Zai Lab Limited

ZLAB

Biotechnology · Healthcare

Price

$20.20

-0.55 (-2.65%)

Market Cap

$2.28B

Exchange

NASDAQ

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+1077.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 9.3M (2021) → 109.5M (2025)

Zai Lab Limited develops and commercializes therapies to treat oncology, autoimmune disorders, infectious diseases, and neuroscience primarily in Mainland China and Hong Kong. The company's commercial products include Zejula, a once-daily small-molecule poly polymerase 1/2 inhibitor; Optune, a device that delivers tumor treating fields; NUZYRA for acute bacterial skin and skin structure infections, and community acquired bacterial pneumonia; and Qinlock to treat gastrointestinal stromal tumors.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-6.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-11.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$221M/ year

↓ Declining (-6% vs prior year)

48.0% of revenue

2.7x the sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

6.9%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~5 years

$651M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$651M cash & investments at current burn rate

Revenue declining

Zai Lab Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

61.5%

Premium pricing power — 61.5% gross margin

Operating Margin

-69.5%

Losing money on operations — -69.5%

ROCE

-7.8%

Weak — -7.8% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+8.4%

Steady sales growth (8.4% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

—

Data not available

FCF Margin

-28.5%

Burning cash (-28.5%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.35

Conservative — low debt load (0.35)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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