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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2063
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$429M
Joao Siffert
Design Therapeutics, Inc. engages in the development of therapies for the treatment of genetic diseases caused by nucleotide repeat expansions. The company's portfolio of products comprises Friedreich Ataxia, a monogenic, autosomal recessive, progressive multi-system disease that affects organ systems dependent on mitochondrial function, eventually leading to neurological, cardiac, and metabolic dysfunction. It is also developing GeneTAC product candidate portfolio for the. treatment of other monogenic diseases, such as Fragile X syndrome, spinocerebellar ataxias, amyotrophic lateral sclerosis, frontotemporal dementia, Huntington disease, and
Headcount
40
HQ Base
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$DSGN Design Therapeutics, Inc. | 50 | 32 | 37 | 82 | - | - | -33.5% | -31.6% | - | - | - | - | 0.0% | 6.0x | $429M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
Design Therapeutics, Inc. (DSGN) receives a "Reduce" rating with a composite score of 49.6/100. It ranks #2063 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Joao Siffert
Chief Executive Officer
Labor Force
40
32
25
45
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for DSGN
Pending Verification
Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for DSGN.
View All RatingsInsufficient data for Financial Analysis
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 32 | 11 | +21ALPHA |
| MOMENTUM | 82 | 87 | -5NEUTRAL |
| VALUATION | 37 | 16 | +21ALPHA |
| INVESTMENT | 25 | 13 | +12ALPHA |
| STABILITY | 45 | 25 | +20ALPHA |
| SHORT INT | 51 | 53 | -2NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy -33.5% (sector -2.5%)
GM N/A vs sector 43%, OM N/A vs sector 1%
Capital turnover N/A
Rev growth N/A, 5yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Design Therapeutics, Inc. receives a Reduce rating from our analysis, with a composite score of 49.6/100 and 2 out of 5 stars, ranking #2063 out of 7,333 stocks. DSGN's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
DSGN's quality score of 32/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -33.5% (sector avg: -2.5%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 37/100, DSGN appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 2.88x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Design Therapeutics, Inc.'s investment score of 25/100 suggests limited reinvestment activity. Key growth metrics include a return on assets of -31.6% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
DSGN shows strong momentum characteristics with a score of 82/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth data is not currently available, while a beta of 0.94 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
With a stability score of 45/100, DSGN exhibits average financial resilience. Key stability metrics include a beta of 0.94 and a debt-to-equity ratio of 6.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 51/100 for DSGN suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 6.00x), small-cap liquidity risk. With a $429M market cap (small-cap), Design Therapeutics, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Design Therapeutics, Inc. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2063 of 7,333 overall (72nd percentile). Key comparisons include ROE of -33.5% trailing the -2.5% sector median. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While DSGN currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Investment (25) would have the largest impact on the composite score.
ROE 1249% ABOVE SECTOR MEDIAN (FAVORABLE)
Debt/Equity 2900% ABOVE SECTOR MEDIAN
Div. Yield NaN% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate Design Therapeutics, Inc. (DSGN) as a Reduce with a composite score of 49.6/100 at a current price of $10.58. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in momentum (82th percentile) and stability (45th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (25th percentile) and quality (32th percentile) tempers our overall conviction. We assign a No Moat rating (22/100), Medium uncertainty, and Poor capital allocation.
Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
Design Therapeutics, Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 49.6/100 places it at rank #2063 in our full 7,333-stock universe. At $429M in market capitalization, Design Therapeutics, Inc. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Momentum indicators (82th percentile) are constructive regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.
Margin data is not available for Design Therapeutics, Inc., which limits our assessment of the company's cost structure and operating efficiency. We rely on factor-based signals to infer business quality in the absence of detailed margin data.
At a current price of $10.58, Design Therapeutics, Inc. is trading at a premium to fundamental value. Our value factor score of 37/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.
The stock currently trades at P/B of 2.9x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
A conservative balance sheet (6% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
Positive momentum (82th percentile) indicates institutional accumulation and favorable technical dynamics that tend to persist in the intermediate term.
The Reduce rating (composite 49.6/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Below-average quality (32th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
We assign a Medium uncertainty rating to Design Therapeutics, Inc.. The stock presents a balanced risk profile: weak quality scores (32th percentile). While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: weak quality scores (32th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 45th percentile and quality factor at the 32th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: conservative leverage (6% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate Design Therapeutics, Inc.'s capital allocation as Poor. Key concerns include low returns on equity (-33.5%), weak asset returns (ROA -31.6%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Design Therapeutics, Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, Design Therapeutics, Inc. receives a Reduce rating with a composite score of 49.6/100 (rank #2063 of 7,333). Our quantitative framework assigns a No Moat (22/100, trend: stable), Medium uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 44/100.
Our analysis does not support a constructive view on Design Therapeutics, Inc. at this time. The combination of limited competitive advantages, medium uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign Design Therapeutics, Inc. a meaningful economic moat, scoring 22/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, margin superiority, reached only 10/20.
The strongest moat sources are margin superiority (10/20) and financial resilience (9.3/20). GM N/A vs sector 43%, OM N/A vs sector 1%. Interest coverage N/A. These pillars form the core of Design Therapeutics, Inc.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and growth durability (0/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect Design Therapeutics, Inc.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers are not clearly identifiable from current fundamentals. This may reflect a company in transition, a cyclical downturn, or structural challenges in the business model. We assign a quality factor of 32/100 which further underscores our concern regarding earnings sustainability.
Return metrics include ROE of -33.5% and ROA of -31.6%. Relative to the Manufacturing sector, sector comparison data is limited, and ROE of -33.5% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 6%. The sector median D/E is 0%, putting Design Therapeutics, Inc. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
Wall Street Zen has upgraded Design Therapeutics (NASDAQ:DSGN) from a "sell" to a "hold" rating. The company currently has an average target price of $15.00 and a "Moderate Buy" consensus rating from analysts. Design Therapeutics, a biopharmaceutical company, focuses on developing small molecule therapeutic drugs for genetic diseases, utilizing its GeneTAC platform.
The average one-year price target for Design Therapeutics (NasdaqGS:DSGN) has increased by 10.64% to $13.26 per share, up from $11.98. This new target represents a 38.41% increase from the latest reported closing price of $9.58. Institutional ownership in DSGN shows a bullish outlook, despite a slight decrease in the number of reporting institutions.
Oppenheimer has initiated coverage of Design Therapeutics (DSGN) with an Outperform recommendation. The average one-year price target suggests a 35.88% upside from its current share price. The article highlights projected substantial revenue growth and details significant institutional ownership changes and a bullish put/call ratio.
The average one-year price target for Design Therapeutics (NasdaqGS:DSGN) has increased by 41.00% to $11.98 per share from the prior estimate of $8.50. This new target represents a 22.67% increase from the last reported closing price. Institutional holdings in DSGN show varying activities, with some increasing and others decreasing their positions.
Leerink Partners upgraded Design Therapeutics (NASDAQ:DSGN) to Outperform and doubled its price target to $14.00, citing progress with its reformulated Friedreich’s Ataxia treatment candidate, DT-216P2, and its new myotonic dystrophy type 1 candidate, DT-818. This upgrade follows RBC Capital's similar move, highlighting the company's successful pivot in its development strategy. Design Therapeutics is advancing multiple programs, with clinical data and trials expected in 2026 and 2027.