Zymeworks Inc. (NASDAQ: ZYME)

Sector: Healthcare Industry: Biotechnology CIK: 0001937653
P/B 5.94
P/E -29.98
P/S 14.14
Market Cap 1.90 Bn
ROIC (Qtr) -21.90
Div Yield % 0.00
Rev 1y % (Qtr) 72.59
Total Debt (Qtr) 18.90 Mn
Debt/Equity (Qtr) 0.06

About

Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 64.83M provide 19.07x coverage of short-term debt 3.40M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 383.86M provides 20.31x coverage of total debt 18.90M, indicating robust asset backing and low credit risk.
  • Tangible assets of 383.86M provide exceptional 21.56x coverage of deferred revenue 17.80M, showing strong service capability backing.
  • Short-term investments of 187.10M provide solid 44.41x coverage of other current liabilities 4.21M, indicating strong liquidity.
  • Long-term investments of 47.43M provide solid 3.06x coverage of long-term debt 15.50M, indicating strategic financial planning.

Cons

  • Operating cash flow of (64.25M) barely covers its investment activities of 15.08M, with a coverage ratio of -4.26, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 15.08M provide weak support for R&D spending of 142.83M, which is 0.11x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (64.25M) provides insufficient coverage of deferred revenue obligations of 17.80M, which is -3.61x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (64.25M) shows concerning coverage of stock compensation expenses of 24.20M, with a -2.65 ratio indicating potential earnings quality issues.
  • Free cash flow of (65.51M) provides weak coverage of capital expenditures of 1.25M, with a -52.24 ratio suggesting additional external financing needs for growth initiatives.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,349.40 Bn -1,464.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 437.43 Bn 6,381.20 87.97 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.09 Bn 31.59 9.90 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.10 Bn 17.06 5.48 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.87 Bn 1,282.42 17.40 3.21 Bn
6 ARGX Argenx Se 52.85 Bn 35.08 27,559.65 -
7 BNTC Benitec Biopharma Inc. 41.75 Bn -998.33 0.00 0.00 Bn
8 INSM INSMED Inc 37.80 Bn -31.93 84.56 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 4.59 12.31
EV to Cash from Ops. -28.35 23.25
EV to Debt 96.37 738.44
EV to EBIT -32.49 -9.16
EV to EBITDA -31.51 6.95
EV to Free Cash Flow [EV/FCF] -27.81 21.90
EV to Market Cap 0.96 65.67
EV to Revenue 13.55 227.32
Price to Book Value [P/B] 5.94 22.34
Price to Earnings [P/E] -29.98 -11.77

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -11.94
Dividend Payout Ratio % 0.00 0.16
Dividend per Basic Share 0.00 0.01
FCF Dividend Payout Ratio % 0.00 -0.14
Interest Coverage 0.00 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 38.32 -27.13
Cash and Equivalents Growth (1y) % -47.01 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 44.20 -46.93
EBITDA Growth (1y) % 54.64 -1.68
EBIT Growth (1y) % 52.50 -56.45
EBT Growth (1y) % 52.50 -12.70
EPS Growth (1y) % 42.95 -28.31
FCF Growth (1y) % -15.68 -31.90
Gross Profit Growth (1y) % 116.21 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.34 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 1.54 3.85
Current Ratio 6.94 7.27
Debt to Equity Ratio 0.06 0.40
Interest Cover Ratio 0.00 841.00
Times Interest Earned 0.00 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -32.20 -18,234.31
EBIT Margin % -41.69 -18,580.80
EBT Margin % -41.69 -19,488.74
Gross Margin % 100.00 -7.59
Net Profit Margin % -47.20 -19,439.22