XP INC - CLASS A (XP) Fundamental Analysis & Valuation

NASDAQ:XP • KYG982391099

Current stock price

18.445 USD
-0.82 (-4.28%)
Last:

This XP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. XP Profitability Analysis

1.1 Basic Checks

  • In the past year XP was profitable.
  • In the past year XP had a positive cash flow from operations.
  • 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.
XP Yearly Net Income VS EBIT VS OCF VS FCFXP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

1.2 Ratios

  • With a Return On Assets value of 1.30%, XP perfoms like the industry average, outperforming 40.17% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 21.96%, XP belongs to the top of the industry, outperforming 84.94% of the companies in the same industry.
  • The Return On Invested Capital of XP (1.20%) is worse than 69.04% of its industry peers.
  • XP had an Average Return On Invested Capital over the past 3 years of 1.34%. This is significantly below the industry average of 7.30%.
Industry RankSector Rank
ROA 1.3%
ROE 21.96%
ROIC 1.2%
ROA(3y)1.39%
ROA(5y)1.72%
ROE(3y)21.51%
ROE(5y)22.09%
ROIC(3y)1.34%
ROIC(5y)1.59%
XP Yearly ROA, ROE, ROICXP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • With a decent Profit Margin value of 28.10%, XP is doing good in the industry, outperforming 69.04% of the companies in the same industry.
  • XP's Profit Margin has improved in the last couple of years.
  • XP's Operating Margin of 32.38% is fine compared to the rest of the industry. XP outperforms 61.51% of its industry peers.
  • XP's Operating Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 32.38%
PM (TTM) 28.1%
GM N/A
OM growth 3Y3.79%
OM growth 5Y0.89%
PM growth 3Y1.57%
PM growth 5Y1.98%
GM growth 3YN/A
GM growth 5YN/A
XP Yearly Profit, Operating, Gross MarginsXP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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2

2. XP Health Analysis

2.1 Basic Checks

  • Compared to 1 year ago, XP has less shares outstanding
  • The number of shares outstanding for XP has been reduced compared to 5 years ago.
  • The debt/assets ratio for XP has been reduced compared to a year ago.
XP Yearly Shares OutstandingXP Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
XP Yearly Total Debt VS Total AssetsXP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

2.2 Solvency

  • Based on the Altman-Z score of 0.06, we must say that XP is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of XP (0.06) is worse than 76.57% of its industry peers.
  • The Debt to FCF ratio of XP is 6.95, which is on the high side as it means it would take XP, 6.95 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of XP (6.95) is better than 62.76% of its industry peers.
  • A Debt/Equity ratio of 3.40 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 3.40, XP is doing worse than 82.85% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.4
Debt/FCF 6.95
Altman-Z 0.06
ROIC/WACCN/A
WACCN/A
XP Yearly LT Debt VS Equity VS FCFXP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B

2.3 Liquidity

  • A Current Ratio of 0.20 indicates that XP may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.20, XP is doing worse than 88.28% of the companies in the same industry.
  • 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 Quick ratio of 0.20. This is amonst the worse of the industry: XP underperforms 88.28% of its industry peers.
Industry RankSector Rank
Current Ratio 0.2
Quick Ratio 0.2
XP Yearly Current Assets VS Current LiabilitesXP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. XP Growth Analysis

3.1 Past

  • XP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.34%, which is quite good.
  • XP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.20% yearly.
  • XP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.03%.
  • Measured over the past years, XP shows a quite strong growth in Revenue. The Revenue has been growing by 17.68% on average per year.
EPS 1Y (TTM)13.34%
EPS 3Y10.86%
EPS 5Y19.2%
EPS Q2Q%14.8%
Revenue 1Y (TTM)8.03%
Revenue growth 3Y11.29%
Revenue growth 5Y17.68%
Sales Q2Q%11.51%

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 13.84% yearly.
  • Based on estimates for the next years, XP will show a quite strong growth in Revenue. The Revenue will grow by 13.91% on average per year.
EPS Next Y13.58%
EPS Next 2Y14.16%
EPS Next 3Y13.84%
EPS Next 5YN/A
Revenue Next Year11.85%
Revenue Next 2Y12.74%
Revenue Next 3Y12.96%
Revenue Next 5Y13.91%

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.
XP Yearly Revenue VS EstimatesXP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B
XP Yearly EPS VS EstimatesXP Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10

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8

4. XP Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.46 indicates a reasonable valuation of XP.
  • Based on the Price/Earnings ratio, XP is valued a bit cheaper than the industry average as 68.20% of the companies are valued more expensively.
  • 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.
  • The Price/Forward Earnings ratio is 8.31, which indicates a very decent valuation of XP.
  • Based on the Price/Forward Earnings ratio, XP is valued a bit cheaper than the industry average as 77.41% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of XP to the average of the S&P500 Index (21.99), we can say XP is valued rather cheaply.
Industry RankSector Rank
PE 9.46
Fwd PE 8.31
XP Price Earnings VS Forward Price EarningsXP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XP indicates a rather cheap valuation: XP is cheaper than 91.21% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of XP indicates a rather cheap valuation: XP is cheaper than 87.45% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.15
EV/EBITDA 6.44
XP Per share dataXP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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 13.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)0.49
EPS Next 2Y14.16%
EPS Next 3Y13.84%

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2

5. XP Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.98%, XP is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 6.53, XP is paying slightly less dividend.
  • With a Dividend Yield of 0.98, XP pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.98%

5.2 History

  • XP has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
XP Yearly Dividends per shareXP Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 1 2 3

5.3 Sustainability

  • 9.57% of the earnings are spent on dividend by XP. This is a low number and sustainable payout ratio.
DP9.57%
EPS Next 2Y14.16%
EPS Next 3Y13.84%
XP Yearly Income VS Free CF VS DividendXP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B
XP Dividend Payout.XP Dividend Payout, showing the Payout Ratio.XP Dividend Payout.PayoutRetained Earnings

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XP Fundamentals: All Metrics, Ratios and Statistics

XP INC - CLASS A

NASDAQ:XP (4/29/2026, 3:49:09 PM)

18.445

-0.82 (-4.28%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)02-12
Earnings (Next)05-05
Inst Owners97.54%
Inst Owner Change1.59%
Ins Owners0%
Ins Owner Change0%
Market Cap9.59B
Revenue(TTM)18.40B
Net Income(TTM)5.17B
Analysts82.11
Price Target25.19 (36.57%)
Short Float %4.61%
Short Ratio3.06
Dividend
Industry RankSector Rank
Dividend Yield 0.98%
Yearly Dividend0.19
Dividend Growth(5Y)N/A
DP9.57%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.34%
Min EPS beat(2)-1.44%
Max EPS beat(2)-1.24%
EPS beat(4)2
Avg EPS beat(4)0.16%
Min EPS beat(4)-1.44%
Max EPS beat(4)1.86%
EPS beat(8)4
Avg EPS beat(8)0.19%
EPS beat(12)8
Avg EPS beat(12)1.25%
EPS beat(16)11
Avg EPS beat(16)2.08%
Revenue beat(2)1
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)0.45%
Revenue beat(4)1
Avg Revenue beat(4)-3.04%
Min Revenue beat(4)-5.74%
Max Revenue beat(4)0.45%
Revenue beat(8)1
Avg Revenue beat(8)-2.81%
Revenue beat(12)2
Avg Revenue beat(12)-2.03%
Revenue beat(16)3
Avg Revenue beat(16)-3.25%
PT rev (1m)4.66%
PT rev (3m)5.86%
EPS NQ rev (1m)-3.93%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)0.82%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)0.84%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)-1.15%
Valuation
Industry RankSector Rank
PE 9.46
Fwd PE 8.31
P/S 2.61
P/FCF 4.15
P/OCF 3.98
P/B 2.04
P/tB 2.31
EV/EBITDA 6.44
EPS(TTM)1.95
EY10.57%
EPS(NY)2.22
Fwd EY12.03%
FCF(TTM)4.44
FCFY24.09%
OCF(TTM)4.63
OCFY25.11%
SpS7.08
BVpS9.06
TBVpS7.99
PEG (NY)0.7
PEG (5Y)0.49
Graham Number19.9324 (8.06%)
Profitability
Industry RankSector Rank
ROA 1.3%
ROE 21.96%
ROCE 1.9%
ROIC 1.2%
ROICexc 1.23%
ROICexgc 1.57%
OM 32.38%
PM (TTM) 28.1%
GM N/A
FCFM 62.81%
ROA(3y)1.39%
ROA(5y)1.72%
ROE(3y)21.51%
ROE(5y)22.09%
ROIC(3y)1.34%
ROIC(5y)1.59%
ROICexc(3y)1.36%
ROICexc(5y)1.63%
ROICexgc(3y)1.79%
ROICexgc(5y)2.06%
ROCE(3y)2.19%
ROCE(5y)2.61%
ROICexgc growth 3Y-8.39%
ROICexgc growth 5Y-8.88%
ROICexc growth 3Y-9.76%
ROICexc growth 5Y-10.75%
OM growth 3Y3.79%
OM growth 5Y0.89%
PM growth 3Y1.57%
PM growth 5Y1.98%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 3.4
Debt/FCF 6.95
Debt/EBITDA 12.78
Cap/Depr 160.97%
Cap/Sales 2.66%
Interest Coverage 16.22
Cash Conversion 192.34%
Profit Quality 223.52%
Current Ratio 0.2
Quick Ratio 0.2
Altman-Z 0.06
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)121.05%
Cap/Depr(5y)115.44%
Cap/Sales(3y)1.97%
Cap/Sales(5y)1.96%
Profit Quality(3y)222.44%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.34%
EPS 3Y10.86%
EPS 5Y19.2%
EPS Q2Q%14.8%
EPS Next Y13.58%
EPS Next 2Y14.16%
EPS Next 3Y13.84%
EPS Next 5YN/A
Revenue 1Y (TTM)8.03%
Revenue growth 3Y11.29%
Revenue growth 5Y17.68%
Sales Q2Q%11.51%
Revenue Next Year11.85%
Revenue Next 2Y12.74%
Revenue Next 3Y12.96%
Revenue Next 5Y13.91%
EBIT growth 1Y4.2%
EBIT growth 3Y15.51%
EBIT growth 5Y18.73%
EBIT Next Year20.67%
EBIT Next 3Y16.92%
EBIT Next 5Y14.55%
FCF growth 1Y6.51%
FCF growth 3Y90.29%
FCF growth 5Y56.8%
OCF growth 1Y7.75%
OCF growth 3Y88.31%
OCF growth 5Y51.47%

XP INC - CLASS A / XP Fundamental Analysis 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 for XP stock?

ChartMill assigns a valuation rating of 8 / 10 to XP INC - CLASS A (XP). This can be considered as Undervalued.


What is the profitability of XP stock?

XP INC - CLASS A (XP) has a profitability rating of 5 / 10.


Can you provide the PE and PB ratios for XP stock?

The Price/Earnings (PE) ratio for XP INC - CLASS A (XP) is 9.46 and the Price/Book (PB) ratio is 2.04.


How financially healthy is XP INC - CLASS A?

The financial health rating of XP INC - CLASS A (XP) is 2 / 10.