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Design Therapeutics
(NASDAQ:DSGN)
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Rating:57Neutral
Price Target:
$12.50
▲(6.11% Upside)
Action:Reiterated
Date:07/01/26
The score is mainly held back by weak financial performance (no revenue, persistent losses, and negative free cash flow with recent burn pressure), partially offset by a low-debt balance sheet and strong reported cash runway. Corporate events provide a meaningful uplift due to positive early clinical and biomarker signals and continued pipeline progress. Technical and valuation inputs are constrained by missing indicators and a negative P/E tied to unprofitability.
Positive Factors
Conservative balance sheet / low debt
Very low reported debt and a substantial equity base provide durable financial flexibility for a clinical-stage biotech. This structure reduces near-term solvency risk, supports multi-year R&D investment pacing, and allows management to advance programs without immediate pressure to secure debt financing.
Negative Factors
Consistent negative operating and free cash flow
Sustained negative operating and free cash flow reflects ongoing R&D investment without offsetting revenue. Over 2-6 months this pressure can force pacing changes, increase financing needs, and constrain optionality on program timelines unless burn meaningfully slows or external funding materializes.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low debt
Very low reported debt and a substantial equity base provide durable financial flexibility for a clinical-stage biotech. This structure reduces near-term solvency risk, supports multi-year R&D investment pacing, and allows management to advance programs without immediate pressure to secure debt financing.
Read all positive factors
Design Therapeutics (DSGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$760.73M
Dividend YieldN/A
Average Volume (3M)213.56K
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue GrowthN/A
EPS Growth-20.34%
CountryUS
Employees124
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.20
Shares Outstanding62,456,974
10 Day Avg. Volume267,018
30 Day Avg. Volume213,565
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)2.53
Price to Sales (P/S)0.00
P/FCF Ratio-9.86
Enterprise Value/Market Cap<0.01
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$20.75Price Target Upside76.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-1.36
Revenue Forecast (FY)N/A
Design Therapeutics Business Overview & Revenue Model
Company Description
Design Therapeutics, Inc. is a biopharmaceutical company in the preclinical phase that focuses on creating treatments for genetic conditions stemming from nucleotide repeat expansions. Its current pipeline targets Friedreich's Ataxia (FA), a sever...
How the Company Makes Money
Design Therapeutics does not have publicly established, recurring product revenue from commercialized therapies and, as a clinical-stage biotech, its operations are primarily funded through external financing rather than sales of approved products...
Design Therapeutics Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
78
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | 0.00 | -622.00K | -596.00K | -537.00K | -466.00K | 0.00 |
| EBITDA | -69.09M | -69.17M | -48.99M | -66.33M | -62.84M | -35.40M |
| Net Income | -69.71M | -69.79M | -49.59M | -66.86M | -63.31M | -35.53M |
Balance Sheet | ||||||
| Total Assets | 230.44M | 226.20M | 252.09M | 289.64M | 341.14M | 390.56M |
| Cash, Cash Equivalents and Short-Term Investments | 222.82M | 219.84M | 245.48M | 281.80M | 330.39M | 384.06M |
| Total Debt | 2.73M | 1.53M | 2.33M | 3.05M | 3.69M | 3.63M |
| Total Liabilities | 12.39M | 13.70M | 10.00M | 11.96M | 13.83M | 8.43M |
| Stockholders Equity | 218.05M | 212.50M | 242.10M | 277.69M | 327.31M | 382.13M |
Cash Flow | ||||||
| Free Cash Flow | -54.12M | -54.55M | -43.45M | -58.82M | -52.23M | -30.91M |
| Operating Cash Flow | -54.00M | -54.36M | -43.10M | -58.56M | -51.32M | -29.38M |
| Investing Cash Flow | 7.45M | 22.91M | 43.95M | 52.54M | -220.99M | -53.64M |
| Financing Cash Flow | 45.65M | 25.74M | 513.00K | 724.00K | 235.00K | 379.21M |
Design Therapeutics Technical Analysis
Positive
11.78
Price Trends
12.34
Negative
12.31
Negative
10.62
Positive
Market Momentum
-0.31
Positive
44.63
Neutral
55.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DSGN, the sentiment is Positive. The current price of 11.78 is below the 20-day moving average (MA) of 13.07, below the 50-day MA of 12.34, and above the 200-day MA of 10.62, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 55.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DSGN.
Design Therapeutics Risk Analysis
Design Therapeutics disclosed 79 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $760.73M | -10.15 | -33.07% | ― | ― | -20.34% | |
53 Neutral | $149.56M | -0.89 | -117.86% | ― | -20.31% | -23.75% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $725.09M | -3.96 | -78.12% | ― | ― | 7.21% | |
47 Neutral | $834.78M | -4.18 | -101.19% | ― | ― | -3.74% | |
46 Neutral | $324.29M | -2.85 | -47.48% | ― | ― | 56.00% | |
45 Neutral | $497.61M | -43.29 | -4.21% | ― | 121.11% | 80.74% |
* Healthcare Sector Average
DSGN
Design Therapeutics
12.76
8.80
222.22%
ASMB
Assembly Biosciences
25.36
5.96
30.72%
KRRO
Korro Bio
10.74
-4.75
-30.66%
ANNX
Annexon Biosciences
5.25
2.72
107.51%
AURA
Aura Biosciences Inc
7.04
0.43
6.51%
LXEO
Lexeo Therapeutics, Inc.
4.20
-0.57
-11.95%
Design Therapeutics Corporate Events
Executive/Board ChangesShareholder Meetings
Design Therapeutics Stockholders Approve Director and Auditor at Meeting
Positive
Jun 11, 2026
On June 9, 2026, Design Therapeutics, Inc. held its 2026 Annual Meeting of Stockholders, with 62,441,429 shares of common stock outstanding and entitled to vote as of the April 14, 2026 record date. Stockholders elected Simeon George, M.D., as a C...
Business Operations and StrategyProduct-Related Announcements
Design Therapeutics reports positive Phase 1/2 DT-216P2 data
Positive
May 18, 2026
On May 18, 2026, Design Therapeutics reported new biomarker and clinical data from its ongoing Phase 1/2 RESTORE-FA trial of DT-216P2 in patients with Friedreich ataxia, in which 16 patients received weekly intravenous doses up to 1 mpk over four ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.