Xaar plc (XAR) AI Stock Analysis

• Market Cap: £95.09M
• Dividend Yield: N/A
• Average Volume (3M): 96.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• 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: 79,767,030
• 10 Day Avg. Volume: 54,986
• 30 Day Avg. Volume: 96,978
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £119.00
• Price Target Upside: -0.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: 119.00p ▼(-0.83% Downside)

Xaar plc's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue and negative profitability metrics. The technical analysis further supports a bearish outlook, with the stock trading below key moving averages and nearing oversold conditions. Valuation concerns are evident with a negative P/E ratio and no dividend yield, making the stock less attractive to investors.

Xaar plc Business Overview & Revenue Model

Company Description

Xaar 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 Money

Xaar 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.41M	70.61M	72.78M	59.25M	47.98M
Gross Profit	22.22M	26.89M	28.64M	20.19M	13.01M
EBITDA	-4.42M	3.45M	6.55M	3.01M	288.00K
Net Income	-10.69M	-2.17M	1.63M	695.00K	-4.37M
Balance Sheet
Total Assets	80.69M	97.26M	102.44M	103.94M	73.54M
Cash, Cash Equivalents and Short-Term Investments	10.56M	9.46M	9.06M	25.05M	18.12M
Total Debt	6.49M	10.10M	9.21M	9.73M	2.58M
Total Liabilities	18.50M	25.43M	30.67M	35.14M	17.38M
Stockholders Equity	62.18M	71.83M	71.77M	68.80M	52.39M
Cash Flow
Free Cash Flow	5.58M	-2.39M	-10.89M	-3.97M	-3.90M
Operating Cash Flow	6.60M	-449.00K	-5.50M	-2.05M	-2.81M
Investing Cash Flow	-768.00K	570.00K	-8.63M	7.81M	-636.00K
Financing Cash Flow	-4.29M	-1.35M	-2.92M	-674.00K	-1.22M

Xaar plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 120.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 120 is below the 20-day moving average (MA) of 133.03, below the 50-day MA of 125.09, and above the 200-day MA of 100.26, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 31.93 is Neutral, neither overbought nor oversold. The STOCH value of 5.08 is Positive, 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
SDI	76 Outperform	98.30M	24.67	8.03%	―	0.50%	-6.16%
GHH	61 Neutral	155.64M	28.44	-5.88%	2.30%	1.74%	359.50%
TTG	58 Neutral	199.90M	-2.87	-27.40%	6.02%	-16.33%	-448.12%
SOLI	55 Neutral	93.79M	183.33	0.83%	1.52%	-23.42%	-94.25%
KETL	52 Neutral	105.74M	-61.33	-3.06%	―	-1.95%	-110.12%
XAR	48 Neutral	£95.09M	―	-16.64%	―	-7.35%	-222.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Xaar plc Corporate Events

Xaar plc Reports Revenue Growth Amid Strategic Market Expansion

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.

Xaar plc Appoints Ben Stocks as New Chairman

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.

Xaar plc Appoints Ben Stocks as New Chairman

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.

Xaar plc Announces Total Voting Rights Update

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.

Xaar plc Announces Total Voting Rights Update

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.

Xaar CFO Increases Stake with Share Purchase

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.

Xaar plc Updates on Total Voting Rights

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.

Xaar plc Successfully Passes All AGM Resolutions Amid Shareholder Concerns

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.

Odyssean Investment Trust Increases Stake in Xaar plc

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.