ZAI LAB LTD-ADR (ZLAB)
US98887Q1040 - ADR
Overall ZLAB gets a fundamental rating of 3 out of 10. We evaluated ZLAB against 586 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.
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.
In the past 5 years ZLAB always reported negative operating cash flow.
1.2 Ratios
ZLAB has a Return On Assets of -34.29%. This is in the better half of the industry: ZLAB outperforms 65.18% of its industry peers.
ZLAB has a better Return On Equity (-44.47%) than 70.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -34.29% | ||
| ROE | -44.47% | ||
| ROIC | N/A |
ROA(3y)-37.46%
ROA(5y)-37.61%
ROE(3y)-45.16%
ROE(5y)-44.94%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ZLAB has a Gross Margin of 62.86%. This is amongst the best in the industry. ZLAB outperforms 81.65% of its industry peers.
ZLAB's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for ZLAB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 62.86% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.84%
GM growth 5Y-8.52%
2. Health
2.1 Basic Checks
ZLAB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ZLAB has been increased compared to 1 year ago.
Compared to 5 years ago, ZLAB has more shares outstanding
ZLAB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ZLAB has an Altman-Z score of 1.77. This is a bad value and indicates that ZLAB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.77, ZLAB is in the better half of the industry, outperforming 67.75% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that ZLAB is not too dependend on debt financing.
ZLAB's Debt to Equity ratio of 0.06 is on the low side compared to the rest of the industry. ZLAB is outperformed by 62.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.77 |
ROIC/WACCN/A
WACC7.54%
2.3 Liquidity
ZLAB has a Current Ratio of 4.63. This indicates that ZLAB is financially healthy and has no problem in meeting its short term obligations.
ZLAB has a Current ratio (4.63) which is comparable to the rest of the industry.
ZLAB has a Quick Ratio of 4.43. This indicates that ZLAB is financially healthy and has no problem in meeting its short term obligations.
ZLAB's Quick ratio of 4.43 is in line compared to the rest of the industry. ZLAB outperforms 48.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.63 | ||
| Quick Ratio | 4.43 |
3. Growth
3.1 Past
ZLAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.67%, which is quite good.
The Revenue has grown by 25.94% 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 384.41% yearly.
EPS 1Y (TTM)16.67%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q0%
Revenue 1Y (TTM)25.94%
Revenue growth 3Y75.91%
Revenue growth 5Y384.41%
Revenue growth Q2Q38.78%
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 68.39% 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 46.71% on average per year.
EPS Next Y8.2%
EPS Next 2Y20.06%
EPS Next 3Y28.79%
EPS Next 5Y68.39%
Revenue Next Year41.79%
Revenue Next 2Y47.88%
Revenue Next 3Y51.34%
Revenue Next 5Y46.71%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as ZLAB's earnings are expected to grow with 28.79% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.06%
EPS Next 3Y28.79%
5. Dividend
5.1 Amount
ZLAB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZAI LAB LTD-ADR
NASDAQ:ZLAB (5/20/2024, 4:20:02 PM)
After market: 20.84 0 (0%)20.84
+1.44 (+7.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -34.29% | ||
| ROE | -44.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 62.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.63 | ||
| Quick Ratio | 4.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)16.67%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y8.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.94%
Revenue growth 3Y75.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y