Market Cap
US$22.7b
Last Updated
2021/01/14 23:41 UTC
Data Sources
Company Financials +
Executive Summary
XP Inc. operates technology-driven financial services platform that provides financial products and services in Brazil. More Details
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential with solid 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: XP's weekly volatility has decreased from 12% to 6% over the past year.
Market Performance
7 Day Return
6.0%
XP
1.1%
US Capital Markets
0.6%
US Market
1 Year Return
7.6%
XP
17.5%
US Capital Markets
21.0%
US Market
Return vs Industry: XP underperformed the US Capital Markets industry which returned 19.9% over the past year.
Return vs Market: XP underperformed the US Market which returned 22% over the past year.
Shareholder returns
| XP | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.0% | 1.1% | 0.6% |
| 30 Day | 5.7% | 9.6% | 4.2% |
| 90 Day | -4.0% | 21.3% | 12.4% |
| 1 Year | 7.6%7.6% | 20.4%17.5% | 23.7%21.0% |
| 3 Year | n/a | 34.2%23.9% | 47.4%37.6% |
| 5 Year | n/a | 157.8%125.5% | 131.6%105.9% |
Long-Term 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
1 month ago | Simply Wall St
The XP (NASDAQ:XP) Share Price Is Up 10% And Shareholders Are Holding On7 months ago | Simply Wall St
What Is XP's (NASDAQ:XP) P/E Ratio After Its Share Price Rocketed?8 months ago | Simply Wall St
How Does XP's (NASDAQ:XP) P/E Compare To Its Industry, After Its Big Share Price Gain?Valuation
Is XP undervalued compared to its fair value and its price relative to the market?
61.76x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: XP ($40.55) is trading above our estimate of fair value ($10.1)
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 (61.8x) compared to the US Capital Markets industry average (28x).
PE vs Market: XP is poor value based on its PE Ratio (61.8x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: XP is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: XP is overvalued based on its PB Ratio (13.5x) compared to the US Capital Markets industry average (5.2x).
Next Steps
Future Growth
How is XP forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
24.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: XP's forecast earnings growth (24.3% per year) is above the savings rate (2%).
Earnings vs Market: XP's earnings (24.3% per year) are forecast to grow faster than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: XP's revenue (32.1% per year) is forecast to grow faster than the US market (10.2% per year).
High Growth Revenue: XP's revenue (32.1% 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 (26.6%)
Next Steps
Past Performance
How has XP performed over the past 5 years?
39.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: XP has high quality earnings.
Growing Profit Margin: XP's current net profit margins (25%) are higher than last year (18.6%).
Past Earnings Growth Analysis
Earnings Trend: XP's earnings have grown significantly by 39.8% per year over the past 5 years.
Accelerating Growth: XP's earnings growth over the past year (131.2%) exceeds its 5-year average (39.8% per year).
Earnings vs Industry: XP earnings growth over the past year (131.2%) exceeded the Capital Markets industry 4.9%.
Return on Equity
High ROE: Whilst XP's Return on Equity (21.56%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is XP's financial position?
Financial Position Analysis
Short Term Liabilities: XP's short term assets (R$66.4B) exceed its short term liabilities (R$61.5B).
Long Term Liabilities: XP's short term assets (R$66.4B) exceed its long term liabilities (R$18.2B).
Debt to Equity History and Analysis
Debt Level: XP's debt to equity ratio (426.8%) is considered high.
Reducing Debt: XP's debt to equity ratio has increased from 125.8% to 426.8% over the past 5 years.
Debt Coverage: XP's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: XP's interest payments on its debt are well covered by EBIT (36.4x coverage).
Balance Sheet
Next Steps
Dividend
What is XP current dividend yield, its reliability and sustainability?
0.87%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate XP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate XP'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 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?
1.2yrs
Average management tenure
CEO
Guilherme Dias Benchimol (43 yo)
20yrs
Tenure
Mr. Guilherme Dias Fernandes Benchimol has Founded XP Inc. since 2001. Mr. Benchimol serves as Chairman at XP Inc. since August 2019 and also as its CEO since 2001. Mr. Benchimol has lots of experience in ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 20yrs | no data | no data | |
| Founder & CEO | no data | no data | no data | |
| CFO & Director | 1.17yrs | no data | no data | |
| Executive Director of Technology | no data | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel & Director | 1.17yrs | no data | no data | |
| Head of M&A | 0.083yr | no data | no data | |
| Investor Relations Specialist | no data | no data | no data |
1.2yrs
Average Tenure
43yo
Average Age
Experienced Management: XP's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 20yrs | no data | no data | |
| CFO & Director | 1.17yrs | no data | no data | |
| General Counsel & Director | 1.17yrs | no data | no data | |
| Director | 1.17yrs | no data | no data | |
| Director | 1.17yrs | no data | no data | |
| Independent Director | 0.75yr | no data | no data | |
| Independent Director | 1.17yrs | no data | no data | |
| Director | 1.17yrs | no data | no data | |
| Director | 1.17yrs | no data | no data | |
| Director | 1.17yrs | no data | no data | |
| Director | 1.17yrs | no data | no data | |
| Independent Director | 0.42yr | no data | no data |
1.2yrs
Average Tenure
43.5yo
Average Age
Experienced Board: XP's board of directors are not considered experienced ( 1.2 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: Shareholders have not been meaningfully diluted 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$22.665b
- Shares outstanding: 558.93m
- 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 |
| XP9 | DB (Deutsche Boerse AG) | 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 cli...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/14 23:41 |
| End of Day Share Price | 2021/01/14 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.