Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price26.81 USD
Fair value24.75
Ethical score70.0/100
Our investment reviews on this name
2026-10-02Read Distribution26.81+0.0% to today
2026-09-19Read Markup26.24+2.2% to today ✓
2026-08-19Read Markdown24.93+7.5% to today
2026-07-02Read Distribution22.88+17.2% to today
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Zymeworks Inc. holds its Markdown at $26.81. The statistical read favours the sellers, held for 14 days.
As held on the ledger · 2026-09-21
Phase
Markdown · caution
Quantitative state
The statistical read favours the sellers, held for 14 days
Price at the screen
$26.81
Valuation
N/A trailing · 22.98 forward price to earnings
Values screen
FAIL· score 70.0
Beta
1.19
The Workings
Five Screens, Shown in Full
Does not pass. Interest-bearing securities
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
5.27%
Below 33%
Interest-bearing debt is just 5.3% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
54.15%
Below 33%
Interest-bearing cash and securities are 54.1% of assets, above the one-third limit.
Fail
Receivables
13.22%
Below 49%
Money owed to the company is 13.2% of assets, under the 49% limit.
Pass
Revenue purity
12.60%
Below 5%
12.6% of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Zymeworks's business is fine, but its cash and interest-bearing securities are about 54% of its assets, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-04. It updates when the underlying figures move, and past reads are kept below.
Fair value range in USD, drawn from the 2026-09-21 screen. The gold marker is the market price at the same screen. The price runs 7.7% above the base estimate.
Third-party analyst targets: 12 covering, consensus Strong Buy. The average target sits +45% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-21 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Biotech Pipeline Hits Revenue Freefall Wall
Picture a lab racing to craft the next cancer fighter while the cash register rings up losses instead of sales. Zymeworks builds antibody platforms for tough diseases yet just posted revenue growth of minus 91 percent and a profit margin of minus 126 percent. At 24 dollars against our fair value of 20 dollars the shares already price in miracles that the current numbers do not support.
We pass because the opportunity rating is none. Forward earnings sit at 85 times while return on equity runs at minus 42 percent and the moat stays unknown. Analyst targets cluster near 37 dollars but that optimism collides with an 18 percent negative margin of safety and a business still burning cash at scale.
The ethical screen clears yet the financial picture flags classic early stage biotech hazards: binary trial outcomes, dilution risk and the chance peak losses arrive before any durable product. Numbers this weak usually warn of further downside rather than hidden upside. Analysis, not advice.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; as a biotechnology name, trial and regulatory outcomes can move it sharply either way.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
ZYME trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 2.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 15% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 75%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (13 analysts) rates it none, with a mean price target of $40.
2026-09-19Markup · changed$26.24+5.3%Entry 5
The framework has shifted from markdown to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 5.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 15% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 75%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (13 analysts) rates it none, with a mean price target of $40.
2026-08-19Markdown · changed$24.93+9.0%Entry 4
The framework has shifted from distribution to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 9.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 15% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 75%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (13 analysts) rates it none, with a mean price target of $40.
2026-07-18Distribution$22.88+0.0%Entry 3
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 15% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 75%. Our forward projection puts the odds of a 10% gain over the next month near 40%. The street (13 analysts) rates it none, with a mean price target of $40.
2026-07-03Distribution$22.88+0.0%Entry 2
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Distribution$22.88Entry 1
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
