Xencor (XNCR) AI Stock Analysis

• Market Cap: $750.42M
• Dividend Yield: N/A
• Average Volume (3M): 936.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -36.72%
• EPS Growth: -64.37%
• Country: US
• Employees: 250
• Sector: Healthcare
• Sector Strength: 64
• Industry: Biotechnology
• EPS (TTM): -3.64
• Shares Outstanding: 70,461,940
• 10 Day Avg. Volume: 1,069,690
• 30 Day Avg. Volume: 936,665
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.42
• Price to Cash Flow (P/CF): -4.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $29.50
• Price Target Upside: 171.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Xencor's stock score reflects significant financial challenges, particularly with revenue and profitability. The bearish technical indicators further highlight negative sentiment. However, the recent addition of an experienced board member may offer strategic benefits moving forward.

Positive Factors

Financial Position

Xencor ended the quarter with cash and cash equivalents of $707M, providing a cash runway into 2028.

Pipeline Potential

Xencor continues to have a healthy pipeline of ongoing oncology and autoimmune assets in the clinic, both wholly owned and partnered out, which are viewed as long-term value drivers.

Technology Platform

Xencor's Xtend and bispecific T-cell engager platforms have shown a proof-of-concept of efficacy and safety across multiple assets and indications.

Negative Factors

Development Setbacks

XNCR announced that they have deprioritized vudalimab and are evaluating future development options for XmAb808.

Stock Performance

The stock is down -35% YTD compared to XBI -2%.

Xencor Business Overview & Revenue Model

Company Description

Xencor, Inc. is a clinical-stage biopharmaceutical company that focuses on the development of engineered monoclonal antibodies for the treatment of cancer and autoimmune diseases. The company leverages its proprietary XmAb technology platform to create next-generation antibody product candidates designed to improve the potency, safety, and half-life of biologics. Xencor's lead clinical programs include candidates for the treatment of various cancers, as well as autoimmune and allergic diseases.

How the Company Makes Money

Xencor generates revenue primarily through strategic collaborations and licensing agreements with leading pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and royalties on sales of products developed using Xencor's technology. The company also conducts in-house clinical trials and research to advance its proprietary drug candidates, which may eventually lead to commercialized products that generate revenue directly through sales, pending successful regulatory approvals.

Xencor Financial Statement Overview

Summary

Xencor faces significant financial challenges, highlighted by a complete revenue loss in 2024 and persistent negative net income. While the balance sheet is relatively stable with strong cash reserves, the increasing debt levels and negative cash flow from operations suggest reliance on external funding. Overall, there are major risks in profitability and revenue generation.

Income Statement

Xencor's income statement reveals significant challenges with profitability. The company experienced a drastic revenue drop to zero in 2024, alongside persistent negative net income and EBIT over recent years. Gross profit margins have been consistently negative or zero, indicating issues in cost management or revenue generation. Revenue growth has been volatile, with the most recent year showing a complete revenue loss, severely impacting profit margins and overall financial health.

Balance Sheet

Xencor maintains a relatively stable balance sheet with a strong equity base, reflected in a decent equity ratio. However, rising debt levels contribute to a deteriorating debt-to-equity ratio. Return on equity is negative due to continued net losses, although the company has a healthy asset base and significant cash reserves, providing some financial stability amidst operational challenges.

Cash Flow

Cash flow analysis shows significant negative free cash flow in recent years, indicating struggles in generating cash from operations. The operating cash flow to net income ratio is unfavorable due to persistent losses. Despite this, the company maintains a solid cash position, which has been bolstered by financing activities, suggesting reliance on external funding to sustain operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
110.49M	168.34M	164.58M	275.11M	122.69M
	Gross Profit
110.49M	-85.26M	155.78M	267.62M	-47.11M
	EBIT
-178.41M	-138.64M	-82.47M	43.77M	-76.80M
	EBITDA
-186.17M	-125.87M	-72.16M	51.26M	-71.00M
	Net Income Common Stockholders
-232.62M	-126.09M	-55.18M	82.63M	-63.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
449.85M	593.73M	623.06M	334.11M	603.00M
	Total Assets
951.95M	952.69M	846.27M	838.21M	703.24M
	Total Debt
68.35M	83.43M	59.63M	33.97M	11.63M
	Net Debt
27.47M	29.64M	5.69M	-109.51M	-151.92M
	Total Liabilities
277.92M	283.56M	118.77M	104.71M	130.80M
	Stockholders Equity
677.61M	668.80M	727.50M	733.50M	572.44M
Cash Flow		Free Cash Flow
-208.28M	63.86M	-18.92M	-32.83M	-18.77M
	Operating Cash Flow
-202.19M	85.11M	24.48M	-16.85M	-5.00M
	Investing Cash Flow
-7.87M	-111.06M	-119.72M	-46.25M	100.19M
	Financing Cash Flow
197.15M	26.18M	5.70M	43.04M	18.04M

Xencor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XNCR, the sentiment is Negative. The current price of 10.87 is above the 20-day moving average (MA) of 9.68, below the 50-day MA of 12.56, and below the 200-day MA of 18.73, indicating a neutral trend. The MACD of -0.84 indicates Negative momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 90.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XNCR.

Xencor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVXL	62 Neutral	$753.67M	―	-37.72%	―	―	-3.08%
ARVN	52 Neutral	$614.82M	―	-35.41%	―	-39.92%	7.38%
Sector *	51 Neutral	$5.20B	3.26	-40.34%	2.93%	17.68%	1.94%
XERS	46 Neutral	$631.15M	―	222.83%	―	23.89%	16.86%
XNCR	40 Underperform	$750.42M	―	-34.74%	―	-36.72%	-64.37%
NTLA	40 Underperform	$860.23M	―	-54.00%	―	59.55%	3.09%
RCKT	37 Underperform	$764.53M	―	-54.14%	―	―	6.99%

Xencor Corporate Events

Xencor Appoints Todd Simpson to Board of Directors

On March 13, 2025, Xencor announced the appointment of Todd Simpson to its Board of Directors and Audit Committee. With over 40 years of experience in financial leadership roles, including as CFO at Seagen Inc., Simpson’s expertise is expected to enhance Xencor’s strategic and operational capabilities, potentially strengthening its position in the biopharmaceutical industry.