XOMA Royalty Corporation Common Stock (XOMA)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

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

I look at XOMA through a Graham-and-Buffett lens: what is the business worth, what backs the price, and does it produce cash? XOMA is a royalty aggregator with only 14 employees; it buys rights to future milestone and royalty payments from drugs owned by others. That can be a good model if the contracts are durable, but the supplied figures show lumpiness rather than steady compounding. In the first quarter of fiscal 2026 (the period labeled 2026-Q1), revenue was only $310,000 while net income was $4.5M, a margin of 1440.32%, showing results driven by non-operating or milestone items rather than consistent sales. The supplied growth figures—revenue growth of -92.82% and profit growth of 88.64%—are not tied to a named filed period in the data, so I treat them as a sign of lumpiness rather than smooth progress. Trailing twelve-month free cash flow is -$13.9M, a -3.1% FCF yield, so the company is not currently generating cash on that measure. At the 2026-07-21 close of $40.17, FairStock calculations show a P/E of 25.59, P/B of 5.16, ROE of 34.23%, ROCE of 1.28%, and debt-to-equity of 1.10. The Graham Number is $18.30, implying a margin of safety of -119.51%, meaning the price is far above that asset-and-earnings anchor. The Altman Z-Score of -4.19 flags financial distress risk, while the Piotroski F-Score of 5/9 is middling. PEG of 0.29 and EV/EBITDA of 9.79 look cheaper on growth or EBITDA, but those depend on volatile figures. I see a narrow, contract-dependent business with no clear moat from these numbers and a price that demands optimistic royalty outcomes.

In plain English: XOMA Royalty owns rights to future payments from medicines that other companies develop and sell, and it runs with only 14 employees. The business looks uneven: recent quarterly revenue was very small while net income was positive, and it burned cash over the past year. At $40.17, the stock looks expensive compared with the company's accounting value and cash generation, though profits and some measures give a mixed picture.

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Data as of 2026-07-21 close · note generated 2026-10-15 · model deepseek-flash

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