Dianthus Therapeutics, Inc. /DE/ (NASDAQ: DNTH)

Sector: Healthcare Industry: Biotechnology CIK: 0001690585
P/B 2.79
P/E -12.07
P/S 495.51
Market Cap 1.53 Bn
ROIC (Qtr) -32.93
Div Yield % 0.00
Rev 1y % (Qtr) -81.77
Total Debt (Qtr) 1.29 Mn
Debt/Equity (Qtr) 0.00

About

Dianthus Therapeutics, Inc. (NASDAQ: DNTX), a clinical-stage biotechnology company, is dedicated to developing next-generation complement therapeutics for patients grappling with severe autoimmune and inflammatory diseases. The company's main business activities revolve around creating and commercializing complement therapeutics to address unmet medical needs in the treatment of autoimmune and inflammatory diseases. Dianthus Therapeutics' lead product candidate, DNTH103, is a novel, highly potent, and highly selective monoclonal antibody designed...

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Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 55.98M provide 257.99x coverage of short-term debt 217000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 577.45M provides 449.37x coverage of total debt 1.28M, indicating robust asset backing and low credit risk.
  • Tangible assets of 577.45M provide exceptional 82.23x coverage of deferred revenue 7.02M, showing strong service capability backing.
  • Operating cash flow of (109.52M) fully covers other non-current liabilities (954000) by 114.80x, showing strong long-term stability.
  • Short-term investments of 346.63M provide solid 20.47x coverage of other current liabilities 16.93M, indicating strong liquidity.

Cons

  • Operating cash flow of (109.52M) barely covers its investment activities of (183.15M), with a coverage ratio of 0.60, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (183.15M) provide weak support for R&D spending of 112.16M, which is -1.63x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (109.52M) provides insufficient coverage of deferred revenue obligations of 7.02M, which is -15.60x, raising concerns about future service delivery capabilities.
  • Short-term investments of 346.63M significantly exceed cash reserves of 55.98M, which is 6.19x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (109.52M) shows concerning coverage of stock compensation expenses of 20.73M, with a -5.28 ratio indicating potential earnings quality issues.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,349.40 Bn -1,464.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 437.43 Bn 6,381.20 87.97 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.09 Bn 31.59 9.90 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.10 Bn 17.06 5.48 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.87 Bn 1,282.42 17.40 3.21 Bn
6 ARGX Argenx Se 52.85 Bn 35.08 27,559.65 -
7 BNTC Benitec Biopharma Inc. 41.75 Bn -998.33 0.00 0.00 Bn
8 INSM INSMED Inc 37.80 Bn -31.93 84.56 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 2.62 12.31
EV to Cash from Ops. -13.82 23.25
EV to Debt 1,177.65 738.44
EV to EBIT -11.98 -9.16
EV to EBITDA -10.82 6.95
EV to Free Cash Flow [EV/FCF] -13.80 21.90
EV to Market Cap 0.99 65.67
EV to Revenue 491.65 227.32
Price to Book Value [P/B] 2.79 22.34
Price to Earnings [P/E] -12.07 -11.77

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -11.94
Dividend Payout Ratio % 0.00 0.16
Dividend per Basic Share 0.00 0.01
FCF Dividend Payout Ratio % 0.00 -0.14
Interest Coverage 0.00 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -26.19 -27.13
Cash and Equivalents Growth (1y) % 66.27 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -88.32 -46.93
EBITDA Growth (1y) % -69.64 -1.68
EBIT Growth (1y) % -88.32 -56.45
EBT Growth (1y) % -88.32 -12.70
EPS Growth (1y) % -148.74 -28.31
FCF Growth (1y) % -74.92 -31.90
Gross Profit Growth (1y) % -42.64 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.01 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 2.35 3.85
Current Ratio 17.35 7.27
Debt to Equity Ratio 0.00 0.40
Interest Cover Ratio 0.00 841.00
Times Interest Earned 0.00 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -4,091.50 -18,234.31
EBIT Margin % -4,104.78 -18,580.80
EBT Margin % -4,104.78 -19,488.74
Gross Margin % 100.00 -7.59
Net Profit Margin % -4,104.80 -19,439.22