XP INC - CLASS A (XP) Stock Fundamental Analysis
USA - NASDAQ:XP - KYG982391099 - Common Stock
16.825 USD
-0.2 (-1.15%)
Taking everything into account, XP scores 4 out of 10 in our fundamental rating. XP was compared to 236 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 is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year XP was profitable.
In the past year XP had a positive cash flow from operations.
In the past 5 years XP has always been profitable.
Of the past 5 years XP 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of XP (1.32%) is worse than 63.98% of its industry peers.
XP has a better Return On Equity (22.10%) than 88.56% of its industry peers.
XP has a Return On Invested Capital of 1.25%. This is in the lower half of the industry: XP underperforms 67.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XP is significantly below the industry average of 7.56%.
| 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's Profit Margin of 28.02% is fine compared to the rest of the industry. XP outperforms 72.03% of its industry peers.
XP's Profit Margin has improved in the last couple of years.
The Operating Margin of XP (33.11%) is better than 60.59% 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.
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 75.85% of its industry peers.
XP has a debt to FCF ratio of 9.13. This is a negative value and a sign of low solvency as XP would need 9.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.13, XP is in line with its industry, outperforming 56.78% of the companies in the same industry.
XP has a Debt/Equity ratio of 4.06. This is a high value indicating a heavy dependency on external financing.
XP has a worse Debt to Equity ratio (4.06) than 84.32% 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
XP has a Current Ratio of 0.20. This is a bad value and indicates that XP is not financially healthy enough and could expect problems in meeting its short term obligations.
XP's Current ratio of 0.20 is on the low side compared to the rest of the industry. XP is outperformed by 88.98% of its industry peers.
XP has a Quick Ratio of 0.20. This is a bad value and indicates that XP is not financially healthy enough and could expect problems in meeting its short term obligations.
XP has a worse Quick ratio (0.20) than 88.98% 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 8.65% 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.
Looking at the last year, XP shows a small growth in Revenue. The Revenue has grown by 6.74% in the last year.
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)8.65%
EPS 3Y7.19%
EPS 5Y33.24%
EPS Q2Q%20.59%
Revenue 1Y (TTM)6.74%
Revenue growth 3Y12.14%
Revenue growth 5Y27.13%
Sales Q2Q%5.6%
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 13.09% 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 Y15.04%
EPS Next 2Y13.76%
EPS Next 3Y13.09%
EPS Next 5YN/A
Revenue Next Year7.51%
Revenue Next 2Y9.93%
Revenue Next 3Y11.16%
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 9.90, the valuation of XP can be described as reasonable.
Based on the Price/Earnings ratio, XP is valued a bit cheaper than 69.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of XP to the average of the S&P500 Index (27.77), we can say XP is valued rather cheaply.
XP is valuated reasonably with a Price/Forward Earnings ratio of 8.12.
Based on the Price/Forward Earnings ratio, XP is valued cheaply inside the industry as 82.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, XP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
90.68% 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 cheaper than 83.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.67 | ||
| EV/EBITDA | 7.34 |
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 13.09% in the coming years.
PEG (NY)0.66
PEG (5Y)0.3
EPS Next 2Y13.76%
EPS Next 3Y13.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.91%, XP is a good candidate for dividend investing.
XP's Dividend Yield is rather good when compared to the industry average which is at 8.51. XP pays more dividend than 90.68% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, XP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.91% |
5.2 History
XP is new to the dividend game and has less than 3 years of track record.
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 2Y13.76%
EPS Next 3Y13.09%
NASDAQ:XP (10/22/2025, 12:05:46 PM)
16.825
-0.2 (-1.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners82.04%
Inst Owner Change0.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.88B
Revenue(TTM)17.56B
Net Income(TTM)4.92B
Analysts81.11
Price Target23.35 (38.78%)
Short Float %5.65%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.91% |
Yearly Dividend0.69
Dividend Growth(5Y)N/A
DP41.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)1.98%
PT rev (3m)2.18%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)3.18%
EPS NY rev (1m)0%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.12 | ||
| P/S | 2.73 | ||
| P/FCF | 4.67 | ||
| P/OCF | 4.5 | ||
| P/B | 2.15 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 7.34 |
EPS(TTM)1.7
EY10.1%
EPS(NY)2.07
Fwd EY12.31%
FCF(TTM)3.6
FCFY21.41%
OCF(TTM)3.74
OCFY22.22%
SpS6.17
BVpS7.83
TBVpS6.89
PEG (NY)0.66
PEG (5Y)0.3
Graham Number17.3
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)8.65%
EPS 3Y7.19%
EPS 5Y33.24%
EPS Q2Q%20.59%
EPS Next Y15.04%
EPS Next 2Y13.76%
EPS Next 3Y13.09%
EPS Next 5YN/A
Revenue 1Y (TTM)6.74%
Revenue growth 3Y12.14%
Revenue growth 5Y27.13%
Sales Q2Q%5.6%
Revenue Next Year7.51%
Revenue Next 2Y9.93%
Revenue Next 3Y11.16%
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