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ZLAB (Zai Lab) Piotroski F-Score : 4 (As of Oct. 31, 2024)


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What is Zai Lab Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Zai Lab has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Zai Lab's Piotroski F-Score or its related term are showing as below:

ZLAB' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 4   Max: 5
Current: 4

During the past 9 years, the highest Piotroski F-Score of Zai Lab was 5. The lowest was 3. And the median was 4.


Zai Lab Piotroski F-Score Historical Data

The historical data trend for Zai Lab's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zai Lab Piotroski F-Score Chart

Zai Lab Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only N/A N/A 3.00 5.00 4.00

Zai Lab Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 5.00 4.00 3.00 4.00

Competitive Comparison of Zai Lab's Piotroski F-Score

For the Biotechnology subindustry, Zai Lab's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Zai Lab's Piotroski F-Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Zai Lab's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Zai Lab's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was -69.152 + -95.429 + -53.471 + -80.277 = $-298.3 Mil.
Cash Flow from Operations was -55.272 + -14.917 + -90.106 + -42.173 = $-202.5 Mil.
Revenue was 69.228 + 65.83 + 87.149 + 100.504 = $322.7 Mil.
Gross Profit was 43.749 + 40.593 + 53.53 + 65.271 = $203.1 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(1106.373 + 1043.694 + 1036.295 + 988.437 + 987.368) / 5 = $1032.4334 Mil.
Total Assets at the begining of this year (Jun23) was $1,106.4 Mil.
Long-Term Debt & Capital Lease Obligation was $5.8 Mil.
Total Current Assets was $869.9 Mil.
Total Current Liabilities was $251.7 Mil.
Net Income was -161.19 + -61.769 + -49.144 + -120.895 = $-393.0 Mil.

Revenue was 57.54 + 62.601 + 62.797 + 68.864 = $251.8 Mil.
Gross Profit was 37.496 + 41.677 + 41.46 + 45.101 = $165.7 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(1418.777 + 1298.514 + 1220.14 + 1170.074 + 1106.373) / 5 = $1242.7756 Mil.
Total Assets at the begining of last year (Jun22) was $1,418.8 Mil.
Long-Term Debt & Capital Lease Obligation was $11.8 Mil.
Total Current Assets was $1,017.5 Mil.
Total Current Liabilities was $133.4 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Zai Lab's current Net Income (TTM) was -298.3. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Zai Lab's current Cash Flow from Operations (TTM) was -202.5. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=-298.329/1106.373
=-0.26964595

ROA (Last Year)=Net Income/Total Assets (Jun22)
=-392.998/1418.777
=-0.27699772

Zai Lab's return on assets of this year was -0.26964595. Zai Lab's return on assets of last year was -0.27699772. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Zai Lab's current Net Income (TTM) was -298.3. Zai Lab's current Cash Flow from Operations (TTM) was -202.5. ==> -202.5 > -298.3 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=5.803/1032.4334
=0.0056207

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=11.755/1242.7756
=0.00945867

Zai Lab's gearing of this year was 0.0056207. Zai Lab's gearing of last year was 0.00945867. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun24)=Total Current Assets/Total Current Liabilities
=869.923/251.718
=3.45594276

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=1017.505/133.354
=7.63010483

Zai Lab's current ratio of this year was 3.45594276. Zai Lab's current ratio of last year was 7.63010483. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Zai Lab's number of shares in issue this year was 97.594. Zai Lab's number of shares in issue last year was 96.482. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=203.143/322.711
=0.62948892

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=165.734/251.802
=0.65819175

Zai Lab's gross margin of this year was 0.62948892. Zai Lab's gross margin of last year was 0.65819175. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=322.711/1106.373
=0.29168373

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=251.802/1418.777
=0.17747821

Zai Lab's asset turnover of this year was 0.29168373. Zai Lab's asset turnover of last year was 0.17747821. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+0+1+1+1+0+0+0+1
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Zai Lab has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Zai Lab  (NAS:ZLAB) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Zai Lab Piotroski F-Score Related Terms

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Zai Lab Business Description

Traded in Other Exchanges
Address
4560 Jinke Road, Jinchuang Plaza, Building 1, 4th Floor, Pudong, Shanghai, CHN, 201210
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. The pipeline of proprietary drug candidates of the company includes ZL-2306 for treatments across multiple solid tumor types including ovarian and certain types of breast and lung cancers; ZL-2401 which is an antibiotic in a new class of tetracycline derivatives; and ZL-2301 is an oral, small molecule which targets HCC.
Executives
Richard Gaynor director C/O NEON THERAPEUTICS, 40 ERIE STREET, SUITE 110, CAMBRIDGE MA 02139
Edmondson Frazor Titus Iii officer: Chief Legal Officer 4560 JINKE ROAD, BLDG. 1, FOURTH FLOOR, PUDONG, SHANGHAI F4 201210
Joshua L Smiley officer: Chief Operating Officer LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Yajing Chen officer: Chief Financial Officer 314 MAIN STREET, 4TH FLOOR, SUITE 100, CAMBRIDGE MA 02142
Rafael Amado officer: See Remarks 210 EAST GRAND AVE, SOUTH SAN FRANCISCO CA 94080
William Lis director PORTOLA PHARMACEUTICALS, INC., 270 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Ying Du director, officer: Chairwoman & CEO C/O ZAID LAB LIMITED, 4560 JINKE ROAD, BLDG. 1, 4F, PUDONG, SHANGHAI F4 201210
Harald Reinhart officer: Chief Medical Officer 4560 JINKE ROAD, BLDG. 1, FOURTH FLOOR, PUDONG, SHANGHAI F4 201210
Michel Vounatsos director BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Peter Wirth director 37 HANCOCK STREET, BOSTON MA 02114
John D Diekman director C/O 5 AM VENTURES, 501 2ND STREET, SUITE 350, SAN FRANCISCO CA 94107
Tao Fu director, officer: President & COO 3175 HANOVER STREET, PALO ALTO CA 94304
Scott W Morrison director C/O GLOBAL BLOOD THERAPEUTICS, INC., 400 EAST JAMIE COURT SUITE 101, SOUTH SAN FRANCISCO CA 94080
Cho William Ki Chul officer: Chief Financial Officer 4560 JINKE ROAD, BLDG. 1, FOURTH FLOOR, PUDONG, SHANGHAI F4 201210
Kai-xian Chen director 4560 JINKE ROAD, BLDG. 1, FOURTH FLOOR, PUDONG, SHANGHAI F4 201210