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ZAI LAB LTD-ADR (ZLAB) Stock Fundamental Analysis

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

33.78  +2.79 (+9%)

After market: 33.78 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ZLAB. ZLAB was compared to 572 industry peers in the Biotechnology industry. The financial health of ZLAB is average, but there are quite some concerns on its profitability. 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

In the past year ZLAB has reported negative net income.
In the past year ZLAB has reported a negative cash flow from operations.
In the past 5 years ZLAB always reported negative net income.
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 -200M -400M -600M

1.2 Ratios

With a decent Return On Assets value of -27.49%, ZLAB is doing good in the industry, outperforming 71.76% of the companies in the same industry.
With a decent Return On Equity value of -40.57%, ZLAB is doing good in the industry, outperforming 71.58% of the companies in the same industry.
Industry RankSector Rank
ROA -27.49%
ROE -40.57%
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
ZLAB Yearly ROA, ROE, ROICZLAB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 -20 -40 -60

1.3 Margins

Looking at the Gross Margin, with a value of 63.37%, ZLAB belongs to the top of the industry, outperforming 80.64% of the companies in the same industry.
In the last couple of years the Gross Margin of ZLAB has declined.
The Profit Margin and Operating Margin are not available for ZLAB so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 63.37%
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%
ZLAB Yearly Profit, Operating, Gross MarginsZLAB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 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.
The number of shares outstanding for ZLAB has been increased compared to 1 year ago.
ZLAB has more shares outstanding than it did 5 years ago.
ZLAB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ZLAB Yearly Shares OutstandingZLAB Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 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 500M 1B 1.5B

2.2 Solvency

ZLAB has an Altman-Z score of 3.51. This indicates that ZLAB is financially healthy and has little risk of bankruptcy at the moment.
ZLAB has a better Altman-Z score (3.51) than 76.73% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that ZLAB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.17, ZLAB is doing worse than 69.63% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF N/A
Altman-Z 3.51
ROIC/WACCN/A
WACC7.92%
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 0 500M -500M 1B

2.3 Liquidity

A Current Ratio of 3.01 indicates that ZLAB has no problem at all paying its short term obligations.
With a Current ratio value of 3.01, ZLAB is not doing good in the industry: 65.54% of the companies in the same industry are doing better.
A Quick Ratio of 2.87 indicates that ZLAB has no problem at all paying its short term obligations.
The Quick ratio of ZLAB (2.87) is worse than 65.01% of its industry peers.
Industry RankSector Rank
Current Ratio 3.01
Quick Ratio 2.87
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 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 12.90%, which is quite good.
Looking at the last year, ZLAB shows a very strong growth in Revenue. The Revenue has grown by 35.01%.
Measured over the past years, ZLAB shows a very strong growth in Revenue. The Revenue has been growing by 384.41% on average per year.
EPS 1Y (TTM)12.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%42.86%
Revenue 1Y (TTM)35.01%
Revenue growth 3Y75.91%
Revenue growth 5Y384.41%
Sales Q2Q%47.12%

3.2 Future

ZLAB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 70.58% yearly.
ZLAB is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 45.07% yearly.
EPS Next Y16.46%
EPS Next 2Y20.87%
EPS Next 3Y24.44%
EPS Next 5Y70.58%
Revenue Next Year45.55%
Revenue Next 2Y45.38%
Revenue Next 3Y46.24%
Revenue Next 5Y45.07%

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 2016 2017 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for ZLAB. No positive earnings are expected for the next year.
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 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 24.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.87%
EPS Next 3Y24.44%

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0

5. Dividend

5.1 Amount

No dividends for ZLAB!.
Industry RankSector Rank
Dividend Yield N/A

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ZAI LAB LTD-ADR

NASDAQ:ZLAB (2/21/2025, 8:00:02 PM)

After market: 33.78 0 (0%)

33.78

+2.79 (+9%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)02-27 2025-02-27/bmo
Inst Owners46.34%
Inst Owner Change-94.82%
Ins Owners1.42%
Ins Owner Change-27.15%
Market Cap3.68B
Analysts82.67
Price Target29.48 (-12.73%)
Short Float %7.76%
Short Ratio12.83
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)2
Avg EPS beat(2)26.47%
Min EPS beat(2)1.96%
Max EPS beat(2)50.98%
EPS beat(4)3
Avg EPS beat(4)18.5%
Min EPS beat(4)-8.93%
Max EPS beat(4)50.98%
EPS beat(8)6
Avg EPS beat(8)36.85%
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)1
Avg Revenue beat(2)1.1%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)4.31%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-12.15%
Max Revenue beat(4)10.02%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
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)0.46%
PT rev (3m)2.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)33.11%
EPS NY rev (1m)4.23%
EPS NY rev (3m)11.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.97%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 10.34
P/FCF N/A
P/OCF N/A
P/B 5.51
P/tB 6
EV/EBITDA N/A
EPS(TTM)-2.43
EYN/A
EPS(NY)-1.7
Fwd EYN/A
FCF(TTM)-2.01
FCFYN/A
OCF(TTM)-1.6
OCFYN/A
SpS3.27
BVpS6.13
TBVpS5.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -27.49%
ROE -40.57%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 63.37%
FCFM 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
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-0.84%
GM growth 5Y-8.52%
F-Score4
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 395.38%
Cap/Sales 12.54%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.01
Quick Ratio 2.87
Altman-Z 3.51
F-Score4
WACC7.92%
ROIC/WACCN/A
Cap/Depr(3y)229.9%
Cap/Depr(5y)264.78%
Cap/Sales(3y)9.31%
Cap/Sales(5y)33.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%42.86%
EPS Next Y16.46%
EPS Next 2Y20.87%
EPS Next 3Y24.44%
EPS Next 5Y70.58%
Revenue 1Y (TTM)35.01%
Revenue growth 3Y75.91%
Revenue growth 5Y384.41%
Sales Q2Q%47.12%
Revenue Next Year45.55%
Revenue Next 2Y45.38%
Revenue Next 3Y46.24%
Revenue Next 5Y45.07%
EBIT growth 1Y3.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year11.02%
EBIT Next 3Y25.25%
EBIT Next 5Y27.52%
FCF growth 1Y50.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y57.7%
OCF growth 3YN/A
OCF growth 5YN/A