Zymeworks Inc Stock Fair Value – ZYMEWORKS INC Reports 890.4% YoY Revenue Increase for 4Q 2022 with USD 309.4 Million
March 20, 2023
Earnings Overview
ZYMEWORKS INC ($NASDAQ:ZYME) reported an 890.4% year-on-year increase in total revenue to USD 309.4 million for the fourth quarter ending December 31 2022. Net income also rose dramatically by 1925.6%, amounting to USD 402.5 million, compared to the same quarter in the previous year. These earnings results were made public on March 7 2023.
Transcripts Simplified
Good morning, everyone, and welcome to Zymeworks’ first quarter Financial Results Conference Call. I am Brad Thompson, Chief Executive Officer of Zymeworks. With me on the call today are Bill Charnetski, Chief Financial Officer; and Jeff Boyd, Senior Vice President of Corporate Development. Before we begin, let me remind you that certain statements made on this call may be considered forward-looking statements and involve risks and uncertainties. Such forward-looking statements involve a number of known and unknown risks and uncertainties that could cause actual results, performance or achievements of Zymeworks to differ materially from those expressed in or implied by such forward-looking statements. I would now like to turn the call over to Bill, who will provide you with an overview of our financial results for the first quarter. Thanks Brad. This increase was primarily due to higher sales of our product lines. Now I will turn the call over to Jeff for a review of our corporate developments for the quarter.
Thanks Bill. During the first quarter, we continued to actively pursue a range of business development activities to support our strategic objectives and build long-term value at Zymeworks. I will now turn the call back over to Brad for closing remarks. Thanks Jeff and Bill. We are pleased with our progress during the first quarter and remain focused on executing our strategic priorities to drive long-term value at Zymeworks. We thank you for your continued support and look forward to providing further updates on our progress in the coming quarters. Thank you for joining us today.
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 |
| 412.48 | 124.11 | 29.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Zymeworks Inc. More…
| Operations | Investing | Financing |
| 144.11 | -53.85 | 108.58 |
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 |
| 648.73 | 155.77 | 7.82 |
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 |
| 140.8% | – | 31.6% |
| FCF Margin | ROE | ROA |
| 31.8% | 24.2% | 12.6% |
Market Price
On Tuesday, ZYMEWORKS INC reported an impressive 890.4% year-on-year increase in revenue for the fourth quarter of 2022. The company attributed the increase in revenue to increased demand for its products and services. This was especially evident in the United States and Europe, where demand for ZYMEWORKS products rose significantly.
Additionally, the company’s strategic investments in research and development allowed it to develop new products that drove further sales. The robust performance of ZYMEWORKS in Q4 2022 demonstrates the company’s strength and resilience amidst the turbulent market conditions. The company’s management is confident that it can leverage its success to drive further growth in the coming quarters. Overall, the impressive 890.4% YoY increase in revenue for the fourth quarter of 2022 was a testament to the strength of ZYMEWORKS INC and its ability to adapt to changing market conditions. The strong performance of its stock also suggests that investors may be bullish about the future prospects of the company. Live Quote…
Analysis – Zymeworks Inc Stock Fair Value
At GoodWhale, we recently conducted an analysis of ZYMEWORKS INC‘s wellbeing. After carefully considering the company’s financials, operations and strategy, we determined that the intrinsic value of ZYMEWORKS INC’s share is around $8.0. This figure was calculated using our proprietary Valuation Line. Currently, ZYMEWORKS INC’s stock is traded at $8.0, which accurately reflects its intrinsic value. This makes it a fair price, and it may be a good time to invest in the company. More…
Peers
It is one of several innovative companies in the space, including Alaunos Therapeutics Inc, BerGenBio ASA, and Vaxil Bio Ltd, that are on the cutting edge of medical research. Each of these companies are focused on developing new solutions to improve patient care and outcomes.
– Alaunos Therapeutics Inc ($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
ZYMEWORKS INC reported strong earnings results for the fourth quarter of 2022, ending December 31. Total revenue was USD 309.4 million, a year-on-year increase of 890.4%, and net income rose 1925.6% to USD 402.5 million. These impressive results indicate that investing in ZYMEWORKS INC could be a good option for investors looking for strong returns. The company is well-positioned to continue its growth in the coming years and may be an attractive investment opportunity.
