Zai LabZLAB -3.73%64 5-Year ROIIC % is 29.28 as of Dec. 2025. GuruFocus rates ZLAB with a GF Score™ of 64/100 and a GF Value™ of $30.30 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,180 Biotechnology companies, Zai Lab ranks better than 73.98% on this metric.
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Zai Lab's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 29.28%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Zai Lab's 5-Year ROIIC % or its related term are showing as below:
ZLAB's 5-Year ROIIC % is ranked better than 73.98% of 1180
companies
in the Biotechnology industry
Industry Median: -11.41
vs ZLAB: 29.28
Zai Lab (NAS:ZLAB) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Zai Lab 5-Year ROIIC % Related Terms
Zai Lab 5-Year ROIIC % Historical Data
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The historical data trend for Zai Lab's 5-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ZLAB vs TYRA, TRVI, OCUL: 5-Year ROIIC % Comparison
For the Biotechnology subindustry, Zai Lab's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zai Lab 5-Year ROIIC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zai Lab's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Zai Lab's 5-Year ROIIC % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Zai Lab (ZLAB) has a 5-Year ROIIC % of 29.28 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Zai Lab and its competitors. According to the industry distribution chart, Zai Lab ranks #307 out of 1180 companies in the Biotechnology industry, placing it in the top 26%.
Is Zai Lab's 5-Year ROIIC % too high?
Zai Lab's current 5-Year ROIIC % is 29.28. Based on the distribution chart, Zai Lab ranks #307 out of 1180 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Zai Lab has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zai Lab's 5-Year ROIIC % compare to TYRA and TRVI?
According to the Biotechnology industry distribution chart, Zai Lab ranks #307 out of 1180 companies for 5-Year ROIIC %. This puts Zai Lab in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Biotechnology company?
A good 5-Year ROIIC % depends on the Biotechnology industry context. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Zai Lab and its competitors. Zai Lab's current 5-Year ROIIC % is 29.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zai Lab stock overvalued right now?
Based on GuruFocus' analysis, Zai Lab (ZLAB) is currently considered Possible Value Trap. The stock's GF Value™ is $30.30, compared to a current price of $17.83 — trading 41.2% below its estimated fair value. The current 5-Year ROIIC % is 29.28. Zai Lab's overall GF Score™ is 64/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Zai Lab (ZLAB), the current 5-Year ROIIC % is 29.28 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zai Lab (ZLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zai Lab stock appears to be undervalued.
The current stock price of $17.83 is trading 41.2% below its estimated GF Value™ of $30.30.
GuruFocus considers Zai Lab to be Possible Value Trap.
Key valuation signals for ZLAB:
5-Year ROIIC %: 29.28
GF Value™: $30.30 vs. price of $17.83 (41.2% below fair value)
No single metric tells the full story. See the ZLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zai Lab Ltd is a biopharmaceutical company focusing on discovering or licensing, developing, and commercializing proprietary therapeutics that address areas of unmet medical need including in the fields of oncology, autoimmune and infectious diseases. Zai Lab has a diverse pipeline of potentially first-in-class product candidates developed through in-house R&D and global partnerships. The company has successfully commercialized several products in China, including Zejula, Optune, Qinlock, and Nuzyra, with plans for further expansion The pipeline of proprietary drug candidates of the company includes ZL-1222, ZL-1311, ZL-6201 and many others.
64GF Score
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