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Xoma Corp (XOMA)
NASDAQ:XOMA
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Xoma (XOMA) AI Stock Analysis

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XOMA

Xoma

(NASDAQ:XOMA)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
$33.00
▼(-10.03% Downside)
Xoma's overall stock score reflects a blend of positive technical momentum and strategic corporate developments, offset by financial challenges and valuation concerns. The merger with Turnstone Biologics is a significant positive factor, while the negative P/E ratio and profitability issues weigh on the score.
Positive Factors
Strategic Merger
The merger with Turnstone Biologics enhances Xoma's market position and operational capabilities, potentially leading to greater innovation and market reach in the biotechnology sector.
Revenue Growth
Strong revenue growth indicates successful product commercialization and effective partnerships, enhancing Xoma's market presence and financial stability.
Strategic Acquisition
Acquiring Mural Oncology can expand Xoma's portfolio and strengthen its position in the oncology market, potentially leading to new revenue streams and market opportunities.
Negative Factors
Profitability Challenges
Negative margins indicate operational inefficiencies and profitability challenges, which could hinder Xoma's ability to reinvest in R&D and growth initiatives.
High Debt Levels
Significant reliance on debt financing may limit financial flexibility and increase risk, impacting long-term sustainability and ability to fund future growth.
Negative Cash Flow
Ongoing negative cash flow suggests cash outflows exceed inflows, which could strain resources and limit Xoma's ability to invest in strategic initiatives without external funding.

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 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. The income statement shows revenue growth but significant profitability challenges with negative margins. The balance sheet indicates moderate health with high debt reliance, and cash flow analysis reveals negative free cash flow, though there's slight improvement potential.
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 Revenue38.58M28.49M4.76M6.03M38.16M29.39M
Gross Profit37.38M28.28M4.62M5.75M37.99M29.21M
EBITDA-305.00K-5.42M-39.36M-16.84M16.52M13.81M
Net Income-11.95M-13.82M-40.83M-17.10M15.80M13.30M
Balance Sheet
Total Assets223.46M221.28M234.30M140.38M166.56M125.28M
Cash, Cash Equivalents and Short-Term Investments83.94M105.18M153.45M58.16M94.10M84.22M
Total Debt114.58M119.20M124.45M34.00K229.00K21.26M
Total Liabilities131.00M139.36M145.58M16.37M24.69M38.86M
Stockholders Equity92.45M81.92M88.72M124.01M141.88M86.42M
Cash Flow
Free Cash Flow-9.33M-13.77M-18.18M-36.13M-3.82M8.88M
Operating Cash Flow-9.33M-13.75M-18.16M-12.88M22.68M10.09M
Investing Cash Flow-33.60M-28.26M-711.00K-20.22M-26.50M-209.00K
Financing Cash Flow-11.96M-11.13M120.59M-4.45M12.84M19.79M

Xoma Technical Analysis

Technical Analysis Sentiment
Positive
Last Price36.68
Price Trends
50DMA
31.80
Positive
100DMA
28.76
Positive
200DMA
26.39
Positive
Market Momentum
MACD
1.32
Positive
RSI
58.35
Neutral
STOCH
58.03
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 36.68 is above the 20-day moving average (MA) of 36.32, above the 50-day MA of 31.80, and above the 200-day MA of 26.39, indicating a bullish trend. The MACD of 1.32 indicates Positive momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 58.03 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
61
Neutral
$443.38M-12.42%194.98%38.01%
53
Neutral
231.77M-2.65-24.24%6.05%2.24%
52
Neutral
659.05M-4.73-97.15%54.85%
48
Neutral
301.35M-4.4711.78%-504.50%
44
Neutral
547.14M-2.53-78.63%1.88%
42
Neutral
274.79M-3.7963.92%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XOMA
Xoma
36.68
10.20
38.52%
VNDA
Vanda
5.10
0.41
8.74%
VSTM
Verastem
8.89
5.90
197.32%
PVLA
Palvella Therapeutics
59.59
43.01
259.41%
HUMA
Humacyte
1.73
-3.71
-68.20%
OABI
OmniAb
1.61
-2.62
-61.94%

Xoma Corporate Events

M&A Transactions
Xoma Completes Merger with Turnstone Biologics Corp
Positive
Aug 15, 2025

On August 11, 2025, XOMA Royalty Corporation completed its merger with Turnstone Biologics Corp., following a successful tender offer for Turnstone’s outstanding shares. This merger, executed without requiring a stockholder vote, positions XOMA as the sole owner of Turnstone, potentially enhancing its market position and operational capabilities in the biotechnology sector.

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: Aug 16, 2025