Denali Therapeutics Inc.
$19.66
-3.7%Denali Therapeutics Inc., a biopharmaceutical company, discovers and develops therapeutic candidates for neurodegenerative diseases in the United States. It offers leucine-rich repeat kinase 2 (LRRK2) inhibitor product candidate, including BIIB122/DNL151, a small molecule inhibitor, which is in phase I and phase Ib clinical trials for the treatment of Parkinson's disease. The company also develops DNL310 that is in Phase I/II clinical trials for the treatment of hunter syndrome; DNL343, which is in phase 1 clinical trial the treatment of amyotrophic lateral sclerosis (ALS); AR443820/DNL788 completed a phase I clinical trial for the treatment of ALS, multiple sclerosis (MS), and Alzheimer's disease; and SAR443122/DNL758, which is in phase II clinical trial for the treatment of cutaneous lupus erythematosus. It has collaboration agreement with Takeda Pharmaceutical Company, Genentech, Inc., Sanofi, F-star Gamma Limited, F-star Biotechnologische Forschungs-Und Entwicklungsges M.B.H, F-star Biotechnology Limited, SIRION Biotech GmbH, Genzyme Corporation, Harvard University, the Michael J. Fox Foundation, and Centogene; and a research and option agreement with Secarna Pharmaceuticals GmbH & Co. KG. to develop antisense therapies in the field of neurodegenerative diseases. The company was formerly known as SPR Pharma Inc. and changed its name to Denali Therapeutics Inc. in March 2015. Denali Therapeutics Inc. was incorporated in 2013 and is headquartered in South San Francisco, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -6.6).
Valuation inputs: P/E -6.6, earnings yield N/A, momentum -3.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -50.6%, ROIC -52.6%).
Profitability stack: net margin 0.0%, ROE -50.6%, ROIC -52.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +11.5%, momentum -3.7%, net margin 0.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Denali Therapeutics Inc. Market vs Earnings Trajectory
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Denali Therapeutics Inc. Fair Value Envelope
Denali Therapeutics Inc. Profit Bridge
Profitability Analysis
Denali Therapeutics Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Denali Therapeutics Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Denali Therapeutics Inc. Street Expectations Map
Wall Street analysts project that DNLI stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 30.80, with estimates ranging from a low of 23.00 to a high of 40.00.
The consensus 1-year price target stands at 30.80, with estimates ranging from a low of 23.00 to a high of 40.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Denali Therapeutics Inc. Insider Positioning
During the last 12 months, insiders have purchased $21K and sold $8.39M worth of DNLI shares, resulting in $8.36M of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
2.1M
20.95K
52.4K
864.86K
-844K
-$844K
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
0
0.00
502.0K
7.52M
-7.5M
-$7.52M
Top Buyers
Baker Bros. Advisors Lp
Director
$21K
Top Sellers
Watts Ryan J.
Director, Officer: President And Ceo
$8.01M
Schuth Alexander O.
Officer: Cofo And Secretary
$324K
Ho Carole
Officer: Chief Medical Officer
$52K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $8.36M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
3 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
No Dividend Yield Data
DNLI has not reported any dividend yield values in the available annual periods.
dnli Dividend History
Learning Layer
Related Guides
Build conviction on DNLI by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.