Xencor (XNCR) AI Stock Analysis

• Market Cap: $863.35M
• Dividend Yield: N/A
• Average Volume (3M): 688.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: 38.16%
• EPS Growth: 48.43%
• Country: US
• Employees: 250
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.08
• Shares Outstanding: 71,410,470
• 10 Day Avg. Volume: 571,780
• 30 Day Avg. Volume: 688,829
• PEG Ratio: -0.09
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 13.53
• P/FCF Ratio: -7.18
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 6.20
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: -15.13
• 1Y Price Target: $27.57
• Price Target Upside: 122.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $12.00 ▼(-3.07% Downside)

The score is primarily held back by weak financial performance (ongoing losses and negative free cash flow) and bearish technical signals (below key moving averages with negative MACD). Offsetting factors include a relatively manageable balance sheet and a positive early-stage pipeline event, while valuation is difficult to support due to negative earnings.

Positive Factors

Patent Extension

The extended patent protection for the Xtend Fc domain strengthens Xencor's competitive position, ensuring longer-term revenue from royalties.

Pipeline Progress

Successful Phase 1 results for XmAb819 and XmAb541 enhance Xencor's oncology pipeline, potentially leading to future revenue growth and market expansion.

Revenue Growth

Consistent revenue growth indicates strong demand for Xencor's technology and partnerships, supporting long-term business sustainability.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder Xencor's ability to reinvest in R&D and limit financial flexibility, impacting long-term growth.

Cash Flow Issues

Weak cash flow performance may affect Xencor's liquidity and ability to fund operations and future projects, posing a risk to sustainability.

Revenue Miss

Missing revenue expectations highlights potential issues in execution or market conditions, which could affect investor confidence and future growth.

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 partnerships and collaborations with other pharmaceutical companies, whereby it licenses its proprietary XmAb technology for the development of new therapeutics. These partnerships often involve upfront payments, milestone payments as the partnered products progress through clinical development, and royalties on future sales. In addition, Xencor may also receive research funding from partners to support the development of collaborative projects. The company's revenue model is heavily reliant on the success of its clinical trials and the commercialization of its partnered products.

Xencor Financial Statement Overview

Summary

Despite a sharp TTM revenue rebound, the company remains unprofitable with deeply negative operating/net margins and ongoing cash burn. The balance sheet is comparatively healthier with manageable leverage, but continued negative earnings and free cash flow are the central risks.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded strongly (up ~195% vs. the prior annual period), but profitability remains weak with sizable operating and net losses. Margins are deeply negative at the operating and net level in TTM, although losses have improved versus 2024 as revenue scaled. Overall, the income statement shows improving top-line momentum, but the business is still not operating-profitable and results appear volatile year-to-year (including a profitable year in 2021 followed by multiple loss years).

Balance Sheet

Leverage looks manageable for the profile: debt is modest relative to equity (debt-to-equity ~0.34 in TTM and 2024), and equity remains substantial versus total assets. However, ongoing losses are pressuring returns on equity (negative ROE in TTM and recent years) and the company has taken on more debt compared with 2021–2022 levels, which reduces balance-sheet flexibility if losses persist.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are both negative in TTM and 2024, indicating continued cash burn to run the business. While free cash flow burn improved meaningfully in TTM versus 2024, the company is still relying on funding sources outside operations. The cash flow profile is therefore high-risk until operating cash flow turns sustainably positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	167.36M	110.49M	174.62M	164.58M	275.11M	122.69M
Gross Profit	162.01M	110.49M	174.62M	164.58M	275.11M	-47.11M
EBITDA	-68.56M	-186.17M	-101.96M	-45.70M	90.14M	-71.00M
Net Income	-138.75M	-232.62M	-133.13M	-55.18M	82.63M	-69.33M
Balance Sheet
Total Assets	868.81M	951.95M	952.69M	846.27M	838.21M	703.24M
Cash, Cash Equivalents and Short-Term Investments	471.04M	497.77M	593.73M	623.06M	334.11M	603.00M
Total Debt	202.41M	231.95M	83.43M	59.63M	33.97M	11.63M
Total Liabilities	243.50M	277.92M	283.56M	118.77M	104.71M	130.80M
Stockholders Equity	625.32M	677.61M	668.80M	727.50M	733.50M	572.44M
Cash Flow
Free Cash Flow	-143.67M	-208.28M	-96.37M	-18.92M	-32.83M	-18.77M
Operating Cash Flow	-138.98M	-202.19M	-77.93M	24.48M	-16.85M	-5.00M
Investing Cash Flow	124.34M	-7.87M	-110.56M	-119.72M	-46.25M	100.19M
Financing Cash Flow	13.80M	197.15M	188.72M	5.70M	43.04M	18.04M

Xencor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XNCR, the sentiment is Negative. The current price of 12.38 is below the 20-day moving average (MA) of 13.47, below the 50-day MA of 15.20, and above the 200-day MA of 11.25, indicating a neutral trend. The MACD of -0.76 indicates Positive momentum. The RSI at 33.03 is Neutral, neither overbought nor oversold. The STOCH value of 7.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XNCR.

Xencor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STOK	61 Neutral	$1.73B	45.98	15.02%	―	1128.17%	―
DNTH	56 Neutral	$2.29B	-15.29	-28.57%	―	-42.64%	-39.78%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AUTL	51 Neutral	$364.61M	-1.62	-60.52%	―	407.86%	30.35%
RLAY	50 Neutral	$1.33B	-4.38	-41.14%	―	-16.50%	33.02%
MRVI	49 Neutral	$859.17M	-3.98	-41.06%	―	-30.56%	48.79%
XNCR	46 Neutral	$863.35M	-6.81	-19.61%	―	38.16%	48.43%