17.755 USD
-0.11 (-0.59%)
17.755 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to XP. XP was compared to 237 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 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.
In the past year XP had a positive cash flow from operations.
Each year in the past 5 years XP has been profitable.
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 62.87% 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 has a Return On Invested Capital of 1.25%. This is in the lower half of the industry: XP underperforms 64.13% 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 7.00%.
| 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
Looking at the Profit Margin, with a value of 28.02%, XP is in the better half of the industry, outperforming 72.15% of the companies in the same industry.
XP's Profit Margin has improved in the last couple of years.
XP has a Operating Margin of 33.11%. This is in the better half of the industry: XP outperforms 63.71% 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
XP has less shares outstanding than it did 1 year ago.
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
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.
The Altman-Z score of XP (0.04) is worse than 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's Debt to FCF ratio of 9.13 is in line compared to the rest of the industry. XP outperforms 59.92% of its industry peers.
A Debt/Equity ratio of 4.06 is on the high side and indicates that XP has dependencies on debt financing.
XP has a worse Debt to Equity ratio (4.06) than 83.97% of its industry peers.
| 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.
The Current ratio of XP (0.20) is worse than 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 has a Quick ratio of 0.20. This is amonst the worse of the industry: XP underperforms 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.
XP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.24% yearly.
The Revenue has grown by 14.61% in the past year. This is quite good.
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 13.78% yearly.
The Revenue is expected to grow by 10.40% on average over the next years. This is quite good.
EPS Next Y17%
EPS Next 2Y13.85%
EPS Next 3Y13.78%
EPS Next 5YN/A
Revenue Next Year8.15%
Revenue Next 2Y10.57%
Revenue Next 3Y11.45%
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 10.26, the valuation of XP can be described as very reasonable.
Based on the Price/Earnings ratio, XP is valued a bit cheaper than the industry average as 70.04% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.76, XP is valued rather cheaply.
XP is valuated reasonably with a Price/Forward Earnings ratio of 8.67.
Based on the Price/Forward Earnings ratio, XP is valued cheaper than 83.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.96. XP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 8.67 |
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 cheaply inside the industry as 82.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.92 | ||
| EV/EBITDA | 7.71 |
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)0.6
PEG (5Y)0.31
EPS Next 2Y13.85%
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.
Compared to an average industry Dividend Yield of 8.31, XP pays a better dividend. On top of this XP pays more dividend than 91.14% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, 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 2Y13.85%
EPS Next 3Y13.78%
17.755
-0.11 (-0.59%)
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 Cap9.23B
Revenue(TTM)17.03B
Net Income(TTM)4.92B
Analysts81.11
Price Target23.57 (32.75%)
Short Float %5.08%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.69% |
Yearly Dividend0.71
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)1.46%
PT rev (3m)2.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)1.48%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 8.67 | ||
| P/S | 2.87 | ||
| P/FCF | 4.92 | ||
| P/OCF | 4.74 | ||
| P/B | 2.26 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 7.71 |
EPS(TTM)1.73
EY9.74%
EPS(NY)2.05
Fwd EY11.53%
FCF(TTM)3.61
FCFY20.34%
OCF(TTM)3.75
OCFY21.11%
SpS6.19
BVpS7.85
TBVpS6.91
PEG (NY)0.6
PEG (5Y)0.31
Graham Number17.48
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 Y17%
EPS Next 2Y13.85%
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 Year8.15%
Revenue Next 2Y10.57%
Revenue Next 3Y11.45%
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 10.26 and the Price/Book (PB) ratio is 2.26.
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%.