Zhengye Biotechnology Holding Ltd. (ZYBT) AI Stock Analysis

• Market Cap: $44.55M
• Dividend Yield: N/A
• Average Volume (3M): 871.70K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.60
• Revenue Growth: -18.78%
• EPS Growth: -194.62%
• Country: US
• Employees: 278
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 47,391,376
• 10 Day Avg. Volume: 198,467
• 30 Day Avg. Volume: 871,704
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $0.99 ▼(-12.57% Downside)

The score is held back primarily by very weak technicals (price below all key moving averages, negative MACD, RSI at 17) and pressured cash flow (free cash flow down 63.72%). A moderately stable balance sheet (debt-to-equity 0.30) partially offsets these risks, while valuation is difficult to support due to a negative P/E and no dividend yield provided.

Positive Factors

Diversified revenue streams

ZYBT generates revenue from product sales, licensing its technologies, and providing contract research. This multi-channel model reduces dependence on a single product launch, smoothing revenue volatility and supporting long-term investment in R&D and commercialization over the next several quarters.

Moderate leverage and strong equity base

A low debt-to-equity ratio and strong equity financing provide balance-sheet flexibility, lowering interest burden and bankruptcy risk. This structural strength supports continued R&D spend and potential strategic partnerships without immediate refinancing pressure over a 2-6 month horizon.

Healthy operating profitability

Despite revenue headwinds, ZYBT maintains solid EBIT and EBITDA margins, indicating operational efficiency. These margins create durable cash generation capacity from core operations, enabling reinvestment into pipelines and supporting near-term sustainability of the business model.

Negative Factors

Declining revenue and margin compression

Sustained revenue decline and falling gross and net margins erode the company’s ability to self-fund R&D and commercialization. Continued compression would force tougher cost trade-offs or slower pipeline progress, jeopardizing medium-term product development and competitive positioning.

Material drop in free cash flow

A sharp FCF decline and weak conversion of net income to operating cash constrain liquidity for trials, manufacturing scale-up, and partnerships. Reduced internal funding capacity increases reliance on external capital, raising dilution or financing costs and limiting strategic optionality.

Weakened return on equity

ROE falling below 4% signals weaker capital efficiency and lower shareholder returns. Persistently low ROE implies the firm is not generating sufficient profits from equity, which can pressure management to alter strategy, seek more capital, or accept partnerships that dilute long-term value.

Zhengye Biotechnology Holding Ltd. Business Overview & Revenue Model

Company Description

Zhengye Biotechnology Holding Limited engages in the research, development, manufacture, and sale of veterinary vaccines for livestock in China. It offers vaccines for swine, cattle, goats, sheep, poultry, and dogs. The company also exports its products to Vietnam, Pakistan, and Egypt. The company was founded in 2004 and is based in Jilin, China. Zhengye Biotechnology Holding Limited operates as a subsidiary of Securingium Holding Limited.

How the Company Makes Money

ZYBT generates revenue through multiple streams, primarily by selling its biopharmaceutical products to healthcare providers and institutions. The company also earns income from licensing agreements for its proprietary technologies and innovations, enabling other companies to utilize its research advancements. Additionally, ZYBT provides contract research services to pharmaceutical companies, further diversifying its revenue sources. Strategic partnerships with research institutions and other biotech firms enhance its market reach and facilitate collaborative projects, contributing to its overall earnings. The company may also receive funding through grants and investments targeted at advancing its research initiatives.

Zhengye Biotechnology Holding Ltd. Financial Statement Overview

Summary

Financials are mixed: revenue declined (-11.95%) and profitability weakened (gross margin down to 48.99%, net margin down to 6.07%). Balance sheet leverage is moderate (debt-to-equity 0.30) with a strong equity ratio, but cash generation is pressured as free cash flow fell 63.72% and operating cash flow is low relative to net income (0.30).

Income Statement

Zhengye Biotechnology has experienced a decline in revenue over the past year, with a revenue growth rate of -11.95%. The gross profit margin has decreased from 61.35% to 48.99%, indicating pressure on profitability. Net profit margin also fell to 6.07% from 14.86%. Despite these challenges, the company maintains a positive EBIT margin of 9.89% and an EBITDA margin of 22.86%, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.30, reflecting a moderate level of leverage. Return on equity has decreased to 3.98%, indicating reduced profitability for shareholders. However, the equity ratio remains strong, suggesting a stable financial position with a significant portion of assets financed by equity.

Cash Flow

Zhengye Biotechnology's free cash flow has significantly decreased by 63.72%, impacting liquidity. The operating cash flow to net income ratio is 0.30, indicating that cash generation from operations is lower relative to net income. The free cash flow to net income ratio is 0.32, showing limited cash available after capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	186.36M	211.65M	260.27M	214.07M
Gross Profit	91.30M	129.85M	153.52M	125.39M
EBITDA	42.60M	72.10M	85.55M	70.12M
Net Income	11.31M	31.46M	46.73M	38.96M
Balance Sheet
Total Assets	493.25M	499.89M	519.67M	445.28M
Cash, Cash Equivalents and Short-Term Investments	20.04M	16.30M	9.75M	6.28M
Total Debt	86.43M	89.85M	64.88M	30.00M
Total Liabilities	140.71M	160.62M	162.81M	126.44M
Stockholders Equity	283.96M	272.85M	296.50M	267.47M
Cash Flow
Free Cash Flow	13.27M	36.58M	-9.99M	5.41M
Operating Cash Flow	41.05M	48.18M	17.34M	31.81M
Investing Cash Flow	-27.66M	-11.77M	-27.33M	-26.27M
Financing Cash Flow	-22.13M	-18.98M	13.46M	-3.05M

Zhengye Biotechnology Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.13
• 50DMA: Negative
• 100DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZYBT, the sentiment is Negative. The current price of 1.13 is below the 20-day moving average (MA) of 2.63, below the 50-day MA of 6.15, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -1.00 indicates Negative momentum. The RSI at 35.40 is Neutral, neither overbought nor oversold. The STOCH value of 14.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZYBT.

Zhengye Biotechnology Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZYBT	52 Neutral	$44.55M	-15.54	4.06%	―	-18.78%	-194.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
UPC	51 Neutral	$2.48M	-0.45	2.66%	―	-27.81%	―
CPHI	42 Neutral	$4.52M	-0.88	-42.47%	―	-26.92%	69.90%
SHPH	32 Underperform	$2.87M	-0.08	-9999.00%	―	―	79.31%