Xoma (XOMA) AI Stock Analysis

• Market Cap: $340.58M
• Dividend Yield: N/A
• Average Volume (3M): 37.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 194.98%
• EPS Growth: 38.01%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): 0.44
• Shares Outstanding: 12,087,719
• 10 Day Avg. Volume: 37,311
• 30 Day Avg. Volume: 37,495
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 12.92
• Enterprise Value/Gross Profit: 13.33
• Enterprise Value/Ebitda: -1.63K
• 1Y Price Target: $62.00
• Price Target Upside: 96.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 52 Neutral
• Price Target: $27.00 ▼(-14.53% Downside)

Xoma's overall stock score reflects a mixed financial performance with potential for recovery, but significant risks remain due to profitability challenges and high debt reliance. Technical analysis provides some positive signals, but valuation concerns weigh heavily on the score.

Positive Factors

Acquisitions and Portfolio Expansion

XOMA completed 3 acquisitions and secured additional royalty rights to mezagitamab.

Financial Position

The acquisition of HilleVax Inc. brings in significant non-dilutive capital, enhancing XOMA's financial position.

Strategic Positioning

XOMA is strategically positioned with a diversified portfolio of royalty-bearing assets across various indications, each with unique stages of development and risk profiles.

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.

Regulatory and Pricing Risks

The risk of most-favored-nation pricing has potential implications for the entire biopharmaceutical sector.

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 through a combination of product sales, licensing agreements, and collaboration partnerships. Its primary revenue stream comes from the commercialization of its proprietary therapeutic products, which may include royalties from sales of treatments developed in collaboration with other pharmaceutical companies. Additionally, Xoma engages in strategic partnerships and collaborations with larger biotech and pharmaceutical firms, which often involve upfront payments, milestone payments tied to developmental successes, and royalties on future sales. These partnerships are crucial as they provide funding for research and development efforts while expanding the company's reach in the market.

Xoma Financial Statement Overview

Summary

Xoma's financial performance is mixed, with revenue growth indicating potential recovery. However, profitability issues and reliance on debt pose significant risks. Strategic cost management is essential for improvement.

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	38.58M	28.49M	4.76M	6.03M	38.16M	29.39M
Gross Profit	37.38M	28.28M	4.62M	5.75M	37.99M	29.21M
EBITDA	-305.00K	-5.42M	-39.36M	-16.84M	16.52M	13.81M
Net Income	-11.95M	-13.82M	-40.83M	-17.10M	15.80M	13.30M
Balance Sheet
Total Assets	223.46M	221.28M	234.30M	140.38M	166.56M	125.28M
Cash, Cash Equivalents and Short-Term Investments	83.94M	105.18M	153.45M	58.16M	94.10M	84.22M
Total Debt	114.58M	119.20M	124.45M	34.00K	229.00K	21.26M
Total Liabilities	131.00M	139.36M	145.58M	16.37M	24.69M	38.86M
Stockholders Equity	92.45M	81.92M	88.72M	124.01M	141.88M	86.42M
Cash Flow
Free Cash Flow	-9.33M	-13.77M	-18.18M	-36.13M	-3.82M	8.88M
Operating Cash Flow	-9.33M	-13.75M	-18.16M	-12.88M	22.68M	10.09M
Investing Cash Flow	-33.60M	-28.26M	-711.00K	-20.22M	-26.50M	-209.00K
Financing Cash Flow	-11.96M	-11.13M	120.59M	-4.45M	12.84M	19.79M

Xoma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 31.59 is above the 20-day moving average (MA) of 26.74, above the 50-day MA of 26.27, and above the 200-day MA of 25.75, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 69.52 is Neutral, neither overbought nor oversold. The STOCH value of 88.12 is Negative, 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
Sector *	60 Neutral	HK$18.14B	5.28	-4.00%	3.33%	10.16%	-17.39%
OABI	56 Neutral	$245.40M	―	-22.84%	―	6.05%	2.24%
XOMA	52 Neutral	$340.58M	―	-12.42%	―	194.98%	38.01%
PVLA	52 Neutral	$477.72M	―	-68.21%	―	-97.15%	54.85%
VNDA	48 Neutral	$254.67M	―	-13.01%	―	11.78%	-504.50%
VSTM	44 Neutral	$505.29M	―	-437.92%	―	-78.63%	1.88%
HUMA	42 Neutral	$284.28M	―	-257.38%	―	―	63.92%

Xoma Corporate Events

Xoma Stockholders Approve Key Proposals at Annual Meeting

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.