Xencor (XNCR) AI Stock Analysis

• Market Cap: $772.71M
• Dividend Yield: N/A
• Average Volume (3M): 950.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: -36.72%
• EPS Growth: -64.37%
• Country: US
• Employees: 250
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -3.64
• Shares Outstanding: 71,151,710
• 10 Day Avg. Volume: 783,872
• 30 Day Avg. Volume: 950,641
• 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: 1.83
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 12.78
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $29.50
• Price Target Upside: 161.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Xencor's overall stock score is weighed down by significant financial performance issues, notably a complete revenue drop and persistent losses. Technical indicators further emphasize bearish sentiment. While recent corporate announcements are positive, they do not yet offset the considerable financial and technical challenges.

Positive Factors

Financial Stability

Xencor ended the quarter with cash and cash equivalents of $707M, providing a cash runway into 2028.

Pipeline Development

Xencor continues to have a healthy pipeline of ongoing oncology and autoimmune assets in the clinic, both wholly owned and partnered out, which are viewed as long-term value drivers.

Product Differentiation

XmAb942 presents a strong PK profile versus competitors, allowing for potential better clinical benefit.

Negative Factors

Program Deprioritization

XNCR announced that they have deprioritized vudalimab and are evaluating future development options for XmAb808.

Stock Performance

Shares have decreased by 54% year-to-date, possibly due to perceptions of XmAb942 being a 'me too' program and delays in XmAb819's readout.

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 primarily through strategic collaborations and licensing agreements with leading pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and royalties on sales of products developed using Xencor's technology. The company also conducts in-house clinical trials and research to advance its proprietary drug candidates, which may eventually lead to commercialized products that generate revenue directly through sales, pending successful regulatory approvals.

Xencor Financial Statement Overview

Summary

Xencor faces significant financial challenges, highlighted by a complete revenue loss in 2024 and persistent negative net income. While the balance sheet is relatively stable with strong cash reserves, the increasing debt levels and negative cash flow from operations suggest reliance on external funding. Overall, there are major risks in profitability and revenue generation.

Income Statement

Xencor's income statement reveals significant challenges with profitability. The company experienced a drastic revenue drop to zero in 2024, alongside persistent negative net income and EBIT over recent years. Gross profit margins have been consistently negative or zero, indicating issues in cost management or revenue generation. Revenue growth has been volatile, with the most recent year showing a complete revenue loss, severely impacting profit margins and overall financial health.

Balance Sheet

Xencor maintains a relatively stable balance sheet with a strong equity base, reflected in a decent equity ratio. However, rising debt levels contribute to a deteriorating debt-to-equity ratio. Return on equity is negative due to continued net losses, although the company has a healthy asset base and significant cash reserves, providing some financial stability amidst operational challenges.

Cash Flow

Cash flow analysis shows significant negative free cash flow in recent years, indicating struggles in generating cash from operations. The operating cash flow to net income ratio is unfavorable due to persistent losses. Despite this, the company maintains a solid cash position, which has been bolstered by financing activities, suggesting reliance on external funding to sustain operations.

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
110.49M	-85.26M	155.78M	267.62M	-47.11M
	EBIT
-178.41M	-138.64M	-82.47M	43.77M	-76.80M
	EBITDA
-186.17M	-125.87M	-72.16M	51.26M	-71.00M
	Net Income Common Stockholders
-232.62M	-126.09M	-55.18M	82.63M	-63.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
449.85M	593.73M	623.06M	334.11M	603.00M
	Total Assets
951.95M	952.69M	846.27M	838.21M	703.24M
	Total Debt
68.35M	83.43M	59.63M	33.97M	11.63M
	Net Debt
27.47M	29.64M	5.69M	-109.51M	-151.92M
	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: Neutral
• Last Price: 11.26
• 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 XNCR, the sentiment is Neutral. The current price of 11.26 is above the 20-day moving average (MA) of 9.66, below the 50-day MA of 11.78, and below the 200-day MA of 18.44, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 48.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XNCR.

Xencor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVXL	62 Neutral	$753.67M	―	-37.72%	―	―	-3.08%
XERS	52 Neutral	$689.65M	―	222.83%	―	23.89%	16.86%
Sector *	52 Neutral	$5.36B	3.88	-42.93%	2.87%	17.85%	1.45%
ARVN	48 Neutral	$563.49M	―	-35.41%	―	-39.92%	7.38%
XNCR	41 Neutral	$772.71M	―	-34.74%	―	-36.72%	-64.37%
RCKT	40 Underperform	$813.58M	―	-54.14%	―	―	6.99%
NTLA	39 Underperform	$894.39M	―	-54.00%	―	59.55%	3.09%

Xencor Corporate Events

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.

Spark’s Take on XNCR Stock

According to Spark, TipRanks’ AI Analyst, XNCR is a Underperform.

Xencor’s stock score reflects significant financial challenges, particularly with revenue and profitability. The bearish technical indicators further highlight negative sentiment. However, the recent addition of an experienced board member may offer strategic benefits moving forward.

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

Xencor Appoints Todd Simpson to Board of Directors

On March 13, 2025, Xencor announced the appointment of Todd Simpson to its Board of Directors and Audit Committee. With over 40 years of experience in financial leadership roles, including as CFO at Seagen Inc., Simpson’s expertise is expected to enhance Xencor’s strategic and operational capabilities, potentially strengthening its position in the biopharmaceutical industry.