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Zymeworks Inc. (ZYME) stock analysis

ZYMENasdaqPharmaceutical PreparationsFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 9, 2026Score 10/30141% above fair value
$29.07−2.39 (-7.60%)

Close on Nov 11, 2026Market cap $2.06BP/E 55.9Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth1Performance4Health5Dividend0

Mixed10 of 30 checks passed

Zymeworks passes 10 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
1/6
Past performance
4/6
Financial health
5/6
Dividend
0/6

What stands out

  • Return on capital over 10%

    Return on invested capital was 21.4%, above the 10% that usually covers the cost of capital.

  • No debt

    Zymeworks has no borrowings on its latest balance sheet.

  • Interest well covered

    No meaningful interest expense to cover.

  • Debt covered by cash flow

    There is no debt to cover.

What to watch

  • Margin of safety under 20%

    The price is 141% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $29.07 is above our fair value estimate of $12.06.

  • Return on equity under 15%

    Return on equity was 15.0% over the last twelve months and averaged -22.6% over five years; we look for 15% on both.

  • Revenue growing under 10% a year

    Revenue grew -36.4% a year over the last three fiscal years, short of the 10% we look for.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E above the industry

    Zymeworks's P/E of 55.9 is above the Drugs median of 25.1.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    Zymeworks's price-to-book of 7.99 is above the Drugs median of 2.29.

  • Trading above fair value

    The share price of $29.07 is above our fair value estimate of $12.06.

  • Margin of safety under 20%

    The price is 141% above fair value, so there is no margin of safety.

Growth1/6

  • Revenue growing under 10% a year

    Revenue grew -36.4% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 97.8% over the last twelve months; the Drugs median is 8.0%.

  • Guidance issued

    The latest outlook (three-year period ending December 31, 2028 aggregate adjusted gross operating expenditures (non-GAAP), May 7, 2026) was issued for the first time, so it neither adds nor takes away points.

  • Gross margin trend

    This company does not report gross profit.

Past performance4/6

  • Return on equity under 15%

    Return on equity was 15.0% over the last twelve months and averaged -22.6% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 21.4%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Zymeworks's return on equity of 15.0% is above the Drugs median of -58.8%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was 16.3% over the last twelve months, against a 5-year average of -231%.

  • Net margin above the industry

    Zymeworks's net margin of 16.3% is above the Drugs median of -53.0%.

Financial health5/6

  • No debt

    Zymeworks has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term assets cover short-term debts

    Current assets are 3.30 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is 0.87; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Zymeworks has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$12.06

The share price is 141% above this estimate.

20%+ below
Near fair value
20%+ above
$29.07Price$12.06Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E25.1×–25.1×$13.0447%
EV/EBITDA17.1×–17.1×$12.0441%
P/B2.2×2.2×2.3×$8.1712%
Fair value$12.06100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Drugs median 25.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$37.08M
Value traded per 1% price move
$9.01M

Downside

Medium risk

Typical loss in a bad month
15.5%
Volatility (annualized)
54%
Sharpe ratio, 1 year
1.05
Beta to the S&P 500 (5Y)
0.84

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2019 to 2025

Operating margin

-87.3%+394.0 pts over 5 years

Net margin

-76.6%+387.0 pts over 5 years

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