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Market Cap

US$12.7b

Last Updated

2021/04/15 23:12 UTC

Data Sources

Company Financials +

Executive Summary

Zai Lab Limited, a biopharmaceutical company, discovers, licenses, develops, and commercializes therapeutics to treat oncology, autoimmune, and infectious diseases in China. More Details


Snowflake Analysis

Excellent balance sheet with high growth potential.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: ZLAB is not significantly more volatile than the rest 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.


Market Performance


7 Day Return

23.1%

ZLAB

2.8%

US Biotechs

1.6%

US Market


1 Year Return

162.6%

ZLAB

26.6%

US Biotechs

57.5%

US Market

Return vs Industry: ZLAB exceeded the US Biotechs industry which returned 26.6% over the past year.

Return vs Market: ZLAB exceeded the US Market which returned 57.5% over the past year.


Shareholder returns

ZLABIndustryMarket
7 Day23.1%2.8%1.6%
30 Day15.0%-1.9%3.4%
90 Day-4.3%-5.1%8.6%
1 Year162.6%162.6%28.5%26.6%60.3%57.5%
3 Year680.2%680.2%31.0%24.5%62.6%51.9%
5 Yearn/a44.2%32.7%119.9%95.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZLAB ($163.6) is trading below our estimate of fair value ($165.54)

Significantly Below Fair Value: ZLAB is trading below fair value, but not by a significant amount.


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 (12.3x) compared to the US Biotechs industry average (3.8x).


Future Growth

How is Zai Lab forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

42.1%

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 (45.4% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: ZLAB's revenue (45.4% 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?

-45.0%

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 45% 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 (-7.3%).


Return on Equity

High ROE: ZLAB has a negative Return on Equity (-23%), 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 ($1.2B) exceed its short term liabilities ($98.0M).

Long Term Liabilities: ZLAB's short term assets ($1.2B) exceed its long term liabilities ($30.3M).


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?

3.0yrs

Average management tenure


CEO

Samantha Du (54 yo)

7.25yrs

Tenure

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...


Leadership Team

Experienced Management: ZLAB's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: ZLAB's board of directors are considered experienced (4.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.6%.


Top Shareholders

Company Information

Zai Lab Limited's company bio, 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$12.706b
  • Shares outstanding: 88.59m
  • Website: https://www.zailaboratory.com

Number of Employees


Location

  • Zai Lab Limited
  • Building 1, Jinchuang Plaza
  • 4th Floor
  • Shanghai
  • 201210
  • China

Listings


Biography

Zai Lab Limited, a biopharmaceutical company, discovers, licenses, develops, and commercializes therapeutics to treat oncology, autoimmune, and infectious diseases in China. The company offers ZEJULA for t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 23:12
End of Day Share Price2021/04/15 00:00
Earnings2020/12/31
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.