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Xenon Pharmaceuticals Inc. (XENE) Stock Fundamental Analysis & AI Rating 2026

XENE Nasdaq Pharmaceutical Preparations A1 CIK: 0001582313
Recently Updated • Analysis: Apr 19, 2026 • SEC Data: 2025-12-31
STRONG SELL
92% Conf
Pending
Analysis scheduled

📊 XENE Key Takeaways

Revenue: $7.5M
Net Margin: -4,612.1%
Free Cash Flow: $-279.9M
Current Ratio: 13.42x
Debt/Equity: 0.02x
EPS: $-4.36
AI Rating: STRONG SELL with 92% confidence
Xenon Pharmaceuticals Inc. (XENE) receives a STRONG SELL rating with 92% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $7.5M, net profit margin of -4,612.1%, and return on equity (ROE) of -59.5%, Xenon Pharmaceuticals Inc. demonstrates mixed fundamentals in the Healthcare sector. Below is our complete XENE stock analysis for 2026.

Is Xenon Pharmaceuticals Inc. (XENE) a Good Investment?

Claude

Xenon Pharmaceuticals is a pre-revenue stage biotech burning $279M annually with only $7.5M in revenue and $199.2M in remaining cash—providing less than one year of runway at current burn rates. Despite a strong balance sheet and excellent liquidity ratios, the company faces critical execution risk with no visible path to profitability and an unsustainable cash depletion trajectory absent major clinical wins, partnerships, or capital raises.

Why Buy Xenon Pharmaceuticals Inc. Stock? XENE Key Strengths

Claude
  • + Strong balance sheet with $581.8M stockholders equity providing financial cushion
  • + Excellent liquidity position with 13.42x current ratio and minimal debt burden (Debt/Equity 0.02x)
  • + Low leverage with only $10.9M long-term debt reduces financial distress risk in near term

XENE Stock Risks: Xenon Pharmaceuticals Inc. Investment Risks

Claude
  • ! Catastrophic cash burn of $279.1M annually with only $199.2M cash reserves indicating less than one year of operational runway
  • ! Minimal revenue generation of $7.5M indicates no commercialized products and heavy dependency on R&D pipeline success
  • ! Negative operating cash flow and massive operating loss of -$373.1M suggest company is entirely in pre-commercial development phase with high probability of required dilutive financing or failure
  • ! Negative profitability metrics (operating margin -4974%, net margin -4612%) are structurally unsustainable

Key Metrics to Watch

Claude
  • * Quarterly cash burn rate and cash runway remaining until depletion
  • * Clinical trial progress and regulatory milestones for pipeline assets
  • * Revenue growth trajectory and achievement of first commercial product sales
  • * Financing announcements and capital raise activities
  • * Operating expense reduction initiatives and burn rate management

Xenon Pharmaceuticals Inc. (XENE) Financial Metrics & Key Ratios

Revenue
$7.5M
Net Income
$-345.9M
EPS (Diluted)
$-4.36
Free Cash Flow
$-279.9M
Total Assets
$633.2M
Cash Position
$199.2M

💡 AI Analyst Insight

Strong liquidity with a 13.42x current ratio provides a solid financial cushion.

XENE Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin -4,974.3%
Net Margin -4,612.1%
ROE -59.5%
ROA -54.6%
FCF Margin -3,732.2%

XENE vs Healthcare Sector: How Xenon Pharmaceuticals Inc. Compares

How Xenon Pharmaceuticals Inc. compares to Healthcare sector averages

Net Margin
XENE -4,612.1%
vs
Sector Avg 12.0%
XENE Sector
ROE
XENE -59.5%
vs
Sector Avg 15.0%
XENE Sector
Current Ratio
XENE 13.4x
vs
Sector Avg 2.0x
XENE Sector
Debt/Equity
XENE 0.0x
vs
Sector Avg 0.6x
XENE Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Xenon Pharmaceuticals Inc. Stock Overvalued? XENE Valuation Analysis 2026

Based on fundamental analysis, Xenon Pharmaceuticals Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.

Return on Equity
-59.5%
Sector avg: 15%
Net Profit Margin
-4,612.1%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.02x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Xenon Pharmaceuticals Inc. Balance Sheet: XENE Debt, Cash & Liquidity

Current Ratio
13.42x
Quick Ratio
13.42x
Debt/Equity
0.02x
Debt/Assets
8.1%
Interest Coverage
-770.81x
Long-term Debt
$10.9M

XENE Revenue & Earnings Growth: 5-Year Financial Trend

XENE 5-year financial data: Year 2021: Revenue $32.2M, Net Income -$28.8M, EPS N/A. Year 2022: Revenue $32.2M, Net Income -$28.8M, EPS $-0.81. Year 2023: Revenue $18.4M, Net Income -$78.9M, EPS $-1.77. Year 2024: Revenue $9.4M, Net Income -$125.4M, EPS $-2.06. Year 2025: Revenue $7.5M, Net Income -$182.4M, EPS $-2.73.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Xenon Pharmaceuticals Inc.'s revenue has declined by 77% over the 5-year period, indicating business contraction. The most recent EPS of $-2.73 indicates the company is currently unprofitable.

XENE Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-3,732.2%
Free cash flow / Revenue

XENE Quarterly Earnings & Performance

Quarterly financial performance data for Xenon Pharmaceuticals Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 N/A -$47.9M $-0.81
Q2 2025 N/A -$47.9M $-0.75
Q1 2025 N/A -$47.9M $-0.62
Q3 2023 $132.0K -$19.7M $-0.57
Q2 2023 $536.0K -$19.7M $-0.55
Q1 2023 $8.8M -$19.7M $-0.35
Q3 2022 $132.0K -$15.4M $-0.36
Q2 2022 $536.0K -$15.8M $-0.51

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Xenon Pharmaceuticals Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$279.1M
Cash generated from operations
Capital Expenditures
$799.0K
Investment in assets
Dividends
None
No dividend program

XENE SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Xenon Pharmaceuticals Inc. (CIK: 0001582313)

📋 Recent SEC Filings

Date Form Document Action
Apr 13, 2026 8-K xene-20260407.htm View →
Mar 13, 2026 4 xslF345X05/ownership.xml View →
Mar 13, 2026 4 xslF345X05/ownership.xml View →
Mar 13, 2026 4 xslF345X05/ownership.xml View →
Mar 13, 2026 8-K xene-20260313.htm View →

Frequently Asked Questions about XENE

What is the AI rating for XENE?

Xenon Pharmaceuticals Inc. (XENE) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are XENE's key strengths?

Claude: Strong balance sheet with $581.8M stockholders equity providing financial cushion. Excellent liquidity position with 13.42x current ratio and minimal debt burden (Debt/Equity 0.02x).

What are the risks of investing in XENE?

Claude: Catastrophic cash burn of $279.1M annually with only $199.2M cash reserves indicating less than one year of operational runway. Minimal revenue generation of $7.5M indicates no commercialized products and heavy dependency on R&D pipeline success.

What is XENE's revenue and growth?

Xenon Pharmaceuticals Inc. reported revenue of $7.5M.

Does XENE pay dividends?

Xenon Pharmaceuticals Inc. does not currently pay dividends.

Where can I find XENE SEC filings?

Official SEC filings for Xenon Pharmaceuticals Inc. (CIK: 0001582313) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is XENE's EPS?

Xenon Pharmaceuticals Inc. has a diluted EPS of $-4.36.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is XENE a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Xenon Pharmaceuticals Inc. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is XENE stock overvalued or undervalued?

Valuation metrics for XENE: ROE of -59.5% (sector avg: 15%), net margin of -4,612.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy XENE stock in 2026?

Our dual AI analysis gives Xenon Pharmaceuticals Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is XENE's free cash flow?

Xenon Pharmaceuticals Inc.'s operating cash flow is $-279.1M, with capital expenditures of $799.0K. FCF margin is -3,732.2%.

How does XENE compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin -4,612.1% (avg: 12%), ROE -59.5% (avg: 15%), current ratio 13.42 (avg: 2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 19, 2026 | Data as of: 2025-12-31 | Powered by Claude AI