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Design Therapeutics (DSGN)
NASDAQ:DSGN
US Market

Design Therapeutics (DSGN) AI Stock Analysis

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Design Therapeutics

(NASDAQ:DSGN)

32Underperform
Design Therapeutics exhibits significant financial challenges due to its lack of revenue and persistent losses, impacting its financial performance score. The technical analysis indicates a bearish trend, and the negative P/E ratio reflects valuation difficulties. Without positive earnings call insights or corporate events to offset these issues, the stock is currently viewed as high-risk.
Positive Factors
Clinical Trials
DSGN is on track to initiate the Phase 1 single ascending dose study in healthy volunteers and to initiate FA patient dosing.
Drug Development
DSGN's new formulation, DT-216P2, has demonstrated an improved PK profile, an improved injection site safety profile, and more sustained drug exposure in preclinical models compared to the prior formulation.
Negative Factors
Financial Performance
DSGN reported a net loss of $11.8M or $(0.21) per share for 2Q24.

Design Therapeutics (DSGN) vs. S&P 500 (SPY)

Design Therapeutics Business Overview & Revenue Model

Company DescriptionDesign Therapeutics (DSGN) is a biotechnology company focused on developing novel therapies for serious degenerative diseases caused by nucleotide repeat expansions. The company operates within the pharmaceutical and biotechnology sectors, leveraging its GeneTAC platform to design small-molecule treatments that target the underlying genetic causes of these diseases. Design Therapeutics aims to address unmet medical needs in conditions such as Friedreich ataxia and other similar genetic disorders.
How the Company Makes MoneyDesign Therapeutics makes money primarily through the development and eventual commercialization of its therapeutic products. The company invests in research and development to advance its small-molecule therapies through clinical trials, with the goal of obtaining regulatory approval. Revenue is generated from potential future product sales, licensing agreements, and strategic partnerships. These collaborations may involve upfront payments, milestone payments, and royalties based on sales of approved products. Additionally, the company may receive funding from grants or other financial support aimed at advancing its research initiatives.

Design Therapeutics Financial Statement Overview

Summary
Design Therapeutics faces significant financial challenges, primarily due to its inability to generate revenue. While the balance sheet shows a strong cash position and low debt, the persistent losses and negative cash flows present substantial risks. Achieving revenue growth and improving operational efficiency are crucial for future financial health.
Income Statement
10
Very Negative
Design Therapeutics shows no revenue generation over recent years, leading to negative profitability metrics. The company consistently reports operating losses, reflected by negative EBIT and net income. The absence of revenue growth and persistent negative margins indicate significant challenges in achieving profitability.
Balance Sheet
40
Negative
The company maintains a healthy equity position with low debt, as evidenced by a favorable debt-to-equity ratio. However, continuous operating losses have eroded equity over time. The high equity ratio is a positive sign of financial stability, but the lack of revenue generation poses a risk to long-term sustainability.
Cash Flow
30
Negative
Operating cash flow remains negative, mirroring the income statement's lack of profitability. Free cash flow is also negative, which could indicate difficulties in covering operational expenses. Nonetheless, the company has sufficient cash reserves, providing some buffer against cash flow shortages in the short term.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.00226.00
Gross Profit
0.00-537.00K-466.00K-129.00K-4.77K
EBIT
-62.38M-78.19M-67.59M-35.83M-8.33M
EBITDA
-62.38M-66.33M-62.84M-35.70M-8.32M
Net Income Common Stockholders
-49.59M-66.86M-58.62M-35.53M-8.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
245.48M281.80M330.39M384.06M36.09M
Total Assets
252.09M289.64M341.14M390.56M36.52M
Total Debt
1.53M3.05M3.69M3.63M0.00
Net Debt
-21.03M-18.15M-22.81M-294.94M-2.38M
Total Liabilities
10.00M11.96M13.83M8.43M47.83M
Stockholders Equity
242.10M277.69M327.31M382.13M-11.31M
Cash FlowFree Cash Flow
-43.45M-58.82M-52.23M-30.91M-8.74M
Operating Cash Flow
-43.10M-58.56M-51.32M-29.38M-8.67M
Investing Cash Flow
43.95M52.54M-220.99M-53.64M-33.56M
Financing Cash Flow
513.00K724.00K235.00379.21K44.53M

Design Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.79
Price Trends
50DMA
4.64
Negative
100DMA
5.27
Negative
200DMA
5.00
Negative
Market Momentum
MACD
-0.22
Positive
RSI
32.45
Neutral
STOCH
7.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSGN, the sentiment is Negative. The current price of 3.79 is below the 20-day moving average (MA) of 4.59, below the 50-day MA of 4.64, and below the 200-day MA of 5.00, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 32.45 is Neutral, neither overbought nor oversold. The STOCH value of 7.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DSGN.

Design Therapeutics Risk Analysis

Design Therapeutics disclosed 77 risk factors in its most recent earnings report. Design Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Design Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
48
Neutral
$6.86B1.11-50.22%2.47%16.71%1.53%
48
Neutral
$187.69M322.49%-33.83%27.89%
46
Neutral
$2.84B-19.20%-89.95%-123.71%
46
Neutral
$1.76B-43.94%-83.18%-144.95%
41
Neutral
$688.91M-54.00%59.55%3.09%
39
Underperform
$93.76M-98.10%-58.64%-40.05%
32
Underperform
$204.63M-19.08%26.63%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DSGN
Design Therapeutics
3.52
-0.04
-1.12%
EDIT
Editas Medicine
1.12
-5.69
-83.55%
NTLA
Intellia Therapeutics
7.30
-17.67
-70.76%
CRSP
Crispr Therapeutics AG
32.66
-32.40
-49.80%
BEAM
Beam Therapeutics
18.48
-10.55
-36.34%
FHTX
Foghorn Therapeutics
3.15
-3.90
-55.32%

Design Therapeutics Corporate Events

Regulatory Filings and Compliance
Design Therapeutics Updates Corporate Presentation for Investors
Neutral
Jan 13, 2025

Design Therapeutics, Inc. has updated its corporate presentation to be used in meetings with investors, analysts, and others, which has been attached to a Current Report on Form 8-K. This update, although furnished for informational purposes, is not deemed filed under the Securities Exchange Act or the Securities Act, thus limiting its formal legal implications.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.