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The Moat Index

ZAI LAB LIMITED

ZLAB · Healthcare · $22.3B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

45/ 100
Shallow moat

The four filters

Pricing power97

Median gross margin 64.6% over 8y, very stable.

Returns on capital0

Median ROIC -73.3%, above the 9% hurdle in 0% of years.

Balance-sheet safety55

Net cash position — no leverage risk.

Capital discipline24

Owner earnings trend unclear, share count growing (dilution).

Margin of safety

Above valueOn sale
No price data
Owner earnings (normalized)
—
Est. intrinsic value / share
—
Recent price
$20.20
Discount to value
No price data

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

9 years of fundamentals

The business, in plain English

ZAI LAB LIMITED booked $457.2M of revenue in FY2025 in the Healthcare sector and kept 58.3% of it as gross profit — a high-margin business by that measure. After every other cost, −38.4% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $129000 (FY2018) to $457.2M (FY2025) — about 221.4% a year compounded over 7 years.

It earned −75.4% on invested capital in FY2025, with a median of −73.3% across 8 filed years. The Returns on Capital filter above scores it 0/100.

The balance sheet carried $204.5M of total debt in FY2025. Balance-Sheet Safety scores it 55/100.

The share count rose 1521.4% between FY2019 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 24/100.

Put together: Pricing Power is the strongest of the four filters (97/100) and Returns on Capital the weakest (0/100), which is how ZLAB lands at 45/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

FY2017–FY2025 · 9 fiscal years, normalized from ZLAB’s SEC filings

RevenueSales, as filed$457.2M FY2025
$0$200M$400M2017202020232025
Gross marginRevenue kept after cost of goods58.3% FY2025
0%50%2017202020232025
Return on invested capitalOperating profit on the capital employed−75.4% FY2025
−4000%−2000%0%2017202020232025
Owner earningsCash an owner could take out−$168.6M FY2025
−$500M$02017202020232025

Gaps in a line mean that item isn’t in ZLAB’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

3 logged readings since Jul 17, 2026 · append-only, never rewritten

Moat Score over timeLast scored reading of each day, on the 0–100 scale44.9 / 100
0406080100WideNarrowShallowNo moatJul 17, 2026

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — ZLAB has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Healthcare context

#170 of 440 scored Healthcare companies, ranked by Moat Score.

Nearest peers by Moat Score

  1. #168SDGR Schrodinger, Inc.45.1Shallow moat
  2. #169ADUS Addus HomeCare Corp45.0Shallow moat
  3. #171XRAY DENTSPLY SIRONA Inc.44.8Shallow moat
  4. #172VCEL VERICEL CORPORATION44.8Shallow moat

Compare ZLAB with its nearest peers →All Healthcare companies on the Index →

Common questions about ZLAB

Does ZAI LAB LIMITED have an economic moat?
Based on its FY2025 SEC filings, the Moat Index scores ZAI LAB LIMITED (ZLAB) 44.9 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 97, returns on capital 0, balance-sheet safety 55, capital discipline 24.
How has ZLAB's Moat Score changed over time?
The record logs 3 readings since Jul 17, 2026; the latest reads 44.9 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.
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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell ZLAB. See the disclaimer.

ZAI LAB LIMITED (ZLAB) Moat Score — The Moat Index · Buy Like Buffett