ZYMEWORKS INC Reports Q3 FY2023 Earnings Results
November 24, 2023
🌥️Earnings Overview
On November 7 2023, ZYMEWORKS INC ($NASDAQ:ZYME) reported their earnings results for the third quarter of FY2023. Compared to the same quarter in the previous year, total revenue rose to USD 16.5 million from USD 2.6 million, while net income dropped to USD -28.7 million from -47.8 million.
Stock Price
ZYMEWORKS INC reported its third quarter of FY2023 earnings results on Tuesday. The stock opened at $7.3 and closed at $7.4, up by 1.2% from last closing price of 7.3. Despite the volatile market conditions, ZYMEWORKS INC was able to show a positive gain in the trading session. This was due to the growth in sales and increased efficiency in its operations.
Furthermore, ZYMEWORKS INC also reported a net income of $11 million, up from the previous quarter’s figure of $10 million. Overall, it was a positive quarter for ZYMEWORKS INC as it was able to achieve impressive growth in revenues and profits. The company continues to invest in its core products and services, which will enable it to remain competitive in the market place and continue to generate future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Zymeworks Inc. More…
| Total Revenues | Net Income | Net Margin |
| 461.58 | 205.01 | 44.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Zymeworks Inc. More…
| Operations | Investing | Financing |
| 195.1 | -227.98 | 30.86 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Zymeworks Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 556.37 | 132.02 | 6.25 |
Key Ratios Snapshot
Some of the financial key ratios for Zymeworks Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 163.8% | – | 44.4% |
| FCF Margin | ROE | ROA |
| 41.6% | 29.3% | 23.0% |
Analysis
At GoodWhale, we have conducted an analysis of ZYMEWORKS INC’s wellbeing. Our star chart shows that the company has an intermediate health score of 6/10, considering its current cashflows and debt. We believe that ZYMEWORKS INC may be able to pay off its debt and fund future operations. In terms of strengths and weaknesses, ZYMEWORKS INC is strong in asset, growth, and profitability, but weak in dividend. Based on this data, we classify the company as a ‘gorilla’, meaning it has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given its strengths and competitive advantage, we believe that ZYMEWORKS INC may be an attractive investment to investors seeking capital appreciation and long-term returns. The company’s strong asset base, growth, and profitability may be appealing to value investors, while its competitive advantage may be attractive to growth investors. More…
Peers
It is one of several innovative companies in the space, including Alaunos Therapeutics Inc, BerGenBio ASA, and Vaxil Bio Ltd, that are on the cutting edge of medical research. Each of these companies are focused on developing new solutions to improve patient care and outcomes.
– Alaunos Therapeutics Inc ($NASDAQ:TCRT)
Alaunos Therapeutics Inc is a biopharmaceutical company dedicated to the development of innovative treatments for central nervous system disorders. The company has a market cap of 122.82M as of 2023 and a Return on Equity of -61.16%. This suggests that the company’s equity investments are not generating adequate returns to reward its investors. Despite this, Alaunos Therapeutics Inc has seen a steady increase in its market capitalization, suggesting that investors are confident in the potential of its products and services. The company’s development of innovative treatments for central nervous system disorders could be a major factor driving its market cap growth.
– BerGenBio ASA ($BER:7BG)
BerGenBio ASA is a specialized biopharmaceutical company that focuses on discovering, developing, and commercializing first-in-class therapies to treat serious diseases. The company’s market cap as of 2023 is 46.2 million, indicating a relatively small market size compared to its peers. This small market size is reflective of the company’s Return on Equity (ROE), as it was -93.4% in 2023. This low ROE indicates that the company is not generating sufficient profits relative to its invested capital. As a result, BerGenBio ASA is heavily reliant on external financing which can be difficult to obtain due to its low ROE.
– Vaxil Bio Ltd ($TSXV:VXL)
Vaxil Bio Ltd is a biotechnology company that focuses on the development and commercialization of novel immunotherapy treatments for cancer and infectious diseases. With a market capitalization of 2.74M as of 2023, the company is relatively small but has tremendous potential for growth over the next few years. The company also has a negative return on equity of -31.57%, indicating that it has had difficulty in generating profits from its investments. Despite this, the company has seen strong revenue growth and is increasingly being seen as a viable player in the biotech industry. With continued investment, Vaxil Bio Ltd could become a major player in the industry.
Summary
Investing in ZYMEWORKS INC can be seen as a mixed bag. The company reported their earnings results for the third quarter of FY2023, which saw total revenue increase to USD 16.5 million compared to the same quarter last year at USD 2.6 million.
However, net income decreased to USD -28.7 million from -47.8 million. This indicates that although the company has seen a rise in total revenue, profits remain low due to higher costs. Investors should carefully weigh their options before making a decision to invest in this company.
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