XP INC - CLASS A (XP)
KYG982391099 - Common Stock
XP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 218 industry peers in the Capital Markets industry. While XP is still in line with the averages on profitability rating, there are concerns on its financial health. XP is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
XP had positive earnings in the past year.
In the past year XP had a positive cash flow from operations.
Each year in the past 5 years XP has been profitable.
In multiple years XP reported negative operating cash flow during the last 5 years.
1.2 Ratios
XP has a worse Return On Assets (1.44%) than 60.93% of its industry peers.
XP's Return On Equity of 21.42% is amongst the best of the industry. XP outperforms 90.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.43%, XP is doing worse than 73.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for XP is significantly below the industry average of 6.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 21.42% | ||
| ROIC | 1.43% |
ROA(3y)2%
ROA(5y)2.13%
ROE(3y)21.98%
ROE(5y)20.02%
ROIC(3y)1.82%
ROIC(5y)2.13%
1.3 Margins
With a decent Profit Margin value of 25.99%, XP is doing good in the industry, outperforming 64.19% of the companies in the same industry.
XP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 31.93%, XP is in line with its industry, outperforming 54.42% of the companies in the same industry.
In the last couple of years the Operating Margin of XP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.93% | ||
| PM (TTM) | 25.99% | ||
| GM | N/A |
OM growth 3Y-0.32%
OM growth 5Y4.94%
PM growth 3Y1%
PM growth 5Y10.98%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, XP has more shares outstanding
Compared to 5 years ago, XP has less shares outstanding
XP has a better debt/assets ratio than last year.
2.2 Solvency
XP has an Altman-Z score of 0.06. This is a bad value and indicates that XP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.06, XP is not doing good in the industry: 77.21% of the companies in the same industry are doing better.
XP has a debt to FCF ratio of 14.40. This is a negative value and a sign of low solvency as XP would need 14.40 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.40, XP is in line with its industry, outperforming 48.84% of the companies in the same industry.
XP has a Debt/Equity ratio of 3.63. This is a high value indicating a heavy dependency on external financing.
XP has a Debt to Equity ratio of 3.63. This is amonst the worse of the industry: XP underperforms 82.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | 14.4 | ||
| Altman-Z | 0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.15 indicates that XP may have some problems paying its short term obligations.
XP has a Current ratio of 0.15. This is amonst the worse of the industry: XP underperforms 89.77% of its industry peers.
XP has a Quick Ratio of 0.15. This is a bad value and indicates that XP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.15, XP is not doing good in the industry: 89.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.71% over the past year.
The Earnings Per Share has been growing by 53.52% on average over the past years. This is a very strong growth
XP shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.03%.
XP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.10% yearly.
EPS 1Y (TTM)17.71%
EPS 3Y24.1%
EPS 5Y53.52%
EPS Q2Q%2%
Revenue 1Y (TTM)22.03%
Revenue growth 3Y22.16%
Revenue growth 5Y38.1%
Sales Q2Q%18.89%
3.2 Future
The Earnings Per Share is expected to grow by 12.67% on average over the next years. This is quite good.
Based on estimates for the next years, XP will show a quite strong growth in Revenue. The Revenue will grow by 15.43% on average per year.
EPS Next Y10.89%
EPS Next 2Y11.42%
EPS Next 3Y12.67%
EPS Next 5YN/A
Revenue Next Year17.3%
Revenue Next 2Y16.6%
Revenue Next 3Y15.43%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.95, the valuation of XP can be described as very reasonable.
Based on the Price/Earnings ratio, XP is valued a bit cheaper than the industry average as 68.37% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.20, XP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.60, the valuation of XP can be described as reasonable.
Based on the Price/Forward Earnings ratio, XP is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, XP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
87.91% of the companies in the same industry are more expensive than XP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, XP is valued a bit cheaper than 71.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.55 | ||
| EV/EBITDA | 9.35 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as XP's earnings are expected to grow with 12.67% in the coming years.
PEG (NY)1.01
PEG (5Y)0.2
EPS Next 2Y11.42%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
XP has a Yearly Dividend Yield of 15.60%, which is a nice return.
XP's Dividend Yield is rather good when compared to the industry average which is at 9.01. XP pays more dividend than 92.09% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, XP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.6% |
5.2 History
XP does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
82.85% of the earnings are spent on dividend by XP. This is not a sustainable payout ratio.
DP82.85%
EPS Next 2Y11.42%
EPS Next 3Y12.67%
XP INC - CLASS A
NASDAQ:XP (11/22/2024, 5:20:02 PM)
After market: 15.88 0 (0%)15.88
+0.36 (+2.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.6% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 9.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.01
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 21.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.93% | ||
| PM (TTM) | 25.99% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.71%
EPS 3Y24.1%
EPS 5Y
EPS Q2Q%
EPS Next Y10.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.03%
Revenue growth 3Y22.16%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y