Zymeworks (ZYME) AI Stock Analysis

• Market Cap: $890.11M
• Dividend Yield: N/A
• Average Volume (3M): 431.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 85.05%
• EPS Growth: 15.96%
• Country: US
• Employees: 299
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.30
• Shares Outstanding: 69,683,495
• 10 Day Avg. Volume: 426,354
• 30 Day Avg. Volume: 431,137
• PEG Ratio: 0.95
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.98
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.94
• Enterprise Value/Gross Profit: 21.31
• Enterprise Value/Ebitda: -1.65
• 1Y Price Target: $23.80
• Price Target Upside: 88.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 53 Neutral
• Price Target: $12.50 ▼(-1.19%Downside)

Zymeworks' overall score reflects significant financial challenges with consistent losses. However, positive earnings call sentiment, strategic partnerships, and FDA approval provide some optimism. The technical outlook is neutral, and valuation remains a concern.

Positive Factors

Financial Milestones

Zymeworks is entitled to receive a $20M milestone payment in connection with the NMPA approval of zanidatamab, and is eligible to receive up to $144M in additional development and commercial milestones.

Financial Stability

The company's balance sheet is strong enough to support operations well into the future, providing financial stability.

Regulatory Approval

Zanidatamab approved in China, modestly ahead of schedule.

Negative Factors

Clinical Risks

Risks to our thesis include: clinical trial failures due to safety issues, clinical setbacks due to insufficient efficacy, and possible long-term dilution risk.

Competitive Landscape

FRα-targeting ADC presentations provide a reminder of the crowded competitive landscape ZW191 will need to navigate.

Investor Sentiment

Short interest is 9.7% of float, indicating some level of skepticism from investors.

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 faces substantial financial challenges with consistent losses and negative cash flows, despite a strong equity position and cash reserves. Income statement, balance sheet, and cash flow scores reflect these difficulties.

Income Statement

The income statement reveals significant challenges for Zymeworks. The company has experienced negative revenue growth and consistently negative net income, indicating persistent losses. Gross profit margins are also negative, and EBIT and EBITDA margins are unfavorable, highlighting operational inefficiencies. The lack of revenue in the latest reporting period exacerbates these issues.

Balance Sheet

The balance sheet shows a strong equity base with a high equity ratio, demonstrating financial stability. However, the debt-to-equity ratio is moderate, and the company has maintained substantial cash reserves, improving liquidity. Despite these positives, the persistent negative net income impacts return on equity, which remains unfavorable.

Cash Flow

Cash flow analysis shows Zymeworks struggling with negative operating and free cash flows, indicating cash burn. The operating cash flow to net income ratio is insightful but negative due to losses. The company has managed investment activities prudently but needs to improve cash generation from operations to ensure long-term viability.

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
	EBIT
-119.82M	-138.05M	130.53M	-215.63M	-187.47M
	EBITDA
-105.42M	-120.70M	147.24M	-206.09M	-177.17M
	Net Income Common Stockholders
-122.69M	-118.67M	124.34M	-211.84M	-180.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
225.78M	374.33M	492.23M	252.61M	426.35M
	Total Assets
463.09M	580.88M	648.73M	389.13M	538.38M
	Total Debt
18.48B	26.72M	28.11M	32.33M	8.64M
	Net Debt
-47.63B	-130.84M	-372.80M	-169.53M	-233.39M
	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: Positive
• Last Price: 12.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 12.65 is above the 20-day moving average (MA) of 12.10, above the 50-day MA of 11.81, and below the 200-day MA of 13.10, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 63.48 is Neutral, 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
NRIX	60 Neutral	$909.49M	―	-64.16%	―	-30.25%	-5.92%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
ZYME	53 Neutral	$890.11M	―	-29.80%	―	85.05%	15.96%
MLYS	53 Neutral	$933.31M	―	-56.31%	―	―	-106.10%
RCUS	51 Neutral	$962.50M	―	-63.17%	―	-40.51%	-35.07%
VIR	50 Neutral	$721.60M	―	-44.59%	―	-73.79%	-5.24%
PHVS	42 Neutral	$910.04M	―	-51.85%	―	―	0.71%

Zymeworks Corporate Events

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.