Zai Lab Price To Book vs. Net Income

ZLAB Stock  USD 26.33  0.39  1.46%   
Based on the measurements of profitability obtained from Zai Lab's financial statements, Zai Lab may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in January. Profitability indicators assess Zai Lab's ability to earn profits and add value for shareholders. At present, Zai Lab's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's Days Of Sales Outstanding is expected to grow to 130.04, whereas Price To Sales Ratio is forecasted to decline to 0.91. At present, Zai Lab's Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Total Other Income Expense Net is expected to grow to about 33.6 M, whereas Operating Income is forecasted to decline to (384.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.730.6408
Fairly Up
Pretty Stable
For Zai Lab profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Zai Lab to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Zai Lab utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Zai Lab's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Zai Lab over time as well as its relative position and ranking within its peers.
  

Zai Lab's Revenue Breakdown by Earning Segment

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Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zai Lab. If investors know Zai will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zai Lab listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.80)
Revenue Per Share
3.647
Quarterly Revenue Growth
0.477
Return On Assets
(0.21)
Return On Equity
(0.35)
The market value of Zai Lab is measured differently than its book value, which is the value of Zai that is recorded on the company's balance sheet. Investors also form their own opinion of Zai Lab's value that differs from its market value or its book value, called intrinsic value, which is Zai Lab's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zai Lab's market value can be influenced by many factors that don't directly affect Zai Lab's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Zai Lab's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zai Lab is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zai Lab's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Zai Lab Net Income vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Zai Lab's current stock value. Our valuation model uses many indicators to compare Zai Lab value to that of its competitors to determine the firm's financial worth.
Zai Lab is rated below average in price to book category among its peers. It is rated below average in net income category among its peers . At present, Zai Lab's Net Loss is projected to decrease significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Zai Lab's earnings, one of the primary drivers of an investment's value.

Zai Net Income vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Zai Lab

P/B

 = 

MV Per Share

BV Per Share

 = 
4.30 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Zai Lab

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(334.62 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Zai Net Income Comparison

Zai Lab is currently under evaluation in net income category among its peers.

Zai Lab Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Zai Lab, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Zai Lab will eventually generate negative long term returns. The profitability progress is the general direction of Zai Lab's change in net profit over the period of time. It can combine multiple indicators of Zai Lab, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income37.6 M39.5 M
Operating Income-366.6 M-384.9 M
Net Loss-301 M-316 M
Income Before Tax-334.6 M-351.4 M
Total Other Income Expense Net32 M33.6 M
Net Loss-399 M-379 M
Net Loss-334.6 M-351.4 M
Income Tax Expense44.8 M47 M
Net Interest Income38.8 M40.8 M
Interest Income38.8 M40.8 M
Change To Netincome153.7 M161.4 M
Net Loss(3.46)(3.64)
Income Quality 0.59  0.61 
Net Income Per E B T 0.98  0.82 

Zai Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Zai Lab. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Zai Lab position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Zai Lab's important profitability drivers and their relationship over time.

Use Zai Lab in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Zai Lab position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zai Lab will appreciate offsetting losses from the drop in the long position's value.

Zai Lab Pair Trading

Zai Lab Pair Trading Analysis

The ability to find closely correlated positions to Zai Lab could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Zai Lab when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Zai Lab - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Zai Lab to buy it.
The correlation of Zai Lab is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Zai Lab moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Zai Lab moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Zai Lab can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Zai Lab position

In addition to having Zai Lab in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Aluminum Thematic Idea Now

Aluminum
Aluminum Theme
Companies involved in production of aluminum. The Aluminum theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aluminum Theme or any other thematic opportunities.
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When determining whether Zai Lab offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Zai Lab's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Zai Lab Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Zai Lab Stock:
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For information on how to trade Zai Stock refer to our How to Trade Zai Stock guide.
You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
To fully project Zai Lab's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Zai Lab at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Zai Lab's income statement, its balance sheet, and the statement of cash flows.
Potential Zai Lab investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Zai Lab investors may work on each financial statement separately, they are all related. The changes in Zai Lab's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Zai Lab's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.