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XOMA
XOMA ROYALTY CORPORATIONNASDAQHealth CareBiotechnologySnapshot 2026-06-12
Intact
$41.79-0.02%
Close 2026-06-12 · 1-day change
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
The bottom line
Recent financial performance is strong, but earnings quality is fragile, indicating that reported profits may not be well-supported by cash. Risk is elevated, and the sector backdrop presents a headwind, which could impact future performance. Peer multiples imply a price about 73% below where it trades (it looks expensive on this basis); the read is rich, as it trades above peer multiples, and the longer horizon does not make that back through growth. Key factors to watch include guidance changes and sector trends, particularly the performance of major Healthcare companies. This assessment is provisional.
as of 2026-06-12
Quick facts
- Exchange
- NASDAQ
- Sector
- Health Care
- Industry
- Biotechnology
- Market cap
- $738.97M
- Employees
- 14
- IPO date
- 1998-03-19
- Next earnings
- 2026-08-13
Price
Daily closes. Earnings/event dots are placed inline.
Adjusted daily closes (split & dividend). Scroll over the chart to zoom; click a range to reset.
EarningsMaterial event
What's priced in
(what the market already expects)What it's worth (estimated)
A consensus fair price across 5 valuation methods, at three horizons. Current price $41.79. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
12-month· primaryexpensive
$24.58consensus
Range $22.83 – $25.31
vs price: +70% above
Method agreement — · 5 methods
No-growth: today's peer multiple on trailing earnings. The headline read.
3-year—
—consensus
Range — – —
vs price: —
Method agreement —
Embeds projected growth. Leans optimistic by design. Upside context.
5-year—
How much to trust our fair value
We take the 12-month fair value above and grade our own number — how the market prices this name versus what we'd justify, and where the two diverge.
Re-ratingmedium confidence
At $42 XOMA trades at 30× p/e — 1.8× the 16× p/e peer median. The market is re-rating it beyond its own range; our $25 fair value is medium-confidence here. Not investment advice.
Multiple (P/E)
30.0x
peer 16.4x · own history —
Premium
1.8x peer
Growth the price needs
65%
our forecast -60%
Our fair value
$25.31
range $22.83 – $27.31
WhyValuation methods disagree
How this stock is priced
One valuation read at a 12-month horizon, plus how price compares to peers and the company's own history.
Long-term · 1–3 yr
expensiverich12-month view
What's priced inUnjustified
The market is pricing in roughly 65% near-term growth, well above our forecast of about -60%. This describes what's priced in, not a forecast of the move.
High fragilityrisk posture, not a price call
Flags: expensive valuation, weak execution quality, a turbulent sector regime (Heating).
Historical context
For similar setups historically (n=889): about 49% saw a 20%+ drawdown, and roughly 85% of those did not recover within the year. These are historical base rates for the cohort, not a forecast of this stock.
How strong is the business
(quality & execution)Factor signals
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Recent financial performance
strongOperating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Health Care names rated strong grew net income 59% of the time over the next year (vs 52% for the rest of the cohort, n=2344).
72nd pctl · Health Care
Earnings quality
fragileOver the trailing year it converted 0.20x of net income into operating cash flow. Historically, Health Care names rated fragile grew net income 40% of the time over the next year (vs 56% for the rest of the cohort, n=1703).
15th pctl · Health Care
Macro sensitivity
Most sensitive to the broad stock market.
- the broad stock market: This stock moves with the broad market (high beta).
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity, long-term interest rates.
Management & capital allocation
Earnings setup & market context
The next print and the backdrop around it (sector regime and the AI cycle). Context for the path, not a forecast of returns.
Earnings setup · pre-print positioning
forward-looking
BearishEPS revised -23.1% / 30d, n=2for period ending 2026-06-30
Why this setup
Consensus revisions
EPS estimate $0.23 → $0.17 (-23.1% / 30d). 0 raised, 1 cut, 2 covering analysts.
Rating actions
0 upgrades, 0 downgrades / 30d. 0% of analysts rate Buy.
Material events
2 positive, 0 negative / 30d. See F4 management tile for the event list.
Sector context
Intermediate · WeeklySector phase: health care is in maturing, with decelerating (~0.5 years in phase).
Sector regime (90d momentum): headwind.Management scorecard
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Long-term · 1–3 yr
Overall: neutral
- Capital allocation
- strong
- Earnings discipline
- neutral
- Margin discipline
- neutral
- Balance sheet
- weak
- Post-call reaction
- strong
A guidance track record builds as the company issues and delivers on guidance.
How bumpy is the path
(risk while you hold it)Risk: how this stock moves
What a normal day, a bad day, and the worst of the last year would mean for a $10,000 position.
Intermediate · WeeklyLong-term · 1–3 yr
On a typical day, $10k can swing ±$105.
How much price usually moves either way.
On a bad day, this stock has moved -$485.
A rough but not unusual down day (about the 95th percentile).
In the worst 12 months, $10k could have lost $4,237.
Deepest peak-to-trough drop in the last year.
elevatedas of 2026-06-12
Past results, not a forecast. Not investment advice.
What would change the read
(catalysts & re-read triggers)What changed
The most important moves since the prior daily snapshot.
Short-term · Daily
- No material changes since the prior snapshot.
No material changes since the prior snapshot.
as of 2026-06-12
What to watch next
Specific, dated things to watch for, each with what would confirm it and what would prove it wrong.
No named catalysts to watch right now. Check back after the next earnings report.
News catalysts
Recent news graded against this company's own objectives — whether it reinforces or challenges the thesis, and how confirmed it is.
No graded news catalysts for XOMA yet.
This sector is also watching
- Watch for Health Care revenue growth dropping below 8% YoY
What could change this view
Conditional scenarios: if X happens, the view would shift in this direction. These are not predictions.
Intermediate · Weekly
Upside triggers
- If sector bellwethers like VRTX, REGN, and ARGX keep beating earnings and guiding higher, the Healthcare sector momentum should keep lifting XOMA and other Healthcare names. Worth watching these names for early signals.
- If the Fed starts cutting rates from the current 3.62%, that would be a tailwind for XOMA and other Healthcare names, since rate-sensitive parts of the market tend to rally when the Fed eases.
- If XOMA beats again next quarter like it did this past one (a very large beat off a near-zero prior-year base on the 2026-03-31 print), the momentum tends to extend, with Street estimates ratcheting up and the stock typically following.
Downside triggers
- If XOMA reverses and cuts guidance after recently raising (RAISED as of 2026-04-27), that's the worst kind of move: a credibility hit on top of the lower number. Stocks usually get punished disproportionately for this.
- If sector bellwethers like VRTX, REGN, and ARGX start missing or guiding lower, the Healthcare tailwind helping XOMA and other Healthcare names could fade. Watch these names for early warning.
Recent events
(material 8-K / filing activity)Material updates
Recent SEC 8-K filings ranked by likely impact, confidence, and recency.
- 2026-06-121d agoItem 7.01
Regulation FD Disclosure. On June 12, 2026, XOMA Royalty Corporation (the “Company”) issued a press release announcing that it expects the closing of the previously announced acquisition of XOMA Royalty Holdings Corporation (“HoldCo”) by Ligand Pharmaceuticals Incorporated (“Ligand”) to occur on or about July 14, 2026, subject to the satisfaction or waiver of the remaining conditions to closing set forth in the Agreement and Plan of Merger, dated as of April 27, 2026, as amended by that certa…
M&A activitypositive
Score history
Whether the overall read has been drifting up or down lately, and how it's changed since last week.
+5.5 vs last weeklatest as of 2026-06-13
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.