Xencor (XNCR) AI Stock Analysis

• Market Cap: $657.62M
• Dividend Yield: N/A
• Average Volume (3M): 680.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: -25.88%
• EPS Growth: -29.16%
• Country: US
• Employees: 250
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.66
• Shares Outstanding: 71,170,750
• 10 Day Avg. Volume: 550,907
• 30 Day Avg. Volume: 680,695
• PEG Ratio: -0.23
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.47
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 4.94
• Enterprise Value/Ebitda: -0.90
• 1Y Price Target: $26.89
• Price Target Upside: 191.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 55 Neutral
• Price Target: $9.00 ▼(-2.60%Downside)

Xencor's stock score is primarily affected by its financial difficulties and strained valuation. However, technical indicators offer some short-term optimism, and recent promising clinical trial results provide a positive strategic outlook, marginally bolstering the overall score.

Positive Factors

Clinical Trial Progress

The results highlight a promising profile for XmAb942, with high potency, a long half-life supporting a 12-week maintenance dosing interval, and a convenient subcutaneous formulation.

Financial Performance

Xencor ended 1Q25 with $693.5M in cash and equivalents, with cash runway guidance into 2028.

Strategic Partnerships

Xencor received a $12.5 million milestone payment from Incyte related to regulatory progress with Monjuvi.

Negative Factors

Market Sentiment

Shares are down significantly compared to the overall market, indicating investor concerns.

Stock Performance

Shares have been in free-fall since the beginning of the year due to delays in the XmAb819 readout and concerns about XmAb942 differentiation and FDA uncertainty.

Xencor Business Overview & Revenue Model

Company Description

Xencor, Inc., a clinical stage biopharmaceutical company, focuses on the discovery and development of engineered monoclonal antibody and cytokine therapeutics to treat patients with cancer and autoimmune diseases. The company provides Sotrovimab that targets the SARS-CoV-2 virus; Ultomiris for the treatment of patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome; and Monjuvi for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma. It develops Plamotamab, a tumor-targeted antibody, which is in Phase I clinical trial to treat non-Hodgkin lymphoma; Vudalimab, a bispecific antibody, which is in Phase II clinical trial to treat metastatic castration-resistant prostate cancer and other solid tumor types; and Tidutamab that is in Phase II clinical trial to treat neuroendocrine tumors. The company is also developing XmAb306, which is in Phase I clinical trial to treat solid tumors; XmAb104 and XmAb841, which are in Phase I clinical trial to treat patients with selected solid tumors; XmAb564 that is in Phase I clinical trial to treat autoimmune diseases; AMG 509, which is in Phase I clinical trial to treat prostate cancer; XmAb819 for patients with renal cell carcinoma; and Novartis XmAb. It develops VIR-3434, which is in Phase II clinical trial for patients with hepatitis B virus infection; VIR-2482 that is in Phase 1/2 clinical trial to trat influenza A; VIR-7832, which is in Phase 1b/2a trial to treat mild-to-moderate COVID-19; and BMS-986414 + BMS-986413 is in Phase 2/3 NIH ACTIV-2 trial in treating COVID-19. The company develops AIMab7195 to reduce blood serum levels of IgE that mediates allergic responses and allergic disease; Obexelimab to treat autoimmune disease; and Xpro1595 to treat patients with Alzheimer's disease, mild cognitive impairment, and depression. It has a license agreement with Caris Life Sciences. Xencor, Inc. was incorporated in 1997 and is headquartered in Monrovia, California.

How the Company Makes Money

Xencor generates revenue through a combination of licensing agreements, collaborations, and milestone payments associated with its XmAb technology platform. The company forms strategic partnerships with other pharmaceutical and biotechnology companies to develop and commercialize its antibody candidates, receiving upfront payments, research funding, and subsequent royalties on the sales of approved products. Additionally, Xencor may earn milestone payments when certain clinical, regulatory, or commercial objectives are met. These collaborative arrangements form the core of Xencor's business model, allowing it to leverage its technology platform while sharing the financial and operational risks of drug development.

Xencor Financial Statement Overview

Summary

Xencor faces significant financial challenges, with negative net profit and declining revenues. The balance sheet is stable with low leverage, but negative return on equity and cash flow issues pose risks to financial stability.

Income Statement

Xencor's income statement reveals a challenging environment with negative net profit and declining revenues. The company recorded a negative net profit margin of -163.3% and a gross profit margin of 97.7% in the TTM, indicating high costs relative to revenue. The revenue growth rate is concerning, as revenues decreased from $275.1 million in 2021 to $130.4 million in the TTM. Despite a high gross profit margin, other profitability metrics such as EBIT and EBITDA margins are negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows a stable equity position with a debt-to-equity ratio of 0.11, indicating low leverage. The equity ratio stands at 70.7%, suggesting a strong reliance on equity over debt. However, the return on equity (ROE) is negative at -33.3% due to net losses, which is a concern for investors looking for returns on their equity.

Cash Flow

Xencor's cash flow statement shows negative free cash flow growth, with free cash flow at -$173 million in the TTM. The operating cash flow to net income ratio is also negative, reflecting challenges in converting income into cash. The company experienced a negative free cash flow to net income ratio, highlighting potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	110.49M	168.34M	164.58M	275.11M	122.69M
Gross Profit	98.39M	-85.26M	155.78M	267.62M	-47.11M
EBITDA	-186.17M	-125.87M	-72.16M	51.26M	-71.00M
Net Income	-232.62M	-126.09M	-55.18M	82.63M	-63.54M
Balance Sheet
Total Assets	951.95M	952.69M	846.27M	838.21M	703.24M
Cash, Cash Equivalents and Short-Term Investments	497.77M	593.73M	623.06M	334.11M	603.00M
Total Debt	231.95M	83.43M	59.63M	33.97M	11.63M
Total Liabilities	277.92M	283.56M	118.77M	104.71M	130.80M
Stockholders Equity	677.61M	668.80M	727.50M	733.50M	572.44M
Cash Flow
Free Cash Flow	-208.28M	63.86M	-18.92M	-32.83M	-18.77M
Operating Cash Flow	-202.19M	85.11M	24.48M	-16.85M	-5.00M
Investing Cash Flow	-7.87M	-111.06M	-119.72M	-46.25M	100.19M
Financing Cash Flow	197.15M	26.18M	5.70M	43.04M	18.04M

Xencor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.24
• 50DMA: Positive
• 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 XNCR, the sentiment is Positive. The current price of 9.24 is above the 20-day moving average (MA) of 8.71, above the 50-day MA of 8.58, and below the 200-day MA of 15.55, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 66.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XNCR.

Xencor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STOK	78 Outperform	$779.10M	18.14	20.50%	―	2333.50%	―
RLAY	57 Neutral	$649.78M	―	-45.46%	―	-78.26%	15.41%
XNCR	55 Neutral	$657.62M	―	-33.48%	―	-25.88%	-29.16%
AUTL	54 Neutral	$713.26M	―	-49.91%	―	-14.16%	25.88%
MRVI	54 Neutral	$667.21M	―	-45.75%	―	-11.76%	-15.82%
Sector *	52 Neutral	kr5.63B	10.07	-63.86%	1.97%	27.19%	26.73%
DNTH	51 Neutral	$710.74M	―	-28.73%	―	189.31%	51.03%

Xencor Corporate Events

Xencor Holds Annual Stockholders Meeting on June 12

On June 12, 2025, Xencor, Inc. held its Annual Meeting of Stockholders, where 94.68% of the company’s shares were represented. During the meeting, stockholders elected eight directors, ratified KPMG LLP as the independent accounting firm, approved an amendment to increase shares in the Equity Incentive Plan by 3,000,000, and supported the executive compensation plan.

The most recent analyst rating on (XNCR) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Xencor stock, see the XNCR Stock Forecast page.

Xencor Announces Executive Vice President Resignation

On May 5, 2025, Xencor announced the resignation of Nancy Valente as Executive Vice President and Chief Development Officer, effective June 6, 2025, with plans for her to continue as a senior advisor. The company reported its first-quarter 2025 financial results, highlighting a net loss reduction compared to the previous year and increased revenues primarily from non-cash royalty and milestone payments. Xencor is advancing its XmAb942 antibody for ulcerative colitis into a Phase 2b study and is preparing a bispecific antibody candidate for Phase 1 trials in 2026. The company expects to maintain significant cash reserves to fund operations into 2028.

Xencor Announces Promising Phase 1 Study Results

On April 29, 2025, Xencor announced interim results from its Phase 1 dose-escalation study of XmAb942 (Xtend™ TL1A), highlighting its potential for treating inflammatory bowel disease (IBD). The company also shared preclinical data from its XmAb TL1A x IL23p19 program, suggesting promising clinical timelines. These developments underscore Xencor’s strategic focus on advancing its XmAb drug candidates, potentially strengthening its position in the biotechnology sector and offering new therapeutic options for stakeholders.