Xoma (XOMA) AI Stock Analysis

• Market Cap: $370.50M
• Dividend Yield: N/A
• Average Volume (3M): 53.64K
• Price to Earnings (P/E): 40.1
• Beta (1Y): 1.29
• Revenue Growth: 118.02%
• EPS Growth: N/A
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.70
• Shares Outstanding: 12,383,103
• 10 Day Avg. Volume: 49,949
• 30 Day Avg. Volume: 53,642
• PEG Ratio: 0.38
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 10.79
• P/FCF Ratio: -22.33
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 10.58
• Enterprise Value/Gross Profit: 11.28
• Enterprise Value/Ebitda: 47.81
• 1Y Price Target: $71.00
• Price Target Upside: 137.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $31.00 ▲(3.61% Upside)

The score is held back primarily by balance-sheet leverage and weak cash-flow signals despite strong reported profitability. Technical indicators are mixed with negative momentum versus mid-term averages, while valuation appears high at a 36.5 P/E without a dividend. A positive offset is the completed acquisition supporting the company’s stated portfolio-expansion strategy.

Positive Factors

High margins

Sustained very high gross and improved net margins indicate a capital-light, licensing/royalty-driven business mix with low direct costs. This margin profile supports durable profitability, funds reinvestment or M&A, and underpins a higher return on equity over multiple quarters.

Collaboration/licensing revenue model

A revenue model centered on collaborations, milestones and royalties creates non-dilutive, partner-funded development and predictable long-term royalty streams. Structural partner funding reduces capital needs for R&D and shifts development risk, supporting sustainable cash inflows over time.

Portfolio expansion via acquisitions

Active acquisitions to build a diversified royalty portfolio materially shift company exposure from single assets to a basket of royalties. This structural diversification can smooth revenue volatility, increase recurring income potential, and strengthen long-term cash generation if integration succeeds.

Negative Factors

High leverage

A debt-to-equity ratio of 1.50 indicates elevated leverage for a biotech/royalty vehicle, reducing financial flexibility. Higher interest and principal obligations can constrain capital allocation, increase refinancing risk in stress, and force asset monetization or equity issuance during downturns.

Weak cash conversion

Sharp negative FCF growth and an OCF-to-net-income ratio of 0.20 show earnings are not converting into cash reliably. Over months, poor cash conversion undermines the company’s ability to self-fund R&D, meet debt service, or support acquisitions without external financing or asset sales.

Modest revenue growth

Top-line expansion is limited at under 5% TTM, which constrains scalability even with high margins. Without stronger revenue growth or realized milestone/royalty flows from acquisitions, sustaining margin-driven profits and funding future pipeline investments could require additional capital or deal-dependent outcomes.

Xoma Business Overview & Revenue Model

Company Description

XOMA 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 Money

Xoma generates revenue primarily through collaborations and licensing agreements with larger pharmaceutical companies, which pay for the rights to develop and commercialize Xoma's proprietary products. The company's revenue model includes upfront payments, milestone payments tied to the achievement of specific development or regulatory goals, and royalties on sales of partnered products. Additionally, Xoma may engage in research and development services for partners, further contributing to its income. Significant partnerships with established pharmaceutical firms enhance Xoma's revenue potential and enable it to access resources and expertise necessary for advancing its product pipeline.

Xoma Financial Statement Overview

Summary

Xoma's financial performance is mixed. While there is revenue growth, significant challenges exist with profitability and cash flow management. The company relies heavily on debt, which is risky without improved margins. Strategic cost management is crucial for stability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.11M	28.49M	4.76M	6.03M	38.16M	29.39M
Gross Profit	44.16M	28.28M	4.62M	5.75M	37.99M	29.21M
EBITDA	10.42M	-5.42M	-22.56M	-16.84M	16.52M	13.81M
Net Income	19.34M	-13.82M	-40.83M	-17.10M	15.80M	13.30M
Balance Sheet
Total Assets	263.15M	221.28M	234.30M	140.38M	166.56M	125.28M
Cash, Cash Equivalents and Short-Term Investments	92.00M	105.18M	153.45M	58.16M	94.10M	84.22M
Total Debt	131.91M	119.20M	124.45M	34.00K	229.00K	21.26M
Total Liabilities	155.19M	139.36M	145.58M	16.37M	24.69M	38.86M
Stockholders Equity	107.96M	81.92M	88.72M	124.01M	141.88M	86.42M
Cash Flow
Free Cash Flow	5.39M	-13.77M	-18.18M	-28.13M	-3.82M	8.88M
Operating Cash Flow	5.39M	-13.75M	-18.16M	-12.88M	22.68M	10.09M
Investing Cash Flow	-4.89M	-28.26M	-711.00K	-20.22M	-26.50M	-209.00K
Financing Cash Flow	-16.76M	-11.13M	120.59M	-4.45M	12.84M	19.79M

Xoma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 29.92 is above the 20-day moving average (MA) of 26.62, below the 50-day MA of 30.09, and above the 200-day MA of 28.87, indicating a neutral trend. The MACD of -0.70 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 65.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XOMA.

Xoma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLUE	75 Outperform	$1.65B	82.87	9.28%	―	1112.27%	―
INBX	62 Neutral	$1.09B	-7.35	-144.07%	―	―	―
RAPT	60 Neutral	$864.58M	-2.82	-85.37%	―	―	50.23%
XOMA	57 Neutral	$370.50M	40.13	16.22%	―	118.02%	―
OCGN	54 Neutral	$465.36M	-6.88	-289.93%	―	14.26%	-23.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CRVS	50 Neutral	$516.80M	-12.94	-35.82%	―	―	79.27%

Xoma Corporate Events

Xoma Completes Acquisition of Mural Oncology

On December 5, 2025, XOMA Royalty Corporation completed its acquisition of Mural Oncology plc, following the Irish High Court’s sanctioning of the scheme of arrangement. Mural’s shareholders received $2.035 per share, and Mural’s shares were delisted from Nasdaq. This acquisition aligns with XOMA’s strategy to expand its portfolio of royalty rights in the biotech sector, potentially enhancing its market position and offering new opportunities for stakeholders.

The most recent analyst rating on (XOMA) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Xoma stock, see the XOMA Stock Forecast page.

XOMA Completes Acquisition of LAVA Therapeutics

XOMA Royalty Corporation, a company involved in royalty monetization, entered into a share purchase agreement with LAVA Therapeutics N.V., a Dutch company, on August 3, 2025. On November 21, 2025, XOMA announced the expiration of the Subsequent Offering Period and the completion of the Post-Offer Reorganization, which resulted in LAVA shareholders receiving cash and contingent value rights for their shares, marking a significant step in XOMA’s acquisition strategy.

The most recent analyst rating on (XOMA) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Xoma stock, see the XOMA Stock Forecast page.