Zymeworks (ZYME) AI Stock Analysis

• Market Cap: $949.12M
• Dividend Yield: N/A
• Average Volume (3M): 459.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: 85.05%
• EPS Growth: 15.96%
• Country: US
• Employees: 299
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.30
• Shares Outstanding: 69,683,495
• 10 Day Avg. Volume: 423,687
• 30 Day Avg. Volume: 459,101
• PEG Ratio: -1.14
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.42
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 9.94
• Enterprise Value/Ebitda: -2.10
• 1Y Price Target: $23.80
• Price Target Upside: 89.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 59 Neutral
• Price Target: $15.00 ▲(19.43%Upside)

Zymeworks' overall stock score reflects a mixed outlook. The company's strong technical momentum and positive earnings call sentiment are undermined by financial performance issues and poor valuation metrics. Key strengths include revenue growth and strategic partnerships, while challenges such as persistent losses and high R&D costs weigh on the score.

Positive Factors

Clinical Development

The FDA has cleared the IND application for ZW251, allowing the company to initiate Phase 1 clinical studies, marking a significant step forward in its development.

Regulatory Approvals

Zanidatamab receives marketing authorization in the E.U. for 2L + HER2+ BTC, highlighting its superior performance with a 51.6% objective response rate compared to the standard 5-15%.

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.

Market Sentiment

Investors have questioned data timeline pushes from 2H 2024 to 2Q 2025 and 2H 2025, raising concerns about the trial's progress.

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 collaborative partnerships, licensing agreements, and milestone payments with other pharmaceutical and biotechnology companies. These partnerships often involve the co-development of therapeutic products, wherein Zymeworks provides its proprietary platforms and expertise in exchange for upfront payments, research funding, and potential milestone and royalty payments based on the successful development and commercialization of the resulting products. Additionally, the company may earn revenue from the direct commercialization of its own therapeutic candidates once they receive regulatory approval and are brought to market. Key partnerships with companies such as Merck and Eli Lilly have significantly contributed to its revenue streams.

Zymeworks Financial Statement Overview

Summary

Zymeworks is struggling financially with inconsistent revenue growth and persistent losses impacting profitability. The balance sheet shows a strong equity position but limited debt utilization. Cash flows are under pressure, reflecting the need for operational improvements to achieve sustainability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.30M	76.01M	412.48M	26.68M	38.95M
Gross Profit	65.11M	-66.98M	203.78M	-172.86M	-131.94M
EBITDA	-105.42M	-120.70M	147.24M	-206.09M	-177.17M
Net Income	-122.69M	-118.67M	124.34M	-211.84M	-180.55M
Balance Sheet
Total Assets	463.09M	580.88M	648.73M	389.13M	538.38M
Cash, Cash Equivalents and Short-Term Investments	225.78M	374.33M	492.23M	252.61M	426.35M
Total Debt	18.48B	26.72M	28.11M	32.33M	8.64M
Total Liabilities	124.32M	116.07M	155.77M	140.04M	128.45M
Stockholders Equity	338.77B	464.81M	492.96M	249.09M	409.92M
Cash Flow
Free Cash Flow	-113.11M	-122.38M	130.98M	-205.74M	-157.67M
Operating Cash Flow	-110.04M	-118.30M	144.11M	-192.45M	-151.40M
Investing Cash Flow	38.76M	-207.25M	-53.85M	144.60M	-43.44M
Financing Cash Flow	-20.45M	81.85M	108.58M	8.01M	308.98M

Zymeworks Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZYME, the sentiment is Neutral. The current price of 12.56 is below the 20-day moving average (MA) of 13.56, below the 50-day MA of 12.77, and below the 200-day MA of 13.24, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 17.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZYME.

Zymeworks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZYME	59 Neutral	$949.12M	―	-29.80%	―	85.05%	15.96%
RCUS	55 Neutral	$966.73M	―	-63.17%	―	-40.51%	-35.07%
NRIX	54 Neutral	$860.82M	―	-50.67%	―	41.86%	10.48%
Sector *	52 Neutral	$7.47B	0.53	-62.70%	2.38%	14.92%	0.82%
ORIC	43 Neutral	$940.88M	―	-48.45%	―	―	7.15%
REPL	42 Neutral	$291.78M	―	-62.58%	―	―	4.28%
SANA	33 Underperform	$1.00B	―	-71.44%	―	―	19.94%

Zymeworks Corporate Events

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.

The most recent analyst rating on (ZYME) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Zymeworks stock, see the ZYME Stock Forecast page.

Zymeworks Updates Communication Channels for Stakeholders

Zymeworks announces that it communicates material information through various channels, including filings with the Securities and Exchange Commission, press releases, and social media platforms. The company encourages stakeholders to review these sources for important updates, as they may contain significant information about the company’s operations and product candidates.