One-glance verdict
Within fair range
$6.28 our estimate vs market $9.10
Wall Street consensus: $12.29 (95.8% higher than our fair-value estimate)
45% above our estimate
Fundamentals snapshot
Xeris Biopharma Holdings, Inc.
XERS · NMS · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$9.10
52-week range
$5.25 - $10.08
Market cap
$1.66B
Balance sheet
Distressed
0.86x Concerning
Net debt $167.69M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 14.9% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Net debt grew 93.3% over 3 years.
- Risk Insider ownership is only 3.1% (peer median: 11.3%).
What this company does
Xeris Biopharma Holdings, Inc.
Xeris Biopharma is a drug company that makes money selling treatments for rare hormone and nerve-related conditions, with its main product being Gvoke, an easy-to-use injection for severe low blood sugar. Having products already on the market is important because it means the company earns revenue (money from sales) to fund the development of new drugs, unlike companies that are still just in the research phase.
How the company got here
Xeris was founded in 2005 and operated for years developing its specialized technology to make injectable drugs that are stable as liquids at room temperature. A major turning point was the 2019 approval and launch of its first product, Gvoke, which made it a commercial company. Another key event was the 2021 acquisition of Strongbridge Biopharma, which added two more products, Keveyis and Recorlev, to its portfolio. This acquisition transformed Xeris from a company focused on a single diabetes product into a broader biopharmaceutical company with multiple therapies for rare diseases.
What it actually does
Xeris Biopharma is a pharmaceutical company that sells medicines for specific, often rare, health conditions. Think of them as developing and selling treatments that aren't for everyday illnesses but for serious, chronic problems, primarily in the areas of hormones (endocrinology) and nervous system disorders (neurology). Their main products are specialized treatments that patients get through a doctor's prescription. The company focuses on making these medicines easier to use for patients and caregivers.
Recorlev
This is a daily pill for adults with a rare and serious condition called endogenous Cushing's syndrome, where the body produces too much of the hormone cortisol. Patients who can't have surgery or weren't cured by it use this medicine to help get their cortisol levels back to normal. Doctors who specialize in hormone-related diseases are the ones who prescribe it. Recorlev has become the company's biggest product by sales and a major driver of its growth.
Gvoke
Gvoke is a ready-to-use injection for people with diabetes who experience severe hypoglycemia (dangerously low blood sugar). Unlike older emergency glucagon kits that required mixing a powder and liquid during a stressful event, Gvoke comes in a pre-mixed syringe or an auto-injector, similar to an EpiPen, making it simple for a patient or caregiver to administer quickly. This product is a key part of the company's business and is prescribed to people with diabetes who are at risk of these severe low blood sugar emergencies.
Keveyis
This is the first and only FDA-approved daily pill for a very rare genetic condition called primary periodic paralysis (PPP). This disease causes episodes of muscle weakness or temporary paralysis for those who have it. Patients take Keveyis to reduce how often these attacks happen, how severe they are, and how long they last. While it makes up a smaller portion of the company's revenue compared to Recorlev and Gvoke, it serves a specific group of patients with a critical need.
What management is betting on now
The company's main focus is on increasing sales of its three existing products, especially its top-seller, Recorlev. They are investing in their sales team to reach more doctors and patients who could benefit from their therapies. At the same time, they are spending on research and development (R&D, the process of creating and testing new medicines) for their next potential product, a once-weekly injection for hypothyroidism called XP-8121. The goal is to continue growing revenue (the money brought in from sales) from their current drugs to fund the development of new ones and become a sustainably profitable company.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$92.10M
Net income
$-31.10M
Diluted EPS
-0.18
Operating cash flow
$8.26M
Free cash flow
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Revenue
$83.13M
Net income
$2.23M
Diluted EPS
0.01
Operating cash flow
$9.87M
Free cash flow
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Revenue
$85.81M
Net income
$11.08M
Diluted EPS
0.07
Operating cash flow
$20.04M
Free cash flow
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Revenue
$74.38M
Net income
$621.00K
Diluted EPS
0.00
Operating cash flow
$18.43M
Free cash flow
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Revenue
$71.54M
Net income
$-1.93M
Diluted EPS
-0.01
Operating cash flow
$182.00K
Free cash flow
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Revenue
$60.12M
Net income
$-9.22M
Diluted EPS
-0.06
Operating cash flow
$-10.03M
Free cash flow
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Revenue
$60.10M
Net income
$-5.11M
Diluted EPS
-0.02
Operating cash flow
$1.98M
Free cash flow
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Revenue
$54.27M
Net income
$-15.74M
Diluted EPS
-0.11
Operating cash flow
$-8.30M
Free cash flow
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Is it cheap or expensive?
Fair value $6.28 vs current price $9.10
Wall Street consensus is the average analyst price target: $12.29 (95.8% higher than our fair-value estimate).
Our most-likely fair value is $6.28 a share — about 31.0% away from today's price of $9.10, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $167.7M. Interest coverage 0.9x.
Net debt
$167.69M
Interest coverage
0.86x
Xeris Biopharma Holdings, Inc.'s profit covers its interest bill about 0.9 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
XERS
BASELINE
Xeris Biopharma Holdings, Inc.
Total debt $289.44M Interest coverage 0.86x This is the baseline the peer rows are being compared against.
Total debt $688.32M Interest coverage 5.51x +544% vs XERS Carries about 6.4x more debt cushion than XERS.
Total debt $160.19M Interest coverage 14.23x +1,562% vs XERS Carries about 16.6x more debt cushion than XERS.
Total debt $187.05M Interest coverage 1.28x +50% vs XERS Carries about 1.5x more debt cushion than XERS.
Total debt $182.90M Interest coverage -2.13x -100% vs XERS This peer has almost no interest-payment cushion compared with XERS.
What you should know
The case for and against XERS
2 Rewards
2 Risks
Rewards
-
Revenue grew 14.9% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Net debt grew 93.3% over 3 years.
-
Insider ownership is only 3.1% (peer median: 11.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
23.33x
P/B
-162.50x
P/S
4.95x
EV/EBITDA
37.46x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
86.6%
Operating margin
5.6%
Net margin
-5.1%
ROE
—
ROA
6.1%
Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
1.45x
Quick ratio
0.95x
Total debt
$289.44M
Total cash
$121.75M
Growth
How the business has been compounding
Revenue TTM
$335.41M
Revenue 5Y CAGR
55.8%
EPS TTM
-0.10
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$56.61M
Free CF TTM
$27.93M
FCF margin
8.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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