Xaar plc (XAR) AI Stock Analysis

• Market Cap: £85.99M
• Dividend Yield: N/A
• Average Volume (3M): 123.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -7.35%
• EPS Growth: -222.10%
• Country: UK
• Employees: 331
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 79,816,895
• 10 Day Avg. Volume: 71,364
• 30 Day Avg. Volume: 123,000
• PEG Ratio: -0.01
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 10.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 111.00p ▲(6.73% Upside)

Xaar plc's overall stock score reflects significant challenges in financial performance, with declining revenue and profitability. However, the company's strong equity position and recent positive corporate events, including director share purchases and a positive outlook, provide some optimism. Technical analysis suggests a neutral trend, while valuation remains unattractive due to negative earnings.

Positive Factors

Balance sheet strength

A very high equity ratio and minimal leverage give Xaar durable financial resilience. Low debt reduces refinancing risk and preserves flexibility to invest in R&D and capex, helping the company weather industry cycles and support long-term product development.

Free cash flow improvement

The shift to positive free cash flow provides an enduring source of internal funding for product development, working capital and strategic partnerships. Consistent FCF reduces dependence on external financing and supports sustainable execution of growth initiatives.

Durable business model

Xaar's specialized piezoelectric printheads, recurring consumables and maintenance revenues, plus OEM partnerships, create recurring income and product stickiness. Diverse end-markets (ceramics, labels, packaging) support structural demand and competitive positioning.

Negative Factors

Declining revenue

Sustained top-line decline undermines scale and operating leverage. Continued revenue contraction makes fixed costs harder to cover, constrains reinvestment for R&D or capex, and lengthens the time horizon to restore margins and competitiveness.

Negative operating profitability

Persistently negative EBIT and net margins indicate the business cannot currently convert sales into sustainable profits. This erodes retained earnings, limits cash available for strategic investment, and raises concerns about structural cost competitiveness.

Earnings deterioration

A severe EPS contraction signals pronounced earnings volatility and deterioration. That reduces management flexibility, increases vulnerability to shocks, and may force restructuring or external funding choices that could impair long-term return prospects if not reversed.

Xaar plc Business Overview & Revenue Model

Company Description

Xaar plc designs, develops, manufactures, markets, and sells printheads and associated products in Europe, the Middle East, Africa, Asia, and the Americas. It operates through three segments: Printhead, Product Print Systems, and Digital Imaging segments. The company offers print head products; digital imaging solutions, comprising digital inkjet label presses and digital pathology scanners; industrial ink management and supply systems for digital inkjet; industrial printing machines; and system components, such as ink system test kit, print manager, hydra ink supply system, midas ink supply system, inkjet development system, head personality card 3 and 6, and 2001+ head personality card. Its products are used in 3D printing, ceramic tile decoration, coding and marking, decorative laminates, direct-to-shape, functional fluid deposition, glass printing, graphics, primary labels, packaging, and product printing. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom.

How the Company Makes Money

Xaar generates revenue primarily through the sale of its inkjet printheads and associated products, which are sold to manufacturers and businesses in various sectors. Key revenue streams include direct sales of printheads, components, and systems, as well as recurring income from consumables such as inks and maintenance services. The company also engages in partnerships with equipment manufacturers and technology providers to integrate its printheads into broader printing solutions, which can lead to additional revenue opportunities. Xaar's focus on research and development enables it to maintain a competitive edge, continually innovating and expanding its product offerings to meet evolving market demands.

Xaar plc Financial Statement Overview

Summary

Xaar plc faces challenges with declining revenue and profitability, as highlighted by negative profit margins and a negative Return on Equity. However, the company maintains a strong equity position with low leverage, which provides financial stability. The improvement in Free Cash Flow is a positive sign, but overall performance is hindered by ongoing operational inefficiencies and profitability issues.

Income Statement

Xaar plc has experienced declining revenue over the past year, with a Revenue Growth Rate of -13.03%. The Gross Profit Margin stands at 36.18%, which is a decrease from the previous year. The company is struggling with profitability, as evidenced by negative Net Profit Margin and EBIT Margin values of -17.41% and -18.01%, respectively. EBITDA Margin is slightly better at -7.20%, but still negative, indicating challenges in covering operating expenses.

Balance Sheet

The balance sheet shows a solid Equity Ratio of 77.06%, suggesting a strong reliance on equity financing. However, the Return on Equity is negative at -17.19%, reflecting net losses. The Debt-to-Equity Ratio is low at 0.10, indicating low leverage and a conservative capital structure. Despite these strengths, the company’s profitability issues remain a concern.

Cash Flow

Xaar plc's Free Cash Flow has improved from a negative position last year to a positive Free Cash Flow of 5.58 million. The Operating Cash Flow to Net Income Ratio stands at -0.62, showing a disconnect between reported earnings and cash generation. The Free Cash Flow to Net Income Ratio is favorable at -0.52, indicating some level of efficiency in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.98M	61.41M	70.61M	72.78M	59.25M	47.98M
Gross Profit	21.18M	22.22M	26.89M	28.64M	20.19M	13.01M
EBITDA	-6.43M	-4.42M	3.45M	6.03M	5.90M	288.00K
Net Income	-11.19M	-10.69M	-2.17M	1.63M	16.22M	-11.69M
Balance Sheet
Total Assets	74.99M	80.69M	97.26M	102.44M	103.94M	73.54M
Cash, Cash Equivalents and Short-Term Investments	6.79M	10.56M	9.46M	9.06M	25.05M	18.12M
Total Debt	5.34M	6.49M	10.10M	9.21M	9.19M	2.58M
Total Liabilities	16.36M	18.50M	25.43M	30.67M	35.14M	17.38M
Stockholders Equity	58.62M	62.18M	71.83M	71.77M	68.80M	52.39M
Cash Flow
Free Cash Flow	589.00K	5.58M	-2.39M	-10.89M	-3.97M	-3.90M
Operating Cash Flow	1.94M	6.60M	-449.00K	-5.50M	-2.05M	-2.81M
Investing Cash Flow	-1.78M	-768.00K	570.00K	-8.63M	7.81M	-636.00K
Financing Cash Flow	-4.08M	-4.29M	-1.35M	-2.92M	-674.00K	-1.22M

Xaar plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:XAR, the sentiment is Negative. The current price of 104 is below the 20-day moving average (MA) of 107.77, below the 50-day MA of 110.33, and below the 200-day MA of 117.73, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 50.43 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:XAR.

Xaar plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSCV	77 Outperform	£620.94M	23.96	8.49%	2.09%	0.49%	61.73%
RSW	74 Outperform	£2.75B	32.78	9.15%	2.12%	3.15%	-13.57%
SDI	70 Neutral	£85.23M	18.95	9.34%	―	7.36%	31.93%
GHH	67 Neutral	£193.78M	51.87	3.13%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£85.99M	-7.71	-16.64%	―	-7.35%	-222.10%
WPHO	39 Underperform	£43.85M	-38.46	-17.36%	―	-14.81%	-1362.50%

Xaar plc Corporate Events

Xaar Lifts 2025 Revenue and Margins as New Inkjet Applications Gain Traction

Xaar reported a like-for-like revenue increase of 16.6% for 2025 to £60.3 million, driven by strong 28.9% growth in printhead sales and stable performance in its core ceramics segment, while newer products and markets such as jewellery wax provided additional momentum. Improved gross margins from higher volumes and cost control mean adjusted full-year profits are expected to be slightly ahead of expectations, though net cash declined to about £4.8 million after £3.1 million of capital investment; the company highlighted that its differentiated fluid-deposition technology is now contributing to revenues beyond ceramics and expressed optimism about the scale of future opportunities, bolstered by the appointment of Berenberg and Singer Capital Markets as joint corporate brokers.

The most recent analyst rating on (GB:XAR) stock is a Hold with a £105.00 price target. To see the full list of analyst forecasts on Xaar plc stock, see the GB:XAR Stock Forecast page.

Xaar Confirms Total Voting Rights at Year-End 2025

Xaar plc has confirmed that its issued share capital comprises 79,816,895 ordinary shares of 10 pence each, with no shares held in treasury, establishing the total number of voting rights in the company as at 31 December 2025. The company noted that this figure, which includes shares held within trustee and ESOP structures, should be used by shareholders as the reference point for determining whether they are required to disclose holdings or changes in their interests under UK financial transparency rules, providing clarity for investors and regulators on Xaar’s capital and voting structure.

The most recent analyst rating on (GB:XAR) stock is a Hold with a £124.00 price target. To see the full list of analyst forecasts on Xaar plc stock, see the GB:XAR Stock Forecast page.

Xaar plc Announces Total Voting Rights Update

Xaar plc announced that its issued share capital comprises 79,783,945 ordinary shares, with no shares held in treasury. This announcement is in accordance with the FCA’s Disclosure and Transparency Rules, and the total voting rights figure will be used by shareholders to assess their interests in the company.

The most recent analyst rating on (GB:XAR) stock is a Hold with a £116.00 price target. To see the full list of analyst forecasts on Xaar plc stock, see the GB:XAR Stock Forecast page.

Xaar plc Announces Lapse of Share Options by COO

Xaar plc announced a transaction involving the lapse of share options under the Xaar 2017 Sharesave Plan by Graham Tweedale, the Chief Operating Officer and Person Discharging Managerial Responsibilities. This transaction, involving 3,857 shares at a price of £1.40 each, was conducted outside a trading venue and reflects the company’s adherence to the UK Market Abuse Regulation, ensuring transparency and regulatory compliance.

The most recent analyst rating on (GB:XAR) stock is a Hold with a £116.00 price target. To see the full list of analyst forecasts on Xaar plc stock, see the GB:XAR Stock Forecast page.

Xaar plc Announces Total Voting Rights Update

Xaar plc has announced its total voting rights, with the company’s issued share capital consisting of 79,783,945 ordinary shares as of October 31, 2025. This figure is crucial for shareholders to determine their required notifications under the FCA’s Disclosure and Transparency Rules, impacting how stakeholders manage their interests in the company.

The most recent analyst rating on (GB:XAR) stock is a Hold with a £126.00 price target. To see the full list of analyst forecasts on Xaar plc stock, see the GB:XAR Stock Forecast page.