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.


Snowflake Analysis

Excellent balance sheet with limited growth.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.4%

XPP

24.2%

GB Electrical

5.5%

GB Market


1 Year Return

58.7%

XPP

14.9%

GB Electrical

-9.2%

GB Market

Return vs Industry: XPP exceeded the UK Electrical industry which returned 8.1% over the past year.

Return vs Market: XPP exceeded the UK Market which returned -10% over the past year.


Shareholder returns

XPPIndustryMarket
7 Day19.4%24.2%5.5%
30 Day29.2%54.0%10.8%
90 Day19.4%0.8%-0.4%
1 Year62.1%58.7%15.9%14.9%-4.8%-9.2%
3 Year53.7%41.9%-12.4%-16.5%-0.8%-12.9%
5 Year172.2%133.5%195.2%-87.2%18.1%-8.2%

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?

35.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: XPP (£37.6) is trading above our estimate of fair value (£25.5)

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 (35.1x) compared to the Electrical industry average (26.3x).

PE vs Market: XPP is poor value based on its PE Ratio (35.1x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: XPP is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: XPP is overvalued based on its PB Ratio (5.2x) compared to the GB Electrical industry average (3.6x).


Next Steps

Future Growth

How is XP Power forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XPP's forecast earnings growth (18.1% per year) is above the savings rate (1.2%).

Earnings vs Market: XPP's earnings (18.1% per year) are forecast to grow slower than the UK market (21.2% per year).

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

Revenue vs Market: XPP's revenue (4% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: XPP's revenue (4% 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 (17.6%).


Next Steps

Past Performance

How has XP Power performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XPP has high quality earnings.

Growing Profit Margin: XPP's current net profit margins (10.3%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: XPP's earnings have grown by 8.2% per year over the past 5 years.

Accelerating Growth: XPP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: XPP had negative earnings growth (-32.1%) over the past year, making it difficult to compare to the Electrical industry average (-12.3%).


Return on Equity

High ROE: XPP's Return on Equity (15%) 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 (£96.0M) exceed its short term liabilities (£30.4M).

Long Term Liabilities: XPP's short term assets (£96.0M) exceed its long term liabilities (£64.1M).


Debt to Equity History and Analysis

Debt Level: XPP's debt to equity ratio (37.8%) is considered satisfactory.

Reducing Debt: XPP's debt to equity ratio has increased from 3.1% to 37.8% over the past 5 years.

Debt Coverage: XPP's debt is well covered by operating cash flow (88%).

Interest Coverage: XPP's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.35%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate XPP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate XPP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if XPP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if XPP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: XPP is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of XPP's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Duncan Penny (56yo)

17.33yrs

Tenure

UK£461,201

Compensation

Mr. Duncan Penny serves as Independent Non-Executive Director at The Vitec Group plc since September 1, 2018. Mr. Penny has been the Chief Executive Officer of XP Power Ltd. (alternate name XP Power PLC) s ...


CEO Compensation Analysis

Compensation vs Market: Duncan's total compensation ($USD586.58K) is below average for companies of similar size in the UK market ($USD1.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Peters
Founder & Non-Executive Chairman6yrsUK£52.42k7.89% £57.5m
Duncan Penny
CEO & Executive Director17.33yrsUK£461.20k1.07% £7.8m
Gavin Griggs
CFO & Executive Director2.67yrsUK£351.94kno data
Michael Laver
President of Corporate Development2.58yrsUK£280.10kno data
Andy Sng
Executive VP of Asia & Executive Director13.17yrsUK£329.09k0.12% £902.4k
Adrian Irwin
Executive Vice President of Global Manufacturing & Operationsno datano datano data
Gary Bocock
Technical Director8.42yrsno datano data
Peter Blyth
Executive Vice President of Global Products8.75yrsno datano data
Jay Warner
Executive Vice President - N. America Sales & Engineering Services6.08yrsno datano data
Richard Bartlett
Head of Product Development5.67yrsno datano data

7.3yrs

Average Tenure

56yo

Average Age

Experienced Management: XPP's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Peters
Founder & Non-Executive Chairman6yrsUK£52.42k7.89% £57.5m
Duncan Penny
CEO & Executive Director17.33yrsUK£461.20k1.07% £7.8m
Gavin Griggs
CFO & Executive Director2.67yrsUK£351.94kno data
Andy Sng
Executive VP of Asia & Executive Director13.17yrsUK£329.09k0.12% £902.4k
Terence Twigger
Senior Independent Non-Executive Directorno dataUK£45.00kno data
Polly Williams
Independent Non-Executive Director4.42yrsUK£40.00kno data
Pauline Lafferty
Independent Non-Executive Director0.50yrUK£3.33kno data

4.4yrs

Average Tenure

55yo

Average Age

Experienced Board: XPP's board of directors are considered experienced (4.4 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 not been meaningfully diluted in the past year.


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£729.015m
  • Shares outstanding: 19.39m
  • 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 AC-DC power supplies, high voltage DC-DC converters, RF power systems, EMI filters, custom power supplies, and 3 phase power sources. It also offers engineering services. The company serves healthcare, industrial electronics, semiconductor equipment manufacturing, and technology industries. XP Power Limited was founded in 1988 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 22:07
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.