We're Not Very Worried About Design Therapeutics' (NASDAQ:DSGN) Cash Burn Rate
We're Not Very Worried About Design Therapeutics' (NASDAQ:DSGN) Cash Burn Rate
Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.
即使一家公司不盈利,并不意味着股票会下跌。例如,生物技术和矿业勘探公司经常在找到新的治疗方法或矿产发现成功之前多年亏损。尽管如此,只有傻瓜才会忽视亏损的风险,认为亏损公司用尽现金会很快倒闭。
Given this risk, we thought we'd take a look at whether Design Therapeutics (NASDAQ:DSGN) shareholders should be worried about its cash burn. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. First, we'll determine its cash runway by comparing its cash burn with its cash reserves.
鉴于这种风险,我们希望检查一下Design Therapeutics(纳斯达克:DSGN)的现金流情况是否让股东们感到担忧。在本报告中,我们将考虑该公司的年度负自由现金流,将其称为“现金流失”。首先,我们将通过比较其现金流失和现金储备来确定其现金流跑道。
How Long Is Design Therapeutics' Cash Runway?
Design Therapeutics的现金流失跑道有多长?
A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. As at March 2024, Design Therapeutics had cash of US$271m and no debt. In the last year, its cash burn was US$54m. Therefore, from March 2024 it had 5.0 years of cash runway. While this is only one measure of its cash burn situation, it certainly gives us the impression that holders have nothing to worry about. The image below shows how its cash balance has been changing over the last few years.
现金流失跑道被定义为公司用当前的现金流失速率所花费的时间长度。截至2024年3月,Design Therapeutics有27100万美元的现金和无债务。在过去一年中,其现金流失为5400万美元。因此,从2024年3月开始,它有5.0年的现金流失跑道。虽然这只是现金流失情况的一个度量标准,但它肯定让我们印象深刻,认为股东们没有什么好担心的。下图显示了其过去几年现金余额的变化情况。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240712/0-75a4a6c5c2d02db56bddaeb9c16b8660-0-6d9fa0d38fe88ca6ddabc224a23972e4.png/big)
How Is Design Therapeutics' Cash Burn Changing Over Time?
Design Therapeutics的现金流失如何随时间变化?由于Design Therapeutics目前没有产生收入,我们认为它是一个早期阶段的企业。因此,尽管我们不能通过销售来了解增长状况,但我们可以通过了解现金流失的变化来了解支出趋势。现金流失下降了6.7%,似乎管理层认为公司正在以适当的速度推进其业务计划。虽然过去总是值得研究,但最重要的是未来。因此,您可能想窥探一下公司未来几年预计增长多少。
Because Design Therapeutics isn't currently generating revenue, we consider it an early-stage business. So while we can't look to sales to understand growth, we can look at how the cash burn is changing to understand how expenditure is trending over time. With cash burn dropping by 6.7% it seems management feel the company is spending enough to advance its business plans at an appropriate pace. While the past is always worth studying, it is the future that matters most of all. So you might want to take a peek at how much the company is expected to grow in the next few years.
Design Therapeutics很难筹集资金吗?尽管Design Therapeutics的现金流失有所减少,但仍值得考虑如何轻松地筹集更多资金,即使只是为了加速增长。发行新股票或负债是上市公司筹集更多资金的最常见方式。通常,公司会在自身出售新股票以筹集资金和推动增长。通过将公司的年度现金流失与其总市值相比较,我们可以大致估计它需要发行多少股票才能在一年内运营公司(在相同的流失速率下)。
How Easily Can Design Therapeutics Raise Cash?
由于Design Therapeutics目前没有产生营业收入,我们认为它是一个早期阶段的企业。因此,尽管我们不能通过销售来了解增长状况,但我们可以通过了解现金流失的变化来了解支出情况趋势。现金流失下降了6.7%,似乎管理层认为公司正在以适当的速度推进其业务计划。虽然过去总是值得学习,但最重要的是未来。因此,您可能想窥探一下公司未来几年预计增长多少。
While Design Therapeutics is showing a solid reduction in its cash burn, it's still worth considering how easily it could raise more cash, even just to fuel faster growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Commonly, a business will sell new shares in itself to raise cash and drive growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).
虽然Design Therapeutics的现金流失表现不错,但仍有必要考虑它如何轻松地筹集更多资金,即使只是为了加速增长。上市公司筹集更多资金的最常见方式是发行新股票或负债。通常,一家企业会在自身发行新股来筹集资金推动企业增长。通过将公司的年度现金流失与其总市值相比较,我们可以大致估计它需要发行多少股票才能在一年内运营公司(在相同的流失速率下)
Since it has a market capitalisation of US$205m, Design Therapeutics' US$54m in cash burn equates to about 26% of its market value. That's not insignificant, and if the company had to sell enough shares to fund another year's growth at the current share price, you'd likely witness fairly costly dilution.
由于Design Therapeutics的市值为2.05亿美元,其5400万美元的现金流失大约占其市值的26%。这不是无关紧要的,如果公司必须以当前股价出售足够的股份来资助下一年的增长,您很可能会见证相当昂贵的稀释。
So, Should We Worry About Design Therapeutics' Cash Burn?
因此,我们应该担心Design Therapeutics的现金流失吗?在对Design Therapeutics的现金流失进行分析后,尽管对于现金流失相对于其市值来说仍有点担忧,但我们认为它的现金流失跑道令人放心。考虑到本文讨论的所有因素,我们并不过分关注公司的现金流失,尽管我们认为股东们应该密切关注其发展情况。另外,我们还研究了影响公司的不同风险,并发现Design Therapeutics存在4个警告信号(其中2个有点不愉快!),您应该了解。
On this analysis of Design Therapeutics' cash burn, we think its cash runway was reassuring, while its cash burn relative to its market cap has us a bit worried. Considering all the factors discussed in this article, we're not overly concerned about the company's cash burn, although we do think shareholders should keep an eye on how it develops. Separately, we looked at different risks affecting the company and spotted 4 warning signs for Design Therapeutics (of which 2 are a bit unpleasant!) you should know about.
当然,Design Therapeutics可能不是最佳的股票选择,您可能希望查看公司高回报权益率的自由收藏,或者查看高内部所有权股票的列表。
Of course Design Therapeutics may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.
当然,设计治疗公司未必是买入股票的最佳选择。您也可以查看这个免费收录高股本回报的公司的集合,或者是这个拥有高内部持股比例的股票列表。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对本文有反馈? 对内容感到担忧? 请直接与我们联系。 或者,发送电子邮件至editorial-team@simplywallst.com。