Market Cap
US$64.2b
Last Updated
2020/02/19 01:59 UTC
Data Sources
Company Financials +
Executive Summary
XP Inc. operates technology-driven financial services platform that provides financial products and services in Brazil.
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential with proven track record.
Similar Companies
Share Price & News
How has XP's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: XP has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.07%
XP
0.2%
US Capital Markets
0.06%
US Market
1 Year Return
n/a
XP
17.8%
US Capital Markets
19.4%
US Market
Return vs Industry: Insufficient data to determine how XP performed against the US Capital Markets industry.
Return vs Market: Insufficient data to determine how XP performed against the US Market.
Shareholder returns
| XP | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.07% | 0.2% | 0.06% |
| 30 Day | 5.5% | 0.2% | 1.1% |
| 90 Day | n/a | 6.8% | 8.9% |
| 1 Year | n/a | 20.2%17.8% | 21.9%19.4% |
| 3 Year | n/a | 38.8%30.9% | 48.9%39.3% |
| 5 Year | n/a | 81.4%64.5% | 71.9%53.1% |
Price Volatility Vs. Market
How volatile is XP's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is XP undervalued compared to its fair value and its price relative to the market?
466.34x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: XP ($40.32) is trading above our estimate of fair value ($9.24)
Significantly Below Fair Value: XP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: XP is poor value based on its PE Ratio (455.9x) compared to the Capital Markets industry average (36x).
PE vs Market: XP is poor value based on its PE Ratio (455.9x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: XP is poor value based on its PEG Ratio (15.5x)
Price to Book Ratio
PB vs Industry: XP is overvalued based on its PB Ratio (127.7x) compared to the US Capital Markets industry average (6.7x).
Next Steps
Future Growth
How is XP forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
29.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: XP's forecast earnings growth (29.4% per year) is above the savings rate (1.7%).
Earnings vs Market: XP's earnings (29.4% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: XP's revenue (26.2% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: XP's revenue (26.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: XP's Return on Equity is forecast to be high in 3 years time (25.3%)
Next Steps
Past Performance
How has XP performed over the past 5 years?
47.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: XP has a high level of non-cash earnings.
Growing Profit Margin: XP's current net profit margins (18.6%) are higher than last year (16.7%).
Past Earnings Growth Analysis
Earnings Trend: XP's earnings have grown significantly by 47.2% per year over the past 5 years.
Accelerating Growth: XP's earnings growth over the past year (78.7%) exceeds its 5-year average (47.2% per year).
Earnings vs Industry: XP earnings growth over the past year (78.7%) exceeded the Capital Markets industry 8.4%.
Return on Equity
High ROE: Whilst XP's Return on Equity (29.22%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is XP's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: XP has a low level of unsold assets or inventory.
Debt Coverage by Assets: XP's debt is covered by short term assets (assets are 1.1x debt).
Financial Institutions Analysis
Asset Level: XP's level of assets compared to its equity is moderate.
Allowance for Bad Loans: Insufficient data to determine if XP has a sufficient allowance for bad loans.
Low Risk Liabilities: XP reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if XP has an acceptable proportion of non-loan assets held.
Low Risk Deposits: XP has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if XP has an appropriate level of bad loans.
Next Steps
Dividend
What is XP's current dividend yield, its reliability and sustainability?
0.56%
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate XP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate XP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if XP's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if XP's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of XP's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.3yrs
Average board tenure
CEO
Guilherme Dias Benchimol (42yo)
Mr. Guilherme Dias Fernandes Benchimol serves as Chairman at XP Inc. since August 2019 and also as its CEO. Mr. Benchimol has lots of experience in the financial services market. He founded the XP group in ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 0yrs | no data | no data | |
| Director | 0.3yrs | no data | no data | |
| Director | 0.3yrs | no data | no data | |
| Independent Director | 0.3yrs | no data | no data | |
| Director | 0.3yrs | no data | no data |
0.3yrs
Average Tenure
48yo
Average Age
Experienced Board: XP's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.
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.
Ownership Breakdown
Dilution of Shares: XP only recently listed within the past 12 months, with total shares outstanding growing by 4.4% in the past year..
Top Shareholders
Company Information
XP Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: XP Inc.
- Ticker: XP
- Exchange: NasdaqGS
- Founded: 2001
- Industry: Investment Banking and Brokerage
- Sector: Diversified Financials
- Market Cap: US$64.204b
- Shares outstanding: 1.57b
- Website: https://www.xpinc.com
Number of Employees
Location
- XP Inc.
- Av. Chedid Jafet, 75
- 30th Floor
- São Paulo
- São Paulo
- 04551-065
- Brazil
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| XP | NasdaqGS (Nasdaq Global Select) | Yes | Class A Shares | US | USD | Dec 2019 |
| XP9 | BST (Boerse-Stuttgart) | Yes | Class A Shares | DE | EUR | Dec 2019 |
Biography
XP Inc. operates technology-driven financial services platform that provides financial products and services in Brazil. It provides broker-dealer services for high-net worth customers and institutional clients; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth clients. The company also offers XP Educação, an online financial education portal that offers seminars, classes, and learning tools to help teach individuals a range of topics, such as basics of investing, techniques, and investment strategies, as well as insurance brokerage services. In addition, it operates XP Platform, an open product platform that provides clients to access investment products in the market, including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds, and others. The company was founded in 2001 and is based in São Paulo, Brazil.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 01:59 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.