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ZAI LAB LTD-ADR (ZLAB) Stock Fundamental Analysis

NASDAQ:ZLAB - Nasdaq - US98887Q1040 - ADR - Currency: USD

31.18  +0.03 (+0.1%)

After market: 31.1699 -0.01 (-0.03%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ZLAB. ZLAB was compared to 563 industry peers in the Biotechnology industry. ZLAB scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ZLAB is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

ZLAB had negative earnings in the past year.
ZLAB had a negative operating cash flow in the past year.
ZLAB had negative earnings in each of the past 5 years.
ZLAB had a negative operating cash flow in each of the past 5 years.
ZLAB Yearly Net Income VS EBIT VS OCF VS FCFZLAB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 -200M -400M -600M

1.2 Ratios

With a decent Return On Assets value of -21.68%, ZLAB is doing good in the industry, outperforming 77.95% of the companies in the same industry.
With a decent Return On Equity value of -30.57%, ZLAB is doing good in the industry, outperforming 77.78% of the companies in the same industry.
Industry RankSector Rank
ROA -21.68%
ROE -30.57%
ROIC N/A
ROA(3y)-30.1%
ROA(5y)-30.96%
ROE(3y)-38.33%
ROE(5y)-37.81%
ROIC(3y)N/A
ROIC(5y)N/A
ZLAB Yearly ROA, ROE, ROICZLAB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 -20 -40 -60

1.3 Margins

ZLAB's Gross Margin of 63.12% is fine compared to the rest of the industry. ZLAB outperforms 78.66% of its industry peers.
In the last couple of years the Gross Margin of ZLAB has declined.
ZLAB does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 63.12%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.36%
GM growth 5Y-2.26%
ZLAB Yearly Profit, Operating, Gross MarginsZLAB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50K -100K

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4

2. Health

2.1 Basic Checks

ZLAB does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ZLAB has more shares outstanding
The number of shares outstanding for ZLAB has been increased compared to 5 years ago.
Compared to 1 year ago, ZLAB has a worse debt to assets ratio.
ZLAB Yearly Shares OutstandingZLAB Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
ZLAB Yearly Total Debt VS Total AssetsZLAB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

ZLAB has an Altman-Z score of 3.36. This indicates that ZLAB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.36, ZLAB is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that ZLAB is not too dependend on debt financing.
ZLAB's Debt to Equity ratio of 0.16 is on the low side compared to the rest of the industry. ZLAB is outperformed by 68.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF N/A
Altman-Z 3.36
ROIC/WACCN/A
WACC8.63%
ZLAB Yearly LT Debt VS Equity VS FCFZLAB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

2.3 Liquidity

ZLAB has a Current Ratio of 3.51. This indicates that ZLAB is financially healthy and has no problem in meeting its short term obligations.
ZLAB has a Current ratio (3.51) which is in line with its industry peers.
A Quick Ratio of 3.38 indicates that ZLAB has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.38, ZLAB is in line with its industry, outperforming 42.15% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.51
Quick Ratio 3.38
ZLAB Yearly Current Assets VS Current LiabilitesZLAB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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7

3. Growth

3.1 Past

ZLAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.57%, which is quite impressive.
The Revenue has grown by 49.59% in the past year. This is a very strong growth!
ZLAB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 98.34% yearly.
EPS 1Y (TTM)28.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)49.59%
Revenue growth 3Y40.36%
Revenue growth 5Y98.34%
Sales Q2Q%64.84%

3.2 Future

Based on estimates for the next years, ZLAB will show a very strong growth in Earnings Per Share. The EPS will grow by 93.71% on average per year.
Based on estimates for the next years, ZLAB will show a very strong growth in Revenue. The Revenue will grow by 40.53% on average per year.
EPS Next Y41.13%
EPS Next 2Y45.88%
EPS Next 3Y53.48%
EPS Next 5Y93.71%
Revenue Next Year45.67%
Revenue Next 2Y47.16%
Revenue Next 3Y46.39%
Revenue Next 5Y40.53%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
ZLAB Yearly Revenue VS EstimatesZLAB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B
ZLAB Yearly EPS VS EstimatesZLAB Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 20 -20 40 60 80

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ZLAB. In the last year negative earnings were reported.
Also next year ZLAB is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
ZLAB Price Earnings VS Forward Price EarningsZLAB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ZLAB Per share dataZLAB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

4.3 Compensation for Growth

ZLAB's earnings are expected to grow with 53.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.88%
EPS Next 3Y53.48%

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0

5. Dividend

5.1 Amount

ZLAB does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ZAI LAB LTD-ADR

NASDAQ:ZLAB (5/2/2025, 8:00:02 PM)

After market: 31.1699 -0.01 (-0.03%)

31.18

+0.03 (+0.1%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-27 2025-02-27/amc
Earnings (Next)05-08 2025-05-08/bmo
Inst Owners46.34%
Inst Owner Change3.23%
Ins Owners1.42%
Ins Owner Change-25.94%
Market Cap3.42B
Analysts78.46
Price Target34.81 (11.64%)
Short Float %7.75%
Short Ratio5.65
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)19.47%
Min EPS beat(2)-12.04%
Max EPS beat(2)50.98%
EPS beat(4)3
Avg EPS beat(4)17.72%
Min EPS beat(4)-12.04%
Max EPS beat(4)50.98%
EPS beat(8)5
Avg EPS beat(8)23.58%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.88%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)-1.65%
Revenue beat(4)2
Avg Revenue beat(4)2.64%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)10.02%
Revenue beat(8)3
Avg Revenue beat(8)-0.41%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-13.5%
PT rev (3m)18.08%
EPS NQ rev (1m)1.24%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.78%
EPS NY rev (3m)14.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-1.25%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 8.57
P/FCF N/A
P/OCF N/A
P/B 4.07
P/tB 4.37
EV/EBITDA N/A
EPS(TTM)-2.34
EYN/A
EPS(NY)-1.38
Fwd EYN/A
FCF(TTM)-2.52
FCFYN/A
OCF(TTM)-1.96
OCFYN/A
SpS3.64
BVpS7.67
TBVpS7.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -21.68%
ROE -30.57%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 63.12%
FCFM N/A
ROA(3y)-30.1%
ROA(5y)-30.96%
ROE(3y)-38.33%
ROE(5y)-37.81%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.36%
GM growth 5Y-2.26%
F-Score4
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 518.91%
Cap/Sales 15.42%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.51
Quick Ratio 3.38
Altman-Z 3.36
F-Score4
WACC8.63%
ROIC/WACCN/A
Cap/Depr(3y)305.55%
Cap/Depr(5y)287.72%
Cap/Sales(3y)10.07%
Cap/Sales(5y)13.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20%
EPS Next Y41.13%
EPS Next 2Y45.88%
EPS Next 3Y53.48%
EPS Next 5Y93.71%
Revenue 1Y (TTM)49.59%
Revenue growth 3Y40.36%
Revenue growth 5Y98.34%
Sales Q2Q%64.84%
Revenue Next Year45.67%
Revenue Next 2Y47.16%
Revenue Next 3Y46.39%
Revenue Next 5Y40.53%
EBIT growth 1Y25.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year47.74%
EBIT Next 3Y37.13%
EBIT Next 5Y32.27%
FCF growth 1Y-33.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.42%
OCF growth 3YN/A
OCF growth 5YN/A