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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3575
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$109M
Kimberly L. Blackwell
Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule therapeutics for the treatment of various cancers. Its lead product candidate includes the ZN-c3, an inhibitor of WEE1, a protein tyrosine kinase, which is in Phase 2 clinical trials. The company has licensing agreements and strategic collaborations with Recurium IP Holdings, LLC, GlaxoSmithKline, and Zentera Therapeutics (Cayman), Ltd.
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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 | |
$ZNTL Zentalis Pharmaceuticals, Inc. | 40 | 27 | 9 | 70 | - | - | -56.2% | -43.4% | - | - | - | - | 0.0% | 29.0x | $109M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
Zentalis Pharmaceuticals, Inc. (ZNTL) receives a "Avoid" rating with a composite score of 39.7/100. It ranks #3575 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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Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Kimberly L. Blackwell
Chief Executive Officer
Labor Force
160
27
41
29
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for ZNTL
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
Moderate investment profile
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 ZNTL.
View All RatingsInsufficient data for Financial Analysis
ROE proxy -56.2% (sector -2.5%)
GM N/A vs sector 43%, OM N/A vs sector 1%
Capital turnover N/A
Rev growth N/A, 6yr 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 Zentalis Pharmaceuticals, Inc. with an Avoid rating, assigning a composite score of 39.7/100 and 1 out of 5 stars. Ranked #3575 of 7,333 stocks, ZNTL falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
ZNTL's quality score of 27/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -56.2% (sector avg: -2.5%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
ZNTL registers a value score of just 9/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/B ratio of 0.62x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
With an investment score of 41/100, ZNTL exhibits moderate growth-oriented spending. Key growth metrics include a return on assets of -43.4% (sector: -0.1%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
ZNTL shows strong momentum characteristics with a score of 70/100. 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 1.56 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
ZNTL's stability score of 29/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.56 and a debt-to-equity ratio of 29.00x (sector avg: 0.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 53/100 for ZNTL suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 1.56), elevated leverage (D/E: 29.00x), micro-cap liquidity risk. With a $109M market cap (micro-cap), Zentalis Pharmaceuticals, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Zentalis Pharmaceuticals, Inc. is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3575 of 7,333 overall (51st percentile). Key comparisons include ROE of -56.2% trailing the -2.5% sector median. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While ZNTL 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 Value (9) would have the largest impact on the composite score.
ROE 2165% ABOVE SECTOR MEDIAN (FAVORABLE)
Debt/Equity 14400% ABOVE SECTOR MEDIAN
Div. Yield NaN% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate Zentalis Pharmaceuticals, Inc. (ZNTL) as Avoid with a composite score of 39.7/100 at a current price of $2.48. 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 (70th percentile) and investment (41th percentile), which together account for the majority of the composite score. Offsetting weakness in value (9th percentile) and quality (27th percentile) tempers our overall conviction. We assign a No Moat rating (22/100), High uncertainty, and Poor capital allocation.
Key items to watch: valuation compression risk if growth disappoints. 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.
Zentalis Pharmaceuticals, 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 39.7/100 places it at rank #3575 in our full 7,333-stock universe. At $109M in market capitalization, Zentalis Pharmaceuticals, 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 (70th percentile) are constructive regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.
Margin data is not available for Zentalis Pharmaceuticals, Inc., which limits our assessment of the company's cost structure and operating efficiency. We rely on factor-based signals to infer business quality in the absence of detailed margin data.
At a current price of $2.48, Zentalis Pharmaceuticals, Inc. is trading at a premium to fundamental value. Our value factor score of 9/100 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 0.6x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
A conservative balance sheet (29% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
Positive momentum (70th percentile) indicates institutional accumulation and favorable technical dynamics that tend to persist in the intermediate term.
The Avoid rating (composite 39.7/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Below-average quality (27th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
High beta of 1.56 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
We assign a High uncertainty rating to Zentalis Pharmaceuticals, Inc.. Key risk factors include elevated market sensitivity (beta of 1.56), below-average price stability (29th percentile), weak quality scores (27th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.56); below-average price stability (29th percentile); weak quality scores (27th 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 29th percentile and quality factor at the 27th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: conservative leverage (29% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate Zentalis Pharmaceuticals, Inc.'s capital allocation as Poor. Key concerns include low returns on equity (-56.2%), weak asset returns (ROA -43.4%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Zentalis Pharmaceuticals, 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, Zentalis Pharmaceuticals, Inc. receives a Avoid rating with a composite score of 39.7/100 (rank #3575 of 7,333). Our quantitative framework assigns a No Moat (22/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 35/100.
Our analysis does not support a constructive view on Zentalis Pharmaceuticals, Inc. at this time. The combination of limited competitive advantages, 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 Zentalis Pharmaceuticals, Inc. a meaningful economic moat, scoring 22/100 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, margin superiority, reached only 10/20.
The strongest moat sources are margin superiority (10/20) and financial resilience (8.5/20). GM N/A vs sector 43%, OM N/A vs sector 1%. Interest coverage N/A. These pillars form the core of Zentalis Pharmaceuticals, 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 growth durability (1.2/20). 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 Zentalis Pharmaceuticals, 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 27/100 which further underscores our concern regarding earnings sustainability.
Return metrics include ROE of -56.2% and ROA of -43.4%. Relative to the Manufacturing sector, sector comparison data is limited, and ROE of -56.2% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 29%. The sector median D/E is 0%, putting Zentalis Pharmaceuticals, Inc. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Zentalis Pharmaceuticals insider Vincent Vultaggio sold 29,951 shares of the company's stock on February 6th for $2.43 per share, totaling $72,780.93. This sale, along with other transactions between February 2nd and February 10th, reduced his stake by 16.04% to 156,779 shares. The company currently trades at $2.40 with a market cap of $173.40 million, and analysts have a consensus "Hold" rating with an average price target of $5.00.
Zentalis Pharmaceuticals insider Vincent Vultaggio sold 6,894 shares of the company's stock on February 10th for approximately $16,683, reducing his total stake by 4.49%. This transaction is part of a series of sales in early February, totaling 43,320 shares worth over $105,000. Despite these insider sales, Zentalis Pharmaceuticals currently holds a consensus "Hold" rating from analysts with an average price target of $5.00.
Tybourne Capital Management HK Ltd. significantly decreased its stake in Zentalis Pharmaceuticals (NASDAQ:ZNTL) by 35.0% in Q3, selling over 500,000 shares. This move made ZNTL its fourth-largest position, representing 4.7% of its portfolio. Other institutional investors showed mixed activity, while Matrix Capital Management also sold a large number of shares, and Group Walters increased its holdings considerably, resulting in insiders selling approximately 7.5 million shares in the last 90 days.
Vincent Vultaggio, PAO and PFO of Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL), sold 3096 shares of common stock totaling $7875 on February 2nd and 3rd, 2026. These sales were made to cover tax withholding obligations and pursuant to a Rule 10b5-1 trading arrangement. The company is valued at $166 million, trading at $2.55 per share, and recently announced it would cease development of its azenosertib drug candidate for uterine serous carcinoma, leading Leerink Partners to lower its price target.
Walters Group, a ten-percent owner of Zentalis Pharmaceuticals Inc. (NASDAQ:ZNTL), acquired over 6.4 million shares for $7.7 million on December 31, 2025. This purchase by an insider comes as ZNTL shares have surged significantly, trading at a 137% premium to the insider purchase price. Despite recent adjustments to its drug development pipeline and a lowered price target from Leerink Partners, the company continues its research efforts, and analysts maintain cautious optimism.
Above 50MA
37.18%
Net New Highs
+51081