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XOMA

NEUTRAL
$37.89 Live
XOMA Royalty Corporation · NASDAQ
Target $65.75 (+73.5%)
$22.29 52W Range $40.74

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
XOMA exhibits a stark divergence between deterministic value metrics and market momentum. With a weak Piotroski F-Score of 3/9 and a current price ($37.89) trading significantly above its Graham Number ($15.24) and Intrinsic Value ($10.22), the stock is fundamentally overvalued by traditional standards. However, exceptional profit margins (60.81%) and strong YoY revenue growth (57.9%) support a growth narrative, further bolstered by a high analyst target of $65.75. The overall profile is that of a high-risk, high-reward royalty play with poor traditional health scores but strong operational efficiency.

Key Strengths

Exceptional Profit Margin of 60.81%
Strong YoY Revenue Growth of 57.90%
High Return on Equity (ROE) of 34.12%
Strong short-term liquidity with a Current Ratio of 3.37
Significant analyst upside potential with a target price of $65.75

Key Risks

Weak Piotroski F-Score (3/9) indicating poor financial trend health
Severe overvaluation relative to Graham Number and Intrinsic Value
Negative Q/Q revenue growth of -38.86%
High Price-to-Sales ratio (8.66) compared to typical value benchmarks
High historical earnings volatility with frequent large misses
AI Fair Value Estimate
Based on comprehensive analysis
$22.5
-40.6% below current price

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