Xencor (XNCR) AI Stock Analysis

• Market Cap: $677.55M
• Dividend Yield: N/A
• Average Volume (3M): 990.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -25.88%
• EPS Growth: -29.16%
• Country: US
• Employees: 250
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -0.66
• Shares Outstanding: 71,170,750
• 10 Day Avg. Volume: 871,914
• 30 Day Avg. Volume: 990,439
• PEG Ratio: 0.17
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -82.11
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 3.39
• Enterprise Value/Gross Profit: 12.24
• Enterprise Value/Ebitda: -2.24
• 1Y Price Target: $26.89
• Price Target Upside: 192.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 52 Neutral
• Price Target: $9.00 ▼(-2.07%Downside)

Xencor's overall stock score reflects significant financial and valuation challenges. While technical analysis indicates weak momentum, recent corporate events offer a positive outlook, potentially offsetting some risks. The financial performance, however, remains the most critical concern, impacting the overall score heavily.

Positive Factors

Clinical Benefits

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

Pipeline Progress

Xencor's pipeline gives the company 'multiple shots on goal' and could be appealing to investors given the company is well-positioned to execute on its long-term strategy.

Negative Factors

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. (XNCR) is a clinical-stage biopharmaceutical company focused on discovering and developing engineered monoclonal antibodies to treat severe and life-threatening diseases. The company leverages its proprietary XmAb technology platform to create antibody product candidates designed to treat cancer, autoimmune disorders, asthma, and allergic diseases. Xencor's innovative approach aims to improve the efficacy, safety, and half-life of existing therapeutic antibodies, providing novel solutions for unmet medical needs in the biopharmaceutical sector.

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 declining revenues, negative net profit, and cash flow issues. Despite a strong equity base, the negative return on equity and free cash flow raise concerns over 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
130.42M	110.49M	168.34M	164.58M	275.11M	122.69M
	Gross Profit
127.40M	98.39M	-85.26M	155.78M	267.62M	-47.11M
	EBIT
-163.74M	-178.41M	-138.64M	-82.47M	43.77M	-76.80M
	EBITDA
-158.48M	-186.17M	-125.87M	-72.16M	51.26M	-71.00M
	Net Income Common Stockholders
-213.00M	-232.62M	-126.09M	-55.18M	82.63M	-63.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
469.57M	497.77M	593.73M	623.06M	334.11M	603.00M
	Total Assets
904.69M	951.95M	952.69M	846.27M	838.21M	703.24M
	Total Debt
67.82M	231.95M	83.43M	59.63M	33.97M	11.63M
	Net Debt
28.15M	191.08M	29.64M	5.69M	-109.51M	-151.92M
	Total Liabilities
264.81M	277.92M	283.56M	118.77M	104.71M	130.80M
	Stockholders Equity
639.87M	677.61M	668.80M	727.50M	733.50M	572.44M
Cash Flow		Free Cash Flow
-173.04M	-208.28M	63.86M	-18.92M	-32.83M	-18.77M
	Operating Cash Flow
-163.15M	-202.19M	85.11M	24.48M	-16.85M	-5.00M
	Investing Cash Flow
-26.52M	-7.87M	-111.06M	-119.72M	-46.25M	100.19M
	Financing Cash Flow
198.22M	197.15M	26.18M	5.70M	43.04M	18.04M

Xencor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.19
• 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 Neutral. The current price of 9.19 is above the 20-day moving average (MA) of 8.56, above the 50-day MA of 9.06, and below the 200-day MA of 16.99, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 62.45 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	$701.76M	―	-40.13%	―	―	-3.08%
XERS	60 Neutral	$701.48M	―	222.83%	―	29.88%	35.11%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
XNCR	52 Neutral	$677.55M	―	-33.48%	―	-25.88%	-29.16%
NTLA	52 Neutral	$866.99M	―	-57.92%	―	-13.37%	2.57%
ARVN	52 Neutral	$559.84M	―	-35.41%	―	-39.92%	7.38%
RCKT	40 Underperform	$326.45M	―	-60.45%	―	―	6.99%

Xencor Corporate Events

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.

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.