Zai Lab Limited American Depositary Shares (ZLAB)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Zai Lab as a Graham-style analyst: show me durable earnings and a margin of safety. This is a commercial-stage biopharma with products like Zejula, VYVGART and NUZYRA, but the financial record is still that of a loss-making enterprise. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $105.8 million, net income was -$50.8 million, and diluted EPS was -$0.05. That compares poorly with fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $109.1 million and net income was -$40.7 million. The annual picture shows scale progress: FY2023 revenue was $266.7 million, FY2024 was $397.6 million, and FY2025 was $457.2 million. But losses remain large: net income was -$334.6 million, -$257.1 million, and -$175.5 million in those years. So revenue has grown over the long term while the company still loses money. FairStock's calculations at the 2026-10-13 close show a negative P/E of -13.59, P/B of 4.27, ROE of -26.91%, and ROCE of -14.74%. Trailing free cash flow is -$162.5 million, a -6.6% FCF yield, so cash is going out. Debt/equity of 0.42 is not alarming on its face, but the Piotroski F-Score of 1/9 and Altman Z-Score of -0.01 indicate financial fragility. A biotechnology moat comes from patent-protected medicines, clinical data, and commercial execution; Zai has products but not yet profits. The computed Lynch category is none because it has lost money in each of the last four years. I cannot call this cheap on earnings because there are none. The $2.4 billion market cap is a bet on future pipeline success, not a present-value bargain.

In plain English: Zai Lab is a biopharmaceutical company that sells medicines for cancer, immune diseases, brain and nervous system conditions, and infections. The business is not yet profitable, it is burning cash, and its latest reported quarterly sales slipped from a year earlier, so the financial picture looks weak. At the recent $23.10 close, the $2.4 billion price looks high compared with current losses, though it could look different if its drugs grow strongly.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer