17.37 USD
+0.24 (+1.4%)
17.37 USD
0 (0%)
XP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. There are concerns on the financial health of XP while its profitability can be described as average. An interesting combination arises when we look at growth and value: XP is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year XP was profitable.
XP had a positive operating cash flow in the past year.
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
With a Return On Assets value of 1.32%, XP is not doing good in the industry: 63.29% of the companies in the same industry are doing better.
XP has a better Return On Equity (22.10%) than 89.87% of its industry peers.
The Return On Invested Capital of XP (1.25%) is worse than 64.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XP is significantly below the industry average of 7.11%.
| 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
XP has a better Profit Margin (28.02%) than 71.31% of its industry peers.
In the last couple of years the Profit Margin of XP has grown nicely.
XP has a better Operating Margin (33.11%) than 64.14% of its industry peers.
In the last couple of years the Operating Margin of XP has remained more or less at the same level.
| 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
XP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, XP has less shares outstanding
XP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.03, we must say that XP is in the distress zone and has some risk of bankruptcy.
XP has a worse Altman-Z score (0.03) than 74.68% 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 comparable to the rest of the industry.
XP has a Debt/Equity ratio of 4.06. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of XP (4.06) is worse than 83.97% 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's Current ratio of 0.20 is on the low side compared to the rest of the industry. XP is outperformed by 86.92% of its industry peers.
A Quick Ratio of 0.20 indicates that XP may have some problems paying its short term obligations.
XP's Quick ratio of 0.20 is on the low side compared to the rest of the industry. XP is outperformed by 86.92% 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.
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.
The Revenue has grown by 14.61% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 12.46% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.40% on average over the next years. This is quite good.
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
XP is valuated reasonably with a Price/Earnings ratio of 9.87.
XP's Price/Earnings ratio is a bit cheaper when compared to the industry. XP is cheaper than 70.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. XP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.53, the valuation of XP can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XP indicates a somewhat cheap valuation: XP is cheaper than 79.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. XP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
90.30% 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 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.73 | ||
| EV/EBITDA | 7.36 |
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)0.65
PEG (5Y)0.3
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 8.61. XP pays more dividend than 90.72% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 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
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%
17.37
+0.24 (+1.4%)
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 Cap9.03B
Revenue(TTM)17.03B
Net Income(TTM)4.92B
Analysts81.11
Price Target23.23 (33.74%)
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)1.23%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0.23%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 8.53 | ||
| P/S | 2.76 | ||
| P/FCF | 4.73 | ||
| P/OCF | 4.56 | ||
| P/B | 2.18 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 7.36 |
EPS(TTM)1.76
EY10.13%
EPS(NY)2.04
Fwd EY11.72%
FCF(TTM)3.67
FCFY21.12%
OCF(TTM)3.81
OCFY21.92%
SpS6.29
BVpS7.97
TBVpS7.02
PEG (NY)0.65
PEG (5Y)0.3
Graham Number17.77
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 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 9.87 and the Price/Book (PB) ratio is 2.18.
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%.