ZLAB Healthcare

Zai Lab Limited

$21.96+1.36%

Price as of close on Nov 3, 2026 · Financials updated Oct 1, 2026

Basics

Sector: Healthcare
Industry: Biotechnology
Country: China
Market cap: 2.5B USD
Enterprise value: 2.1B USD
Full-time employees: 1,784

Overall health

Strength: growing faster than most peersgrowing faster than peers
Drawback: less profitable than most peersless profitable than peers
Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
About average: risk (debt, liquidity and share-price swings)risk

Ranks #967 of 1,157 healthcare companies (bottom 17%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 17% from December 2022 to June 2026.
Zai Lab had 17% more shares at June 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Zai Lab had 17% more shares at June 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.
Stock-based pay is a large cost. Stock pay was 14% of revenue in 2025.
Zai Lab paid employees $66M in stock in 2025, 14% of its $460M revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.
Valuation signals disagree. Cheaper than 50% of peers on free cash flow, but only 0% on earnings.
Relative to its free cash flow, Zai Lab looks cheaper than 50% of peers; relative to its earnings, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.
Not profitable yet. Reported a loss in the 12 months to June 2026.
Zai Lab reported a net loss over the last twelve months, so earnings-based measures can't show it as cheap.

StockQuotient Score

31/ 100

Oct 5 31 → Nov 4 31

Valuation

Is the price right?

8/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ Earnings yield
▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield-7.6%

SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price30% base weight · Z-score -1.00Sector median: 0.0148 · MAD: 0.0148

EBITDA yield-11.8%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsNegative (a loss or cash outflow), so it counts as zero whatever the share price50% base weight · Z-score -1.00Sector median: 0.0401 · MAD: 0.0401

Free cash flow yield-5.7%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score 0.00Sector median: 0.0000 · MAD: 0.0000

Other data (not scored)

Book yield24.6%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3716 · MAD: 0.2313

Growth

Is it growing?

64/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ 3-yr revenue

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growthUnavailable

Still loss-making, but the loss per share narrowed33% base weight · Z-score 0.29Sector median: 0.0976 · MAD: 0.2991

3-year revenue growth21.3%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 1.84Sector median: 0.0584 · MAD: 0.0840

Revenue growth5.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.10Sector median: 0.0609 · MAD: 0.0974

Profitability

Does it earn well?

16/100

Weak

3/3 inputs reported · High confidence

Since last quarter: ▼ Weaker

Operating margin fell 5.2 points to -58.7%

Why

Weaker than most peers on:

▼ ROIC
▼ Operating margin
▼ ROA

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin-58.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -5.41Sector median: 0.0706 · MAD: 0.1217

Return on assets-17.5%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -3.57Sector median: 0.0166 · MAD: 0.0537

Return on invested capital-104.7%

Yahoo Finance fallback · SEC operating income or invested capital unavailable · trailing 12 monthsReported value33% base weight · Z-score -10.89Sector median: 0.0471 · MAD: 0.1004

Other data (not scored)

Gross margin56.5%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.4697 · MAD: 0.2310

Return on equity-31.0%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0330 · MAD: 0.1225

Risk

Debt, liquidity, price swings

Moderate

Moderate relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Safety percentile 36 → 37

Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Held back by:

▼ Beta
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.83

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -0.62Sector median: 0.6250 · MAD: 0.3380

Current ratio2.13×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.33Sector median: 2.5860 · MAD: 1.3850

Debt / equity0.42×

Yahoo Finance fallback · no standard SEC debt tagReported value33% base weight · Z-score -0.97Sector median: 0.2215 · MAD: 0.2039

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Zai Lab

Is Zai Lab getting weaker?: Its latest SEC filing (Aug 6, 2026) got weaker in some ways: operating margin fell 5.2 points to -58.7%. Its overall score is unchanged at 31/100 since Oct 28, 2026.
How is Zai Lab valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 8/100 against 1,393 healthcare peers. Earnings yield -7.6% vs a peer median of 1.5% (weaker than 100% of peers).Earnings yield -7.6% vs peers 1.5% (weaker than 100% of peers).
Is Zai Lab growing?: Yes, faster than most of its peers. Growth scores 64/100 against 1,393 healthcare peers. 3-year revenue growth 21.3% vs a peer median of 5.8% (stronger than 82% of peers).3-year revenue growth 21.3% vs peers 5.8% (stronger than 82% of peers).
How profitable is Zai Lab?: Less profitable than most of its peers. Profitability scores 16/100 against 1,393 healthcare peers. Return on invested capital -104.7% vs a peer median of 4.7% (weaker than 93% of peers).Return on invested capital -104.7% vs peers 4.7% (weaker than 93% of peers).
How risky is Zai Lab?: Moderate risk relative to 1,393 healthcare peers, judged on debt, liquidity and share-price swings. Beta 0.83 vs a peer median of 0.63 (weaker than 63% of peers).Beta 0.83 vs peers 0.63 (weaker than 63% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 6, 2026 · compared with the quarter ended Mar 31, 2026

Got weaker

Operating margin fell 5.2 points to -58.7%

Worth watching: Zai Lab is in the bottom fifth of its sector on profitability. From 2021 to 2025, 63% of companies in that position posted a loss over the following year, against 4% for the top fifth.

	Previous quarter	Latest quarter	Change
Revenue (12 months)	453.3M USD	449.6M USD	−0.8%
Net income (12 months)	−178.1M USD	−188.2M USD	+5.7%
Operating margin	-53.5%	-58.7%	−5.2 pts
Free cash flow (12 months)	−108.8M USD	−139.6M USD	+28.3%
Cash	651.3M USD	607.5M USD	−6.7%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Operating margin	-485.1%	-188.0%	-137.4%	-70.7%	-49.9%	▲ 21 pts
Net margin	-488.2%	-206.1%	-125.5%	-64.4%	-38.1%	▲ 26 pts
Return on assets (ROA)	-43.8%	-36.3%	-32.3%	-21.7%	-15.0%	▲ 6.7 pts
Return on equity (ROE)	-51.1%	-42.4%	-42.0%	-30.6%	-24.5%	▲ 6.0 pts
Free cash flow margin	-393.3%	-182.4%	-77.0%	-55.3%	-34.5%	▲ 21 pts
Current ratio	7.78×	8.04×	4.63×	3.51×	2.45×	▼ 30%
Quick ratio	7.68×	7.81×	4.41×	3.38×	2.27×	▼ 33%
Debt to equity	—	—	0.00×	0.16×	0.29×	▲ 83%
Interest coverage	—	—	—	-125.16×	-44.05×	▲ 65%

ZLAB price history

Price history is added with the daily price update and will appear after the next one.

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Sector leaderboards

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Bringing the fundamentals into focus…

Overall health

Strength: growing faster than most peersgrowing faster than peers

Drawback: less profitable than most peersless profitable than peers

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

About average: risk (debt, liquidity and share-price swings)risk

Ranks #967 of 1,157 healthcare companies (bottom 17%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 17% from December 2022 to June 2026.

Zai Lab had 17% more shares at June 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Zai Lab had 17% more shares at June 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

Stock-based pay is a large cost. Stock pay was 14% of revenue in 2025.

Zai Lab paid employees $66M in stock in 2025, 14% of its $460M revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.

Valuation signals disagree. Cheaper than 50% of peers on free cash flow, but only 0% on earnings.

Relative to its free cash flow, Zai Lab looks cheaper than 50% of peers; relative to its earnings, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.

Not profitable yet. Reported a loss in the 12 months to June 2026.

Zai Lab reported a net loss over the last twelve months, so earnings-based measures can't show it as cheap.

Questions investors ask about Zai Lab

Is Zai Lab getting weaker?

Its latest SEC filing (Aug 6, 2026) got weaker in some ways: operating margin fell 5.2 points to -58.7%. Its overall score is unchanged at 31/100 since Oct 28, 2026.

How is Zai Lab valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 8/100 against 1,393 healthcare peers. Earnings yield -7.6% vs a peer median of 1.5% (weaker than 100% of peers).Earnings yield -7.6% vs peers 1.5% (weaker than 100% of peers).

Is Zai Lab growing?

Yes, faster than most of its peers. Growth scores 64/100 against 1,393 healthcare peers. 3-year revenue growth 21.3% vs a peer median of 5.8% (stronger than 82% of peers).3-year revenue growth 21.3% vs peers 5.8% (stronger than 82% of peers).

How profitable is Zai Lab?

Less profitable than most of its peers. Profitability scores 16/100 against 1,393 healthcare peers. Return on invested capital -104.7% vs a peer median of 4.7% (weaker than 93% of peers).Return on invested capital -104.7% vs peers 4.7% (weaker than 93% of peers).

How risky is Zai Lab?

Moderate risk relative to 1,393 healthcare peers, judged on debt, liquidity and share-price swings. Beta 0.83 vs a peer median of 0.63 (weaker than 63% of peers).Beta 0.83 vs peers 0.63 (weaker than 63% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

453.3M USD

449.6M USD

−0.8%

Net income (12 months)

−178.1M USD

−188.2M USD

+5.7%

Operating margin

-53.5%

-58.7%

−5.2 pts

Free cash flow (12 months)

−108.8M USD

−139.6M USD

+28.3%

Cash

651.3M USD

607.5M USD

−6.7%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Operating margin

-485.1%

-188.0%

-137.4%

-70.7%

-49.9%

▲ 21 pts

Net margin

-488.2%

-206.1%

-125.5%

-64.4%

-38.1%

▲ 26 pts

Return on assets (ROA)

-43.8%

-36.3%

-32.3%

-21.7%

-15.0%

▲ 6.7 pts

Return on equity (ROE)

-51.1%

-42.4%

-42.0%

-30.6%

-24.5%

▲ 6.0 pts

Free cash flow margin

-393.3%

-182.4%

-77.0%

-55.3%

-34.5%

▲ 21 pts

Current ratio

7.78×

8.04×

4.63×

3.51×

2.45×

▼ 30%

Quick ratio

7.68×

7.81×

4.41×

3.38×

2.27×

▼ 33%

Debt to equity

—

0.00×

0.16×

0.29×

▲ 83%

Interest coverage

—

-125.16×

-44.05×

▲ 65%