Zentalis Pharmaceuticals (ZNTL) AI Stock Analysis

• Market Cap: $104.13M
• Dividend Yield: N/A
• Average Volume (3M): 828.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.02
• Revenue Growth: N/A
• EPS Growth: 48.92%
• Country: US
• Employees: 166
• Sector: Healthcare
• Sector Strength: 60
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 71,811,510
• 10 Day Avg. Volume: 716,682
• 30 Day Avg. Volume: 828,396
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -1.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.67
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.25
• Price Target Upside: 433.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Zentalis Pharmaceuticals faces significant financial hurdles, with consistent losses and negative cash flows. Technical indicators also show weak momentum. However, recent positive clinical developments provide a glimmer of hope for future growth. Despite the financial and technical challenges, the potential of azenosertib in treating aggressive cancers could offer strategic value, albeit with high risk.

Positive Factors

Clinical Trials

The pivotal DENALI trial is expected to initiate with improved efficacy and further outperformance versus standard-of-care chemotherapy.

Financial Stability

Zentalis ended the quarter with $371.1M in cash, which supports a cash runway into late 2027.

Market Opportunity

The opportunity for azeno to capture a large share of the CCNE1+ PROC market is highlighted by the less than 20% overlap between FRα-positive and CCNE1+ patients.

Negative Factors

Clinical Challenges

A 21.6% discontinuation rate—partly due to voluntary withdrawals and the now-resolved partial clinical hold—signals room for improvement.

Market Performance

ZNTL shares are down 40% year-to-date compared to a 7% decline in the XBI index.

Market Sentiment

The stock is likely to remain range-bound given the macro biotech market and the lack of near-term de-risking catalysts to counter investor concerns about the WEE1's therapeutic window.

Zentalis Pharmaceuticals Business Overview & Revenue Model

Company Description

Zentalis Pharmaceuticals (ZNTL) is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapeutics targeting fundamental biological pathways of cancers. The company operates in the biotechnology sector, leveraging its expertise in medicinal chemistry and translational science to develop drug candidates aimed at improving patient outcomes in oncology. Zentalis' core products include a pipeline of proprietary agents designed to address unmet medical needs in cancer treatment.

How the Company Makes Money

Zentalis Pharmaceuticals generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company raises funds through public offerings, private placements, and collaborations with other pharmaceutical firms and research institutions. Zentalis may engage in strategic partnerships or licensing agreements that provide upfront payments, milestone payments, and royalties based on the successful development and commercialization of its therapies. Additionally, the company might receive grants or funding from governmental and non-governmental organizations to support its research and development efforts. As a clinical-stage company, Zentalis is focused on advancing its pipeline through clinical trials, which is crucial for achieving regulatory approval and eventual market entry, thus unlocking potential revenue streams from sales and partnerships.

Zentalis Pharmaceuticals Financial Statement Overview

Summary

Zentalis Pharmaceuticals faces financial challenges with consistent losses and negative cash flows. Despite a stable balance sheet with low leverage, the company needs to improve its profitability to enhance its financial health.

Income Statement

Zentalis Pharmaceuticals shows a lack of revenue over multiple years, recently generating revenue in 2024. The company has been consistently operating at a loss with negative EBIT and EBITDA margins, reflecting ongoing financial challenges in achieving profitability.

Balance Sheet

The balance sheet reveals a reasonable equity base and low leverage, with a debt-to-equity ratio remaining manageable. However, the return on equity is negative due to ongoing losses, indicating a need to improve profitability.

Cash Flow

Cash flow analysis indicates persistent negative operating and free cash flow, driven by substantial operating losses. The company has relied on financing activities to sustain operations, which may not be sustainable long-term.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
67.42M	0.00	0.00	0.00	0.00
	Gross Profit
67.42M	-1.39M	-1.43M	-544.00K	-160.00K
	EBIT
-191.19M	-248.99M	-227.29M	-216.54M	-118.79M
	EBITDA
-186.17M	-275.50M	-219.87M	-164.01M	-117.94M
	Net Income Common Stockholders
-165.84M	-292.19M	-220.83M	-164.26M	-118.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
351.91M	482.92M	437.37M	339.89M	338.50M
	Total Assets
430.34M	551.69M	539.31M	454.51M	365.56M
	Total Debt
39.58M	43.15M	45.17M	45.91M	2.00M
	Net Debt
5.68M	15.11M	2.10M	-13.80M	-52.95M
	Total Liabilities
93.15M	114.30M	105.29M	90.03M	32.18M
	Stockholders Equity
337.19M	437.28M	434.02M	364.48M	333.38M
Cash Flow		Free Cash Flow
-171.08M	-208.41M	-166.30M	-160.20M	-87.58M
	Operating Cash Flow
-170.86M	-207.82M	-163.75M	-154.09M	-86.83M
	Investing Cash Flow
176.56M	-44.46M	-114.18M	-18.11M	-284.83M
	Financing Cash Flow
108.00K	237.30M	261.04M	178.52M	360.44M

Zentalis Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZNTL, the sentiment is Negative. The current price of 1.36 is above the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.62, and below the 200-day MA of 2.78, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.74 is Neutral, neither overbought nor oversold. The STOCH value of 42.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZNTL.

Zentalis Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.35B	3.83	-41.61%	2.85%	17.10%	1.22%
ZNTL	46 Neutral	$104.13M	―	-42.83%	―	―	48.92%
CCCC	41 Neutral	$123.55M	―	-45.58%	―	71.44%	43.22%
ELUT	41 Neutral	$83.37M	―	149.62%	―	-31.04%	11.34%
CLYM	41 Neutral	$85.82M	―	-46.26%	―	―	-61.95%
KYTX	36 Underperform	$98.54M	―	-80.74%	―	―	―
VOR	33 Underperform	$82.58M	―	-94.52%	―	―	2.98%

Zentalis Pharmaceuticals Corporate Events

Zentalis Highlights Azenosertib Findings at 2025 AACR

Zentalis Pharmaceuticals presented findings at the 2025 American Association for Cancer Research Annual Meeting, highlighting the sensitivity of TP53-mutant small cell lung cancer (SCLC) and triple-negative breast cancer (TNBC) cell lines to azenosertib, a WEE1 inhibitor. The research demonstrated that RB1 loss of function is linked to increased sensitivity to azenosertib, suggesting potential therapeutic implications for treating aggressive cancers with RB1 and TP53 mutations.

Spark’s Take on ZNTL Stock

According to Spark, TipRanks’ AI Analyst, ZNTL is a Neutral.

Zentalis Pharmaceuticals presents a challenging financial outlook with persistent losses and negative cash flows. Technical indicators show weak momentum, and valuation metrics are unattractive. However, recent positive clinical data for azenosertib offers some potential upside, suggesting strategic progress in product development.

To see Spark’s full report on ZNTL stock, click here.

Zentalis Highlights Promising Azenosertib Data at SGO 2025

Zentalis Pharmaceuticals presented updated clinical data at the Society of Gynecologic Oncology 2025 Annual Meeting, highlighting the potential of azenosertib in treating platinum-resistant ovarian cancer (PROC). The data from the DENALI Part 1b clinical trial showed a median duration of response of 6.3 months and an objective response rate of approximately 35% in response-evaluable patients. The company plans to initiate Part 2 of the trial in the first half of 2025, with topline data expected by the end of 2026, potentially supporting accelerated approval. The presentation also emphasized the role of Cyclin E1 protein overexpression as a predictive biomarker for identifying patients who could benefit from azenosertib.