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Xoma Corp (XOMA)
NASDAQ:XOMA

Xoma (XOMA) AI Stock Analysis

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XO

Xoma

(NASDAQ:XOMA)

Rating:58Neutral
Price Target:
$27.00
▲(3.41%Upside)
Xoma's stock score is driven primarily by its moderate technical analysis score, reflecting a currently positive market trend. Financial performance presents mixed signals with potential recovery in revenue but ongoing challenges in profitability and debt management. Valuation is less favorable due to the negative P/E ratio, impacting the overall attractiveness for investors.
Positive Factors
Financial Performance
XOMA reported 1Q25 revenue of $15.9M, 90% above the estimate of $8.2M.
Pipeline and Milestones
XOMA anticipates four major pipeline milestones in 2025, including potential EMA approval of Ojemda and topline results from seralutinib.
Royalty Opportunities
XOMA has expanded its royalty opportunity for Takeda's mezagitamab by additionally purchasing BioInvent's stake in the asset, potentially increasing its royalty rate to 5.5%.
Negative Factors
Competitive Landscape
The competitive landscape in both ITP and IgA Nephropathy presents challenges, as multiple CD38-targeting therapies and other immune-modulating approaches are in development.
Drug Pricing
The biopharmaceutical industry has to navigate President Trump’s agenda to take U.S. drug prices down.
Valuation Concerns
Despite a strong recovery from post-COVID-19 lows, XOMA's valuation still lags behind comparable companies, offering potential for rerating higher based on strong fundamentals and expanding visibility.

Xoma (XOMA) vs. SPDR S&P 500 ETF (SPY)

Xoma Business Overview & Revenue Model

Company DescriptionXOMA Royalty Corp. operates as a biotechnology royalty aggregator in Europe, the United States, and the Asia Pacific. The company engages in helping biotech companies for enhancing human health. It acquires the potential future economics associated with pre-commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. The company focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners. It has a portfolio with approximately 70 assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.
How the Company Makes MoneyXOMA Corporation makes money through a revenue model that primarily involves licensing its antibody technologies and products to other pharmaceutical companies. The company's key revenue streams include milestone payments, royalties, and upfront fees from its licensing agreements. These partnerships allow XOMA to leverage the development and commercialization capabilities of larger pharmaceutical companies, while earning revenue as the partnered therapies progress through clinical development and reach the market. Significant factors contributing to XOMA's earnings include the success and advancement of its partnered therapies and the establishment of new licensing agreements with industry partners.

Xoma Financial Statement Overview

Summary
Xoma's financial statements indicate a mix of potential and challenges. Revenue growth shows promise, but profitability issues persist with negative margins and over-reliance on debt. Effective cost management and cash flow improvements are crucial.
Income Statement
45
Neutral
Xoma's income statement reflects significant volatility and challenges in profitability. The TTM (Trailing-Twelve-Months) shows a negative EBIT and EBITDA margin, indicating operational inefficiencies. However, there is a marked revenue growth from the previous year, suggesting potential for recovery if costs are managed. The negative net profit margin underscores ongoing profitability issues.
Balance Sheet
60
Neutral
Xoma's balance sheet shows moderate financial health. The debt-to-equity ratio is relatively high, suggesting a significant reliance on debt financing. However, the equity ratio remains solid, indicating that a substantial portion of assets is financed by equity. The return on equity is negative, reflecting the company's current unprofitability.
Cash Flow
50
Neutral
Cash flow analysis indicates ongoing challenges with negative free cash flow. The operating cash flow to net income ratio suggests that cash outflows are greater than net losses. Nonetheless, there is a slight improvement in free cash flow growth rate, which could be a positive sign if sustained over time.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue36.54M28.49M4.76M6.03M38.16M29.39M
Gross Profit35.99M28.28M3.86M5.93M37.99M29.21M
EBITDA-16.81M-5.42M-39.36M-16.84M16.52M13.81M
Net Income-2.86M-13.82M-40.83M-17.10M15.80M13.30M
Balance Sheet
Total Assets212.75M221.28M234.30M140.38M166.56M125.28M
Cash, Cash Equivalents and Short-Term Investments90.27M105.18M153.45M58.16M94.10M84.22M
Total Debt114.45M119.20M124.45M34.00K229.00K21.26M
Total Liabilities128.12M139.36M145.58M16.37M24.69M38.86M
Stockholders Equity84.63M81.92M88.72M124.01M141.88M86.42M
Cash Flow
Free Cash Flow-6.69M-13.77M-18.18M-36.13M-3.82M8.88M
Operating Cash Flow-6.68M-13.75M-18.16M-12.88M22.68M10.09M
Investing Cash Flow-27.71M-28.26M-711.00K-20.22M-26.50M-209.00K
Financing Cash Flow-12.98M-11.13M120.59M-4.45M12.84M19.79M

Xoma Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.11
Price Trends
50DMA
25.13
Positive
100DMA
23.50
Positive
200DMA
25.91
Positive
Market Momentum
MACD
0.48
Negative
RSI
53.46
Neutral
STOCH
51.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XOMA, the sentiment is Positive. The current price of 26.11 is above the 20-day moving average (MA) of 25.48, above the 50-day MA of 25.13, and above the 200-day MA of 25.91, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 51.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XOMA.

Xoma Risk Analysis

Xoma disclosed 1 risk factors in its most recent earnings report. Xoma reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Xoma Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
$315.21M-3.42%638.41%71.89%
55
Neutral
$212.86M-21.32%27.07%6.74%
52
Neutral
$250.63M-68.21%-97.15%54.85%
51
Neutral
$7.50B0.32-61.87%2.27%17.10%1.59%
48
Neutral
$288.19M-8.38%3.18%-835.29%
44
Neutral
$235.73M-2159.50%14.39%
42
Neutral
$358.32M-257.38%-17.92%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XOMA
Xoma
26.11
0.48
1.87%
VNDA
Vanda
4.89
-0.35
-6.68%
VSTM
Verastem
4.85
2.11
77.01%
PVLA
Palvella Therapeutics
23.82
15.42
183.57%
HUMA
Humacyte
2.31
-2.96
-56.17%
OABI
OmniAb
1.86
-1.96
-51.31%

Xoma Corporate Events

Shareholder Meetings
Xoma Stockholders Approve Key Proposals at Annual Meeting
Neutral
May 30, 2025

During the Annual Meeting, Xoma‘s stockholders approved several key proposals, including the Amended and Restated 2010 Long Term Incentive and Stock Award Plan, which increases the shares of common stock available by 880,000 and prohibits dividends on unvested awards. Additionally, all director nominees were elected, and other proposals, such as the ratification of Deloitte & Touche LLP as independent auditor and the company’s reincorporation from Delaware to Nevada, were approved.

The most recent analyst rating on (XOMA) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on Xoma stock, see the XOMA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025