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

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XOMA

Xoma

(NASDAQ:XOMA)

Rating:53Neutral
Price Target:
$26.00
▲(0.27%Upside)
Xoma's overall stock score reflects a company with potential revenue growth but significant challenges in profitability and cash flow that must be addressed. Technical analysis suggests a neutral trend, with no strong bullish or bearish signals. Valuation concerns due to unprofitability further weigh down the score.
Positive Factors
Pipeline Milestones
XOMA anticipates four major pipeline milestones in 2025, including potential EMA approval of Ojemda and topline results from seralutinib.
Revenue Growth
XOMA reported 1Q25 revenue of $15.9M, 90% above the estimate of $8.2M.
Royalty Expansion
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 risk of most-favored-nation pricing has potential implications for the entire biopharmaceutical sector.

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 performance is mixed, with significant challenges in profitability and cash flow management. Revenue growth is promising, but high reliance on debt and negative profit margins present risks. Strategic cost management is crucial for improvement.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue28.49M4.76M6.03M38.16M29.39M
Gross Profit28.28M3.86M5.93M37.99M29.21M
EBITDA-5.42M-39.36M-16.84M16.52M13.81M
Net Income-13.82M-40.83M-17.10M15.80M13.30M
Balance Sheet
Total Assets221.28M234.30M140.38M166.56M125.28M
Cash, Cash Equivalents and Short-Term Investments105.18M153.45M58.16M94.10M84.22M
Total Debt119.20M124.45M34.00K229.00K21.26M
Total Liabilities139.36M145.58M16.37M24.69M38.86M
Stockholders Equity81.92M88.72M124.01M141.88M86.42M
Cash Flow
Free Cash Flow-13.77M-18.18M-36.13M-3.82M8.88M
Operating Cash Flow-13.75M-18.16M-12.88M22.68M10.09M
Investing Cash Flow-28.26M-711.00K-20.22M-26.50M-209.00K
Financing Cash Flow-11.13M120.59M-4.45M12.84M19.79M

Xoma Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.93
Price Trends
50DMA
25.85
Positive
100DMA
23.72
Positive
200DMA
25.85
Positive
Market Momentum
MACD
0.08
Positive
RSI
48.96
Neutral
STOCH
6.65
Positive
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 25.93 is below the 20-day moving average (MA) of 26.59, above the 50-day MA of 25.85, and above the 200-day MA of 25.85, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 6.65 is Positive, 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 (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
$263.02M-21.32%27.07%6.74%
54
Neutral
€4.73B16.17-48.29%2.24%15.31%-8.26%
53
Neutral
$310.30M-3.42%638.41%71.89%
52
Neutral
$424.87M-68.21%-97.15%54.85%
48
Neutral
$285.24M-8.38%3.18%-835.29%
44
Neutral
$293.98M-2159.50%14.39%
42
Neutral
$423.47M-257.38%-17.92%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XOMA
Xoma
25.81
-3.43
-11.73%
VNDA
Vanda
4.79
-1.39
-22.49%
VSTM
Verastem
5.29
2.33
78.72%
PVLA
Palvella Therapeutics
38.63
21.62
127.10%
HUMA
Humacyte
2.67
-5.27
-66.37%
OABI
OmniAb
2.12
-2.72
-56.20%

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 24, 2025