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Xaar PLC (GB:XAR)
LSE:XAR
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Xaar plc (XAR) AI Stock Analysis

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GB:XAR

Xaar plc

(LSE:XAR)

Rating:49Neutral
Price Target:
116.00p
▼(-7.20% Downside)
Xaar plc's overall stock score is primarily impacted by its financial performance and valuation. The company faces significant challenges with declining revenue and profitability, as well as a negative P/E ratio. While the technical analysis shows some longer-term support, the short-term indicators are bearish. The lack of earnings call data and corporate events means these factors do not influence the score.

Xaar plc (XAR) vs. iShares MSCI United Kingdom ETF (EWC)

Xaar plc Business Overview & Revenue Model

Company DescriptionXaar plc (XAR) is a leading UK-based technology company specializing in the development and manufacturing of digital inkjet printing technologies. The company operates primarily in the industrial printing sector, providing high-performance printheads and associated technologies for various applications, including packaging, textiles, ceramics, and wide-format graphics. Xaar is known for its innovative solutions that enhance printing efficiency and quality, catering to a diverse range of industries.
How the Company Makes MoneyXaar generates revenue primarily through the sale of its advanced printheads and related components to businesses involved in industrial printing. The company's revenue model is built on direct sales to original equipment manufacturers (OEMs) and end-users, as well as through licensing agreements for its technology. Key revenue streams include the sale of printheads, spare parts, and consumables, along with service and support contracts for its products. Strategic partnerships with major printing equipment manufacturers and technology developers also play a significant role in driving sales and expanding market reach, contributing to Xaar's overall earnings.

Xaar plc Financial Statement Overview

Summary
Xaar plc is experiencing declining revenue and profitability, with negative profit margins and a negative Return on Equity. Despite these challenges, the company maintains a strong equity position with low leverage, providing some financial stability. The improvement in Free Cash Flow is a positive sign, but overall performance is hindered by ongoing operational inefficiencies.
Income Statement
40
Negative
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
65
Positive
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue61.41M70.61M72.78M59.25M47.98M
Gross Profit22.22M26.89M28.64M20.19M13.01M
EBITDA-4.42M3.45M6.55M3.01M288.00K
Net Income-10.69M-2.17M1.63M695.00K-4.37M
Balance Sheet
Total Assets80.69M97.26M102.44M103.94M73.54M
Cash, Cash Equivalents and Short-Term Investments10.56M9.46M9.06M25.05M18.12M
Total Debt6.49M10.10M9.21M9.73M2.58M
Total Liabilities18.50M25.43M30.67M35.14M17.38M
Stockholders Equity62.18M71.83M71.77M68.80M52.39M
Cash Flow
Free Cash Flow5.58M-2.39M-10.89M-3.97M-3.90M
Operating Cash Flow6.60M-449.00K-5.50M-2.05M-2.81M
Investing Cash Flow-768.00K570.00K-8.63M7.81M-636.00K
Financing Cash Flow-4.29M-1.35M-2.92M-674.00K-1.22M

Xaar plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price125.00
Price Trends
50DMA
121.65
Positive
100DMA
116.14
Positive
200DMA
95.35
Positive
Market Momentum
MACD
0.15
Negative
RSI
65.91
Neutral
STOCH
85.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:XAR, the sentiment is Positive. The current price of 125 is above the 20-day moving average (MA) of 116.96, above the 50-day MA of 121.65, and above the 200-day MA of 95.35, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 65.91 is Neutral, neither overbought nor oversold. The STOCH value of 85.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:XAR.

Xaar plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£96.71M24.288.38%0.50%-6.16%
61
Neutral
$35.51B8.11-11.05%1.89%8.55%-8.72%
57
Neutral
£99.07M22.364.44%9.43%-1.95%-110.12%
52
Neutral
£143.71M26.394.79%2.44%1.74%359.50%
52
Neutral
£170.36M-22.95%5.13%-15.12%-690.29%
51
Neutral
£86.41M169.440.81%2.45%-23.42%-94.25%
49
Neutral
£94.69M-16.64%-7.35%-222.10%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:XAR
Xaar plc
125.00
20.00
19.05%
GB:GHH
Gooch & Housego
540.00
106.18
24.48%
GB:SDI
SDI Group
95.00
34.40
56.77%
GB:SOLI
Solid State
152.50
-104.59
-40.68%
GB:TTG
TT Electronics
100.00
-44.66
-30.87%
GB:KETL
Strix Group
42.00
-40.50
-49.09%

Xaar plc Corporate Events

Business Operations and StrategyFinancial Disclosures
Xaar plc Reports Revenue Growth Amid Strategic Market Expansion
Positive
Aug 12, 2025

Xaar plc reported a 7% increase in revenue for the first half of 2025, driven by significant growth in the jewellery wax market and new business in printhead technology. Despite challenges in the Engineered Print Systems segment due to tariff uncertainties, the company remains optimistic about its medium-term growth prospects, particularly in the EV battery coating and automotive coating markets. The company is strategically positioned to capitalize on sustainable manufacturing trends, with ongoing investments in R&D and collaborations with key industry players.

Executive/Board Changes
Xaar plc Appoints Ben Stocks as New Chairman
Neutral
Aug 5, 2025

Xaar plc has announced the appointment of Ben Stocks as the new Chairman and Independent Non-Executive Director, effective October 1, 2025. This change follows Andrew Herbert’s departure after nine years on the Board, during which he significantly contributed to the company’s strategic positioning. Ben Stocks brings extensive leadership experience from his tenure at Porvair PLC, which is expected to support Xaar’s ongoing transformation and growth strategy.

Executive/Board ChangesBusiness Operations and Strategy
Xaar plc Appoints Ben Stocks as New Chairman
Positive
Aug 5, 2025

Xaar plc has announced the appointment of Ben Stocks as the new Chairman and Independent Non-Executive Director, effective 1 October 2025. Stocks, who brings over 35 years of leadership experience, will succeed Andrew Herbert, who is stepping down after nine years on the board. This leadership change is expected to support Xaar’s ongoing transformation and strategic growth initiatives in the industrial printing sector.

Regulatory Filings and Compliance
Xaar plc Announces Total Voting Rights Update
Neutral
Aug 1, 2025

Xaar plc has announced its total voting rights as of July 31, 2025, with an issued share capital consisting of 79,767,031 ordinary shares. This update is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, impacting their interest calculations in the company.

Regulatory Filings and Compliance
Xaar plc Announces Total Voting Rights Update
Neutral
Jul 2, 2025

Xaar plc has announced that its issued share capital comprises 79,583,118 ordinary shares, with no shares held in treasury. This figure, which includes shares held by Xaar Trustee Limited and the Xaar plc ESOP Trust, is crucial for shareholders to determine their notification obligations under the FCA’s Disclosure and Transparency Rules.

Other
Xaar CFO Increases Stake with Share Purchase
Positive
Jun 30, 2025

Xaar plc announced that Paul James, the Chief Financial Officer and Executive Director, has purchased 7,889 ordinary shares of the company at a price of £1.255 per share, totaling £9,900.70. This transaction, conducted in London, aligns with the UK Market Abuse Regulation and reflects potential confidence in the company’s future prospects.

Regulatory Filings and Compliance
Xaar plc Updates on Total Voting Rights
Neutral
Jun 3, 2025

Xaar plc has announced that its issued share capital consists of 79,564,772 ordinary shares, with no shares held in treasury as of May 31, 2025. This update on total voting rights is significant for shareholders as it provides the necessary denominator for calculating changes in their interests under the FCA’s Disclosure and Transparency Rules.

Shareholder Meetings
Xaar plc Successfully Passes All AGM Resolutions Amid Shareholder Concerns
Neutral
May 28, 2025

Xaar plc announced that all resolutions at its Annual General Meeting on May 28, 2025, were passed, with resolutions 1 to 12 as ordinary resolutions and 13 and 14 as special resolutions. Despite the overall success, the company noted a significant dissent of 28.92% against resolution 12 and is engaging with shareholders to address their concerns.

Business Operations and Strategy
Odyssean Investment Trust Increases Stake in Xaar plc
Neutral
May 21, 2025

Xaar plc, a company involved in the technology sector, has announced a significant change in its shareholder structure. Odyssean Investment Trust PLC has increased its voting rights in Xaar plc to 21.25%, up from a previous 20.24%, indicating a strategic move that could influence the company’s future decisions and operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025