Xaar PLC (GB:XAR)
LSE:XAR
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Xaar plc
(LSE:XAR)
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Rating:54Neutral
Price Target:
117.00 p
▲(12.50% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by a resilient balance sheet but still-weak profitability and inconsistent cash flow. The latest earnings call adds support via credible growth and margin-improvement targets with tangible FY2025 traction, while technicals are mixed and valuation remains constrained by losses and no dividend.
Positive Factors
Balance sheet resilience
Conservative leverage and a sizeable equity base give Xaar multi-quarter runway to execute medium-term growth plans and absorb volatility. This balance sheet resilience supports continued R&D investment, elevated CapEx to remove bottlenecks, and patience on timing for OEM-driven revenue conversion.
Negative Factors
Inconsistent cash generation
Volatile cash conversion limits internal funding for R&D and CapEx while the company is still loss-making. Negative free cash flow in 2025 despite revenue growth increases reliance on external financing or equity dilution and constrains flexibility to scale production or absorb execution timing slips.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet resilience
Conservative leverage and a sizeable equity base give Xaar multi-quarter runway to execute medium-term growth plans and absorb volatility. This balance sheet resilience supports continued R&D investment, elevated CapEx to remove bottlenecks, and patience on timing for OEM-driven revenue conversion.
Read all positive factors
Xaar plc (XAR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£90.91M
Dividend YieldN/A
Average Volume (3M)123.00K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth-7.35%
EPS Growth-222.10%
CountryUK
Employees331
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding79,818,430
10 Day Avg. Volume71,364
30 Day Avg. Volume123,000
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)1.49
Price to Sales (P/S)1.39
P/FCF Ratio-536.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£140.00Price Target Upside34.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)£71.10M
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 s...
How the Company Makes Money
Xaar makes money primarily by selling industrial inkjet printheads and associated technology to original equipment manufacturers (OEMs) and integrators that build complete printing or deposition systems. Revenue is typically generated through (1) ...
Xaar plc Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 22, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive outlook driven by strong Printhead growth (+22%), rapid traction in high-value niche markets (wax/jewelry growth to GBP 8m), a large identified battery-coating opportunity (~GBP 200m TAM if fully adopted), improved gross margins (current ~40% with +300 bps in key divisions) and clear medium-term targets (gross margin toward ~50%, operating margin in high teens). Key challenges include uneven division performance (EPS -10%), limited near-term revenue visibility for OEM-driven applications, elevated inventory and near-term CapEx needs, and IP enforcement complexity in China. Overall, the balance of evidence points to expansion and improving profitability prospects while acknowledging execution and timing risks.Positive Updates
Group Revenue Growth
Group revenue up 12% year-on-year (FY2025 vs FY2024), driven by strength in Printhead sales and new application adoption.
Negative Updates
EPS Revenue Decline
EPS division revenue down 10% year-on-year due to an unexpected end to a large multi-year golf-ball printing contract; though gross margin at EPS improved by ~300 basis points after restructuring.
Read all updates
Q4-2025 Updates
Positive
Negative
Group Revenue Growth
Group revenue up 12% year-on-year (FY2025 vs FY2024), driven by strength in Printhead sales and new application adoption.
Read all positive updates
Company Guidance
The management gave medium‑term guidance of roughly 10%+ annual revenue growth (consistent with consensus) with at least half of that growth volume‑driven, and targets to lift gross margin from ~40% today toward ~50% and operating margin into the high teens over a 3–5 year horizon; they plan to continue investing c.8–10% of revenue in R&D, expect slightly elevated CapEx to continue, and aim to improve stock turn by 0.5–1 turn p.a. Operational highlights/metrics cited that underpin the guidance include group revenue +12% in 2025, Printhead +22% (with Printhead gross margin +300bps), Megnajet +2%, EPS revenue -10% but EPS gross margin +300bps, wax revenue progression £0m (’23) → £1m (’24) → £8m (’25), a current annual profit of c.£0.8m, and specific market opportunities such as £150k of revenue per battery production line (10 live, +10–15 expected this year; 1,300 total lines = ~£200m addressable if fully adopted over 5 years) and a potential £25m addressable for desktop 3D at 1% of a 500,000 unit market; replacement cycles (e.g., a 4‑year life → 25% p.a. replacement) should generate recurring annuity revenue.Xaar plc Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 60.05M | 61.41M | 70.61M | 72.78M | 59.25M |
| Gross Profit | 23.69M | 22.22M | 26.89M | 28.64M | 20.19M |
| EBITDA | -2.95M | -4.42M | 3.45M | 6.03M | 5.90M |
| Net Income | -3.39M | -10.69M | -2.17M | 1.63M | 16.22M |
Balance Sheet | |||||
| Total Assets | 78.26M | 80.69M | 97.26M | 102.44M | 103.94M |
| Cash, Cash Equivalents and Short-Term Investments | 7.21M | 10.56M | 9.46M | 9.06M | 25.05M |
| Total Debt | 5.37M | 6.49M | 10.10M | 9.21M | 9.19M |
| Total Liabilities | 21.98M | 18.50M | 25.43M | 30.67M | 35.14M |
| Stockholders Equity | 56.28M | 62.18M | 71.83M | 71.77M | 68.80M |
Cash Flow | |||||
| Free Cash Flow | -156.00K | 5.58M | -2.39M | -10.89M | -3.97M |
| Operating Cash Flow | 1.79M | 6.60M | -449.00K | -5.50M | -2.05M |
| Investing Cash Flow | -2.74M | -768.00K | 570.00K | -8.63M | 7.81M |
| Financing Cash Flow | -2.58M | -4.29M | -1.35M | -2.92M | -674.00K |
Xaar plc Technical Analysis
Positive
104.00
Price Trends
112.11
Positive
111.75
Positive
118.16
Negative
Market Momentum
0.06
Negative
57.41
Neutral
96.30
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 104 is below the 20-day moving average (MA) of 110.40, below the 50-day MA of 112.11, and below the 200-day MA of 118.16, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 96.30 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £534.43M | 10.73 | 8.34% | 2.09% | 0.49% | 61.73% | |
72 Outperform | £2.62B | 17.58 | 8.06% | 2.12% | 3.15% | -13.57% | |
70 Neutral | £67.97M | 12.03 | 9.07% | ― | 7.36% | 31.93% | |
67 Neutral | £208.56M | 25.56 | 3.10% | 2.19% | 10.66% | 21.19% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | £90.91M | -24.70 | -5.90% | ― | -7.35% | -222.10% | |
39 Underperform | £27.57M | -21.06 | -12.60% | ― | -14.81% | -1362.50% |
* Technology Sector Average
GB:XAR
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115.50
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44.38%
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Xaar plc Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Xaar Returns to Adjusted Profit as New Inkjet Applications Drive Growth
Positive
Mar 24, 2026
Xaar reported 2025 revenue from continuing operations of £60.1 million, up 12% at constant currency, with printhead sales rising 22% to £43 million and gross margin improving to 40%, lifting adjusted profit before tax to £0.8 millio...
Business Operations and StrategyFinancial Disclosures
Xaar Plans Online Investor Presentation on 2025 Full-Year Results
Positive
Mar 23, 2026
Xaar plc has scheduled an online investor presentation to discuss its 2025 full-year results, with Chief Executive Officer John Mills and Chief Financial Officer Paul James set to host the session via the Investor Meet Company platform. The event ...
Regulatory Filings and Compliance
Xaar Updates Total Voting Rights and Share Capital Figure
Neutral
Mar 2, 2026
Xaar plc has confirmed that its issued share capital comprises 79,818,428 ordinary shares of 10 pence each, with no shares held in treasury, establishing the total number of voting rights in the company as of 28 February 2025. The tally includes s...
Business Operations and StrategyFinancial Disclosures
Xaar Lifts 2025 Revenue and Margins as New Inkjet Applications Gain Traction
Positive
Jan 14, 2026
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 pr...
Regulatory Filings and Compliance
Xaar Confirms Total Voting Rights at Year-End 2025
Neutral
Jan 5, 2026
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 th...
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.