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Xencor Inc. (XNCR)
:XNCR
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Xencor
(NASDAQ:XNCR)37Underperform
Positive Factors
Financial Position
Xencor ended the quarter with cash and cash equivalents of $707M, providing a cash runway into 2028.
Pipeline Development
XNCR continues to push its T-cell engager programs forward given the observation of continuous clinical validation of this drug class.
Negative Factors
Stock Performance
The stock is down -35% YTD compared to XBI -2%.
Xencor (XNCR) vs. S&P 500 (SPY)
Market Cap
$960.40M
Dividend YieldN/A
Average Volume (3M)536.58K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth-36.72%
EPS Growth-64.37%
CountryUS
Employees280
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.64
Shares Outstanding70,461,940
10 Day Avg. Volume689,757
30 Day Avg. Volume536,580
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.85
Price to Cash Flow (P/CF)-4.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.56Price Target Upside116.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
Xencor Business Overview & Revenue Model
Company DescriptionXencor, 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 MoneyXencor 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, with zero revenue in 2024 and persistent negative net income. The balance sheet shows stable equity and cash reserves, but rising debt levels and negative cash flow from operations indicate reliance on external funding and operational struggles.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.30
Negative
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.45
Neutral
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.40
Negative
| 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
Negative
13.63
Price Trends
18.28
Negative
20.89
Negative
20.26
Negative
Market Momentum
-1.31
Negative
21.86
Positive
14.27
Positive
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 13.63 is below the 20-day moving average (MA) of 15.02, below the 50-day MA of 18.28, and below the 200-day MA of 20.26, indicating a bearish trend. The MACD of -1.31 indicates Negative momentum. The RSI at 21.86 is Positive, neither overbought nor oversold. The STOCH value of 14.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XNCR.
Xencor Risk Analysis
Xencor disclosed 48 risk factors in its most recent earnings report. Xencor reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Xencor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $348.86M | 20.10 | 531.78% | ― | 18.97% | ― | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $38.39M | ― | 60.38% | ― | 16.15% | 59.81% | |
49 Neutral | $1.21B | ― | -35.41% | ― | -39.92% | 7.38% | |
44 Neutral | $115.17M | ― | -53.54% | ― | 145.37% | 57.01% | |
37 Underperform | $960.40M | ― | -34.74% | ― | -36.72% | -64.37% |
* Healthcare Sector Average
Performance Comparison
XNCR
Xencor
13.45
-9.35
-41.01%
RIGL
Rigel
19.53
4.63
31.07%
FGEN
FibroGen
0.38
-1.51
-79.89%
ADAP
Adaptimmune Therapeutics
0.45
-1.04
-69.80%
ARVN
Arvinas Holding Company
8.30
-37.18
-81.75%
Xencor Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -9.01% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant pipeline progress and a strong financial position. However, safety concerns with vudalimab and a strategic pause on XmAb564 development were noted.Highlights
Strong Financial Position
Xencor ended 2023 with $697 million, providing runway into 2027 due to robust milestone and royalty revenues.
Clinical Pipeline Progress
Significant advancement in bispecific T-cell engagers for solid tumors, including vudalimab in prostate and lung cancer.
Encouraging Vudalimab Data
The prostate cancer monotherapy cohort showed a RECIST response rate of 35% and a disease control rate of 50%.
XmAb Bispecific Technology Development
XmAb bispecific technology shows promise for solid tumor selectivity, with ongoing studies in renal and prostate cancer.
Lowlights
Safety Concerns with Vudalimab
One case of Grade 5 immune-related hepatitis was reported, raising safety considerations for the treatment.
Pause on XmAb564 Development
Development paused to focus on T-cell engagers, pending further validation of cytokines.
Company Guidance
During Xencor's fourth-quarter 2023 earnings call, the company provided comprehensive guidance on its clinical pipeline and financial outlook. They highlighted a significant focus on the development of bispecific T-cell engagers for solid tumors, including XmAb819 and XmAb808, with ongoing Phase I studies in renal cell carcinoma and prostate cancer, respectively. Vudalimab, a key candidate, showed promising monotherapy results in heavily pre-treated metastatic castrate-resistant prostate cancer patients, with a RECIST response rate of 35% and a PSA90 rate of 25%. Financially, Xencor bolstered its balance sheet through the partial monetization of Ultomiris and Monjuvi royalties, ending 2023 with $697 million, ensuring operational runway until 2027. The company's 2024 priorities include advancing its solid tumor bispecific programs and selecting the next IND candidate, while maintaining a strategic focus on T-cell engager discovery and development.Xencor Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Xencor Highlights Progress in Drug Development Pipeline
Positive
Jan 13, 2025
Xencor announced updates on its drug development pipeline, highlighting significant progress in several clinical and preclinical programs as of December 31, 2024. Key developments include new data on XmAb541’s selectivity for CLDN6, deep peripheral B-cell depletion observed with plamotamab in lymphoma patients, and resumed dose escalation for XmAb808. Additionally, the company has completed enrollment in three ongoing studies of vudalimab, marking important milestones towards advancing its portfolio of XmAb drug candidates. These advancements reinforce Xencor’s strategic focus on optimizing its antibody platforms to enhance patient outcomes and broaden its market presence in the biopharmaceutical industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.