Zenas BioPharma, Inc. (ZBIO) AI Stock Analysis

• Market Cap: $460.59M
• Dividend Yield: N/A
• Average Volume (3M): 187.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 130
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -3.90
• Shares Outstanding: 41,834,183
• 10 Day Avg. Volume: 142,847
• 30 Day Avg. Volume: 187,918
• PEG Ratio: 0.11
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.76
• 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: $36.67
• Price Target Upside: 233.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Zenas BioPharma faces significant challenges with declining revenue, persistent operating losses, and substantial cash flow issues, resulting in a low financial performance score. The technical analysis indicates a bearish trend, and the negative P/E ratio underscores valuation concerns. The absence of earnings call and corporate events data limits further assessment, but the current data suggests a cautious outlook.

Positive Factors

Commercial Validation

Analyst reiterates Buy rating and $30 price target, highlighting confidence in obexelimab and the autoimmune platform.

Market Potential

Proof-of-concept efficacy in IgG4-RD and SLE de-risks current programs, and further expansion opportunities are possible in other indications where B cell depletion is a validated approach.

Therapeutic Innovation

Obexelimab is designed for a self-administered subcutaneous injection regimen potentially offering convenience and safety differentiation.

Negative Factors

Competitive 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.

Development Challenges

The decision to not progress obexelimab in wAIHA was driven by the time and resources required to conduct a Phase III program.

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., 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, 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
ETON	63 Neutral	$524.82M	―	-22.95%	―	40.88%	-579.73%
AMLX	57 Neutral	$477.80M	―	-83.24%	―	-100.32%	-197.69%
Sector *	52 Neutral	$5.19B	3.04	-44.20%	2.82%	16.59%	-0.39%
CKPT	45 Neutral	$362.00M	―	-1869.55%	―	-60.19%	56.60%
TRML	45 Neutral	$427.20M	―	-26.14%	―	―	74.59%
RAPP	44 Neutral	$371.91M	―	-33.14%	―	―	―
ZBIO	38 Underperform	$460.59M	―	-115.47%	―	―	―