Denali Therapeutics Inc. (DNLI) AI Stock Analysis
DNLI AI stock analysis summary
AI ResearchDenali Therapeutics Inc. (DNLI) is a biotechnology company developing therapies for neurodegenerative diseases. As of June 30, 2026, the company held $710.5M in cash and short-term investments with a net cash position of $683.0M. Over the trailing twelve months, revenue was $3.6M with an operating margin of -3601.3% and an eps of -$2.84.
- Market cap
- $2.81B
- Revenue (TTM)
- $3.6M
- P/E
- —
- 1Y return
- 5.3% S&P 500 16.8%
- Avg. target
- $35.75 103.0% vs last close
Bull case
- The mean analyst price target of $35.75 reflects an upside potential of 103.0% from the last close of $17.61.
- Denali holds a net cash balance of $683.0M and a current ratio of 8.37 as of June 30, 2026.
- Analysts project fiscal year 2027 revenue to grow 158.3% to $130.8M, up from an estimated $50.7M in FY2026.
Bear case
- The stock's price-to-sales multiple is 781.1x, significantly higher than the median of its US-listed Healthcare peers of 4.1x.
- Revenue fell 100.0% year-over-year in the quarter ended June 30, 2026, bringing trailing twelve-month revenue down to $3.6M.
- The company has experienced substantial shareholder dilution, with its share count rising 53.3% over 5 years.
What Denali Therapeutics does
Denali Therapeutics Inc. is a biopharmaceutical company based in South San Francisco, California, focused on discovering and developing therapies for neurodegenerative diseases. The company's pipeline includes BIIB122/DNL151 in phase I and phase Ib trials for Parkinson's disease, DNL310 in phase I/II trials for hunter syndrome, and DNL343 in phase 1 trials for ALS. It has also completed phase I trials for AR443820/DNL788 for ALS, MS, and Alzheimer's disease, while progressing SAR443122/DNL758 in phase II trials. Denali collaborates with Takeda Pharmaceutical Company, Genentech, Sanofi, Harvard University, and Secarna Pharmaceuticals GmbH & Co. KG.
Growth and profitability
Denali generated annual revenue of $330.5M in FY2023, reflecting revenue growth of 204.7% and a net income of -$145.2M. That followed revenue of $108.5M in FY2022 and $48.7M in FY2021, delivering a 5-year revenue CAGR of 20.7% from FY2018 to FY2023. Gross margin remained at 100.0% across these years, while R&D expense increased from $193.4M in FY2019 to $423.9M in FY2023. For the trailing twelve months ending June 30, 2026, revenue stood at $3.6M, with quarterly revenue growth falling 100.0% year-over-year. TTM operating margin was -3601.3%, and eps was -$2.84.
Balance sheet and cash flow
As of June 30, 2026, Denali held $710.5M in cash and short-term investments against total debt of $27.5M, yielding net cash of $683.0M. Shareholders' equity was $835.2M and total assets reached $1.16B. The company maintained strong liquidity with a current ratio of 8.37 and a debt-to-equity ratio of 0.03. In FY2025, capital expenditures were $9.5M. The share count increased by 53.3% over 5 years.
Valuation and performance
Denali trades at a market cap of $2.81B and an enterprise value of $2.59B. Its price-to-sales ratio is 781.1x and its EV-to-EBITDA is 86.5x, well above the median of its US-listed Healthcare peers of 4.1x and 12.0x, respectively. The stock trades at a price-to-book ratio of 3.9x. Over the past year, the shares gained 5.3%, trailing the S&P 500 (SPY) return of 16.8%. Over the past 5 years, the stock dropped 61.3%, compared to an 83.0% return for the benchmark.
What analysts expect
Wall Street coverage includes 17 Strong Buy, 2 Buy, and 1 Hold ratings, with 0 Sell or Strong Sell ratings. The mean price target is $35.75, representing an upside of 103.0% from the last close of $17.61. Denali has beat EPS estimates in each of the last 4 quarters. For the fiscal year ending December 31, 2026, analysts estimate an EPS of -$2.23 and revenue of $50.7M. The next earnings date is November 5, 2026.
Key risks and what to watch
- Trailing twelve-month operating margin is -3601.3%, reflecting heavy R&D spending alongside minimal current revenue.
- Denali's 5-year return of -61.3% significantly underperformed the S&P 500 return of 83.0%.
- The stock trades 16.7% below its 200-day moving average, with short interest representing 10.2% of the float.
- Analyst consensus projects an ongoing annual loss with an EPS estimate of -$2.23 for FY2026.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DNLI AI stock analysis
This page is an AI-written research summary of Denali Therapeutics Inc. (DNLI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DNLI income statement, DNLI balance sheet, DNLI key metrics, DNLI analyst forecast, DNLI chart. See the DNLI stock overview for the latest quote and news.
DNLI AI stock analysis FAQ
What is Denali Therapeutics' cash position?
As of June 30, 2026, Denali Therapeutics held $710.5M in cash and short-term investments. With total debt at $27.5M, the company has a net cash position of $683.0M and a current ratio of 8.37.
What are analysts forecasting for DNLI stock?
Analysts have a mean price target of $35.75 on DNLI, which is 103.0% above its last close of $17.61. Consensus estimates project revenue of $50.7M and an EPS of -$2.23 for the fiscal year ending December 31, 2026.
Does Denali Therapeutics pay a dividend?
Denali Therapeutics does not pay a dividend. The company directs its capital toward research and clinical development, posting capital expenditures of $9.5M in FY2025.
Who are Denali's primary partners?
Denali collaborates with major pharmaceutical companies and institutions, including Takeda Pharmaceutical Company, Genentech, Sanofi, Harvard University, and Secarna Pharmaceuticals GmbH & Co. KG.