XP INC - CLASS A (XP) Stock Fundamental Analysis
USA - NASDAQ:XP - KYG982391099 - Common Stock
18.03 USD
-0.42 (-2.28%)
Overall XP gets a fundamental rating of 5 out of 10. We evaluated XP against 237 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 evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
XP had positive earnings in the past year.
XP had a positive operating cash flow in the past year.
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
The Return On Assets of XP (1.32%) is worse than 62.87% of its industry peers.
XP's Return On Equity of 22.10% is amongst the best of the industry. XP outperforms 89.45% 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 64.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XP is significantly below the industry average of 7.11%.
| 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
Looking at the Profit Margin, with a value of 28.02%, XP is in the better half of the industry, outperforming 72.57% of the companies in the same industry.
In the last couple of years the Profit Margin of XP has grown nicely.
The Operating Margin of XP (33.11%) is better than 64.14% 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
The number of shares outstanding for XP has been reduced compared to 1 year ago.
Compared to 5 years ago, XP has less shares outstanding
The debt/assets ratio for XP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.04, we must say that XP is in the distress zone and has some risk of bankruptcy.
XP's Altman-Z score of 0.04 is on the low side compared to the rest of the industry. XP is outperformed by 75.11% 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.
XP has a Debt to FCF ratio (9.13) which is in line with its industry peers.
A Debt/Equity ratio of 4.06 is on the high side and indicates that XP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.06, XP is doing worse than 83.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.06 | ||
| Debt/FCF | 9.13 | ||
| Altman-Z | 0.04 |
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.
With a Current ratio value of 0.20, XP is not doing good in the industry: 86.50% of the companies in the same industry are doing better.
A Quick Ratio of 0.20 indicates that XP may have some problems paying its short term obligations.
XP has a Quick ratio of 0.20. This is amonst the worse of the industry: XP underperforms 86.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
XP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.33%, which is quite good.
Measured over the past years, XP shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.24% on average per year.
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)10.33%
EPS 3Y7.19%
EPS 5Y33.24%
EPS Q2Q%9.51%
Revenue 1Y (TTM)14.61%
Revenue growth 3Y12.14%
Revenue growth 5Y27.13%
Sales Q2Q%5.58%
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
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
With a Price/Earnings ratio of 10.24, the valuation of XP can be described as very reasonable.
Based on the Price/Earnings ratio, XP is valued a bit cheaper than 67.51% of the companies in the same industry.
XP is valuated cheaply when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.80, 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 74.68% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.39. XP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XP is valued cheaper than 90.30% of the companies in the same industry.
XP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. XP is cheaper than 80.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| EV/EBITDA | 7.93 |
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.
A more expensive valuation may be justified as XP's earnings are expected to grow with 12.46% in the coming years.
PEG (NY)0.67
PEG (5Y)0.31
EPS Next 2Y12.65%
EPS Next 3Y12.46%
5. Dividend
5.1 Amount
XP has a Yearly Dividend Yield of 15.69%, which is a nice return.
XP's Dividend Yield is rather good when compared to the industry average which is at 8.42. XP pays more dividend than 91.14% of the companies in the same industry.
XP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| 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
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%
NASDAQ:XP (11/19/2025, 2:58:33 PM)
18.03
-0.42 (-2.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners82.04%
Inst Owner Change0.63%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.52B
Revenue(TTM)17.03B
Net Income(TTM)4.92B
Analysts81.11
Price Target23.23 (28.84%)
Short Float %5%
Short Ratio2.9
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)0.34%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0.22%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.8 | ||
| P/S | 2.9 | ||
| P/FCF | 4.96 | ||
| P/OCF | 4.78 | ||
| P/B | 2.28 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 7.93 |
EPS(TTM)1.76
EY9.76%
EPS(NY)2.05
Fwd EY11.36%
FCF(TTM)3.63
FCFY20.15%
OCF(TTM)3.77
OCFY20.91%
SpS6.23
BVpS7.9
TBVpS6.95
PEG (NY)0.67
PEG (5Y)0.31
Graham Number17.68
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)10.33%
EPS 3Y7.19%
EPS 5Y33.24%
EPS Q2Q%9.51%
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%5.58%
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 10.24 and the Price/Book (PB) ratio is 2.28.
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%.