16.01 USD
+0.13 (+0.82%)
16.04 USD
+0.03 (+0.19%)
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. XP has a medium profitability rating, but doesn't score so well on its financial health evaluation. XP is growing strongly while it also seems undervalued. This is an interesting 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.
XP had positive earnings in each of the past 5 years.
XP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
XP has a worse Return On Assets (1.32%) than 62.60% of its industry peers.
XP has a better Return On Equity (22.10%) than 89.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.25%, XP is doing worse than 63.87% of the companies in the same industry.
XP had an Average Return On Invested Capital over the past 3 years of 1.49%. This is significantly below the industry average of 7.00%.
| 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
The Profit Margin of XP (28.02%) is better than 72.27% of its industry peers.
XP's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 33.11%, XP is doing good in the industry, outperforming 63.87% of the companies in the same industry.
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
The number of shares outstanding for XP has been reduced compared to 1 year ago.
XP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, XP has a worse debt to assets ratio.
2.2 Solvency
XP has an Altman-Z score of 0.03. This is a bad value and indicates that XP is not financially healthy and even has some risk of bankruptcy.
XP's Altman-Z score of 0.03 is on the low side compared to the rest of the industry. XP is outperformed by 74.79% of its industry peers.
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.
With a decent Debt to FCF ratio value of 9.13, XP is doing good in the industry, outperforming 60.50% of the companies in the same industry.
A Debt/Equity ratio of 4.06 is on the high side and indicates that XP has dependencies on debt financing.
The Debt to Equity ratio of XP (4.06) is worse than 84.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.06 | ||
| Debt/FCF | 9.13 | ||
| Altman-Z | 0.03 |
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.
XP has a Current ratio of 0.20. This is amonst the worse of the industry: XP underperforms 86.55% of its industry peers.
A Quick Ratio of 0.20 indicates that XP may have some problems paying its short term obligations.
With a Quick ratio value of 0.20, XP is not doing good in the industry: 86.55% of the companies in the same industry are doing better.
| 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.
XP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.24% yearly.
XP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.61%.
Measured over the past years, XP shows a very strong growth in Revenue. The Revenue has been growing by 27.13% on average per year.
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
Based on estimates for the next years, XP will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.78% on average per year.
The Revenue is expected to grow by 10.40% on average over the next years. This is quite good.
EPS Next Y17%
EPS Next 2Y13.46%
EPS Next 3Y13.78%
EPS Next 5YN/A
Revenue Next Year7.58%
Revenue Next 2Y10.11%
Revenue Next 3Y11.37%
Revenue Next 5Y10.4%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 9.36, the valuation of XP can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of XP indicates a somewhat cheap valuation: XP is cheaper than 75.21% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.39. XP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.98, the valuation of XP can be described as very cheap.
Based on the Price/Forward Earnings ratio, XP is valued cheaper than 84.03% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, XP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 7.98 |
4.2 Price Multiples
91.60% 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 cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.49 | ||
| EV/EBITDA | 6.95 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
XP's earnings are expected to grow with 13.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)0.28
EPS Next 2Y13.46%
EPS Next 3Y13.78%
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 6.43. XP pays more dividend than 90.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, XP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.69% |
5.2 History
XP has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
XP pays out 41.40% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.4%
EPS Next 2Y13.46%
EPS Next 3Y13.78%
16.01
+0.13 (+0.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.84%
Inst Owner Change0.7%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.32B
Revenue(TTM)17.03B
Net Income(TTM)4.92B
Analysts81.11
Price Target23.8 (48.66%)
Short Float %5.49%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.69% |
Yearly Dividend0.68
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)2.44%
PT rev (3m)3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)1.48%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 7.98 | ||
| P/S | 2.62 | ||
| P/FCF | 4.49 | ||
| P/OCF | 4.33 | ||
| P/B | 2.07 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 6.95 |
EPS(TTM)1.71
EY10.68%
EPS(NY)2.01
Fwd EY12.53%
FCF(TTM)3.56
FCFY22.26%
OCF(TTM)3.7
OCFY23.1%
SpS6.11
BVpS7.74
TBVpS6.82
PEG (NY)0.55
PEG (5Y)0.28
Graham Number17.26
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 | 0.03 |
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 Y17%
EPS Next 2Y13.46%
EPS Next 3Y13.78%
EPS Next 5YN/A
Revenue 1Y (TTM)14.61%
Revenue growth 3Y12.14%
Revenue growth 5Y27.13%
Sales Q2Q%7.92%
Revenue Next Year7.58%
Revenue Next 2Y10.11%
Revenue Next 3Y11.37%
Revenue Next 5Y10.4%
EBIT growth 1Y10.66%
EBIT growth 3Y13.19%
EBIT growth 5Y28.69%
EBIT Next Year4.24%
EBIT Next 3Y12.74%
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 9.36 and the Price/Book (PB) ratio is 2.07.
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%.