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

Sector: Healthcare Industry: Biotechnology CIK: 0001690585
Market Cap 1.38 Bn
P/B 2.53
P/E -10.92
P/S 448.35
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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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.37 12.96
EV to Cash from Ops. EV/CFO -12.49 23.73
EV to Debt EV to Debt 1,064.68 772.65
EV to EBIT EV/EBIT -10.83 -11.30
EV to EBITDA EV/EBITDA -9.78 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -12.48 22.12
EV to Market Cap EV to Market Cap 0.99 68.89
EV to Revenue EV/Rev 444.48 199.70
Price to Book Value [P/B] P/B 2.53 22.62
Price to Earnings [P/E] P/E -10.92 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.15
Interest Coverage Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -26.19 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 66.27 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -88.32 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -69.64 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -88.32 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -88.32 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -148.74 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -74.92 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -42.64 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.35 3.79
Current Ratio Curr Ratio (Qtr) 17.35 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 857.11
Times Interest Earned Times Interest Earned 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -4,091.50 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -4,104.78 -18,862.18
EBT Margin % EBT Margin % (Qtr) -4,104.78 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -4,104.80 -19,732.60