treatment for inhalation. Still early, but huge potential.
Conclusion & stamp
Sticker issued, but with reference to sports chassis.
You don't have a "hopeless biotech company" here, but a highly profitable company with almost USD 1 bn cash in the bank. The valuation is high, but covered by the quality.
I will let it continue to run in my portfolio, but would no longer buy aggressively at prices above USD 300, but let profits run.
Greetings,
Raketentoni 🚀
For your information (key figures for your overview at a price of USD 275):
P/E RATIO (P/E): ~39
P/E ratio (P/S): ~19 (very high, typical biotech)
P/B RATIO (P/B): ~8
Dividend: 0
This is Raketentoni from the test pit. I took your Krystal Biotech ($KRYS) onto the lift after you had almost stuck the sticker on it.
To anticipate: The engine purrs, but I have to take a closer look at the rating (PEG 0.6x) with a flashlight to see if someone has tweaked the speedometer.
Here is the official test report (as of March 2026, price ~275 USD):
1. the Raketentoni formula check
I ran my filters over it. Let's see if the euphoria holds up mathematically:
Core Quality Formula:
Sales growth: The thing continues to grow at around 30-35% (driven by VYJUVEK expansion in Europe).
Operating margin: You say 60% EBIT. Watch out! The gross margin is a fantastic 94%, but the real operating margin (after research & sales) is closer to 40-50%.
My score: 30 (growth) + 42 (margin) = 72.
Verdict: elite level. My rule says "> 25 is very good". This is Champions League. The company is printing money instead of burning it - an absolute exception in the biotech sector.
Cash flow quality (valuation):
FCF yield: This is where my system grumbles. With a market cap of almost USD 8 bn and an estimated free cash flow of ~ USD 250 m, we arrive at a yield of approx. 3.1 %.
Verdict: Too expensive for a "value investor" (I want > 5 %), but acceptable for a growth engine, as the "exclusion rule" (no story without figures) does not apply. The figures are there.
2. the critical "TÜV" comment (risk)
You write PEG 0.6x. That is a very sporty calculation.
The P/E ratio (trailing) is approx. 39.
For the PEG to fall to 0.6, profits would have to grow by over 60% per year. This is possible (due to operating leverage), but is already priced in very optimistically. I see the PEG more realistically at around 1.0 - which is still fair for this quality, but not a "theft".
3. future prospects (what's in the trunk?)
Why the stock remains exciting despite all-time highs is not because of what they are selling today (VYJUVEK for DEB patients), but because of the platform:
Europe rollout: Italy launches H2 2026, Germany/France follow suit. This is the fuel for 2026/27.
Pipeline (The Turbo):
KB407 (cystic fibrosis): This is the potential blockbuster. If the data here are good at the end of 2026, the store will double in size.
Oncology (KB707): Lung cancer treatment for inhalation. Still early, but huge potential.
Conclusion & stamp
Sticker issued, but with reference to sports chassis.
You don't have a "hopeless biotech company" here, but a highly profitable company with almost USD 1 bn cash in the bank. The valuation is high, but covered by the quality.
I will let it continue to run in my portfolio, but would no longer buy aggressively at prices above USD 300, but let profits run.
Greetings,
Raketentoni 🚀
For your information (key figures for your overview at a price of USD 275):
P/E RATIO (P/E): ~39
P/E ratio (P/S): ~19 (very high, typical biotech)
P/B RATIO (P/B): ~8
Dividend: 0
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@Raketentoni MEGA I need Mr. Prompt for further TÜV tests
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•@Tenbagger2024 Oh I love the choice of words and whenever you need something, just tag me
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•@Raketentoni Yes, we are setting up a holding company 🙈😂
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