Xenon Pharmaceuticals Inc. Common Shares (XENE)

FairStock Score: 23/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor in the Graham and Buffett tradition, I start with earnings and predictability, and Xenon offers neither today. The company is a neuroscience biotech with 358 employees, and its lead asset, Azetukalner, is still in Phase 3. In fiscal 2025, the year ended 2025-12-31, revenue was only $7.5 million while net loss was $345.9 million, or $4.36 per diluted share. Losses widened from $182.4 million in fiscal 2023, the year ended 2023-12-31, and $234.3 million in fiscal 2024, the year ended 2024-12-31. In fiscal Q2 2026, the quarter ended 2026-06-30, net loss was $110.7 million, or $1.11 per diluted share, after a $102.3 million loss in fiscal Q1 2026, the quarter ended 2026-03-31. Trailing free cash flow is negative $338.5 million, and FairStock’s FCF yield is -10.2%, so the business is consuming capital, not producing it. The balance sheet shows little debt—D/E of 0.01—and FairStock’s Altman Z-Score of 36.55 suggests near-term solvency is not the immediate issue. But the Piotroski F-Score is 1/9, and FairStock’s score is 23/100. Valuation is difficult: the P/E is -7.26 at the 2026-10-13 close because earnings are negative, P/B is 2.68 at that close, and the shares sit near the low end of a 52-week range of $34.38 to $72.66. Peter Lynch category is none because Xenon has lost money in each of the last four years. Without commercial revenue or a durable moat, this is a clinical option, not a Graham bargain. I see no margin of safety in current numbers.

In plain English: Xenon Pharmaceuticals is a small healthcare company trying to develop medicines for brain and nerve disorders. It has very little sales and is losing a lot of money each year, so the business looks weak on current numbers. The stock has fallen to near the bottom of its yearly range, but without profits it is hard to say the price is a bargain based on the financials shown.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer