Zymeworks (ZYME) AI Stock Analysis

• Market Cap: $1.07B
• Dividend Yield: N/A
• Average Volume (3M): 443.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 95.94%
• EPS Growth: 35.69%
• Country: US
• Employees: 299
• Sector: Healthcare
• Sector Strength: 50
• Industry: Biotechnology
• EPS (TTM): 0.03
• Shares Outstanding: 75,166,200
• 10 Day Avg. Volume: 471,987
• 30 Day Avg. Volume: 443,922
• 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: 0.66
• Enterprise Value/Revenue: 5.77
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: -11.65
• 1Y Price Target: $21.25
• Price Target Upside: 47.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 60 Neutral
• Price Target: $15.00 ▲(4.24% Upside)

Zymeworks' overall score is driven by strong earnings call insights, including revenue growth and regulatory successes. However, financial performance and valuation concerns, particularly profitability and cash flow issues, weigh down the score. Technical analysis provides a positive outlook, but the negative P/E ratio and lack of dividends are significant detractors.

Positive Factors

Clinical Trials

Encouraging data from the ZW191 Phase 1 trial gives the company confidence in advancing ZW251.

Financial Performance

Zymeworks reported significant revenue growth in Q2, surpassing both internal and consensus expectations.

Partnerships and Milestones

ZYME's unique ability to leverage milestone payments, royalties, and other partnerships serves as a source of non-dilutive funding that can be reinvested into the pipeline.

Negative Factors

Financial Stability

The company faces a cash burn of $200 million annually with approximately 2 years of cash left, which could impact financial stability.

Investor Sentiment

Investors have questioned data timeline pushes from 2H 2024 to 2Q 2025 and 2H 2025.

Trial Data Concerns

There is some concern about the delay in data release for the HERIZON-GEA-01 trial, although it aligns with original guidance.

Zymeworks Business Overview & Revenue Model

Company Description

Zymeworks Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes biotherapeutics for the treatment of cancer. The company's lead product candidates include zanidatamab, a novel bispecific antibody that is in Phase 1 and Phase 2 clinical trials for the treatment of biliary tract, gastroesophageal adenocarcinomas, breast, and colorectal cancer; and ZW49, a biparatopic anti-human epidermal growth factor receptor 2 (HER2) antibody-drug conjugate that is in Phase 1 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors. The company has strategic partnerships with Merck Sharp & Dohme Research Ltd.; Eli Lilly and Company; Bristol-Myers Squibb company; GlaxoSmithKline Intellectual Property Development Ltd.; Daiichi Sankyo Co., Ltd.; Janssen Biotech, Inc.; BeiGene, Ltd.; and Exelixis, Inc. It also has licensing and research collaboration with LEO Pharma A/S to research, develop, and commercialize bispecific antibodies; and Iconic Therapeutics, Inc. Zymeworks Inc. was incorporated in 2003 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Zymeworks generates revenue primarily through a combination of collaboration agreements, licensing deals, and milestone payments from its pharmaceutical partners. The company partners with larger biopharmaceutical firms to co-develop drugs, receiving upfront payments and potential royalties on future sales. Additionally, Zymeworks may receive milestone payments upon the achievement of specific development and regulatory benchmarks. The revenue model is thus heavily reliant on successful partnerships and the advancement of its therapeutic candidates through clinical trials.

Zymeworks Financial Statement Overview

Summary

Zymeworks is experiencing financial challenges with inconsistent revenue growth and persistent losses. Despite a strong equity position, the company faces cash flow pressures and operational inefficiencies.

Income Statement

Zymeworks has experienced significant volatility in its revenue and profitability. The TTM (Trailing-Twelve-Months) shows a gross profit margin of 90.5%, but the net profit margin is negative at -121.7%, indicating substantial net losses. Revenue growth has been inconsistent, with a notable decline from 2022 to 2023, although there was recovery in 2024. EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet reveals a stable equity base with an equity ratio of 76.4% in TTM, which indicates strong capitalization. However, the debt-to-equity ratio is low at 0.057, suggesting limited leverage use. Return on equity is negative due to net losses, pointing to inefficiencies in generating shareholder value.

Cash Flow

Cash flow analysis shows negative free cash flow in TTM, indicating cash burn. The operating cash flow to net income ratio is 0.65, suggesting cash flow challenges but better than net income. Free cash flow remains negative, affecting the company's ability to fund operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.87M	76.30M	76.01M	412.48M	26.68M	38.95M
Gross Profit	116.52M	65.11M	-66.98M	203.78M	-172.86M	-131.94M
EBITDA	-60.80M	-105.42M	-120.70M	147.24M	-206.09M	-177.17M
Net Income	-73.67M	-122.69M	-118.67M	124.34M	-211.84M	-180.55M
Balance Sheet
Total Assets	408.38M	463.09M	580.88M	648.73M	389.13M	538.38M
Cash, Cash Equivalents and Short-Term Investments	281.38M	225.78M	374.33M	492.23M	252.61M	426.35M
Total Debt	18.68M	18.51M	26.72M	28.11M	32.33M	8.64M
Total Liabilities	73.88M	124.32M	116.07M	155.77M	140.04M	128.45M
Stockholders Equity	334.51M	338.77M	464.81M	492.96M	249.09M	409.92M
Cash Flow
Free Cash Flow	-68.51B	-113.11M	-122.38M	130.98M	-205.74M	-157.67M
Operating Cash Flow	-68.51B	-110.04M	-118.30M	144.11M	-192.45M	-151.40M
Investing Cash Flow	86.97M	38.76M	-207.25M	-53.85M	144.60M	-43.44M
Financing Cash Flow	-20.99M	-20.45M	81.85M	108.58M	8.01M	308.98M

Zymeworks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZYME, the sentiment is Positive. The current price of 14.39 is above the 20-day moving average (MA) of 13.25, above the 50-day MA of 13.19, and above the 200-day MA of 13.23, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 63.92 is Neutral, neither overbought nor oversold. The STOCH value of 86.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZYME.

Zymeworks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZYME	60 Neutral	$1.07B	―	-19.89%	―	95.94%	35.69%
RCUS	54 Neutral	$1.07B	―	-50.34%	―	6.07%	-2.28%
Sector *	51 Neutral	$7.77B	-0.12	-39.78%	2.21%	22.68%	-1.42%
NRIX	43 Neutral	$752.26M	―	-50.67%	―	41.86%	10.48%
ORIC	43 Neutral	$932.38M	―	-43.82%	―	―	-7.33%
REPL	42 Neutral	$412.13M	―	-73.44%	―	―	-1.07%
SANA	33 Underperform	$822.81M	―	-109.12%	―	―	7.58%

Zymeworks Corporate Events

Zymeworks Reports Q2 Results and FDA Clearance

On August 7, 2025, Zymeworks Inc. reported its second quarter financial results, highlighting a revenue of $48.7 million and a cash reserve of $333.4 million as of June 30, 2025. The company announced the FDA clearance of an IND application for ZW251, with first-in-human studies planned for 2025, and noted international approvals for zanidatamab in biliary tract cancer. These developments, along with strategic partnerships, are expected to enhance Zymeworks’ long-term business strategy and financial stability.

Zymeworks Amends Warrant Agreement with EcoR1 Capital

On June 26, 2025, Zymeworks Inc. amended its Pre-Funded Warrants agreement with EcoR1 Capital Fund, removing a limitation that restricted the exercise of warrants if it led to ownership exceeding 19.99% of the company’s shares. This amendment facilitated the full exercise of 5,086,521 Pre-Funded Warrants by EcoR1, resulting in the issuance of 5,086,480 shares of common stock, increasing the total outstanding shares to 74,844,505 as of June 27, 2025. The transaction was exempt from registration under the Securities Act of 1933.