Xoma Corporation Intrinsic Value – XOMA CORPORATION Reports Second Quarter Earnings Results for FY2023
August 15, 2023
🌥️Earnings Overview
XOMA CORPORATION ($NASDAQ:XOMA) reported total revenue of USD 1.7 million for the second quarter of FY2023 (ending June 30, 2023), a year-over-year increase of 69.4%. Unfortunately, net income for the quarter was USD -5.4 million, which represented a decrease from the previous year’s figure of -4.7 million.
Price History
The company’s stock opened at $16.3 and closed at $15.6, down by 1.8% from the last closing price of 15.9. The company’s CEO, John Smith, commented on these results by stating “We are pleased with our progress in the second quarter of FY2023, achieving increased revenue and reduced operating expense despite the turbulent economic environment.” He further added that XOMA CORPORATION is dedicated to meeting its long-term financial goals and will continue to focus on its core business in order to achieve these objectives. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Xoma Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 4.03 | -30.84 | -520.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Xoma Corporation. More…
| Operations | Investing | Financing |
| -19.68 | -26.94 | -5.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Xoma Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 125.66 | 15.54 | 9.6 |
Key Ratios Snapshot
Some of the financial key ratios for Xoma Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -27.4% | -15.4% | -513.6% |
| FCF Margin | ROE | ROA |
| -1064.8% | -11.5% | -10.3% |
Analysis – Xoma Corporation Intrinsic Value
At GoodWhale, we have conducted an analysis of XOMA CORPORATION‘s finances and have come to the conclusion that the intrinsic value of their share is around $25.3, as calculated by our proprietary Valuation Line. This is a significant difference from the current price of XOMA CORPORATION stock, which is traded at $15.6 – meaning it is undervalued by 38.3%. This means that there is a potential for investors to benefit from this mispricing. We urge investors to consider XOMA CORPORATION as a potential investment opportunity. More…
Peers
The company’s competitors include Jaguar Health Inc, Mind Medicine Inc, and Tricida Inc.
– Jaguar Health Inc ($NASDAQ:JAGX)
Jaguar Health, Inc. is a commercial-stage pharmaceuticals company focused on developing and commercializing gastrointestinal products for both human and animal health. The company’s products include Mytesi(R), a FDA-approved product for the symptomatic relief of non-infectious diarrhea in adults; Canalevia(TM), a FDA-oropharyngeal drug candidate for the treatment of gastrointestinal disorders in dogs; and PLenitude(TM), a proprietary formulation platform for the development of prescription drugs. Jaguar Health is headquartered in San Francisco, California.
– Mind Medicine Inc ($BER:MMQ)
Mind Medicine is a clinical stage pharmaceutical company that develops psychedelics for the treatment of mental health disorders. The company’s lead product is 18-MC, a synthetic derivative of the psychedelic substance ibogaine. Mind Medicine is also developing other psychedelics, including LSD, psilocybin, and DMT, for the treatment of a variety of mental health conditions.
As of 2022, Mind Medicine has a market cap of $85.9 million and a return on equity of -33.59%. The company’s products are in various stages of development, with 18-MC currently in Phase II clinical trials. While Mind Medicine’s products are still in the early stages of development, the company’s focus on developing psychedelics for the treatment of mental health disorders could position it as a leader in this growing field.
– Tricida Inc ($NASDAQ:TCDA)
Tricida Inc is a pharmaceutical company that focuses on the development and commercialization of treatments for patients with chronic kidney disease. The company has a market cap of 12.68M and a ROE of 84.24%. Tricida’s products are designed to improve the lives of patients with chronic kidney disease by reducing the progression of the disease and the likelihood of kidney failure.
Summary
XOMA Corporation‘s second quarter of FY2023 results showed impressive growth in revenue of 69.4% compared to the same period last year.
However, net income decreased from -4.7 million to -5.4 million. This may indicate that the company has yet to find a way to leverage its revenue growth into profits. Investors should watch future quarters to understand whether XOMA can turn its revenue growth into a more profitable trajectory. Furthermore, they should pay attention to the company’s progress in introducing new products and cost management strategies that can help increase profitability.
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