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Zai Lab

Nasdaq:ZLAB
Snowflake Description

Excellent balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZLAB
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Zai Lab Limited, a biopharmaceutical company, engages in discovering or licensing, developing, and commercializing proprietary therapeutics that address medical needs in the fields of oncology, infectious, and autoimmune diseases in China and internationally. The last earnings update was 9 days ago. More info.


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ZLAB Share Price and Events
7 Day Returns
6.1%
NasdaqGM:ZLAB
5.2%
US Biotechs
10.5%
US Market
1 Year Returns
72.7%
NasdaqGM:ZLAB
0%
US Biotechs
-11.5%
US Market
ZLAB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zai Lab (ZLAB) 6.1% -9% 26.6% 72.7% - -
US Biotechs 5.2% -6.5% -8.7% 0% 6.2% -10.4%
US Market 10.5% -15.4% -21.4% -11.5% 5.4% 18.1%
1 Year Return vs Industry and Market
  • ZLAB outperformed the Biotechs industry which returned 0% over the past year.
  • ZLAB outperformed the Market in United States of America which returned -11.5% over the past year.
Price Volatility
ZLAB
Industry
5yr Volatility vs Market

Value

 Is Zai Lab undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zai Lab to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zai Lab.

NasdaqGM:ZLAB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:ZLAB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 6.3%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.2
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.203 (1 + (1- 25%) (0.58%))
1.139
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.139 * 6.33%)
8.95%

Discounted Cash Flow Calculation for NasdaqGM:ZLAB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Zai Lab is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGM:ZLAB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.95%)
2020 -228.70 Analyst x2 -209.91
2021 -133.76 Analyst x5 -112.68
2022 41.93 Analyst x4 32.42
2023 172.77 Analyst x3 122.61
2024 308.40 Analyst x3 200.89
2025 421.74 Est @ 36.75% 252.15
2026 532.44 Est @ 26.25% 292.17
2027 633.04 Est @ 18.9% 318.84
2028 720.08 Est @ 13.75% 332.88
2029 793.14 Est @ 10.15% 336.53
Present value of next 10 years cash flows $1,565.00
NasdaqGM:ZLAB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $793.14 × (1 + 1.74%) ÷ (8.95% – 1.74%)
$11,190.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $11,190.00 ÷ (1 + 8.95%)10
$4,747.96
NasdaqGM:ZLAB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,565.00 + $4,747.96
$6,312.96
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,312.96 / 74.08
$85.22
NasdaqGM:ZLAB Discount to Share Price
Calculation Result
Value per share (USD) From above. $85.22
Current discount Discount to share price of $50.96
= -1 x ($50.96 - $85.22) / $85.22
40.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Zai Lab is available for.
Intrinsic value
40%
Share price is $50.96 vs Future cash flow value of $85.22
Current Discount Checks
For Zai Lab to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Zai Lab's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Zai Lab's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zai Lab's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zai Lab's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:ZLAB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-3.03
NasdaqGM:ZLAB Share Price ** NasdaqGM (2020-03-27) in USD $50.96
United States of America Biotechs Industry PE Ratio Median Figure of 37 Publicly-Listed Biotechs Companies 15.4x
United States of America Market PE Ratio Median Figure of 2,939 Publicly-Listed Companies 12.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zai Lab.

NasdaqGM:ZLAB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:ZLAB Share Price ÷ EPS (both in USD)

= 50.96 ÷ -3.03

-16.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zai Lab is loss making, we can't compare its value to the US Biotechs industry average.
  • Zai Lab is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Zai Lab's expected growth come at a high price?
Raw Data
NasdaqGM:ZLAB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -16.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
55.8%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 34 Publicly-Listed Biotechs Companies 0.96x
United States of America Market PEG Ratio Median Figure of 2,005 Publicly-Listed Companies 1x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Zai Lab, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Zai Lab's assets?
Raw Data
NasdaqGM:ZLAB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $4.32
NasdaqGM:ZLAB Share Price * NasdaqGM (2020-03-27) in USD $50.96
United States of America Biotechs Industry PB Ratio Median Figure of 429 Publicly-Listed Biotechs Companies 2.53x
United States of America Market PB Ratio Median Figure of 5,148 Publicly-Listed Companies 1.26x
NasdaqGM:ZLAB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:ZLAB Share Price ÷ Book Value per Share (both in USD)

= 50.96 ÷ 4.32

11.8x

* Primary Listing of Zai Lab.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zai Lab is overvalued based on assets compared to the US Biotechs industry average.
X
Value checks
We assess Zai Lab's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Zai Lab has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Zai Lab expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
55.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zai Lab expected to grow at an attractive rate?
  • Zai Lab's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Zai Lab's earnings growth is expected to exceed the United States of America market average.
  • Zai Lab's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:ZLAB Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:ZLAB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 55.8%
NasdaqGM:ZLAB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 51.1%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 18.6%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 15.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:ZLAB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:ZLAB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 931 445 336 3
2023-12-31 665 248 193 3
2022-12-31 384 31 -17 5
2021-12-31 167 -153 -197 7
2020-12-31 48 -223 -205 8
2020-03-28
NasdaqGM:ZLAB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 13 -195
2019-09-30 8 -196 -212
2019-06-30 4 -181
2019-03-31 2 -160
2018-12-31 0 -98 -139
2018-09-30 -89
2018-06-30 -67
2018-03-31 -59
2017-12-31 -32 -50
2017-09-30 -50
2017-06-30 -41 -50
2017-03-31 -37 -44

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zai Lab's earnings are expected to grow significantly at over 20% yearly.
  • Zai Lab's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:ZLAB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Zai Lab Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:ZLAB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 3.88 5.12 2.64 2.00
2023-12-31 2.25 2.46 2.03 2.00
2022-12-31 -0.25 1.16 -1.11 4.00
2021-12-31 -2.13 0.03 -3.25 6.00
2020-12-31 -2.76 -1.19 -3.66 7.00
2020-03-28
NasdaqGM:ZLAB Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -3.03
2019-09-30 -3.42
2019-06-30 -3.12
2019-03-31 -2.89
2018-12-31 -2.64
2018-09-30 -1.91
2018-06-30 -1.63
2018-03-31 -1.86
2017-12-31 -2.32
2017-09-30 -3.15
2017-06-30 -4.94
2017-03-31 -4.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Zai Lab will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Zai Lab's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zai Lab has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Zai Lab performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zai Lab's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zai Lab does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Zai Lab's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Zai Lab's 1-year growth to the US Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Zai Lab's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zai Lab Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:ZLAB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 12.98 -195.07 70.21 142.22
2019-09-30 8.47 -212.00 58.16 165.78
2019-06-30 3.55 -180.86 44.70 144.57
2019-03-31 1.84 -159.97 33.14 132.43
2018-12-31 0.13 -139.07 21.58 120.28
2018-09-30 -88.70 14.14 74.32
2018-06-30 -67.46 14.37 53.10
2018-03-31 -58.92 13.21 46.22
2017-12-31 -50.38 12.05 39.34
2017-09-30 -50.24 10.47 41.37
2017-06-30 -50.10 8.44 43.85
2017-03-31 -43.80 7.41 38.00
2016-12-31 -37.51 6.38 32.15
2015-12-31 -18.02 2.76 13.59

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Zai Lab has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Zai Lab has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Zai Lab improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Zai Lab's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zai Lab has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Zai Lab's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zai Lab's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zai Lab is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zai Lab's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Zai Lab's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 45.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zai Lab Company Filings, last reported 2 months ago.

NasdaqGM:ZLAB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 294.66 6.45 275.93
2019-09-30 337.11 6.36 320.31
2019-06-30 393.33 5.82 393.20
2019-03-31 393.33 5.82 393.20
2018-12-31 251.08 3.64 263.30
2018-09-30
2018-06-30 198.93 0.76 177.72
2018-03-31 198.93 0.76 177.72
2017-12-31 235.17 0.00 229.66
2017-09-30 235.17 0.00 229.66
2017-06-30 93.36 0.00 92.56
2017-03-31 93.36 0.00 92.56
2016-12-31 82.96 0.00 83.95
2015-12-31 9.94 0.00 13.16
  • Zai Lab's level of debt (2.2%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Zai Lab's debt level has increased without past 5-year debt data.
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.

  • Zai Lab has sufficient cash runway for 1.3 years based on current free cash flow.
  • Zai Lab has sufficient cash runway for 1.4 years if free cash flow continues to grow at historical rates of 69.3% each year.
X
Financial health checks
We assess Zai Lab's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zai Lab has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Zai Lab dividends. Estimated to be 0% next year.
If you bought $2,000 of Zai Lab shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Zai Lab's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Zai Lab's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:ZLAB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 65 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1949 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:ZLAB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 3.00
2020-12-31 0.00 4.00
2020-03-28

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Zai Lab has not reported any payouts.
  • Unable to verify if Zai Lab's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Zai Lab's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Zai Lab has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Zai Lab's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Zai Lab's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zai Lab afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zai Lab has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Zai Lab's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Samantha Du
COMPENSATION $0
AGE 53
TENURE AS CEO 6.2 years
CEO Bio

Dr. Ying Du, also known as Samantha, Ph.D., 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 University, School of Pharmacy and Chairwoman of Shanghai Pudong Drug Innovative Committee. She serves as a board member at BGI tech and Beta pharma. Dr. Du served as Director at Betta Pharmaceuticals Co., Ltd. She served as Managing Director at Sequoia Capital China and was responsible for healthcare investment. Dr. Du joined Sequoia Capital China in 2012. She serves as Chief Technology Officer of Hehuang Traditional Chinese Medicine Technology Co., Ltd. Dr. Du serves as Partner of Venture Capital of Hongcai Capital Investment Management (Tianjin) Co., Ltd. She serves as General Partner at Zai Venture Fund I, L.P. Dr. Du has been the Chairman and Chief Executive Officer at ZAI Lab Limited (formerly ZAI Laboratory, Inc.) since 2014. She is employed at ZAI Lab Limited, Investment Arm. Dr. Du served as a Director of China Animal Healthcare Ltd. since February 20, 2014 until March 17, 2016. Dr. Du Founded Hutchison MediPharma Ltd. in 2002 and served as its Chief Executive Officer. She was also the co-founder at Hutchison Chi-Med. Dr. Du served as the Chief Scientific Officer of Chi-Med of Hutchison China MediTech Ltd. She served as Director of JHL Biotech, Inc. She has been a successful drug developer, entrepreneur, investor and an overall industry leader in China. Dr. Du began her career with Pfizer in the US where she was responsible for the company’s global metabolic licensing program and was also involved in the development of multiple early and late-stage products, including two global blockbusters. She is an active advisor on healthcare and biotech issues for various government agencies and research institutions in China. Dr. Du joined Hutchison Whampoa in 2001 to lead the global pharmaceutical R&D and Health Care Investment activities in it. She started her research career at Pfizer's Global R&D center in Connecticut and led teams that delivered multiple INDs and NDAs in several Therapeutic Areas. Dr. Du served at Pfizer's global strategic operation division in charge of global Licensing and related merge & acquisition activities for metabolic diseases. She has been recognized with awards such as 2016 BayHelix Person of the Year, China Entrepreneur of the Year 2008, and FierceBiotech’s Top 12 Women in Biopharma 2015. Dr. Du is a recipient of Shanghai's 2010 Magnolia award and recipient of Shanghai's thousand talent program. She holds a Ph.D. in Biochemistry from the University of Cincinnati.

CEO Compensation
  • Insufficient data for Samantha to compare compensation growth.
  • Insufficient data for Samantha to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Zai Lab management team in years:

2
Average Tenure
53.5
Average Age
  • The tenure for the Zai Lab management team is about average.
Management Team

Samantha Du

TITLE
Founder
AGE
53
TENURE
6.2 yrs

Tao Fu

TITLE
President
AGE
47
TENURE
1.5 yrs

William Billy Cho

TITLE
Chief Financial Officer
AGE
41
TENURE
2 yrs

Ning Xu

TITLE
Executive VP and Head of Clinical & Regulatory Affairs
AGE
54
TENURE
6.2 yrs

James Yan

TITLE
Executive VP and Head of Pre-clinical Development and Program & Portfolio Management
AGE
55
TENURE
5.2 yrs

Harald Reinhart

TITLE
Chief Medical Officer of Autoimmune & Infectious Diseases
AGE
67
TENURE
3.2 yrs

William Liang

TITLE
Chief Commercial Officer & President of Greater China
AGE
48
TENURE
1.8 yrs

Yong-Jiang Hei

TITLE
Chief Medical Officer of Oncology
AGE
57
TENURE
1.6 yrs

Hongtao Lu

TITLE
Executive Vice President of Scientific Research

Valeria Fantin

TITLE
Chief Scientific Officer
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Zai Lab board of directors in years:

3.2
Average Tenure
65.5
Average Age
  • The tenure for the Zai Lab board of directors is about average.
Board of Directors

Tao Fu

TITLE
President
AGE
47
TENURE
3.2 yrs

Peter Wirth

TITLE
Director & Senior Advisor
AGE
69
TENURE
3.2 yrs

Samantha Du

TITLE
Founder
AGE
53
TENURE
6.2 yrs

John Diekman

TITLE
Independent Director
AGE
76
TENURE
3.2 yrs

Nisa Bernice Leung

TITLE
Director
AGE
49
TENURE
6.2 yrs

Dick Flavell

TITLE
Member of Scientific Advisory Board
AGE
73
TENURE
3.2 yrs

Neal Rosen

TITLE
Member of Scientific Advisory Board
AGE
69
TENURE
4.2 yrs

Kai-Xian Chen

TITLE
Independent Director
AGE
73
TENURE
1.6 yrs

William Lis

TITLE
Independent Director
AGE
54
TENURE
1.4 yrs

Lieping Chen

TITLE
Member of Scientific Advisory Board
AGE
62
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Zai Lab's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zai Lab has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Update: Zai Lab (NASDAQ:ZLAB) Stock Gained 49% In The Last Year

To wit, the Zai Lab Limited (NASDAQ:ZLAB) share price is 49% higher than it was a year ago, much better than the market return of around 3.9% (not including dividends) in the same period. … We'll need to follow Zai Lab for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long. … With the share price up 49% in the last year, the market is seems hopeful about the potential, despite the cash burn.

Simply Wall St -

What Percentage Of Zai Lab Limited (NASDAQ:ZLAB) Shares Do Insiders Own?

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. … Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. … Private Company Ownership Our data indicates that Private Companies hold 17%, of the company's shares.

Simply Wall St -

What Are Analysts Saying About Zai Lab Limited's (NASDAQ:ZLAB) Future?

Help shape the future of investing tools and you could win a $250 gift card! … The most recent earnings release Zai Lab Limited's (NASDAQ:ZLAB) announced in December 2018 … that losses became smaller relative to the prior year's level

Simply Wall St -

Does Zai Lab's (NASDAQ:ZLAB) Share Price Gain of 36% Match Its Business Performance?

For example, the Zai Lab Limited (NASDAQ:ZLAB) share price is up 36% in the last year, clearly besting than the market return of around 0.6% (not including dividends). … Zai Lab hasn't been listed for long, so it's still not clear if it is a long term winner. … The is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets.

Simply Wall St -

What Kind Of Shareholder Appears On The Zai Lab Limited's (NASDAQ:ZLAB) Shareholder Register?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … institutions are noticeable on the share registry

Simply Wall St -

What’s Ahead For Zai Lab Limited (NASDAQ:ZLAB)?

is a healthcare company operating in an industry, … which has experienced tailwinds from issues such as higher demand driven by an aging population and the increasing prevalence of diseases and comorbidities … The growth in development of new drugs for unmet needs, as well as the ongoing and increasing need for biotech drugs as Baby Boomer generation continues to age, are growth drivers for the positive outlook in the biotech industry over the long term

Simply Wall St -

Investors Are Undervaluing Zai Lab Limited (NASDAQ:ZLAB) By 30.52%

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Why Zai Lab Limited's (NASDAQ:ZLAB) Investor Composition Impacts Your Returns

In this article, I'm going to take a look at Zai Lab Limited’s (NASDAQ:ZLAB) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Private Company Ownership Another important group of owners for potential investors in ZLAB are private companies that hold a stake of 43.12% in ZLAB. … Thus, investors should dig deeper into ZLAB's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

Is Zai Lab Limited (NASDAQ:ZLAB) A Healthcare Industry Laggard Or Leader?

Healthcare analysts are forecasting for the entire industry, a fairly unexciting growth rate of 1.58% in the upcoming year , and a whopping growth of 39.93% over the next couple of years. … Not surprisingly, this rate is more than double the growth rate of the US stock market as a whole. … If Zai Lab has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the biotech industry.

Simply Wall St -

Is Zai Lab Limited (ZLAB) Thriving Or Barely Surviving In The Healthcare Sector?

Not surprisingly, this rate is more than double the growth rate of the US stock market as a whole. … Below, I will examine the sector growth prospects, as well as evaluate whether ZLAB is lagging or leading its competitors in the industry. … If ZLAB has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the biotech industry.

Simply Wall St -

Company Info

Description

Zai Lab Limited, a biopharmaceutical company, engages in discovering or licensing, developing, and commercializing proprietary therapeutics that address medical needs in the fields of oncology, infectious, and autoimmune diseases in China and internationally. The company’s lead drug candidate is ZL-2306, an oral small molecule PARP 1/2 inhibitor for treatment of multiple solid tumor, including ovarian and other types of cancer. Its products in Phase III clinical trial comprise Niraparib, a small molecule PARP 1/2 inhibitor for the treatment of multiple solid tumor types; Optune, a cancer therapy; Margetuximab, an immune-optimized anti-HER2 monoclonal antibody for the treatment of breast and gastric cancers; Bemarituzumab, a humanized monoclonal antibody for the treatment of gastric and gastroesophageal cancers; Brivanib, a small molecule dual target tyrosine kinase inhibitor for the treatment of hepatocellular carcinoma; and Omadacycline, an antibiotic to treat acute bacterial skin and skin structure, community-acquired bacterial pneumonia, and urinary tract infections. The company’s clinical stage products also include MGD013, a bispecific DART molecule that is in Phase I clinical trial for the treatment of various solid tumors and hematological malignancies; and ETX2514, a novel beta-lactamase inhibitor that has completed Phase II cUTI trial for the treatment of acinetobacter baumannii bacterial infections. Zai Lab Limited has license and collaboration agreements with the TESARO Inc.; Paratek Bermuda, Ltd.; Five Prime Therapeutics, Inc.; Bristol-Myers Squibb Company; Entasis Therapeutics Holdings, Inc.; Sanofi; MacroGenics Inc.; and NovoCure Limited. The company was founded in 2013 and is headquartered in Shanghai, China.

Details
Name: Zai Lab Limited
ZLAB
Exchange: NasdaqGM
Founded: 2013
$3,774,888,040
74,075,511
Website: http://www.zailaboratory.com
Address: Zai Lab Limited
Building 1, Jinchuang Plaza,
4th Floor,
Shanghai,
201210,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM ZLAB Ordinary Shares Nasdaq Global Market US USD 18. Sep 2017
Number of employees
Current staff
Staff numbers
733
Zai Lab employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 03:23
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/24
Last earnings filing: 2020/03/19
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.