DB:ZA7

Stock Analysis Report

Executive Summary

Zafgen, Inc., a clinical-stage biopharmaceutical company, develops therapies for patients suffering from metabolic diseases comprising type 2 diabetes, Prader-Willi syndrome (PWS), and liver diseases.

Snowflake

Excellent balance sheet and overvalued.

Share Price & News

How has Zafgen's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZA7's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

ZA7

-1.6%

DE Biotechs

0.8%

DE Market


1 Year Return

-92.7%

ZA7

-8.9%

DE Biotechs

9.0%

DE Market

Return vs Industry: ZA7 underperformed the German Biotechs industry which returned -8.9% over the past year.

Return vs Market: ZA7 underperformed the German Market which returned 9% over the past year.


Shareholder returns

ZA7IndustryMarket
7 Day-0.7%-1.6%0.8%
30 Day4.7%-1.5%6.3%
90 Day-17.9%-8.3%14.4%
1 Year-92.7%-92.7%-8.7%-8.9%12.4%9.0%
3 Year-79.6%-79.6%49.7%47.8%25.6%14.5%
5 Year-95.8%-95.8%-1.5%-4.6%41.0%21.8%

Price Volatility Vs. Market

How volatile is Zafgen's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Zafgen undervalued compared to its fair value and its price relative to the market?

0.47x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ZA7's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ZA7's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ZA7 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: ZA7 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZA7's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZA7 is good value based on its PB Ratio (0.5x) compared to the DE Biotechs industry average (3.1x).


Next Steps

Future Growth

How is Zafgen forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZA7 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ZA7 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ZA7 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if ZA7's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if ZA7's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ZA7's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Zafgen performed over the past 5 years?

-2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if ZA7 has high quality earnings.

Growing Profit Margin: Insufficient data to determine if ZA7's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: ZA7 is unprofitable, and losses have increased over the past 5 years at a rate of -2% per year.

Accelerating Growth: Unable to compare ZA7's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ZA7 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: ZA7 has a negative Return on Equity (-88.05%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zafgen's financial position?


Financial Position Analysis

Short Term Liabilities: ZA7's short term assets ($83.4M) exceeds its short term liabilities ($16.3M)

Long Term Liabilities: ZA7's short term assets (83.4M) exceeds its long term liabilities (16.7M)


Debt to Equity History and Analysis

Debt Level: ZA7's debt to equity ratio (29.1%) is considered satisfactory

Reducing Debt: ZA7's debt to equity ratio has increased from 6.8% to 29.1% over the past 5 years.


Balance Sheet

Inventory Level: ZA7 has a low level of unsold assets or inventory.

Debt Coverage by Assets: ZA7's debt is covered by short term assets (assets are 4.8x debt).


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.

Stable Cash Runway: ZA7 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ZA7 has sufficient cash runway for 1.883324 years if free cash flow continues to grow at historical rates of 3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ZA7's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ZA7's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ZA7's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZA7's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZA7's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Jeff Hatfield (61yo)

2.1yrs

Tenure

US$2,468,855

Compensation

Mr. Jeffrey S. Hatfield, also known as Jeff, has been the Chief Executive Officer and Director at Zafgen, Inc. since October 10, 2017. Mr. Hatfield is an Atlas Advisor of Atlas Venture L.P. He is a Veteran ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD2.47M) is above average for companies of similar size in the German market ($USD215.15K).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

57yo

Average Age

Experienced Management: ZA7's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

63yo

Average Age

Experienced Board: ZA7's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25%.


Management Team

  • James Vath (58yo)

    Head of Discovery & Development

    • Tenure: 13.8yrs
  • Jeff Hatfield (61yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: US$2.47m
  • Patty Allen (57yo)

    Chief Financial Officer

    • Tenure: 6.8yrs
    • Compensation: US$705.05k
  • Brian McVeigh (46yo)

    Chief Business Officer

    • Tenure: 1.5yrs
    • Compensation: US$1.46m
  • Priya Singhal (51yo)

    Head of Research & Development

    • Tenure: 0.7yrs

Board Members

  • Peter Barrett (66yo)

    Independent Chairman of the Board

    • Tenure: 13.3yrs
    • Compensation: US$178.04k
  • John LaMattina (69yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$153.06k
  • Frank Thomas (49yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$155.56k
  • Tom Daniel (65yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$150.56k
  • Jeff Hatfield (61yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: US$2.47m
  • Louis Aronne (63yo)

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • Randy Seeley

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • Caroline Apovian

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • Tom Hughes (59yo)

    Member of Scientific Advisory Board

    • Tenure: 1.3yrs
    • Compensation: US$2.36m
  • Steve Smith

    Member of Clinical Advisory Board

    • Tenure: 0yrs

Company Information

Zafgen, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zafgen, Inc.
  • Ticker: ZA7
  • Exchange: DB
  • Founded: 2005
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$28.143m
  • Listing Market Cap: US$25.554m
  • Shares outstanding: 37.37m
  • Website: https://www.zafgen.com

Number of Employees


Location

  • Zafgen, Inc.
  • 1-3 Center Plaza
  • Boston
  • Massachusetts
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZFGNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2014
ZA7DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014

Biography

Zafgen, Inc., a clinical-stage biopharmaceutical company, develops therapies for patients suffering from metabolic diseases comprising type 2 diabetes, Prader-Willi syndrome (PWS), and liver diseases. Its  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 21:28
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.