Dianthus Therapeutics (DNTH) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: N/A
• Average Volume (3M): 754.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 17.87%
• EPS Growth: 41.27%
• Country: US
• Employees: 78
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): -0.88
• Shares Outstanding: 38,676,224
• 10 Day Avg. Volume: 1,499,378
• 30 Day Avg. Volume: 754,878
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.29
• Enterprise Value/Revenue: 84.74
• Enterprise Value/Gross Profit: 86.50
• Enterprise Value/Ebitda: -3.17
• 1Y Price Target: $61.08
• Price Target Upside: 64.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 48 Neutral
• Price Target: $35.00 ▼(-5.51% Downside)

Dianthus Therapeutics' overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and significant losses. While technical analysis shows bullish momentum, the stock is overbought, indicating potential volatility. The negative P/E ratio and lack of dividend yield further weigh down the valuation score.

Positive Factors

High Gross Profit Margin

A high gross profit margin indicates efficient cost management, which can support long-term profitability and competitive pricing strategies.

Low Leverage

Low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities without significant risk from debt obligations.

Strategic Partnerships

Strategic partnerships can enhance research capabilities and provide financial resources, supporting long-term growth and innovation in drug development.

Negative Factors

Declining Revenue

Declining revenue can indicate challenges in market demand or competitive pressures, potentially impacting long-term business sustainability and growth prospects.

Negative Profitability

Negative profitability suggests operational inefficiencies and financial instability, which can hinder the company's ability to invest in future growth and innovation.

Cash Flow Issues

Negative cash flow indicates potential liquidity issues, limiting the company's ability to fund operations and invest in new projects, impacting long-term viability.

Dianthus Therapeutics Business Overview & Revenue Model

Company Description

Dianthus Therapeutics (DNTH) is a biotechnology company focused on developing innovative therapies for serious autoimmune diseases. The company specializes in the discovery and commercialization of monoclonal antibodies and other biologics that target specific immune pathways. Dianthus is committed to addressing unmet medical needs and enhancing patient care through its advanced therapeutic solutions in the biopharmaceutical sector.

How the Company Makes Money

Dianthus Therapeutics primarily generates revenue through the development and commercialization of its therapeutic products. The company engages in partnerships and collaborations with larger pharmaceutical firms to co-develop its drug candidates, which can provide upfront licensing fees, milestone payments, and royalties on sales. Additionally, Dianthus may receive funding through government grants or investments from venture capital firms, particularly for its early-stage research and development efforts. Its revenue model is heavily reliant on successful clinical trials and the subsequent approval of its therapies by regulatory agencies, which can lead to significant market opportunities.

Dianthus Therapeutics Financial Statement Overview

Summary

Dianthus Therapeutics faces significant financial challenges, with declining revenues and substantial losses impacting profitability. While the company maintains low leverage, its negative return on equity and cash flow issues highlight operational inefficiencies and financial instability. The high gross profit margin is a positive aspect, but overall, the financial health of the company is concerning.

Income Statement

Dianthus Therapeutics shows a declining revenue trend with a negative revenue growth rate of -25.60% in the TTM. The company has a high gross profit margin of 97.96% in the TTM, indicating efficient cost management. However, the net profit margin is significantly negative at -23.64%, reflecting substantial losses. The EBIT and EBITDA margins are also deeply negative, suggesting operational inefficiencies.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.0044, indicating minimal leverage. However, the return on equity is negative at -34.72% in the TTM, highlighting poor profitability. The equity ratio is relatively stable, suggesting a solid asset base, but the negative ROE is a concern for investors.

Cash Flow

Operating cash flow and free cash flow are both negative, with a slight improvement in free cash flow growth at 10.33% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow aligns with net income, albeit both are negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.85M	6.24M	2.83M	6.42M	1.48M	0.00
Gross Profit	4.75M	6.24M	2.83M	6.27M	-544.00K	-1.98M
EBITDA	-129.59M	-101.45M	-47.82M	-29.56M	-69.12M	-72.96M
Net Income	-114.75M	-84.97M	-43.55M	-28.48M	-13.11M	-74.94M
Balance Sheet
Total Assets	326.08M	374.01M	179.41M	83.11M	9.45M	161.62M
Cash, Cash Equivalents and Short-Term Investments	257.39M	275.24M	173.72M	75.49M	176.93M	148.84M
Total Debt	1.33M	1.49M	585.00K	788.00K	0.00	0.00
Total Liabilities	23.00M	21.53M	10.54M	127.48M	26.70M	17.71M
Stockholders Equity	303.08M	352.48M	168.87M	-44.37M	172.67M	143.91M
Cash Flow
Free Cash Flow	-100.36M	-78.28M	-36.97M	-29.21M	-9.94M	-64.42M
Operating Cash Flow	-100.23M	-78.18M	-36.86M	-29.07M	-9.90M	-64.02M
Investing Cash Flow	-241.23M	-286.81M	20.25M	-59.82M	43.43M	-10.63M
Financing Cash Flow	40.70M	255.62M	133.57M	96.68M	89.60M	67.74M

Dianthus Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNTH, the sentiment is Positive. The current price of 37.04 is above the 20-day moving average (MA) of 27.60, above the 50-day MA of 23.28, and above the 200-day MA of 21.49, indicating a bullish trend. The MACD of 4.15 indicates Negative momentum. The RSI at 82.86 is Negative, neither overbought nor oversold. The STOCH value of 91.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNTH.

Dianthus Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHAR	67 Neutral	$980.29M	―	-3.40%	―	22.68%	42.45%
TRVI	55 Neutral	$982.13M	―	-35.74%	―	―	-8.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DNTH	48 Neutral	$1.43B	―	-34.71%	―	17.87%	41.27%
IMNM	46 Neutral	$801.68M	―	-81.20%	―	16.74%	59.89%
KALV	45 Neutral	$707.83M	―	-190.18%	―	―	-13.14%
ANAB	44 Neutral	$655.13M	―	-343.83%	―	304.17%	29.37%