LSE:XPP

Stock Analysis Report

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Executive Summary

XP Power Limited, an investment holding company, designs and manufactures power supply solutions in Europe, North America, and Asia. More Details


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has XP Power's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XPP is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: XPP's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-7.3%

XPP

-9.6%

GB Electrical

1.2%

GB Market


1 Year Return

61.3%

XPP

131.1%

GB Electrical

4.6%

GB Market

Return vs Industry: XPP underperformed the UK Electrical industry which returned 131.2% over the past year.

Return vs Market: XPP exceeded the UK Market which returned 4.6% over the past year.


Shareholder returns

XPPIndustryMarket
7 Day-7.3%-9.6%1.2%
30 Day-5.6%-24.4%0.7%
90 Day12.1%10.2%2.6%
1 Year62.7%61.3%132.4%131.1%10.6%4.6%
3 Year61.4%50.3%247.4%234.4%8.6%-4.5%
5 Year268.2%224.0%388.0%362.5%39.5%12.6%

Long-Term Price Volatility Vs. Market

How volatile is XP Power's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is XP Power undervalued compared to its fair value and its price relative to the market?

31.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: XPP (£50.8) is trading above our estimate of fair value (£39.32)

Significantly Below Fair Value: XPP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: XPP is poor value based on its PE Ratio (31.2x) compared to the GB Electrical industry average (28.8x).

PE vs Market: XPP is poor value based on its PE Ratio (31.2x) compared to the UK market (24.2x).


Price to Earnings Growth Ratio

PEG Ratio: XPP is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: XPP is overvalued based on its PB Ratio (6x) compared to the GB Electrical industry average (2.9x).


Next Steps

Future Growth

How is XP Power forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XPP's forecast earnings growth (7.5% per year) is above the savings rate (1%).

Earnings vs Market: XPP's earnings (7.5% per year) are forecast to grow slower than the UK market (22.6% per year).

High Growth Earnings: XPP's earnings are forecast to grow, but not significantly.

Revenue vs Market: XPP's revenue (2.9% per year) is forecast to grow slower than the UK market (6.6% per year).

High Growth Revenue: XPP's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XPP's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has XP Power performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XPP has high quality earnings.

Growing Profit Margin: XPP's current net profit margins (13.5%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: XPP's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: XPP's earnings growth over the past year (53.7%) exceeds its 5-year average (3.6% per year).

Earnings vs Industry: XPP earnings growth over the past year (53.7%) underperformed the Electrical industry 55.7%.


Return on Equity

High ROE: XPP's Return on Equity (19.3%) is considered low.


Next Steps

Financial Health

How is XP Power's financial position?


Financial Position Analysis

Short Term Liabilities: XPP's short term assets (£107.0M) exceed its short term liabilities (£34.7M).

Long Term Liabilities: XPP's short term assets (£107.0M) exceed its long term liabilities (£43.0M).


Debt to Equity History and Analysis

Debt Level: XPP's debt to equity ratio (19.3%) is considered satisfactory.

Reducing Debt: XPP's debt to equity ratio has increased from 9.7% to 19.3% over the past 5 years.

Debt Coverage: XPP's debt is well covered by operating cash flow (143.4%).

Interest Coverage: XPP's interest payments on its debt are well covered by EBIT (21.6x coverage).


Balance Sheet


Next Steps

Dividend

What is XP Power current dividend yield, its reliability and sustainability?

2.83%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: XPP's dividend (2.83%) is higher than the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: XPP's dividend (2.83%) is low compared to the top 25% of dividend payers in the UK market (4.51%).


Stability and Growth of Payments

Stable Dividend: XPP's dividend payments have been volatile in the past 10 years.

Growing Dividend: XPP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.4%), XPP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XPP's dividends in 3 years are forecast to be well covered by earnings (42.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Gavin Griggs

0.17

Tenure

UK£351,940

Compensation

Mr. Gavin Peter Griggs serves as Chief Executive Officer at XP Power Limited since January 1, 2021. He has been Executive Director at XP Power Limited since October 31, 2017. He had been Chief Financial Of...


CEO Compensation Analysis

Compensation vs Market: Gavin's total compensation ($USD485.80K) is below average for companies of similar size in the UK market ($USD1.66M).

Compensation vs Earnings: Gavin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Peters
Founder & Non-Executive Chairman6.75yrsUK£52.42k6.4%
£ 63.7m
Gavin Griggs
CEO & Executive Director0.17yrUK£351.94kno data
Michael Laver
President of Corporate Development3.33yrsUK£280.10kno data
Duncan Penny
Executive Directorno dataUK£461.20k0.55%
£ 5.4m
Andy Sng
Executive VP of Asia & Executive Director13.92yrsUK£329.09k0.12%
£ 1.2m
Johan Olivier
Acting Chief Financial Officer0.17yrno datano data
Adrian Irwin
Executive Vice President of Global Manufacturing & Operationsno datano datano data
Gary Bocock
Technical Director9.17yrsno datano data
Peter Blyth
Executive Vice President of Global Products9.5yrsno datano data
Jay Warner
Executive Vice President - N. America Sales & Engineering Services6.83yrsno datano data
Richard Bartlett
Head of Product Development6.42yrsno datano data
Hiren Shah
Executive Vice President of Engineering8.17yrsno datano data

6.6yrs

Average Tenure

57yo

Average Age

Experienced Management: XPP's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Peters
Founder & Non-Executive Chairman6.75yrsUK£52.42k6.4%
£ 63.7m
Gavin Griggs
CEO & Executive Director0.17yrUK£351.94kno data
Duncan Penny
Executive Directorno dataUK£461.20k0.55%
£ 5.4m
Andy Sng
Executive VP of Asia & Executive Director13.92yrsUK£329.09k0.12%
£ 1.2m
Terence Twigger
Senior Independent Non-Executive Directorno dataUK£45.00kno data
Polly Williams
Independent Non-Executive Director5.17yrsUK£40.00kno data
Pauline Lafferty
Independent Non-Executive Director1.25yrsUK£3.33kno data

5.2yrs

Average Tenure

56yo

Average Age

Experienced Board: XPP's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

XP Power Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: XP Power Limited
  • Ticker: XPP
  • Exchange: LSE
  • Founded: 1988
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: UK£995.171m
  • Shares outstanding: 19.59m
  • Website: https://www.xppowerplc.com

Location

  • XP Power Limited
  • No. 02-02, Haw Par Technocentre
  • Lobby B
  • Singapore
  • 149598
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XPPLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2000
XPPL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2000
XPPlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2000
4XPBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJul 2000

Biography

XP Power Limited, an investment holding company, designs and manufactures power supply solutions in Europe, North America, and Asia. The company offers AC-DC power supplies, DC-DC converters, high voltage ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 19:48
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.