XP INC - CLASS A (XP) Stock Fundamental Analysis
USA - NASDAQ:XP - KYG982391099 - Common Stock
17.57 USD
+0.39 (+2.27%)
17.9 USD
+0.33 (+1.88%)
XP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 236 industry peers in the Capital Markets industry. XP has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year XP had a positive cash flow from operations.
XP had positive earnings in each of the past 5 years.
Of the past 5 years XP 4 years had a positive operating cash flow.
1.2 Ratios
XP has a worse Return On Assets (1.32%) than 63.98% of its industry peers.
With an excellent Return On Equity value of 22.10%, XP belongs to the best of the industry, outperforming 88.56% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.25%, XP is doing worse than 67.80% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for XP is significantly below the industry average of 7.57%.
| 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 72.03% of the companies in the same industry.
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.
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
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
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 has a Altman-Z score of 0.03. This is in the lower half of the industry: XP underperforms 76.27% 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.
The Debt to FCF ratio of XP (9.13) 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.
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.
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 88.98% 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 8.65%, which is quite good.
The Earnings Per Share has been growing by 33.24% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 6.74% in the past year.
XP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.13% yearly.
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
The Earnings Per Share is expected to grow by 13.09% on average over the next years. This is quite good.
Based on estimates for the next years, XP will show a quite strong growth in Revenue. The Revenue will grow by 10.40% on average per year.
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
A Price/Earnings ratio of 10.34 indicates a reasonable valuation of XP.
XP's Price/Earnings ratio is a bit cheaper when compared to the industry. XP is 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 (26.91), we can say XP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.48, 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 rather cheap valuation: XP is cheaper than 82.20% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. XP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 8.48 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XP indicates a rather cheap valuation: XP is cheaper than 83.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.88 | ||
| EV/EBITDA | 7.41 |
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.
XP's earnings are expected to grow with 13.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)0.31
EPS Next 2Y13.76%
EPS Next 3Y13.09%
5. Dividend
5.1 Amount
XP has a Yearly Dividend Yield of 15.91%, which is a nice return.
Compared to an average industry Dividend Yield of 8.53, XP pays a better dividend. On top of this XP pays more dividend than 90.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, XP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.91% |
5.2 History
XP does not have a reliable dividend history as it only pays dividend since a couple or years.
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 2Y13.76%
EPS Next 3Y13.09%
17.57
+0.39 (+2.27%)
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 Cap9.28B
Revenue(TTM)17.56B
Net Income(TTM)4.92B
Analysts81.11
Price Target23.35 (32.9%)
Short Float %5.37%
Short Ratio2.93
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 | 10.34 | ||
| Fwd PE | 8.48 | ||
| P/S | 2.85 | ||
| P/FCF | 4.88 | ||
| P/OCF | 4.7 | ||
| P/B | 2.24 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 7.41 |
EPS(TTM)1.7
EY9.68%
EPS(NY)2.07
Fwd EY11.79%
FCF(TTM)3.6
FCFY20.51%
OCF(TTM)3.74
OCFY21.28%
SpS6.17
BVpS7.83
TBVpS6.89
PEG (NY)0.69
PEG (5Y)0.31
Graham Number17.31
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
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 4 / 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 10.34 and the Price/Book (PB) ratio is 2.24.
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%.