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Zymeworks Inc. (ZYME) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Healthcare · Biotechnology

Sell if holding. Engine safety override at $24.54: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10 and A.R:R 4.1:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality.

Zymeworks is a clinical-stage biopharma pursuing a royalty aggregation strategy with zanidatamab (Ziihera) as its lead asset, approved for HER2+ biliary tract cancer and licensed to Jazz (global ex-Asia) and BeOne (Asia). Revenue consists of milestones ($69.9M in 2025) and... Read more

$24.54+43.0% A.UpsideScore 5.3/10#73 of 157 Biotechnology
QualityF-score4 / 9FCF yield-2.53%
Stop $22.72Target $34.93(analyst − 13%)A.R:R 4.1:1
Analyst target$40.15+63.6%13 analysts
$34.93our TP
$24.54price
$40.15mean
$58

Sell if holding. Engine safety override at $24.54: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10 and A.R:R 4.1:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.3/10, moderate confidence.

Passes 8/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 79d clear, semi cycle peak clear, materials cycle peak clear). Suitability: aggressive.

Recent Developments — Zymeworks Inc.

Generated 2026-05-20T20:21:22Z.

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Counterparty: Jazz and BeOne (zanidatamab partners)
Concentration risk — Pipeline: zanidatamab (Ziihera)
Quality below floor (2.2 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)47.4
Mkt Cap$1.8B
EV/EBITDA-13.3
Profit Mgn-126.3%
ROE-42.0%
Rev Growth-91.1%
Beta1.19
DividendNone
Rating analysts20

Quality Signals

Piotroski F4/9

Options Flow

P/C0.41bullish
IV67%elevated
Max Pain$20-18.5% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHcounterpartyJazz and BeOne (zanidatamab partners)
    10-K Item 1A: 'We depend on our collaborative relationships with Jazz, BeOne and J&J to further develop and commercialize zanidatamab'
  • HIGHpipelinezanidatamab (Ziihera)
    10-K Item 1A: 'We have only one product approved for commercial sale ... other than the receipt of royalties relating to sales of zanidatamab'

Material Events(8-K, last 90d)

  • 2026-04-01Item 5.02LOW
    Kristin Stafford appointed as EVP, CFO of Zymeworks effective April 1, 2026. Prior role: SVP, Chief Accounting Officer at Royalty Pharma plc since December 2018. No family relationships or conflicts cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers·1 ceiling hit

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
0.5
Quality Rank
1.6
Value Rank
2.7

Unprofitable operations — net margin -126.3%. Quality floor flags this regardless of sector context.static

Roe
0.0
Roa
0.0
Fcf Quality
0.0
Moat
4.0
Piotroski F
4.4
Current Ratio
5.0
Cash-burning: FCF -56% of revenueNo competitive moatQuality concerns

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Surprise Avg
0.0
Earnings History
3.3
Erm
5.0
Earnings Timing
5.0
News Activity
5.0
Earnings concerns: 2B/2M
GatesMomentum 5.3<5.5 (soft — BUY_NOW allowed but watch)Momentum 5.3>=4.5A.R:R 4.1 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 79d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
29 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $23.39Resistance $29.75

Price Targets

$23
$35
A.Upside+42.3%
A.R:R4.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (2.2 < 4.0)

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-06 (79d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is ZYME stock a buy right now?

Sell if holding. Engine safety override at $24.54: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10 and A.R:R 4.1:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $22.72. Score 5.3/10, moderate confidence.

What is the ZYME stock price target?

Take-profit target: $34.93 (+43.0% upside). Prior stop was $22.72. Stop-loss: $22.72.

What are the risks of investing in ZYME?

Concentration risk — Counterparty: Jazz and BeOne (zanidatamab partners); Concentration risk — Pipeline: zanidatamab (Ziihera); Quality below floor (2.2 < 4.0).

Is ZYME overvalued or undervalued?

Zymeworks Inc. trades at a P/E of N/A (forward 47.4). TrendMatrix value score: 4.3/10. Verdict: Sell.

What do analysts say about ZYME?

20 analysts cover ZYME with a consensus score of 4.3/5. Average price target: $40.

What does Zymeworks Inc. do?Zymeworks is a clinical-stage biopharma pursuing a royalty aggregation strategy with zanidatamab (Ziihera) as its lead...

Zymeworks is a clinical-stage biopharma pursuing a royalty aggregation strategy with zanidatamab (Ziihera) as its lead asset, approved for HER2+ biliary tract cancer and licensed to Jazz (global ex-Asia) and BeOne (Asia). Revenue consists of milestones ($69.9M in 2025) and royalties on Ziihera sales; wholly-owned pipeline includes ADCs (ZW191, ZW251) and bispecifics in Phase 1.

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