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Xenon Pharmaceuticals Inc. (XENE)

Undervalued
HealthcareBiotechnologyCanada

Fundamental

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

No editorial profile for this company yet

No competitor list for this company yet.

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

Pre-revenueUndervalued

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

Analyst price target:$72.43
Discounted cash flow (DCF):Not applicable to this type of company
Earnings multiple (P/E):Not applicable to this type of company
Graham growth formula:Not applicable to this type of company
Earnings power value (EPV):Not applicable to this type of company
Justified P/B:Not applicable to this type of company
Dividend discount (Gordon):Not applicable to this type of company
P/FFO, funds from operations:Not applicable to this type of company
Mid-cycle earnings:Not applicable to this type of company
Revenue multiple:Not enough data to compute it
Last Earnings Surprise:+4.36%

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

2/9

Serious financial concerns

ROA > 0
Operating cash flow > 0
ΔROA > 0
Cash flow > net income
Leverage ↓
Current ratio ↑
No dilution
Gross margin ↑
Asset turnover ↑

Earnings Quality

-

Low quality: investigate accounting

Share Dilution

1.9%

Share count is stable

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Ian C. Mortimer C.M.A., CPA, M.B.A.President, CEO & Director49
Mr. Thomas Patrick Kelly J.D.Chief Financial Officer54
Ms. Andrea DiFabio J.D.Chief Legal Officer & Corporate Secretary57
Dr. Christopher John Kenney M.D.Chief Medical Officer54
Mr. Darren S. Cline M.B.A.Chief Commercial Officer61
Dr. Matthew D. Ronsheim Ph.D.Chief Operating Officer53
Ms. Shelley McCloskey B.A.Executive Vice President of Human Resources65
Dr. Robin P. Sherrington Ph.D.Executive Vice President of Strategy & Innovation64
Dr. James R. Empfield Ph.D.Executive Vice President of Drug Discovery64
Ms. Colleen AlabisoSenior Vice President of Corporate Affairs-

Audit Risk

5

Board Risk

1

Compensation Risk

8

Shareholder Rights Risk

3

Documents

  • 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

    View document

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.

VolatilityHigh

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

DateWhen EPS est.EPS actualSurprise Gap 1 day5 days
Aug 6, 2026After the close-1.16-1.11+4.4% -2.4% -1.8% -0.5%
May 7, 2026After the close-1.21-1.17+3.1% +0.2% +0.8% 0.0%
Feb 26, 2026After the close-1.22-1.31-7.8% +1.1% -3.8% -6.4%
Nov 3, 2025After the close-1.18-1.15+2.1% -3.4% -4.9% -6.6%
Aug 11, 2025After the closen/an/an/a+5.5% +5.5% +10.9%
May 12, 2025After the closen/an/an/a-8.5% -17.4% -13.7%
Feb 27, 2025After the closen/an/an/a-3.4% -3.4% -2.7%
Nov 12, 2024After the closen/an/an/a-0.7% -3.3% -10.5%
Aug 8, 2024After the closen/an/an/a-10.0% -3.2% -6.7%
May 9, 2024After the closen/an/an/a-4.1% -4.6% -5.1%
Feb 29, 2024After the closen/an/an/a+5.3% -0.8% -2.2%
Nov 8, 2023After the closen/an/an/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.

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.

  • 3/9/2026POSITIVE
    Xenon 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.