Design Therapeutics (DSGN)
NASDAQ:DSGN
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Design Therapeutics
(NASDAQ:DSGN)
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Rating:52Neutral
Price Target:
$12.50
▲(39.82% Upside)
Action:ReiteratedDate:04/07/26
The score is primarily constrained by weak financial performance (no revenue, sizable and rising losses, and sustained cash burn), partially offset by a low-debt balance sheet. Technically, the stock is in an uptrend, but overbought readings temper the momentum signal. Valuation is also limited by lack of profitability and no dividend support.
Positive Factors
Low Financial Leverage
A very low debt-to-equity ratio (~0.3% in 2025) gives the company durable financial flexibility versus highly leveraged peers. Limited leverage reduces bankruptcy risk and preserves capacity to raise incremental capital or invest in R&D without high interest obligations, supporting long-term program funding optionality.
Negative Factors
No Revenue / Persistent Losses
Absence of product revenue and large recurring net losses indicate the company remains pre-commercial and cash-consuming. Over months this limits internal funding, increases dependence on external financing, and reduces operational visibility—constraints that materially affect strategic options and long-term sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Financial Leverage
A very low debt-to-equity ratio (~0.3% in 2025) gives the company durable financial flexibility versus highly leveraged peers. Limited leverage reduces bankruptcy risk and preserves capacity to raise incremental capital or invest in R&D without high interest obligations, supporting long-term program funding optionality.
Read all positive factors
Design Therapeutics (DSGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$749.93M
Dividend YieldN/A
Average Volume (3M)213.56K
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue GrowthN/A
EPS Growth-40.26%
CountryUS
Employees56
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.27
Shares Outstanding61,672,280
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 Cap0.98
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-4.61K
Enterprise Value/Ebitda-9.91
Forecast
1Y Price Target
$15.50Price Target Upside73.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-1.35
Revenue Forecast (FY)N/A
Design Therapeutics Business Overview & Revenue Model
Company Description
Design 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, leverag...
How the Company Makes Money
Design Therapeutics is a clinical-stage biotech and does not primarily generate recurring revenue from commercial product sales. Its ability to make money is therefore driven mainly by (1) raising capital through equity financings and (2) interest...
Design Therapeutics Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -622.00K | -596.00K | -537.00K | -466.00K | 0.00 |
| EBITDA | -78.84M | -48.99M | -66.33M | -62.84M | -35.70M |
| Net Income | -69.79M | -49.59M | -66.86M | -63.31M | -35.53M |
Balance Sheet | |||||
| Total Assets | 226.20M | 252.09M | 289.64M | 341.14M | 390.56M |
| Cash, Cash Equivalents and Short-Term Investments | 219.84M | 245.48M | 281.80M | 330.39M | 384.06M |
| Total Debt | 645.00K | 2.33M | 3.05M | 3.69M | 3.63M |
| Total Liabilities | 13.70M | 10.00M | 11.96M | 13.83M | 8.43M |
| Stockholders Equity | 212.50M | 242.10M | 277.69M | 327.31M | 382.13M |
Cash Flow | |||||
| Free Cash Flow | -54.55M | -43.45M | -58.82M | -52.23M | -30.91M |
| Operating Cash Flow | -54.36M | -43.10M | -58.56M | -51.32M | -29.38M |
| Investing Cash Flow | 22.91M | 43.95M | 52.54M | -220.99M | -53.64M |
| Financing Cash Flow | 25.74M | 513.00K | 724.00K | 235.00K | 379.21M |
Design Therapeutics Technical Analysis
Positive
8.94
Price Trends
10.57
Positive
9.93
Positive
7.69
Positive
Market Momentum
0.54
Negative
63.43
Neutral
84.25
Negative
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 8.94 is below the 20-day moving average (MA) of 11.04, below the 50-day MA of 10.57, and above the 200-day MA of 7.69, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 63.43 is Neutral, neither overbought nor oversold. The STOCH value of 84.25 is Negative, 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 |
|---|---|---|---|---|---|---|---|
52 Neutral | $749.93M | -7.71 | -32.72% | ― | ― | -40.26% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $182.88M | -0.64 | -115.95% | ― | ― | 21.61% | |
49 Neutral | $938.77M | -3.77 | -101.33% | ― | ― | -35.62% | |
49 Neutral | $443.04M | -63.66 | -67.33% | ― | ― | 4.97% | |
48 Neutral | $436.22M | -3.10 | -71.25% | ― | ― | -11.41% | |
45 Neutral | $450.82M | -62.28 | -5.63% | ― | 31.30% | 32.79% |
* Healthcare Sector Average
DSGN
Design Therapeutics
12.16
8.91
274.15%
ASMB
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28.42
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178.63%
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AURA
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6.80
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LXEO
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5.98
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Design Therapeutics Corporate Events
Executive/Board Changes
Design Therapeutics Appoints David Shapiro to Board
Positive
Apr 1, 2026
On March 31, 2026, Design Therapeutics appointed David Shapiro, M.D., to its board of directors as a Class III director, with a term running through the company’s 2027 annual shareholder meeting. He was also named to the board’s Nomina...
Executive/Board Changes
Design Therapeutics announces governance-driven board resignation
Neutral
Jan 30, 2026
On January 29, 2026, Design Therapeutics, Inc. announced that board member Deepa Prasad had notified the company of her decision to resign from its Board of Directors, effective February 1, 2026. The departure results from conflict-avoidance polic...
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.