Zenas BioPharma, Inc. (ZBIO) AI Stock Analysis

• Market Cap: $322.21M
• Dividend Yield: N/A
• Average Volume (3M): 174.97K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.14
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 130
• Sector: Healthcare
• Sector Strength: 77
• Industry: Biotechnology
• EPS (TTM): -3.90
• Shares Outstanding: 41,791,040
• 10 Day Avg. Volume: 259,220
• 30 Day Avg. Volume: 174,968
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $29.75
• Price Target Upside: 285.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Zenas BioPharma's stock is facing significant challenges due to declining revenues and ongoing financial losses. Although there is notable equity recovery, the overall financial health remains weak with significant cash flow issues. Technical indicators show neutrality with slight downward pressure. The lack of valuation metrics further complicates investment decisions, making the stock risky in the absence of clear earnings or dividend support.

Positive Factors

Clinical Trials

The initial wAIHA data strengthen the proof-of-concept for obexelimab, with more than 60% of patients achieving a hemoglobin increase and no major safety events reported.

Product Differentiation

Obexelimab is specifically designed to inhibit cellular activity associated with autoimmune diseases and do so without associated B cell depletion.

Negative Factors

Investor Concerns

ZBIO shares have faced pressure due to investor concerns on competition for obexelimab in IgG4-RD and the lack of near-term data catalysts.

Stock Performance

Stock performance has been underwhelming since IPO, which is a disconnect from the fundamental value.

Zenas BioPharma, Inc. Business Overview & Revenue Model

Company Description

Zenas BioPharma, Inc. (ZBIO) is a biopharmaceutical company focused on developing and commercializing innovative therapies for the treatment of autoimmune and rare diseases. The company leverages scientific advancements to create a pipeline of biologic products that address significant unmet medical needs. Zenas BioPharma operates within the sectors of biotechnology and pharmaceuticals, aiming to improve patient outcomes through novel therapeutics.

How the Company Makes Money

Zenas BioPharma, Inc. generates revenue through the development and commercialization of its biologic therapies. The company earns money primarily through the sale of its pharmaceutical products once they receive regulatory approval and are brought to market. Additional revenue streams may include partnerships and collaborations with other pharmaceutical companies, which can provide funding through upfront payments, milestone payments, and royalties on sales. Strategic partnerships can also enhance product development efficiency and expand market reach, contributing to the company's financial growth.

Zenas BioPharma, Inc. Financial Statement Overview

Summary

Zenas BioPharma is experiencing substantial revenue decline and persistent losses, with a strong equity recovery providing some balance sheet stability. Cash flow challenges, driven by significant cash burn, underscore the need for operational improvements. The company must address its revenue and cash flow issues to ensure long-term sustainability.

Income Statement

Zenas BioPharma has shown a significant decline in revenue from $50 million in 2023 to $5 million in 2024, indicating a severe contraction. The gross profit margin remains high due to zero cost of goods sold, yet the company faces substantial operating losses with negative EBIT and net income, highlighting ongoing profitability challenges.

Balance Sheet

The company has a strong equity position with a debt-to-equity ratio of only 0.003, suggesting low financial leverage. However, the negative equity in previous years indicates past difficulties, although recent improvements in stockholder's equity to $312 million show significant recovery. The equity ratio of approximately 84% is a positive indicator of financial stability.

Cash Flow

Zenas BioPharma's free cash flow remains negative, with a decline in operating cash flow from -$30 million to -$120 million. While financing activities have injected significant cash, the operational cash burn is a concern. The operating cash flow to net income ratio is negative, reflecting inefficiency in converting income into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022
Income Statement		Total Revenue
5.00M	50.00M	0.00
	Gross Profit
5.00M	50.00M	0.00
	EBIT
-163.89M	-37.15M	-76.20M
	EBITDA
-163.89M	-27.03M	-75.12M
	Net Income Common Stockholders
-156.13M	-37.12M	-119.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
350.77M	56.86M	67.21M
	Total Assets
369.97M	68.18M	74.58M
	Total Debt
1.00M	21.11M	1.53M
	Net Debt
-318.74M	-35.74M	-65.68M
	Total Liabilities
57.51M	293.90M	266.87M
	Stockholders Equity
312.46M	-225.72M	-192.29M
Cash Flow		Free Cash Flow
-119.81M	-30.55M	-67.85M
	Operating Cash Flow
-119.67M	-30.53M	-65.65M
	Investing Cash Flow
-30.55M	-17.00K	-2.20M
	Financing Cash Flow
412.96M	20.12M	59.39M

Zenas BioPharma, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REGN	78 Outperform	$62.69B	14.96	15.95%	0.15%	8.27%	10.35%
BMRN	78 Outperform	$11.50B	27.40	8.05%	―	17.35%	151.40%
SRPT	68 Neutral	$5.28B	22.84	19.71%	―	52.97%	―
VRTX	64 Neutral	$122.02B	―	-3.15%	―	11.64%	-114.72%
ALNY	55 Neutral	$30.67B	―	-414.62%	―	22.97%	38.54%
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%
ZBIO	39 Underperform	$322.21M	―		―	―	―