Dianthus Therapeutics (DNTH) AI Stock Analysis

• Market Cap: $697.13M
• Dividend Yield: N/A
• Average Volume (3M): 368.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 351.48%
• EPS Growth: 80.10%
• Country: US
• Employees: 78
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -2.60
• Shares Outstanding: 32,125,935
• 10 Day Avg. Volume: 271,227
• 30 Day Avg. Volume: 368,113
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 78.59
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $42.60
• Price Target Upside: 96.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Dianthus Therapeutics exhibits strong revenue growth, but the lack of profitability and negative cash flow are significant concerns. The technical analysis presents a mixed picture, with the stock trading below key moving averages. Valuation metrics suggest overvaluation due to negative earnings and no dividend yield, further impacting the stock's attractiveness. Overall, the stock presents a challenging investment prospect, primarily due to financial instability and valuation concerns.

Positive Factors

Clinical Trial Progress

DNTH103's convenient every two weeks, self-administered, subcutaneous dosing regimen and safety advantage could position it as best-in-class.

Financial Position

Dianthus has $357.0M in cash, cash equivalents, and investments, expected to fund operations into the second half of 2027.

Market Opportunity

DNTH103 has the potential to be a best-in-class complement inhibitor for generalized myasthenia gravis as a more convenient, self-administered treatment with no black box warning or REMS program.

Product Development

Dianthus initiated the Phase III CAPTIVATE study with DNTH103 in CIDP, expected to support a BLA filing in the indication.

Negative Factors

Competitive Environment

Sales of AstraZeneca’s Ultomiris grew 33%, highlighting the competitive challenge for complement inhibitors in generalized myasthenia gravis.

Market Sentiment

Short interest for Dianthus is at 27.5% of the float.

Dianthus Therapeutics Business Overview & Revenue Model

Company Description

Dianthus Therapeutics, Inc. operates as a clinical-stage biotechnology company that designs, develops, and delivers novel monoclonal antibodies for people living with severe autoimmune and inflammatory diseases. It develops DNTH103 that is in phase 1 clinical trails in patients with generalized myasthenia gravis, multifocal motor neuropathy, and chronic inflammatory demyelinating polyneuropathy. Dianthus Therapeutics, Inc. was incorporated in 2015 and is based in New York, New York.

How the Company Makes Money

Dianthus Therapeutics makes money through the development and commercialization of its proprietary monoclonal antibody therapies. Revenue streams include milestone payments and royalties from licensing agreements with larger pharmaceutical companies, as well as potential future sales of its therapeutic products upon regulatory approval. The company may also receive funding through research grants and partnerships with other biopharmaceutical firms aimed at advancing its clinical trials and expanding its pipeline of complement-targeting therapies.

Dianthus Therapeutics Financial Statement Overview

Summary

Dianthus Therapeutics shows impressive revenue growth, but remains unprofitable with negative EBIT and net income. Although it has a strong equity position and low debt, negative cash flows and reliance on external financing present significant risks.

Income Statement

Dianthus Therapeutics shows significant revenue growth from 2023 to 2024, growing from $2.83 million to $6.24 million. However, the company remains unprofitable, with negative EBIT and net income, resulting in poor profit margins. The gross profit margin is strong at 100%, but this is offset by high operating losses.

Balance Sheet

The company has a strong equity position with a high equity ratio, reflecting solid shareholder backing. The debt-to-equity ratio is low, indicating prudent leverage, but the negative stockholders' equity in prior years highlights potential financial instability.

Cash Flow

Free cash flow remains negative, and operating cash flow is insufficient to cover net income losses. The company relies heavily on financing activities for cash inflow, which could be a risk if external funding becomes less available.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.24M	2.83M	6.42M	1.48M	0.00
	Gross Profit
6.24M	2.47M	6.27M	-544.00K	-1.98M
	EBIT
-101.86M	-48.17M	-29.70M	-13.09M	-78.70M
	EBITDA
-101.86M	-48.17M	-29.56M	-13.09M	-72.96M
	Net Income Common Stockholders
-84.97M	-43.55M	-28.48M	-13.11M	-74.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
275.24M	173.72M	75.49M	7.64M	148.84M
	Total Assets
374.01M	179.41M	83.11M	9.45M	161.62M
	Total Debt
1.49M	585.00K	788.00K	0.00	0.00
	Net Debt
-21.30M	-131.74M	-14.58M	-7.64M	-58.15M
	Total Liabilities
21.53M	10.54M	127.48M	26.70M	17.71M
	Stockholders Equity
352.48M	168.87M	-44.37M	-17.25M	143.91M
Cash Flow		Free Cash Flow
-78.28M	-36.97M	-29.21M	-9.94M	-64.42M
	Operating Cash Flow
-78.18M	-36.86M	-29.07M	-9.90M	-64.02M
	Investing Cash Flow
-286.81M	20.25M	-59.82M	-33.00K	-10.63M
	Financing Cash Flow
255.62M	133.57M	96.68M	14.91M	67.74M

Dianthus Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 21.7 is above the 20-day moving average (MA) of 19.15, above the 50-day MA of 20.22, and below the 200-day MA of 24.45, indicating a neutral trend. The MACD of 0.69 indicates Negative momentum. The RSI at 59.59 is Neutral, neither overbought nor oversold. The STOCH value of 62.51 is Neutral, 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
ANAB	57 Neutral	$681.42M	―	-182.71%	―	432.03%	14.41%
PHAR	56 Neutral	$596.33M	―	-4.99%	―	20.69%	-5.94%
TRVI	55 Neutral	$667.11M	―	-52.59%	―	―	-60.26%
Sector *	52 Neutral	$5.36B	3.88	-42.93%	2.87%	17.85%	1.45%
IMNM	49 Neutral	$770.92M	―	-194.63%	―	-35.50%	3.81%
DNTH	48 Neutral	$697.13M	―	-32.60%	―	351.48%	80.10%
KALV	45 Neutral	$676.13M	―	-150.50%	―	―	-18.75%

Dianthus Therapeutics Corporate Events

Dianthus Therapeutics Appoints Sujay Kango to Board

On March 4, 2025, Dianthus Therapeutics announced the resignation of Tomas Kiselak from its Board of Directors, which was not due to any disagreements with the company. The same day, Sujay Kango was appointed as a Class II director and a member of the Compensation Committee, receiving stock options and cash compensation in line with the company’s policies.