Zenas BioPharma, Inc. (ZBIO) AI Stock Analysis

• Market Cap: $931.48M
• Dividend Yield: N/A
• Average Volume (3M): 264.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 130
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.90
• Shares Outstanding: 42,110,313
• 10 Day Avg. Volume: 281,515
• 30 Day Avg. Volume: 264,557
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 8.89
• Enterprise Value/Gross Profit: 8.92
• Enterprise Value/Ebitda: -0.72
• 1Y Price Target: $33.25
• Price Target Upside: 58.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 48 Neutral
• Price Target: $22.00 ▲(5.01% Upside)

The overall score is primarily impacted by the company's poor financial performance, with significant revenue decline and cash flow issues. Technical analysis provides some positive momentum, but the negative valuation metrics further weigh down the score.

Positive Factors

Strong Equity Position

A strong equity position with low financial leverage indicates financial stability and resilience, providing a solid foundation for future growth.

High Gross Profit Margin

A high gross profit margin suggests efficient operations and potential for profitability improvement if revenue growth resumes, supporting long-term viability.

Significant Stockholder's Equity Recovery

Significant recovery in stockholder's equity reflects improved financial health and investor confidence, enhancing the company's ability to fund growth initiatives.

Negative Factors

Revenue Decline

The drastic revenue decline indicates challenges in market demand or product adoption, potentially impacting long-term growth and sustainability.

Negative Cash Flow

Persistent negative cash flow suggests operational inefficiencies and financial strain, limiting the company's ability to invest in growth and innovation.

Operating Losses

Ongoing operating losses highlight profitability challenges, potentially affecting the company's ability to sustain operations and invest in future growth.

Zenas BioPharma, Inc. Business Overview & Revenue Model

Company Description

Zenas BioPharma, Inc., a clinical-stage biopharmaceutical company, engages in the development and commercialization of transformative immunology-based therapies. Its lead product candidate is obexelimab, a bifunctional monoclonal antibody for various indications, including immunoglobulin G4-related disease, multiple sclerosis, systemic lupus erythematosus, and warm autoimmune hemolytic anemia. The company also develops ZB002, an anti-TNFa monoclonal antibody; ZB004, a cytotoxic T-lymphocyte-associated antigen 4-immunoglobulin fusion; ZB001, an anti-insulin-like growth factor-1 receptor monoclonal antibody; and ZB005, an anti-active complement component 1s monoclonal antibody. Zenas BioPharma, Inc. was formerly known as Zenas BioPharma (Cayman) Limited and changed its name to Zenas BioPharma, Inc. in August 2023. The company was incorporated in 2019 and is based in Waltham, Massachusetts.

How the Company Makes Money

Zenas BioPharma generates revenue primarily through the development and commercialization of its proprietary therapies. The company earns money through multiple revenue streams, including product sales once therapies are approved and launched in the market, milestone payments from partnerships with larger pharmaceutical companies, and potential royalties on product sales from licensed technologies. Significant partnerships and collaborations with other biopharmaceutical firms and research institutions also contribute to its earnings by providing funding for research and development activities, as well as enhancing its market reach and distribution capabilities.

Zenas BioPharma, Inc. Financial Statement Overview

Summary

Zenas BioPharma is facing severe financial challenges, with a significant revenue decline, persistent operating losses, and negative cash flow, indicating substantial operational inefficiency despite a strong equity recovery.

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	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	15.00M	5.00M	50.00M	0.00
Gross Profit	14.95M	5.00M	50.00M	-78.00K
EBITDA	-185.46M	-163.75M	-27.03M	-75.12M
Net Income	-176.97M	-156.99M	-37.12M	-119.28M
Balance Sheet
Total Assets	293.08M	369.97M	68.18M	74.58M
Cash, Cash Equivalents and Short-Term Investments	273.28M	350.77M	56.86M	67.21M
Total Debt	1.01M	1.00M	21.11M	1.53M
Total Liabilities	53.46M	57.51M	293.90M	266.87M
Stockholders Equity	239.63M	312.46M	-225.72M	-192.29M
Cash Flow
Free Cash Flow	-148.50M	-119.81M	-30.55M	-67.85M
Operating Cash Flow	-148.41M	-119.67M	-30.53M	-65.65M
Investing Cash Flow	-229.06M	-30.55M	-17.00K	-2.20M
Financing Cash Flow	237.65M	412.96M	20.12M	59.39M

Zenas BioPharma, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBIO, the sentiment is Positive. The current price of 20.95 is above the 20-day moving average (MA) of 20.22, above the 50-day MA of 17.85, and above the 200-day MA of 11.35, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 79.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZBIO.

Zenas BioPharma, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHAT	60 Neutral	$871.90M	-2.50	131.84%	―	1049.81%	7.85%
VALN	55 Neutral	$1.03B	-12.85	-35.96%	―	30.95%	-78.41%
URGN	54 Neutral	$824.20M	-5.15	165.96%	―	10.85%	-1.41%
RZLT	53 Neutral	$856.35M	-9.44	―	―	―	26.68%
ABUS	51 Neutral	$860.73M	-15.71	-71.81%	―	53.23%	35.32%
ZBIO	48 Neutral	$931.48M	―	-88.40%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Zenas BioPharma, Inc. Corporate Events

Zenas BioPharma Secures $300M Funding for Obexelimab

On September 2, 2025, Zenas BioPharma entered into a $300 million funding agreement with Royalty Pharma, granting them rights to revenue streams from the sales of obexelimab. This deal provides Zenas with financial support to advance obexelimab’s development and potential commercial launch, particularly for treating IgG4-Related Disease, and underscores the drug’s potential as a significant player in the autoimmune disease market.

Zenas BioPharma Announces Board Changes at Annual Meeting

On June 10, 2025, Zenas BioPharma, Inc. held its 2025 Annual Meeting of Stockholders. During this meeting, Ting (Tim) Xiao resigned from the Board of Directors, reducing the board size from nine to eight. Stockholders elected Leon O. Moulder, Jr. and Hongbo Lu, Ph.D. as Class I directors for a three-year term and ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.