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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3553
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$936M
Leon O. Moulder, Jr.
We are a clinical-stage global biopharmaceutical company committed to being a leader in the development and commercialization of transformative immunology-based therapies for patients in need. On August 2, 2023, the Company was domesticated as a Delaware corporation and, concurrent therewith, we changed our name from Zenas BioPharma (Cayman) Limited to Zenas BioPharma, Inc. Our principal executive offices are located at 1000 Winter Street, Suite 1200, Waltham, MA 02451.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$ZBIO Zenas BioPharma, Inc. | 40 | 21 | 32 | 72 | - | - | -89.5% | -54.6% | - | -373.3% | -335.7% | - | 0.0% | 64.0x | $936M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
Zenas BioPharma, Inc. (ZBIO) receives a "Avoid" rating with a composite score of 39.9/100. It ranks #3553 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Leon O. Moulder, Jr.
Chief Executive Officer
21
25
28
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for ZBIO
Outperforming peers — winners tend to keep winning over 3-12 months
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for ZBIO.
View All RatingsInsufficient data for Financial Analysis
ROE proxy -89.5% (sector -2.5%)
GM N/A vs sector 43%, OM -373% vs sector 1%
Capital turnover N/A
Rev growth N/A, 2yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our quantitative model flags Zenas BioPharma, Inc. with an Avoid rating, assigning a composite score of 39.9/100 and 1 out of 5 stars. Ranked #3553 of 7,333 stocks, ZBIO falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
Zenas BioPharma, Inc. registers a weak quality score of just 21/100, indicating significant profitability challenges. The company reports a return on equity of -89.5% (sector avg: -2.5%), net margins of -335.7% (sector avg: -0.2%). Low quality scores are often associated with businesses in turnaround mode, early-stage growth, or structurally challenged industries.
With a value score of 32/100, ZBIO appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 7.07x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Zenas BioPharma, Inc.'s investment score of 25/100 suggests limited reinvestment activity. Key growth metrics include a return on assets of -54.6% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
ZBIO shows strong momentum characteristics with a score of 72/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth data is not currently available, while a beta of 1.33 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
ZBIO's stability score of 28/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.33 and a debt-to-equity ratio of 64.00x (sector avg: 0.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
Zenas BioPharma, Inc.'s short interest score of 15/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include above-average market sensitivity (beta: 1.33), elevated leverage (D/E: 64.00x), small-cap liquidity risk. At $936M (small-cap), ZBIO carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Zenas BioPharma, Inc. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3553 of 7,333 overall (52nd percentile). Key comparisons include ROE of -89.5% trailing the -2.5% sector median and operating margins of -373.3% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While ZBIO currently exhibits a AVOID profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Short Int. (15) would have the largest impact on the composite score.
ROE 3511% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 29038% BELOW SECTOR MEDIAN
Debt/Equity 31900% ABOVE SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate Zenas BioPharma, Inc. (ZBIO) as Avoid with a composite score of 39.9/100 at a current price of $26.02. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.
The rating is primarily driven by strength in momentum (72th percentile) and value (32th percentile), which together account for the majority of the composite score. Offsetting weakness in quality (21th percentile) and investment (25th percentile) tempers our overall conviction. We assign a No Moat rating (20/100), Very High uncertainty, and Poor capital allocation.
Key items to watch: the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
Zenas BioPharma, Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 39.9/100 places it at rank #3553 in our full 7,333-stock universe. At $936M in market capitalization, Zenas BioPharma, Inc. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Momentum indicators (72th percentile) are constructive regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.
Available margin data shows operating margins of -373%. Incomplete margin data limits our ability to fully assess the cost structure and margin trajectory, though the available metrics provide a partial view of operating efficiency.
At a current price of $26.02, Zenas BioPharma, Inc. is trading at a premium to fundamental value. Our value factor score of 32/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.
The stock currently trades at P/B of 7.1x, P/S of 138.9x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
Positive momentum (72th percentile) indicates institutional accumulation and favorable technical dynamics that tend to persist in the intermediate term.
The Avoid rating (composite 39.9/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Thin net margins of -335.7% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
Below-average quality (21th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
We assign a Very High uncertainty rating to Zenas BioPharma, Inc.. The stock exhibits multiple compounding risk factors: elevated market sensitivity (beta of 1.33), current negative profitability (net margin -335.7%), below-average price stability (28th percentile). The extreme uncertainty around future cash flows makes precise valuation difficult, and the range of outcomes is exceptionally wide. Only investors with high risk tolerance and extended time horizons should consider this name.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.33); current negative profitability (net margin -335.7%); below-average price stability (28th percentile); weak quality scores (21th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 28th percentile and quality factor at the 21th percentile provide a quantitative summary of the overall risk landscape.
We identify limited risk mitigants at this time, which contributes to our very high uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.
We rate Zenas BioPharma, Inc.'s capital allocation as Poor. Key concerns include low returns on equity (-89.5%), negative profitability, weak asset returns (ROA -54.6%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Zenas BioPharma, Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, Zenas BioPharma, Inc. receives a Avoid rating with a composite score of 39.9/100 (rank #3553 of 7,333). Our quantitative framework assigns a No Moat (20/100, trend: stable), Very High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 36/100.
Our analysis does not support a constructive view on Zenas BioPharma, Inc. at this time. The combination of limited competitive advantages, very high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign Zenas BioPharma, Inc. a meaningful economic moat, scoring 20/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, financial resilience, reached only 7.3/20.
The strongest moat sources are financial resilience (7.3/20) and margin superiority (6.5/20). Interest coverage N/A. GM N/A vs sector 43%, OM -373% vs sector 1%. These pillars form the core of Zenas BioPharma, Inc.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (2.5/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect Zenas BioPharma, Inc.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers are not clearly identifiable from current fundamentals. This may reflect a company in transition, a cyclical downturn, or structural challenges in the business model. We assign a quality factor of 21/100 which further underscores our concern regarding earnings sustainability.
The margin profile shows operating margins of -373%, net margins of -335.7%. Return metrics include ROE of -89.5% and ROA of -54.6%. Relative to the Manufacturing sector, sector comparison data is limited, and ROE of -89.5% compares to a sector median of -2.5%.
The balance sheet reflects moderate leverage with D/E of 64%. The sector median D/E is 0%, putting Zenas BioPharma, Inc. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
Meridian Funds, managed by ArrowMark Partners, released its fourth-quarter 2025 investor letter for “Meridian Small Cap Growth Fund”. A copy of the letter can be downloaded here. U.S. equity markets navigated a quarter supported by optimism about potential monetary easing and caution regarding economic growth and valuations. Early gains were driven by strong AI-related earnings […]
Leon O. Moulder, CEO of Zenas BioPharma, purchased 36,928 shares through an open-market transaction and announced a licensing deal with InnoCare Pharma for a multiple sclerosis candidate, signaling confidence in the company's potential.
WALTHAM, Mass., Feb. 20, 2026 (GLOBE NEWSWIRE) -- Zenas BioPharma, Inc. (“Zenas” or the “Company”) (Nasdaq: ZBIO), a clinical-stage global biopharmaceutical company committed to being a leader in the development and commercialization of transformative therapies for patients living with autoimmune diseases, today announced that on February 17, 2026 (the “Grant Date”), the Compensation Committee of the Company’s Board of Directors granted non-qualified stock options to purchase an aggregate of 35,
Zenas BioPharma (NASDAQ:ZBIO) Chief Executive Officer Lonnie Moulder outlined recent clinical progress and upcoming milestones for the company’s pipeline during a fireside chat at the Guggenheim Emerging Outlook Biotech Summit 2026, with much of the discussion centered on obexelimab in IgG4-related
Zenas BioPharma (ZBIO) is back on investors’ radar after presenting Phase 2 MoonStone data for obexelimab in relapsing multiple sclerosis at ACTRIMS 2026, highlighting strong lesion reduction and a stable safety profile. See our latest analysis for Zenas BioPharma. The ACTRIMS update lands after a volatile stretch for Zenas BioPharma, with a 1 month share price return of 28.82% and a year to date share price decline of 24.99%. Over the past year, the company has delivered a total shareholder...