MeritValue

Xencor Inc

XNCRdata completeness 100%14 fiscal years on file
The thesis, from the filings

Xencor Inc earns about -7% on invested capital, but has diluted owners by 23% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$275.1M1$164.6M2$174.6M3$110.5M3$125.6M3
Net income$82.6M4−$55.2M5−$133.1M6−$232.6M6−$91.9M6
Operating cash flow−$16.9M7$24.5M8−$77.9M9−$202.2M9−$135.1M9
Capital expenditure$13.3M10$38.5M11$18.4M12$6.1M12$3.15M12
Free cash flow (derived)−$30.2M7−$14M8−$96.4M9−$208.3M9−$138.3M9
Total debt—$013$189.5M14$163.6M15$119.7M15
Cash & equivalents$143.5M16$53.9M17$53.8M17$40.9M18$54.1M18
Diluted shares60.5M59.7M60.5M65.0M74.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$85.61
your share of equity
Profit it earned you last year
−$12.38
Free cash flow it threw off
−$18.62
Debt you’d be carrying
$16.13

10 shares is a claim on $85.61 of net worth that earned you −$12.38 and generated −$18.62 of cash last year, against $16.13 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-7% avg · 5y
FY21 14%FY22 -6%FY23 -11%FY24 -20%FY25 -10%

It earned an average -7% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+23% shares · 5y

Share count is up 23% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K/A · period ending 2021-12-31 · accession 0001326732-25-000015 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001326732-25-000029 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001326732-26-000015 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K/A · period ending 2021-12-31 · accession 0001326732-25-000015 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001326732-25-000029 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001326732-26-000015 (NetIncomeLoss)
  7. 10-K/A · period ending 2021-12-31 · accession 0001326732-25-000015 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001326732-25-000029 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001326732-26-000015 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K/A · period ending 2021-12-31 · accession 0001326732-25-000015 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001326732-25-000029 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001326732-26-000015 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K/A · period ending 2022-12-31 · accession 0001326732-25-000015 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-12-31 · accession 0001326732-25-000029 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-12-31 · accession 0001326732-26-000015 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2021-12-31 · accession 0001628280-23-005127 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2022-12-31 · accession 0001326732-25-000029 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-12-31 · accession 0001326732-26-000015 (CashAndCashEquivalentsAtCarryingValue)