Zymeworks Inc. Common Stock (ZYME)

FairStock Score: 23/100 — RISKY

Key Financials

AI Analysis

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

I have spent decades watching biotech stories, and Zymeworks reminds me why I prefer businesses whose cash flows I can understand. The company develops antibody platforms for cancer and other diseases, an intellectually promising field, but the numbers are harsh. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.6M and net loss was $45.0M, or diluted EPS -$0.62. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $2.4M and net loss was $44.2M, or diluted EPS -$0.59. That follows fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $48.7M and net income was $2.3M. For FY2025, ended 2025-12-31, revenue was $106.0M and net loss was $81.1M, or diluted EPS -$1.08. FY2024 and FY2023 were also loss-making, with net losses of $122.7M and $118.7M, respectively. So the past year's top line was lumpy and the latest quarters show heavy burn. Trailing free cash flow is -$120.7M, and FairStock calculates an Altman Z-score of -0.34 and a Piotroski F-score of 3/9. Low debt, with a D/E of 0.20, is a modest comfort, but not enough. At the 2026-10-13 close of $25.07, FairStock shows a negative P/E of -12.41, a P/B of 22.19, ROE of -72.31%, ROCE of -24.15%, and FCF yield of -6.8%. FairStock classifies it as a TURNAROUND because the latest year lost money after earlier profits. I see no margin of safety in paying $1.8B for a business with shrinking recent revenue and no positive earnings. The platforms may be valuable, but only if milestones and pipeline data convert to cash.

In plain English: Zymeworks is a small biotech company that develops treatments for cancer and other diseases. The business looks weak right now because it is losing a lot of money and its recent revenue has fallen sharply. At $25.07 a share, the price looks expensive compared with its current sales and losses.

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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