Xoma (XOMA) AI Stock Analysis

• Market Cap: $290.44M
• Dividend Yield: N/A
• Average Volume (3M): 40.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 638.41%
• EPS Growth: 71.89%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): 0.06
• Shares Outstanding: 11,966,889
• 10 Day Avg. Volume: 28,169
• 30 Day Avg. Volume: 40,106
• PEG Ratio: 0.70
• Price to Book (P/B): 5.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.21
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 4.23
• Enterprise Value/Ebitda: -1.30
• 1Y Price Target: $69.50
• Price Target Upside: 186.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 51 Neutral
• Price Target: $24.50 ▲(0.95%Upside)

Xoma faces significant financial and valuation challenges, with negative profitability and cash flow issues despite revenue growth potential. Neutral technical indicators provide a mixed short-term outlook. High debt reliance without a dividend yield or positive earnings presents notable risks.

Positive Factors

Earnings

XOMA reported revenue of $15.9M, which is 90% above the estimated $8.2M, showcasing strong financial performance.

Pipeline and Milestones

XOMA anticipates four major pipeline milestones, including potential EMA approval of Ojemda and topline results from seralutinib, which could drive future growth.

Portfolio Expansion

XOMA has expanded its commercial asset portfolio to six products, which is expected to boost revenues by over 20% annually.

Negative Factors

Competitive Challenges

The competitive landscape in both ITP and IgA Nephropathy presents challenges, with multiple CD38-targeting therapies in development.

Drug Pricing Pressure

The biopharmaceutical industry has to navigate President Trump's agenda to take U.S. drug prices down, impacting potential profitability.

Valuation Concerns

Despite a strong recovery from post-COVID-19 lows, XOMA's valuation still lags behind comparable companies, suggesting potential undervaluation concerns.

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's financial statements indicate a mix of potential and challenges. Revenue growth shows promise, but profitability issues persist with negative margins and over-reliance on debt. Effective cost management and cash flow improvements are crucial.

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
36.54M	28.49M	4.76M	6.03M	38.16M	29.39M
	Gross Profit
35.99M	28.28M	3.86M	5.93M	37.99M	29.21M
	EBIT
-18.04M	-39.98M	-41.85M	-17.41M	17.53M	12.42M
	EBITDA
-16.81M	-5.42M	-39.36M	-16.84M	16.52M	13.81M
	Net Income Common Stockholders
-2.86M	-13.82M	-40.83M	-17.10M	15.80M	13.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
90.27M	105.18M	153.45M	58.16M	94.10M	84.22M
	Total Assets
212.75M	221.28M	234.30M	140.38M	166.56M	125.28M
	Total Debt
114.45M	119.20M	124.45M	34.00K	229.00K	21.26M
	Net Debt
24.19M	17.54M	-28.84M	-57.79M	-93.10M	-62.96M
	Total Liabilities
128.12M	139.36M	145.58M	16.37M	24.69M	38.86M
	Stockholders Equity
84.63M	81.92M	88.72M	124.01M	141.88M	86.42M
Cash Flow		Free Cash Flow
-6.69M	-13.77M	-18.18M	-36.13M	-3.82M	8.88M
	Operating Cash Flow
-6.68M	-13.75M	-18.16M	-12.88M	22.68M	10.09M
	Investing Cash Flow
-27.71M	-28.26M	-711.00K	-20.22M	-26.50M	-209.00K
	Financing Cash Flow
-12.98M	-11.13M	120.59M	-4.45M	12.84M	19.79M

Xoma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XOMA, the sentiment is Negative. The current price of 24.27 is below the 20-day moving average (MA) of 25.07, above the 50-day MA of 23.85, and below the 200-day MA of 26.03, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.23 is Neutral, neither overbought nor oversold. The STOCH value of 27.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XOMA.

Xoma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
PVLA	52 Neutral	$258.92M	―	-68.21%	―	-97.15%	54.85%
XOMA	51 Neutral	$290.44M	―	-3.42%	―	638.41%	71.89%
OABI	51 Neutral	$217.76M	―	-21.32%	―	27.07%	6.74%
VNDA	48 Neutral	$269.92M	―	-8.38%	―	3.18%	-835.29%
VSTM	44 Neutral	$307.72M	―	-2159.50%	―	―	14.39%
HUMA	42 Neutral	$373.84M	―	-257.38%	―	―	-17.92%

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.