Dianthus Therapeutics (DNTH) AI Stock Analysis

• Market Cap: $691.98M
• Dividend Yield: N/A
• Average Volume (3M): 221.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 480.74%
• EPS Growth: 85.86%
• Country: US
• Employees: 53
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -2.50
• Shares Outstanding: 29,596,966
• 10 Day Avg. Volume: 252,257
• 30 Day Avg. Volume: 221,383
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 134.25
• Price to Cash Flow (P/CF): -8.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $42.60
• Price Target Upside: 82.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Dianthus Therapeutics exhibits strong revenue growth but faces challenges with profitability and cash flow. The technical analysis suggests a neutral to slightly positive short-term outlook, despite potential overbought conditions. Valuation remains a concern due to the negative P/E ratio, reflecting unprofitability. The stock requires operational improvements for better financial sustainability.

Positive Factors

Convenience

Ph1 data supports Q2W SC dosing + at-home autoinjector to provide enhanced convenience.

Drug Development

DNTH103 has blockbuster potential in gMG, MMN, and CIDP with validated MoA and potential differentiation on safety/convenience in sizable commercial markets.

Negative Factors

Financial Performance

3Q24 net loss was $25M, up from $18M in 2Q24, with the majority of this increase driven by higher R&D costs.

Dianthus Therapeutics Business Overview & Revenue Model

Company Description

Dianthus Therapeutics (DNTH) is a biotechnology company focused on developing next-generation antibody complement therapeutics. The company operates in the biopharmaceutical sector, aiming to provide innovative treatments for patients with severe and rare autoimmune and inflammatory diseases. Dianthus Therapeutics leverages its proprietary platform to create highly selective monoclonal antibodies designed to modulate the complement system, a part of the immune system that plays a key role in inflammation and tissue damage.

How the Company Makes Money

Dianthus Therapeutics makes money through the development and commercialization of its proprietary monoclonal antibody therapies. Revenue streams include milestone payments and royalties from licensing agreements with larger pharmaceutical companies, as well as potential future sales of its therapeutic products upon regulatory approval. The company may also receive funding through research grants and partnerships with other biopharmaceutical firms aimed at advancing its clinical trials and expanding its pipeline of complement-targeting therapies.

Dianthus Therapeutics Financial Statement Overview

Summary

Dianthus Therapeutics struggles with profitability and cash flow management. Despite a strong equity position, the company's financial instability, marked by negative margins and cash burn, poses significant risks.

Income Statement

Dianthus Therapeutics has shown significant challenges in achieving profitability, with consistently negative net and EBIT margins over the periods analyzed. The revenue growth rate is erratic, with recent TTM figures showing a temporary increase, but historical data indicates volatility. The company is struggling to manage costs effectively, as evidenced by the negative gross profit margins in prior periods.

Balance Sheet

The company maintains a solid equity base with a high equity ratio, indicating low leverage. However, the debt-to-equity ratio is minimal, reflecting conservative financial management. Yet, the negative ROE highlights ongoing struggles to generate returns for shareholders.

Cash Flow

Cash flow metrics reveal poor operational efficiency, with negative operating cash flows that exceed net income, indicating cash burn. Though financing activities provide liquidity, the free cash flow remains negative, signaling potential cash management issues.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
5.37M	2.83M	6.42M	1.48M	0.00	0.00
	Gross Profit
5.04M	2.47M	6.27M	-544.00K	-1.98M	-1.84M
	EBIT
-82.90M	-48.17M	-29.70M	-13.09M	-78.70M	-82.97M
	EBITDA
-80.19M	-48.17M	-29.56M	-13.09M	-72.96M	-74.93M
	Net Income Common Stockholders
-67.09M	-43.55M	-28.48M	-13.11M	-74.94M	-76.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
173.72M	173.72M	75.49M	7.64M	148.84M	145.73M
	Total Assets
179.41M	179.41M	83.11M	9.45M	161.62M	161.51M
	Total Debt
585.00K	585.00K	788.00K	0.00	0.00	0.00
	Net Debt
-131.74M	-131.74M	-14.58M	-7.64M	-58.15M	-65.07M
	Total Liabilities
10.54M	10.54M	127.48M	26.70M	17.71M	20.32M
	Stockholders Equity
168.87M	168.87M	-44.37M	-17.25M	143.91M	141.19M
Cash Flow		Free Cash Flow
-49.80M	-36.97M	-29.21M	-9.94M	-64.42M	-60.16M
	Operating Cash Flow
-49.92M	-36.86M	-29.07M	-9.90M	-64.02M	-57.10M
	Investing Cash Flow
-321.65M	20.25M	-59.82M	-33.00K	-10.63M	1.53M
	Financing Cash Flow
377.03M	133.57M	96.68M	14.91M	67.74M	62.30M

Dianthus Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNTH, the sentiment is Positive. The current price of 23.38 is above the 20-day moving average (MA) of 22.71, above the 50-day MA of 22.59, and below the 200-day MA of 25.40, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 86.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNTH.

Dianthus Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMGN	75 Outperform	$171.31B	43.30	67.55%	2.86%	18.64%	-39.39%
BIIB	69 Neutral	$21.03B	12.85	10.36%	―	-1.60%	39.71%
VRTX	64 Neutral	$128.40B	―	-3.15%	―	11.64%	-114.72%
RGEN	58 Neutral	$7.68B	―	-1.30%	―	0.33%	-171.08%
DNTH	50 Neutral	$691.98M	―	-25.99%	―	480.74%	85.86%
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
ALNY	49 Neutral	$30.91B	―	-414.62%	―	22.97%	38.54%

Dianthus Therapeutics Corporate Events

Dianthus Therapeutics Appoints Sujay Kango to Board

On March 4, 2025, Dianthus Therapeutics announced the resignation of Tomas Kiselak from its Board of Directors, which was not due to any disagreements with the company. The same day, Sujay Kango was appointed as a Class II director and a member of the Compensation Committee, receiving stock options and cash compensation in line with the company’s policies.