Xoma (XOMA) AI Stock Analysis

• Market Cap: $290.69M
• Dividend Yield: N/A
• Average Volume (3M): 24.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 498.72%
• EPS Growth: 49.92%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -2.06
• Shares Outstanding: 11,952,889
• 10 Day Avg. Volume: 20,039
• 30 Day Avg. Volume: 24,422
• 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: 1.12
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.46
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $64.67
• Price Target Upside: 165.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Xoma's stock score reflects significant financial and valuation challenges. The company struggles with profitability and cash flow issues, impacting its financial health and attractiveness. Technical indicators suggest a neutral to slightly negative market sentiment. Despite these challenges, the low beta suggests lower volatility, which could be appealing to some investors. However, the absence of earnings call data and significant corporate events means there are no recent updates that could change this outlook.

Positive Factors

Clinical Trials

Key upcoming catalysts include several Phase 3 study results, where XOMA is entitled to royalties.

Earnings

XOMA reported 4Q24 total revenue of $8.7M, 19% above the analyst estimate.

Strategic Growth

M&A activity exploded for XOMA, with significant acquisitions and royalty monetization agreements, adding to the Company’s extensive asset portfolio and promising further business development.

Negative Factors

Market Perception

XOMA has a promising cash flow generation potential that is underappreciated by investors.

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 Business Overview & Revenue Model

Company Description

XOMA Corporation 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 Money

XOMA Corporation generates revenue through a combination of licensing agreements, milestone payments, and royalties. The company licenses its proprietary antibody technologies to other pharmaceutical and biotechnology companies, which then use these technologies to develop and commercialize new drugs. As these partner companies advance through clinical trials and achieve regulatory approvals, XOMA receives milestone payments. Additionally, the company earns royalties on the sales of any successfully marketed products developed using its technologies. XOMA also strategically invests in early-stage biotech companies, potentially benefiting from equity appreciation and future revenue-sharing agreements.

Xoma Financial Statement Overview

Summary

Xoma faces considerable financial challenges, particularly in terms of profitability and cash flow management. Despite a strong growth in revenue in 2024, the company continues to report net losses and negative free cash flows, which could hinder long-term sustainability. The balance sheet remains relatively stable, but the increasing leverage and persistent operational losses pose significant risks.

Income Statement

Xoma shows significant volatility in its income statement. While the revenue in 2024 significantly increased compared to 2023, the net income continues to remain negative, indicating ongoing profitability challenges. The gross profit margin remains high, but the company struggles with negative EBIT and EBITDA margins, suggesting operational inefficiencies or high costs relative to revenue.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio is relatively moderate, but the equity ratio has decreased over recent years, indicating increased financial leverage. The return on equity is negative due to net losses, posing a risk to shareholder value. However, the company maintains a stable cash position, which supports its operations.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows indicating that the company is not generating enough cash from its operations to sustain itself. The free cash flow has shown fluctuations with no consistent growth trajectory, and the operating cash flow to net income ratio is unfavorable due to persistent losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.49M	4.76M	6.03M	38.16M	29.39M
	Gross Profit
28.28M	3.86M	5.93M	37.99M	29.21M
	EBIT
-39.98M	-41.85M	-17.41M	17.53M	12.42M
	EBITDA
-5.42M	-39.36M	-16.84M	16.52M	13.81M
	Net Income Common Stockholders
-13.82M	-40.83M	-17.10M	15.80M	13.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
105.18M	153.45M	58.16M	94.10M	84.22M
	Total Assets
221.28M	234.30M	140.38M	166.56M	125.28M
	Total Debt
119.20M	124.45M	34.00K	229.00K	21.26M
	Net Debt
17.54M	-28.84M	-57.79M	-93.10M	-62.96M
	Total Liabilities
139.36M	145.58M	16.37M	24.69M	38.86M
	Stockholders Equity
81.92M	88.72M	124.01M	141.88M	86.42M
Cash Flow		Free Cash Flow
-13.77M	-18.18M	-36.13M	-3.82M	8.88M
	Operating Cash Flow
-13.75M	-18.16M	-12.88M	22.68M	10.09M
	Investing Cash Flow
-28.26M	-711.00K	-20.22M	-26.50M	-209.00K
	Financing Cash Flow
-11.13M	120.59M	-4.45M	12.84M	19.79M

Xoma Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.32
• 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 XOMA, the sentiment is Neutral. The current price of 24.32 is above the 20-day moving average (MA) of 21.67, above the 50-day MA of 21.50, and below the 200-day MA of 26.32, indicating a neutral trend. The MACD of 0.85 indicates Negative momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 74.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XOMA.

Xoma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PVLA	52 Neutral	$265.44M	―	-68.21%	―	-97.15%	54.85%
Sector *	52 Neutral	$5.36B	3.88	-42.93%	2.87%	17.85%	1.45%
OABI	49 Neutral	$213.74M	―	-20.60%	―	-22.75%	-19.65%
VNDA	48 Neutral	$261.67M	―	-3.49%	―	3.18%	-835.29%
VSTM	44 Neutral	$382.57M	―	-526.33%	―	―	14.39%
XOMA	43 Neutral	$290.69M	―	-16.20%	―	498.72%	49.92%
HUMA	42 Neutral	$218.72M	―	239.90%	―	―	-17.92%