19.23 USD
-0.79 (-3.95%)
19.3 USD
+0.07 (+0.36%)
Taking everything into account, XP scores 5 out of 10 in our fundamental rating. XP was compared to 238 industry peers in the Capital Markets industry. There are concerns on the financial health of XP while its profitability can be described as average. XP has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare 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.
Of the past 5 years XP 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.32%, XP is doing worse than 62.60% of the companies in the same industry.
The Return On Equity of XP (22.10%) is better than 89.92% of its industry peers.
XP's Return On Invested Capital of 1.25% is on the low side compared to the rest of the industry. XP is outperformed by 64.71% of its industry peers.
XP had an Average Return On Invested Capital over the past 3 years of 1.49%. This is significantly below the industry average of 6.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.32% | ||
| ROE | 22.1% | ||
| ROIC | 1.25% |
ROA(3y)1.58%
ROA(5y)1.89%
ROE(3y)21.19%
ROE(5y)21.51%
ROIC(3y)1.49%
ROIC(5y)1.78%
1.3 Margins
XP has a Profit Margin of 28.02%. This is in the better half of the industry: XP outperforms 71.85% of its industry peers.
In the last couple of years the Profit Margin of XP has grown nicely.
The Operating Margin of XP (33.11%) is better than 64.29% of its industry peers.
XP's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.11% | ||
| PM (TTM) | 28.02% | ||
| GM | N/A |
OM growth 3Y0.94%
OM growth 5Y1.22%
PM growth 3Y-3.75%
PM growth 5Y4.69%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, XP has less shares outstanding
XP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for XP is higher compared to a year ago.
2.2 Solvency
XP has an Altman-Z score of 0.04. 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 0.04, XP is not doing good in the industry: 74.79% of the companies in the same industry are doing better.
The Debt to FCF ratio of XP is 9.13, which is on the high side as it means it would take XP, 9.13 years of fcf income to pay off all of its debts.
XP has a Debt to FCF ratio (9.13) which is in line with its industry peers.
XP has a Debt/Equity ratio of 4.06. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.06, XP is not doing good in the industry: 84.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.06 | ||
| Debt/FCF | 9.13 | ||
| Altman-Z | 0.04 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.20 indicates that XP may have some problems paying its short term obligations.
The Current ratio of XP (0.20) is worse than 86.97% of its industry peers.
A Quick Ratio of 0.20 indicates that XP may have some problems paying its short term obligations.
XP has a worse Quick ratio (0.20) than 86.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.06% over the past year.
The Earnings Per Share has been growing by 33.24% on average over the past years. This is a very strong growth
Looking at the last year, XP shows a quite strong growth in Revenue. The Revenue has grown by 14.61% in the last year.
The Revenue has been growing by 27.13% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)11.06%
EPS 3Y7.19%
EPS 5Y33.24%
EPS Q2Q%12.33%
Revenue 1Y (TTM)14.61%
Revenue growth 3Y12.14%
Revenue growth 5Y27.13%
Sales Q2Q%7.92%
3.2 Future
XP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.46% yearly.
XP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.40% yearly.
EPS Next Y15.29%
EPS Next 2Y12.65%
EPS Next 3Y12.46%
EPS Next 5YN/A
Revenue Next Year7.41%
Revenue Next 2Y9.59%
Revenue Next 3Y10.82%
Revenue Next 5Y10.4%
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
Based on the Price/Earnings ratio of 10.86, the valuation of XP can be described as reasonable.
XP's Price/Earnings ratio is a bit cheaper when compared to the industry. XP is cheaper than 66.81% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.37. XP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.35, which indicates a very decent valuation of XP.
Based on the Price/Forward Earnings ratio, XP is valued a bit cheaper than 76.05% of the companies in the same industry.
XP is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XP is valued cheaper than 90.34% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XP indicates a rather cheap valuation: XP is cheaper than 80.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.19 | ||
| EV/EBITDA | 8.12 |
4.3 Compensation for Growth
XP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as XP's earnings are expected to grow with 12.46% in the coming years.
PEG (NY)0.71
PEG (5Y)0.33
EPS Next 2Y12.65%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.69%, XP is a good candidate for dividend investing.
XP's Dividend Yield is rather good when compared to the industry average which is at 8.39. XP pays more dividend than 90.76% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, XP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.69% |
5.2 History
XP has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.40% of the earnings are spent on dividend by XP. This is a bit on the high side, but may be sustainable.
DP41.4%
EPS Next 2Y12.65%
EPS Next 3Y12.46%
19.23
-0.79 (-3.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners82.04%
Inst Owner Change0.69%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.00B
Revenue(TTM)17.03B
Net Income(TTM)4.92B
Analysts81.11
Price Target23.23 (20.8%)
Short Float %5.08%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.69% |
Yearly Dividend0.7
Dividend Growth(5Y)N/A
DP41.4%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.66%
Min EPS beat(2)1.46%
Max EPS beat(2)1.86%
EPS beat(4)2
Avg EPS beat(4)-0.19%
Min EPS beat(4)-2.46%
Max EPS beat(4)1.86%
EPS beat(8)6
Avg EPS beat(8)0.77%
EPS beat(12)9
Avg EPS beat(12)1.96%
EPS beat(16)13
Avg EPS beat(16)4.8%
Revenue beat(2)0
Avg Revenue beat(2)-5.2%
Min Revenue beat(2)-5.74%
Max Revenue beat(2)-4.66%
Revenue beat(4)0
Avg Revenue beat(4)-4.3%
Min Revenue beat(4)-5.74%
Max Revenue beat(4)-3.04%
Revenue beat(8)1
Avg Revenue beat(8)-2.41%
Revenue beat(12)2
Avg Revenue beat(12)-2.87%
Revenue beat(16)2
Avg Revenue beat(16)-3.8%
PT rev (1m)-0.49%
PT rev (3m)1.23%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0.23%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 9.35 | ||
| P/S | 3.03 | ||
| P/FCF | 5.19 | ||
| P/OCF | 5 | ||
| P/B | 2.39 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 8.12 |
EPS(TTM)1.77
EY9.2%
EPS(NY)2.06
Fwd EY10.69%
FCF(TTM)3.71
FCFY19.27%
OCF(TTM)3.84
OCFY19.99%
SpS6.35
BVpS8.05
TBVpS7.09
PEG (NY)0.71
PEG (5Y)0.33
Graham Number17.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.32% | ||
| ROE | 22.1% | ||
| ROCE | 2.05% | ||
| ROIC | 1.25% | ||
| ROICexc | 1.29% | ||
| ROICexgc | 1.75% | ||
| OM | 33.11% | ||
| PM (TTM) | 28.02% | ||
| GM | N/A | ||
| FCFM | 58.35% |
ROA(3y)1.58%
ROA(5y)1.89%
ROE(3y)21.19%
ROE(5y)21.51%
ROIC(3y)1.49%
ROIC(5y)1.78%
ROICexc(3y)1.51%
ROICexc(5y)1.81%
ROICexgc(3y)1.95%
ROICexgc(5y)2.25%
ROCE(3y)2.48%
ROCE(5y)3.08%
ROICexgc growth 3Y-14.78%
ROICexgc growth 5Y-12.26%
ROICexc growth 3Y-16.98%
ROICexc growth 5Y-15.13%
OM growth 3Y0.94%
OM growth 5Y1.22%
PM growth 3Y-3.75%
PM growth 5Y4.69%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.06 | ||
| Debt/FCF | 9.13 | ||
| Debt/EBITDA | 14.85 | ||
| Cap/Depr | 137.12% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 16.42 | ||
| Cash Conversion | 174.43% | ||
| Profit Quality | 208.2% | ||
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z | 0.04 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)87.96%
Cap/Depr(5y)123.94%
Cap/Sales(3y)1.4%
Cap/Sales(5y)2.14%
Profit Quality(3y)163.55%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.06%
EPS 3Y7.19%
EPS 5Y33.24%
EPS Q2Q%12.33%
EPS Next Y15.29%
EPS Next 2Y12.65%
EPS Next 3Y12.46%
EPS Next 5YN/A
Revenue 1Y (TTM)14.61%
Revenue growth 3Y12.14%
Revenue growth 5Y27.13%
Sales Q2Q%7.92%
Revenue Next Year7.41%
Revenue Next 2Y9.59%
Revenue Next 3Y10.82%
Revenue Next 5Y10.4%
EBIT growth 1Y10.66%
EBIT growth 3Y13.19%
EBIT growth 5Y28.69%
EBIT Next Year10.91%
EBIT Next 3Y13.72%
EBIT Next 5Y12.13%
FCF growth 1Y60.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.72%
OCF growth 3YN/A
OCF growth 5YN/A
XP INC - CLASS A / XP FAQ
What is the ChartMill fundamental rating of XP INC - CLASS A (XP) stock?
ChartMill assigns a fundamental rating of 5 / 10 to XP.
What is the valuation status of XP INC - CLASS A (XP) stock?
ChartMill assigns a valuation rating of 8 / 10 to XP INC - CLASS A (XP). This can be considered as Undervalued.
Can you provide the profitability details for XP INC - CLASS A?
XP INC - CLASS A (XP) has a profitability rating of 4 / 10.
What is the valuation of XP INC - CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for XP INC - CLASS A (XP) is 10.86 and the Price/Book (PB) ratio is 2.39.
Can you provide the dividend sustainability for XP stock?
The dividend rating of XP INC - CLASS A (XP) is 5 / 10 and the dividend payout ratio is 41.4%.