Zafgen, Inc. :ZFGN-US: Earnings Analysis: Q3, 2016 By the Numbers : December 1, 2016

Zafgen, Inc. reports financial results for the quarter ended September 30, 2016.

Analysis

  • Summary numbers: Revenues of USD 0 million, Net Earnings of USD -14.68 million.
  • The company did not record any revenues for the last twelve months making the comparison of net margin versus asset turnover meaningless.
  • ZFGN-US‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful to make this analysis between operating advantage (ROE) and growth expectations (as suggested by P/E or P/EBITDA).
  • Cash and Cash equivalents were down this period to 138.66 million compared to 203.95 million in the same period last year.
  • With debt at a relatively low -9.84% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 20.63%), and relatively tight interest coverage level of -113.99x, ZFGN-US would have a hard time raising much additional debt. Thus, the company is classified as having Limited Flexibility when it comes to raising more debt.
  • All 8 peers for the company have an outstanding debt balance.
  • Net income of -14.68 million this period compared to a net income of -15.03 million last period. This is a growth of 2.35% over the previous period. In comparison, the peer group grew at 20.02%

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Company Profile

Zafgen, Inc. is a biopharmaceutical company, which engages in the development of anti-obesity therapeutics that restores normal fat metabolism and regulatory pathways. Its product: Beloranib, which is under phase 2 clinical development as a treatment for obesity and hyperphagia in Prader-Willi Syndrome, or PW craniopharyngioma-associated obesity. The company was founded on November 22, 2005 and is headquartered in Boston, MA.

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