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Zymeworks

TSX:ZYME
Snowflake Description

Excellent balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZYME
TSX
CA$774M
Market Cap
  1. Home
  2. CA
  3. Pharmaceuticals & Biotech
Company description

Zymeworks Inc., a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of bio-therapeutics for the treatment of cancer in Canada. The last earnings update was 18 days ago. More info.


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ZYME Share Price and Events
7 Day Returns
1.1%
TSX:ZYME
-0.5%
CA Biotechs
-0.2%
CA Market
1 Year Returns
9.7%
TSX:ZYME
-15.4%
CA Biotechs
-1.9%
CA Market
ZYME Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zymeworks (ZYME) 1.1% 12.2% 17.8% 9.7% - -
CA Biotechs -0.5% -0.4% 0.5% -15.4% -16.3% 12.3%
CA Market -0.2% -1.6% 2.1% -1.9% 13.3% 4.3%
1 Year Return vs Industry and Market
  • ZYME outperformed the Biotechs industry which returned -15.4% over the past year.
  • ZYME outperformed the Market in Canada which returned -1.9% over the past year.
Price Volatility
ZYME
Industry
5yr Volatility vs Market

ZYME Value

 Is Zymeworks undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zymeworks to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zymeworks.

TSX:ZYME Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:ZYME
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.54
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.539 (1 + (1- 26.5%) (1.41%))
1.372
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.37
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.372 * 5.96%)
10.12%

Discounted Cash Flow Calculation for TSX:ZYME using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Zymeworks is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:ZYME DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.12%)
2019 27.35 Est @ 90.51% 24.84
2020 44.84 Est @ 63.94% 36.97
2021 65.16 Est @ 45.34% 48.80
2022 86.23 Est @ 32.32% 58.63
2023 106.24 Est @ 23.21% 65.60
2024 124.12 Est @ 16.83% 69.60
2025 139.47 Est @ 12.37% 71.01
2026 152.36 Est @ 9.24% 70.45
2027 163.10 Est @ 7.05% 68.48
2028 172.11 Est @ 5.52% 65.62
Present value of next 10 years cash flows $579.99
TSX:ZYME DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $172.11 × (1 + 1.95%) ÷ (10.12% – 1.95%)
$2,146.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,146.14 ÷ (1 + 10.12%)10
$818.28
TSX:ZYME Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $579.99 + $818.28
$1,398.27
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,398.27 / 32.06
$43.61
TSX:ZYME Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:ZYME)
1.346
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $43.61 x 1.346
CA$58.7
Value per share (CAD) From above. CA$58.70
Current discount Discount to share price of CA$24.13
= -1 x (CA$24.13 - CA$58.70) / CA$58.70
58.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Zymeworks is available for.
Intrinsic value
>50%
Share price is CA$24.13 vs Future cash flow value of CA$58.7
Current Discount Checks
For Zymeworks to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Zymeworks's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Zymeworks's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zymeworks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zymeworks's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:ZYME PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.94
TSX:ZYME Share Price ** TSX (2019-05-17) in CAD CA$24.13
TSX:ZYME Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.743 $17.93
North America Biotechs Industry PE Ratio Median Figure of 36 Publicly-Listed Biotechs Companies 20.29x
Canada Market PE Ratio Median Figure of 545 Publicly-Listed Companies 14.85x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zymeworks.

TSX:ZYME PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ZYME Share Price ÷ EPS (both in USD)

= 17.93 ÷ -0.94

-19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zymeworks is loss making, we can't compare its value to the North America Biotechs industry average.
  • Zymeworks is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Zymeworks's expected growth come at a high price?
Raw Data
TSX:ZYME PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-39.3%per year
North America Biotechs Industry PEG Ratio Median Figure of 28 Publicly-Listed Biotechs Companies 1.25x
Canada Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Zymeworks, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Zymeworks's assets?
Raw Data
TSX:ZYME PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.30
TSX:ZYME Share Price * TSX (2019-05-17) in CAD CA$24.13
TSX:ZYME Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.743 $17.93
Canada Biotechs Industry PB Ratio Median Figure of 36 Publicly-Listed Biotechs Companies 4.54x
Canada Market PB Ratio Median Figure of 2,407 Publicly-Listed Companies 1.41x
TSX:ZYME PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ZYME Share Price ÷ Book Value per Share (both in USD)

= 17.93 ÷ 5.30

3.38x

* Primary Listing of Zymeworks.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zymeworks is good value based on assets compared to the CA Biotechs industry average.
X
Value checks
We assess Zymeworks's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Zymeworks has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ZYME Future Performance

 How is Zymeworks expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-39.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zymeworks expected to grow at an attractive rate?
  • Unable to compare Zymeworks's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Zymeworks's earnings growth to the Canada market average as it is expected to be loss making during the next 1-3 years.
  • Zymeworks's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:ZYME Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:ZYME Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -39.3%
TSX:ZYME Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -35.3%
Canada Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 20.5%
Canada Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 37.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:ZYME Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:ZYME Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 10 -117 1
2020-12-31 27 -106 4
2019-12-31 24 -71 5
TSX:ZYME Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 65 20 -29
2018-12-31 53 24 -37
2018-09-30 74 13 -13
2018-06-30 72 14 -11
2018-03-31 52 -5 -16
2017-12-31 52 0 -11
2017-09-30 4 -47 -55
2017-06-30 6 -50 -51
2017-03-31 11 -41 -47
2016-12-31 11 -35 -34
2016-09-30 10 -32 -30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zymeworks is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Zymeworks's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:ZYME Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Zymeworks Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ZYME Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
TSX:ZYME Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.94
2018-12-31 -1.26
2018-09-30 -0.48
2018-06-30 -0.41
2018-03-31 -0.67
2017-12-31 -0.51
2017-09-30 -3.02
2017-06-30 -3.36
2017-03-31 -3.57
2016-12-31 -2.65
2016-09-30 -2.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Zymeworks will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Zymeworks's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zymeworks has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ZYME Past Performance

  How has Zymeworks performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zymeworks's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zymeworks does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Zymeworks's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Zymeworks's 1-year growth to the North America Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Zymeworks's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zymeworks Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ZYME Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 64.90 -28.99 31.55
2018-12-31 53.02 -36.56 29.61
2018-09-30 74.17 -13.10 28.34
2018-06-30 72.23 -10.59 26.11
2018-03-31 51.57 -16.20 19.04
2017-12-31 51.76 -10.93 18.24
2017-09-30 3.92 -54.94 18.64
2017-06-30 5.98 -51.09 16.08
2017-03-31 10.98 -47.02 16.73
2016-12-31 11.01 -33.81 12.56
2016-09-30 10.22 -30.46 8.81
2015-12-31 9.66 -19.17 5.22
2014-12-31 1.67 -12.94 3.95

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Zymeworks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Zymeworks has efficiently used its assets last year compared to the North America Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Zymeworks improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Zymeworks's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zymeworks has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ZYME Health

 How is Zymeworks's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zymeworks's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zymeworks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zymeworks's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Zymeworks's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 23.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zymeworks Company Filings, last reported 1 month ago.

TSX:ZYME Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 170.01 8.11 180.31
2018-12-31 180.49 0.06 200.16
2018-09-30 169.67 0.06 150.00
2018-06-30 186.47 0.07 166.23
2018-03-31 94.53 0.07 70.03
2017-12-31 116.43 0.06 87.80
2017-09-30 82.58 0.01 49.09
2017-06-30 96.93 0.01 62.48
2017-03-31 49.87 4.53 26.79
2016-12-31 67.86 4.47 40.26
2016-09-30 78.39 3.74 51.82
2015-12-31 18.24 0.01 15.16
2014-12-31 39.76 0.03 46.84
  • Zymeworks's level of debt (4.8%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Zymeworks's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Zymeworks has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Zymeworks has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -114.4% per year.
X
Financial health checks
We assess Zymeworks's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zymeworks has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ZYME Dividends

 What is Zymeworks's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Zymeworks dividends.
If you bought CA$2,000 of Zymeworks shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Zymeworks's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Zymeworks's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:ZYME Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.4%
Canada Market Average Dividend Yield Market Cap Weighted Average of 332 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:ZYME Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Zymeworks has not reported any payouts.
  • Unable to verify if Zymeworks's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Zymeworks's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Zymeworks has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Zymeworks's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zymeworks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zymeworks has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ZYME Management

 What is the CEO of Zymeworks's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ali Tehrani
COMPENSATION $2,613,548
AGE 46
CEO Bio

Dr. Ali Tehrani, Ph.D. is a Co-Founder of Zymeworks, Inc. and serves as its Chief Executive Officer and President. Dr. Tehrani has been an integral part of many of Zymeworks' corporate achievements, including raising seed and angel financing and overseeing its technical operations and patent filings. He has been a Director of Zymeworks, Inc. since September 2003. Dr. Tehrani co-founded the Student Biotechnology Network for which he received the UBC Faculty of Science Achievement Award for Outstanding Leadership in 2002. Dr. Tehrani holds both Bachelor's and Master's of Science degrees in Biochemistry from the University of Massachusetts and has a Doctoral degree in Microbiology and Immunology from the University of British Columbia. Dr. Tehrani has served as a board director for the LifeSciences British Columbia, on the MITACS Industrial Advisory Board, and on BIOTECanada’s Industrial and Environmental Committee. He is a Member of the board of directors of Creatus Biosciences Inc. and CQDM and a Council Member on British Columbia’s Premier’s Technology Council.

CEO Compensation
  • Ali's compensation has increased whilst company is loss making.
  • Ali's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Zymeworks management team in years:

2.3
Average Tenure
52
Average Age
  • The tenure for the Zymeworks management team is about average.
Management Team

Ali Tehrani

TITLE
Co-Founder
COMPENSATION
$3M
AGE
46

Neil Klompas

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
46

Tony Polverino

TITLE
Chief Scientific Officer & Executive VP of Early Development
COMPENSATION
$2M
AGE
55
TENURE
0.7 yrs

Diana Hausman

TITLE
Chief Medical Officer
COMPENSATION
$1M
AGE
55
TENURE
2.9 yrs

Surjit Dixit

TITLE
Vice President of Technology
COMPENSATION
$498K
AGE
45

Wajida Leclerc

TITLE
Vice President of Human Resources
AGE
58
TENURE
2.3 yrs

John Babcook

TITLE
Senior Vice President of Discovery Research
COMPENSATION
$401K
AGE
55
TENURE
3.2 yrs

Mark Hollywood

TITLE
Senior Vice President of Technical & Manufacturing Operations
AGE
49
TENURE
0.2 yrs

Daniel Dex

TITLE
Corporate Secretary

David Poon

TITLE
Vice President of Business Development and Alliance Management
Board of Directors Tenure

Average tenure and age of the Zymeworks board of directors in years:

2.4
Average Tenure
57.5
Average Age
  • The average tenure for the Zymeworks board of directors is less than 3 years, this suggests a new board.
Board of Directors

Nick Bedford

TITLE
Chairman of the Board
COMPENSATION
$144K
AGE
58
TENURE
14.7 yrs

Ali Tehrani

TITLE
Co-Founder
COMPENSATION
$3M
AGE
46
TENURE
15.7 yrs

Lota Zoth

TITLE
Director
COMPENSATION
$119K
AGE
58
TENURE
2.5 yrs

Hollings Renton

TITLE
Director
COMPENSATION
$117K
AGE
71
TENURE
2.3 yrs

Kenneth Hillan

TITLE
Director
COMPENSATION
$108K
AGE
57
TENURE
2.3 yrs

Natalie Sacks

TITLE
Director
COMPENSATION
$103K
AGE
53
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • Zymeworks insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
08. May 19 Sell Neil Klompas Individual 06. May 19 06. May 19 -1,604 CA$25.89 CA$-41,529
29. Mar 19 Sell Ali Tehrani Individual 29. Mar 19 29. Mar 19 -3,000 CA$21.71 CA$-65,117
04. Feb 19 Sell Eli Lilly and Company Company 31. Jan 19 31. Jan 19 -250,000 CA$21.03 CA$-5,258,480
08. Nov 18 Sell Eli Lilly and Company Company 06. Nov 18 06. Nov 18 -700,000 CA$18.38 CA$-12,867,302
26. Sep 18 Sell Eli Lilly and Company Company 24. Sep 18 24. Sep 18 -2,027 CA$21.16 CA$-42,892
20. Sep 18 Sell Eli Lilly and Company Company 18. Sep 18 18. Sep 18 -6,870 CA$18.92 CA$-129,969
18. Sep 18 Sell Eli Lilly and Company Company 14. Sep 18 17. Sep 18 -15,874 CA$19.01 CA$-301,697
14. Sep 18 Sell Eli Lilly and Company Company 12. Sep 18 13. Sep 18 -30,959 CA$19.29 CA$-583,356
12. Sep 18 Sell Eli Lilly and Company Company 10. Sep 18 11. Sep 18 -15,777 CA$19.54 CA$-305,681
04. Sep 18 Sell Eli Lilly and Company Company 31. Aug 18 31. Aug 18 -700 CA$18.65 CA$-13,056
31. Aug 18 Sell Eli Lilly and Company Company 29. Aug 18 30. Aug 18 -5,752 CA$18.64 CA$-106,936
16. Aug 18 Sell Eli Lilly and Company Company 14. Aug 18 14. Aug 18 -3,000 CA$18.71 CA$-56,128
14. Aug 18 Sell Eli Lilly and Company Company 10. Aug 18 13. Aug 18 -6,429 CA$18.80 CA$-120,763
07. Aug 18 Sell Eli Lilly and Company Company 03. Aug 18 03. Aug 18 -1,650 CA$17.58 CA$-29,004
03. Aug 18 Sell Eli Lilly and Company Company 02. Aug 18 02. Aug 18 -19,400 CA$17.32 CA$-336,006
12. Jul 18 Sell CTI Life Sciences Company 11. May 18 24. May 18 -976,288 CA$23.37 CA$-21,861,853
X
Management checks
We assess Zymeworks's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zymeworks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ZYME News

Simply Wall St News

Have Insiders Been Selling Zymeworks Inc. (TSE:ZYME) Shares?

The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. … So shareholders might well want to know whether insiders have been buying or selling shares in Zymeworks Inc. … It's quite normal to see company insiders, such as board members, trading in company stock, from time to time.

Simply Wall St -

Do Directors Own Zymeworks Inc. (TSE:ZYME) Shares?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that have been privatized tend to have low insider ownership. … Zymeworks is a smaller company with a market capitalization of CA$690m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Do You Know Who Else Invests In Zymeworks Inc (TSE:ZYME)?

If you want to know who really controls Zymeworks Inc (TSE:ZYME), then you'll have to look at the makeup of its share registry. … Generally speaking, as a company grows, institutions will increase their ownership. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Was Zymeworks Inc's (TSE:ZYME) Earnings Growth Better Than The Industry's?

After looking at Zymeworks Inc's (TSX:ZYME) latest earnings announcement (31 December 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … View our latest analysis for Zymeworks How ZYME fared against its long-term earnings performance and its industry I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … TSX:ZYME Income Statement Apr 19th 18 We can further evaluate Zymeworks's loss by looking at what the industry has been experiencing over the past few years.

Simply Wall St -

Brokers' Outlook On Zymeworks Inc (TSE:ZYME)

Zymeworks Inc (TSX:ZYME) has been on my radar for a while, and the biggest I see is around the sustainability of the business going forward. … Although ZYME seems to be managing its financials well, and appears to be trading around its intrinsic value, meaning we can buy its shares at a fair price, I would rather buy an outstanding business at an OK price. … A reason I like ZYME as a business is its low level of fixed assets on its balance sheet (5.44% of total assets).

Simply Wall St -

Will Zymeworks Inc's (TSE:ZYME) Earnings Grow In The Next Couple Of Years?

Zymeworks Inc's (TSX:ZYME) announced its latest earnings update in December 2017, which signalled that losses became smaller relative to the prrior year's level - great news for investors Below is a brief commentary on my key takeaways on how market analysts perceive Zymeworks's earnings growth trajectory over the next couple of years and whether the future looks brighter. … TSX:ZYME Future Profit Mar 19th 18 Although it’s informative knowing the rate of growth each year relative to today’s figure, it may be more insightful gauging the rate at which the earnings are moving every year, on average. … Future Earnings: How does ZYME's growth rate compare to its peers and the wider market?

Simply Wall St -

Zymeworks Inc (TSE:ZYME) And The Healthcare Industry Prospect For 2018

This rate is larger than the growth rate of the Canadian stock market as a whole. … TSX:ZYME PE PEG Gauge Feb 14th 18 The biotech industry is trading at a PE ratio of 15.46x, relatively similar to the rest of the Canadian stock market PE of 16.27x. … Although it delivered lower growth relative to its healthcare peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation.

Simply Wall St -

Who Are The Major Shareholders In Zymeworks Inc (TSE:ZYME)?

General Public Ownership The general public holds a substantial 39.38% stake in ZYME, making it a highly popular stock among retail investors. … Public Company Ownership Another important group of owners for potential investors in ZYME are other public companies that hold a stake of 21.66% in ZYME. … Thus, investors should dig deeper into ZYME's business relations with these companies and how it can affect shareholder returns in the long-term.What this means for you: Institutional ownership in ZYME is not at a level that would concern investors.

Simply Wall St -

What Are Analysts Saying About Zymeworks Inc's (TSE:ZYME) Growth?

In September 2017, Zymeworks Inc (TSX:ZYME) released its latest earnings announcement, which signalled company earnings became less negative compared to the previous year's level as a result of recent tailwinds Below is my commentary, albeit very simple and high-level, on how market analysts predict Zymeworks's earnings growth trajectory over the next couple of years and whether the future looks brighter. … Check out our latest analysis for Zymeworks Analysts' expectations for next year seems pessimistic, with earnings becoming even more negative, reaching $-51.8M in 2018. … Future Earnings: How does ZYME's growth rate compare to its peers and the wider market2

Simply Wall St -

Interested In Zymeworks Inc (TSX:ZYME)? Here's What Its Recent Track-Record Looks Like

Below, I will run you through a simple sense check to build perspective on how Zymeworks is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its biotechnology industry peers. … I look at data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … Viewing growth from a sector-level, the Canadian biotechnology industry has been increasing growth, more than doubling average earnings over the past year, and a more subdued 8.02% over the past couple of years.

Simply Wall St -

ZYME Company Info

Description

Zymeworks Inc., a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of bio-therapeutics for the treatment of cancer in Canada. The company’s lead product candidates include ZW25, a bispecific antibody that is in Phase I clinical trial for the treatment of breast and gastric cancer; ZW49, a bispecific antibody-drug conjugate that is in preclinical stage for treating breast and gastric cancers, and solid tumors. The company has strategic partnerships with Merck Sharp & Dohme Research Ltd.; Eli Lilly and Company; Celgene Corporation and Celgene Alpine Investment Co. LLC; GlaxoSmithKline Intellectual Property Development Limited; Daiichi Sankyo Co., Ltd.; and Janssen Biotech, Inc., as well as a collaboration agreement with BeiGene, Ltd. It also has licensing and research collaboration with LEO Pharma A/S to discover and develop bispecific antibodies targeting cytokine-receptor pathways. Zymeworks Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

Details
Name: Zymeworks Inc.
ZYME
Exchange: TSX
Founded: 2003
CA$773,646,987
32,061,624
Website: http://www.zymeworks.com
Address: Zymeworks Inc.
1385 West 8th Avenue,
Suite 540,
Vancouver,
British Columbia, V6H 3V9,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX ZYME Common Shares The Toronto Stock Exchange CA CAD 28. Apr 2017
NYSE ZYME Common Shares New York Stock Exchange US USD 28. Apr 2017
DB 0OX Common Shares Deutsche Boerse AG DE EUR 28. Apr 2017
Number of employees
Current staff
Staff numbers
189
Zymeworks employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 03:21
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.