ZLAB

Zai LabNasdaqGM:ZLAB Stock Report

Market Cap

US$12.3b

7D

-6.3%

1Y

62.3%

Updated

18 Sep, 2021

Data

Company Financials +
ZLAB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

ZLAB Overview

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, and infectious diseases primarily in Greater China.

Zai Lab Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zai Lab
Historical stock prices
Current Share PriceUS$128.64
52 Week HighUS$72.76
52 Week LowUS$193.54
Beta1.1
1 Month Change-1.05%
3 Month Change-18.22%
1 Year Change62.28%
3 Year Change570.70%
5 Year Changen/a
Change since IPO614.67%

Recent News & Updates

Aug 19
News Flash: Analysts Just Made A Substantial Upgrade To Their Zai Lab Limited (NASDAQ:ZLAB) Forecasts

News Flash: Analysts Just Made A Substantial Upgrade To Their Zai Lab Limited (NASDAQ:ZLAB) Forecasts

Zai Lab Limited ( NASDAQ:ZLAB ) shareholders will have a reason to smile today, with the analysts making substantial...

Jul 31

Reviewing Our Recent Zai Lab Limited Buy Recommendation

As noted in Wall Street Breakfast "Even when you think China risk is priced, it can get worse" Recent Government actions prompt a new degree of caution in further advices; should we go to the point of taking losses now and adjusting score-keeping to reflect committed errors. Our analysis method causes these developments to reach further than the obvious near-term impacts. See below.

Jul 18

Zai Lab: Best Now Capital Gain Biotech For Near-Term Wealth-Building, So Say Market-Makers

Like it or not, capital gain prospects for stocks in U.S. equities markets are all directly comparable with one another, and investors who want those gains need to make comparisons. The comparability comes from big-money transaction pressures by competing “Institutional” investment organizations adjusting multi-Billion-$ portfolio holdings. Transactions negotiated among Institutions by Market-Makers usually require the MMs risking firm capital – risks not taken without hedging costs accepted by the trade order originator. That hedging in leveraged “derivative” securities defines how far (both upside and downside) the subject stock’s price is likely to go – worth paying a price to protect against. How equities markets have reacted to those Risk~Reward tradeoffs provides an opportunity shopping list.

Jul 16
Zai Lab Limited (NASDAQ:ZLAB) Shares Could Be 22% Below Their Intrinsic Value Estimate

Zai Lab Limited (NASDAQ:ZLAB) Shares Could Be 22% Below Their Intrinsic Value Estimate

In this article we are going to estimate the intrinsic value of Zai Lab Limited ( NASDAQ:ZLAB ) by taking the expected...

Shareholder Returns

ZLABUS BiotechsUS Market
7D-6.3%0.5%-0.6%
1Y62.3%25.9%33.8%

Return vs Industry: ZLAB exceeded the US Biotechs industry which returned 25.7% over the past year.

Return vs Market: ZLAB exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is ZLAB's price volatile compared to industry and market?
ZLAB volatility
ZLAB Beta1.1
Industry Beta1.03
Market Beta1

Stable Share Price: ZLAB is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: ZLAB's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20131,194Samantha Duhttps://www.zailaboratory.com

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, and infectious diseases primarily in Greater China. The company’s commercial products include Zejula for the treatment of breast cancer and non-small cell lung cancer; Optune, a device that delivers tumor treating fields; and Qinlock to treat gastrointestinal stromal tumors. It also develops Odronextamab to treat follicular lymphoma, diffuse large B-cell lymphoma, and other lymphomas; Repotrectinib, a tyrosine kinase inhibitor (TKI) to target ROS1 and TRK A/B/C in TKI-naïve- or -pretreated cancer patients; Margetuximab for the treatment of breast and gastroesophageal cancers; and Bemarituzumab to treat gastric and gastroesophageal junction cancer.

Valuation

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

43.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZLAB ($128.64) is trading below our estimate of fair value ($226.72)

Significantly Below Fair Value: ZLAB is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ZLAB is overvalued based on its PB Ratio (7.3x) compared to the US Biotechs industry average (3.2x).


Future Growth

How is Zai Lab forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

61.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZLAB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: ZLAB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ZLAB's is expected to become profitable in the next 3 years.

Revenue vs Market: ZLAB's revenue (54% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: ZLAB's revenue (54% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZLAB is forecast to be unprofitable in 3 years.


Past Performance

How has Zai Lab performed over the past 5 years?

-51.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZLAB is currently unprofitable.

Growing Profit Margin: ZLAB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZLAB is unprofitable, and losses have increased over the past 5 years at a rate of 51.5% per year.

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

Earnings vs Industry: ZLAB is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (4.9%).


Return on Equity

High ROE: ZLAB has a negative Return on Equity (-32.09%), as it is currently unprofitable.


Financial Health

How is Zai Lab's financial position?


Financial Position Analysis

Short Term Liabilities: ZLAB's short term assets ($1.8B) exceed its short term liabilities ($193.9M).

Long Term Liabilities: ZLAB's short term assets ($1.8B) exceed its long term liabilities ($29.6M).


Debt to Equity History and Analysis

Debt Level: ZLAB is debt free.

Reducing Debt: ZLAB had no debt 5 years ago.


Balance Sheet


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: ZLAB has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ZLAB has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Zai Lab current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if ZLAB'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 ZLAB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Samantha Du (55 yo)

7.67yrs

Tenure

US$8,536,036

Compensation

Dr. Ying Du, Ph D., also known as Samantha, serves as Founding Managing Director at Quan Capital. She serves as Venture Partner at Sequoia Capital China.Dr. Du serves as an adjunct professor at Fudan Univ...


CEO Compensation Analysis

Compensation vs Market: Samantha's total compensation ($USD8.54M) is about average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: ZLAB's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: ZLAB's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 27.4%.


Top Shareholders

Company Information

Zai Lab Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Zai Lab Limited
  • Ticker: ZLAB
  • Exchange: NasdaqGM
  • Founded: 2013
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$12.273b
  • Shares outstanding: 95.41m
  • Website: https://www.zailaboratory.com

Number of Employees


Location

  • Zai Lab Limited
  • Building 1, Jinchuang Plaza
  • Fourth Floor
  • Shanghai
  • 201210
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:13
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.