NasdaqGS:DNLI

Stock Analysis Report

Executive Summary

Denali Therapeutics Inc., a biopharmaceutical company, discovers and develops therapeutic candidates for neurodegenerative diseases in the United States.

Rewards

Revenue is forecast to grow 15.35% per year

Risk Analysis

Earnings are forecast to decline by an average of -11.2% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with concerning outlook.

Share Price & News

How has Denali Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DNLI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.08%

DNLI

0.1%

US Biotechs

1.1%

US Market


1 Year Return

-12.6%

DNLI

14.7%

US Biotechs

17.8%

US Market

Return vs Industry: DNLI underperformed the US Biotechs industry which returned 14.7% over the past year.

Return vs Market: DNLI underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

DNLIIndustryMarket
7 Day-0.08%0.1%1.1%
30 Day22.2%9.0%1.4%
90 Day-4.8%15.2%3.9%
1 Year-12.6%-12.6%15.7%14.7%20.3%17.8%
3 Yearn/a28.4%24.3%44.8%35.4%
5 Yearn/a10.2%5.0%71.3%52.4%

Price Volatility Vs. Market

How volatile is Denali Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Denali Therapeutics undervalued compared to its fair value and its price relative to the market?

3.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DNLI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DNLI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DNLI is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: DNLI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DNLI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DNLI is overvalued based on its PB Ratio (4x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Denali Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNLI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DNLI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DNLI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DNLI's revenue (15.4% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: DNLI's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DNLI is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Denali Therapeutics performed over the past 5 years?

-3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNLI is currently unprofitable.

Growing Profit Margin: DNLI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DNLI is unprofitable, and losses have increased over the past 5 years at a rate of -3.1% per year.

Accelerating Growth: Unable to compare DNLI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DNLI is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: DNLI has a negative Return on Equity (-15.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Denali Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: DNLI's short term assets ($494.4M) exceed its short term liabilities ($46.7M).

Long Term Liabilities: DNLI's short term assets ($494.4M) exceed its long term liabilities ($118.1M).


Debt to Equity History and Analysis

Debt Level: DNLI is debt free.

Reducing Debt: DNLI has not had any debt for past 5 years.


Balance Sheet

Inventory Level: DNLI has a low level of unsold assets or inventory.

Debt Coverage by Assets: DNLI's debt is not covered by short term assets (assets are -3.4788688640321E+16x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DNLI has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: DNLI has sufficient cash runway for 1.872195 years if free cash flow continues to grow at historical rates of 53.6% each year.


Next Steps

Dividend

What is Denali Therapeutics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate DNLI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DNLI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DNLI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DNLI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DNLI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Denali Therapeutics's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Ryan Watts (43yo)

4.3yrs

Tenure

US$5,983,923

Compensation

Dr. Ryan J. Watts, Ph.D. is the Co-Founder of Denali Therapeutics Inc. and has been its President and Chief Executive Officer since August 2015. Dr. Watts has been a Director of Denali Therapeutics Inc. si ...


CEO Compensation Analysis

Compensation vs Market: Ryan's total compensation ($USD5.98M) is above average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Ryan's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.8yrs

Average Tenure

46yo

Average Age

Experienced Management: DNLI's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

59yo

Average Age

Experienced Board: DNLI's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24%.


Management Team

  • Marc Tessier-Lavigne (59yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$405.13k
  • Steve Krognes (51yo)

    CFO & Treasurer

    • Tenure: 4.2yrs
    • Compensation: US$4.00m
  • Ryan Watts (43yo)

    Co-Founder

    • Tenure: 4.3yrs
    • Compensation: US$5.98m
  • Alex Schuth (46yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$3.90m
  • Carole Ho (46yo)

    Chief Medical Officer & Head of Development

    • Tenure: 4.5yrs
    • Compensation: US$3.94m
  • Dana Andersen

    Chief Technical and Manufacturing Officer

    • Tenure: 1.3yrs
  • Cindy Dunkle

    Chief People Officer

    • Tenure: 0yrs
  • Joe Lewcock

    Head of Biology Discovery

    • Tenure: 0yrs
  • Zach Sweeney

    Chief Scientific Officer

    • Tenure: 0.08yrs
  • Chris Walsh

    Vice President of Legal

    • Tenure: 0.9yrs

Board Members

  • Bob Nelsen (57yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$383.88k
  • Vicki Sato (70yo)

    Independent Chairperson

    • Tenure: 3.3yrs
    • Compensation: US$428.13k
  • Jay Flatley (66yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$404.17k
  • Marc Tessier-Lavigne (59yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$405.13k
  • David Schenkein (62yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$404.13k
  • Peter Klein (57yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$643.85k
  • Scott Biller (63yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Doug Cole (59yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$402.63k
  • Ryan Watts (43yo)

    Co-Founder

    • Tenure: 4.3yrs
    • Compensation: US$5.98m
  • Alison Goate

    Member of Scientific Advisory Board

    • Tenure: 0yrs

Company Information

Denali Therapeutics Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Denali Therapeutics Inc.
  • Ticker: DNLI
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.742b
  • Shares outstanding: 96.03m
  • Website: https://www.denalitherapeutics.com

Number of Employees


Location

  • Denali Therapeutics Inc.
  • 161 Oyster Point Boulevard
  • 2nd Floor
  • South San Francisco
  • California
  • 94080
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4DNMUN (Boerse Muenchen)YesCommon StockDEEURDec 2017
DNLINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2017
4DNDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2017

Biography

Denali Therapeutics Inc., a biopharmaceutical company, discovers and develops therapeutic candidates for neurodegenerative diseases in the United States. The company offers leucine-rich repeat kinase 2 (LR ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 01:15
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.