Xenon Pharmaceuticals Inc. (XENE)
UndervaluedFundamental
25
Price
$35.34
Market Cap
$3.48B
Part 1 · What the company is worth
Overview
Xenon Pharmaceuticals Inc., a neuroscience-focused biopharmaceutical company, engages in the discovery, development, and delivery of therapeutics to treat patients with neurological and psychiatric disorders. Its product candidates include Azetukalner, a novel, potent Kv7 potassium channel opener which is in Phase 3 clinical development for the treatment of epilepsy, including focal onset seizures, and primary generalized tonic-clonic seizures, as well as neuropsychiatric disorders, such as major depressive disorder and bipolar depression. In addition, the company's Phase 1 Single Ascending Dose/Multiple Ascending Dose products include XEN1701 targeting the sodium channel and XEN1120 targeting the Kv7 potassium channel for the treatment of pain. The company has a license and collaboration agreement with Neurocrine Biosciences, Inc. for the development of NBI-921355, a Nav1.2/1.6 sodium channel inhibitor that is in Phase 1 clinical trials for the treatment of certain types of epilepsy. Xenon Pharmaceuticals Inc. was incorporated in 1996 and is headquartered in Burnaby, Canada.
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Direct competitors
Who this company fights with for the same customers
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Balance Sheet & Liquidity
Revenue
$8M
Fiscal year ended 12/31/2025
Net Income
$-346M
Fiscal year ended 12/31/2025
Free Cash Flow
$-280M
Total Equity
$582M
Total Liabilities
$51M
Current Ratio
21.02
Interest Coverage
-
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$72.43
Current Price
$35.34
Margin of Safety
+51.2%
Fair Value Range
$68.80 - $76.05
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-59.5%
P/B Ratio
2.75
P/FCF
-
Gross Margin
-
ROIC
-27.9%
Profitability Radar
Value Creation (Economic Moat)
ROIC
-27.9%
WACC
8.0%
ROIC − WACC
-35.9 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (6)
- Price CAGR 16.86%
- P/B ratio 2.75
- Debt/equity ratio
- Current ratio
- Low reliance on intangibles
- Share dilution 1.9%
Failed (10)
- EPS shows upward trend
- ROIC -27.9%
- Operating margin -Infinity%
- Positive free cash flow
- Return on tangible assets
- DCF valuation (Overvalued)
- ROE -44.0%
- Revenue growth 5Y -25.3%
- Earnings surprise, average 0.5%
- Piotroski F-Score 2/9
Unavailable (10)
- Gross margin –
- P/FCF –
- Dividend payout –
- CapEx intensity
- Interest coverage
- Debt/EBITDA
- Price below Graham Number
- PEG ratio (needs P/E > 0 and growth > 0)
- Earnings quality (operating cash flow / net income)
- Net margin trend (invalid data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Ian C. Mortimer C.M.A., CPA, M.B.A. | President, CEO & Director | 49 |
| Mr. Thomas Patrick Kelly J.D. | Chief Financial Officer | 54 |
| Ms. Andrea DiFabio J.D. | Chief Legal Officer & Corporate Secretary | 57 |
| Dr. Christopher John Kenney M.D. | Chief Medical Officer | 54 |
| Mr. Darren S. Cline M.B.A. | Chief Commercial Officer | 61 |
| Dr. Matthew D. Ronsheim Ph.D. | Chief Operating Officer | 53 |
| Ms. Shelley McCloskey B.A. | Executive Vice President of Human Resources | 65 |
| Dr. Robin P. Sherrington Ph.D. | Executive Vice President of Strategy & Innovation | 64 |
| Dr. James R. Empfield Ph.D. | Executive Vice President of Drug Discovery | 64 |
| Ms. Colleen Alabiso | Senior Vice President of Corporate Affairs | - |
Audit Risk
5
Board Risk
1
Compensation Risk
8
Shareholder Rights Risk
3
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-26
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-06
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-06
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much XENE moves, measured on its daily prices.
More volatile than 92% of the tracked stocks (90-day volatility).
- Volatility 30d
- 112.6%
- Volatility 90d
- 72.7%
- Beta vs S&P 500 (1y)
- 0.81Correlation 0.15
- Max drawdown (12m)
- -52.8%
- ATR (14d, % of price)
- 4.64%
Earnings reactions
How XENE moved around its past quarterly results.
Next earnings release
Nov 2, 2026 · In 9 days · Time not known
EPS estimate: -1.15Revenue estimate: $0
What usually happens
- Over the last 12 releases the stock moved a median of 3.6% the next day, up or down.
- Next-day moves: up 2, down 10 (out of 12).
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Aug 6, 2026 | After the close | -1.16 | -1.11 | +4.4% | -2.4% | -1.8% | -0.5% |
| May 7, 2026 | After the close | -1.21 | -1.17 | +3.1% | +0.2% | +0.8% | 0.0% |
| Feb 26, 2026 | After the close | -1.22 | -1.31 | -7.8% | +1.1% | -3.8% | -6.4% |
| Nov 3, 2025 | After the close | -1.18 | -1.15 | +2.1% | -3.4% | -4.9% | -6.6% |
| Aug 11, 2025 | After the close | n/a | n/a | n/a | +5.5% | +5.5% | +10.9% |
| May 12, 2025 | After the close | n/a | n/a | n/a | -8.5% | -17.4% | -13.7% |
| Feb 27, 2025 | After the close | n/a | n/a | n/a | -3.4% | -3.4% | -2.7% |
| Nov 12, 2024 | After the close | n/a | n/a | n/a | -0.7% | -3.3% | -10.5% |
| Aug 8, 2024 | After the close | n/a | n/a | n/a | -10.0% | -3.2% | -6.7% |
| May 9, 2024 | After the close | n/a | n/a | n/a | -4.1% | -4.6% | -5.1% |
| Feb 29, 2024 | After the close | n/a | n/a | n/a | +5.3% | -0.8% | -2.2% |
| Nov 8, 2023 | After the close | n/a | n/a | n/a | +4.0% | -6.7% | -9.3% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on XENE and what the price did next.
- 3/9/2026PositiveXenon Pharmaceuticals Rallies After Pivotal Data Shows Major Drop In Monthly Seizures
- +1 day
- +48.8%
- +3 days
- +40.2%
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for XENE.
- 3/9/2026POSITIVEXenon Pharmaceuticals Rallies After Pivotal Data Shows Major Drop In Monthly Seizures
Xenon Pharmaceuticals Inc. experienced a significant share price surge following the release of positive Phase 3 clinical trial data for its drug azetukalner. The pivotal study demonstrated a substantial reduction in monthly seizures for patients treated with the drug. This success paves the way for Xenon to file for FDA approval in 2026. The strong clinical results and clear regulatory path are highly encouraging for investors, potentially positioning azetukalner as a significant new treatment option and driving future revenue growth for the company.