Denali Therapeutics (DNLI)
NASDAQ:DNLI
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Denali Therapeutics
(NASDAQ:DNLI)
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Rating:48Neutral
Price Target:
$19.50
▼(-5.20% Downside)
Action:Reiterated
Date:06/05/26
The score is held back primarily by weak financial performance (large ongoing losses, high cash burn, and recent lack of revenue), partially offset by a low-debt balance sheet. Technicals are broadly neutral, while corporate events are mixed with a major regulatory win and financing tempered by a notable clinical failure; valuation is also unattractive/unclear due to negative earnings and no dividend.
Positive Factors
Regulatory approval (AVLAYAH)
AVLAYAH's accelerated FDA approval creates Denali's first regulatory-validated, potentially commercial product and validates its TransportVehicle platform. This structural achievement can generate recurring royalties, strengthen credibility with partners and regulators, and de-risk platform applications across rare CNS diseases over the medium term.
Negative Factors
High cash burn
Sustained negative operating and free cash flow at ~-$400M TTM creates an enduring funding need. Over 2–6 months this necessitates additional capital or milestone receipts; absent predictable product revenue the company must rely on financings or deals, increasing dilution risk and potentially forcing prioritization or cuts in pipeline programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulatory approval (AVLAYAH)
AVLAYAH's accelerated FDA approval creates Denali's first regulatory-validated, potentially commercial product and validates its TransportVehicle platform. This structural achievement can generate recurring royalties, strengthen credibility with partners and regulators, and de-risk platform applications across rare CNS diseases over the medium term.
Read all positive factors
Denali Therapeutics (DNLI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.10B
Dividend YieldN/A
Average Volume (3M)1.85M
Price to Earnings (P/E)―
Beta (1Y)1.88
Revenue GrowthN/A
EPS Growth-7.88%
CountryUS
Employees443
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.88
Shares Outstanding158,709,730
10 Day Avg. Volume1,896,355
30 Day Avg. Volume1,847,374
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)2.86
Price to Sales (P/S)0.00
P/FCF Ratio-6.86
Enterprise Value/Market Cap0.96
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-523.84
Enterprise Value/Ebitda-5.71
Forecast
1Y Price Target
$35.50Price Target Upside72.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)-2.46
Revenue Forecast (FY)$42.49M
Denali Therapeutics Business Overview & Revenue Model
Company Description
Denali Therapeutics Inc. is a biopharmaceutical firm, founded in 2013 and based in South San Francisco, California, which focuses on identifying and advancing treatments for neurodegenerative conditions within the United States. The company, initi...
How the Company Makes Money
Denali primarily generates revenue through collaboration and licensing arrangements rather than product sales (as it is a clinical-stage company). Its revenue model typically includes: (1) upfront payments received when entering strategic collabor...
Denali Therapeutics Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
66
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 330.53M | 108.46M | 48.66M |
| Gross Profit | -5.71M | -11.18M | 0.00 | 330.53M | 108.46M | 48.66M |
| EBITDA | -523.76M | -497.63M | -492.89M | -179.97M | -330.36M | -287.16M |
| Net Income | -508.02M | -512.54M | -422.77M | -145.22M | -325.99M | -290.58M |
Balance Sheet | ||||||
| Total Assets | 1.27B | 1.14B | 1.37B | 1.15B | 1.46B | 1.40B |
| Cash, Cash Equivalents and Short-Term Investments | 987.68M | 867.88M | 832.33M | 1.03B | 1.34B | 865.41M |
| Total Debt | 40.05M | 42.29M | 48.71M | 52.24M | 60.35M | 64.01M |
| Total Liabilities | 339.93M | 131.09M | 144.50M | 122.96M | 417.81M | 441.87M |
| Stockholders Equity | 926.10M | 1.01B | 1.23B | 1.03B | 1.04B | 962.29M |
Cash Flow | ||||||
| Free Cash Flow | -419.23M | -422.10M | -363.61M | -370.93M | -262.55M | -219.89M |
| Operating Cash Flow | -412.34M | -412.60M | -347.69M | -357.99M | -244.72M | -211.39M |
| Investing Cash Flow | 330.99M | 255.28M | -88.76M | 249.31M | -141.39M | -21.63M |
| Financing Cash Flow | 412.02M | 189.22M | 484.30M | 17.82M | 310.67M | 19.35M |
Denali Therapeutics Technical Analysis
Negative
20.57
Price Trends
19.58
Negative
20.00
Negative
18.11
Positive
Market Momentum
0.08
Negative
49.15
Neutral
42.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNLI, the sentiment is Negative. The current price of 20.57 is above the 20-day moving average (MA) of 19.52, above the 50-day MA of 19.58, and above the 200-day MA of 18.11, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 42.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNLI.
Denali Therapeutics Risk Analysis
Denali Therapeutics disclosed 75 risk factors in its most recent earnings report. Denali Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Denali Therapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $2.69B | ― | -1.41% | ― | 95.29% | 98.21% | |
58 Neutral | $2.77B | -19.94 | -13.96% | ― | 3118.14% | 55.95% | |
55 Neutral | $4.26B | ― | -244.61% | ― | ― | -28.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $3.10B | -7.18 | -52.20% | ― | ― | -7.88% | |
48 Neutral | $1.63B | -3.82 | -34.11% | ― | 78.34% | -161.91% | |
48 Neutral | $3.06B | -47.28 | -5.89% | ― | 157.97% | 86.11% |
* Healthcare Sector Average
DNLI
Denali Therapeutics
19.54
4.90
33.42%
AGIO
Agios Pharma
27.44
-6.22
-18.48%
CELC
Celcuity
87.43
74.52
577.23%
IDYA
IDEAYA Biosciences
31.48
9.77
45.00%
ARQT
Arcutis Biotherapeutics
21.54
7.33
51.58%
BEAM
Beam Therapeutics
29.78
11.61
63.90%
Denali Therapeutics Corporate Events
Executive/Board ChangesShareholder Meetings
Denali Therapeutics Shareholders Back Board, Auditors, Executive Pay
Positive
Jun 4, 2026
Denali Therapeutics Inc. held its annual meeting of stockholders on June 3, 2026, with 86.96% of outstanding common shares represented in person or by proxy. Stockholders elected three Class III directors—Jennifer Cook, David Schenkein, M.D....
Business Operations and Strategy
Denali, Biogen Halt Parkinson’s Trial After Efficacy Failure
Negative
May 22, 2026
Denali Therapeutics Inc., based in South San Francisco, is a biotechnology company developing a new class of biotherapeutics designed to cross the blood-brain barrier using its proprietary TransportVehicle platform. With a portfolio spanning multi...
Business Operations and StrategyProduct-Related Announcements
Denali Regains DNL593 Rights After Takeda Collaboration Ends
Neutral
Apr 3, 2026
On April 3, 2026, Denali Therapeutics said Takeda Pharmaceutical will terminate their 2018 collaboration to co-develop and co-commercialize DNL593, an investigational progranulin replacement therapy for GRN-related frontotemporal dementia. The dec...
Business Operations and StrategyPrivate Placements and Financing
Denali Therapeutics Secures $200 Million Royalty Funding
Positive
Mar 31, 2026
Denali Therapeutics Inc. secured $200 million in gross proceeds on March 27, 2026, upon closing a synthetic royalty funding agreement with Royalty Pharma. The transaction closed shortly after the U.S. Food and Drug Administration granted accelerat...
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Denali Therapeutics Gains FDA Approval for AVLAYAH Therapy
Positive
Mar 25, 2026
On March 25, 2026, Denali Therapeutics announced that the U.S. Food and Drug Administration granted accelerated approval to AVLAYAH (tividenofusp alfa-eknm), an enzyme replacement therapy for neurologic manifestations of Hunter syndrome in presymp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.