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

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GB:XAR

Xaar plc

(LSE:XAR)

Rating:54Neutral
Price Target:
125.00p
▼(-0.20%Downside)
Xaar plc's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and negative profitability metrics. Technical analysis provides some positive momentum, but valuation concerns due to negative earnings remain a significant risk. The CFO's recent share purchase is a positive signal but doesn't outweigh the fundamental weaknesses.

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

Xaar plc Business Overview & Revenue Model

Company DescriptionXaar 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 MoneyXaar plc generates revenue through the sale of its proprietary printheads and associated technologies. The company's primary revenue stream comes from the manufacturing and sale of printheads to original equipment manufacturers (OEMs) who integrate these components into their industrial printing systems. Xaar also earns income from selling consumables such as specialized inks and offering technical support and maintenance services. Additionally, strategic partnerships and collaborations with key industry players enhance its market reach and contribute to its earnings by facilitating the adoption of its inkjet solutions in diverse applications.

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, providing 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
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 Price125.25
Price Trends
50DMA
121.24
Positive
100DMA
102.62
Positive
200DMA
91.29
Positive
Market Momentum
MACD
1.03
Positive
RSI
54.23
Neutral
STOCH
44.25
Neutral
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 125.25 is above the 20-day moving average (MA) of 125.06, above the 50-day MA of 121.24, and above the 200-day MA of 91.29, indicating a bullish trend. The MACD of 1.03 indicates Positive momentum. The RSI at 54.23 is Neutral, neither overbought nor oversold. The STOCH value of 44.25 is Neutral, 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£101.14M198.330.81%208.96%-11.80%-32.11%
72
Outperform
£95.66M27.567.69%-5.19%115.58%
65
Neutral
£164.32M30.184.79%217.82%1.74%359.50%
55
Neutral
£100.10M22.364.44%9.43%-1.95%-110.12%
54
Neutral
£98.13M-15.96%-13.04%-387.05%
51
Neutral
AU$1.67B2.47-31.66%3.57%16.42%-7.36%
49
Neutral
£182.79M-22.95%516.23%-15.12%-690.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:XAR
Xaar plc
125.75
-24.25
-16.17%
GB:TTG
TT Electronics
99.60
-49.49
-33.19%
GB:GHH
Gooch & Housego
606.00
157.09
34.99%
GB:SOLI
Solid State
178.50
-96.96
-35.20%
GB:SDI
SDI Group
91.50
25.50
38.64%
GB:KETL
Strix Group
43.55
-45.05
-50.85%

Xaar plc Corporate Events

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.

Business Operations and StrategyFinancial Disclosures
Xaar plc Announces Share Awards Under Long Term Incentive Plan
Neutral
May 7, 2025

Xaar plc, a company involved in digital inkjet technology, announced the granting of shares to its directors and persons discharging managerial responsibilities under its 2017 Long Term Incentive Plan. The awards, based on performance conditions including adjusted profit before tax, revenue, and total shareholder return, are part of a strategy to align management incentives with company performance over a three-year period, reflecting the company’s ongoing turnaround efforts.

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

Xaar plc has announced that its issued share capital consists of 79,518,160 ordinary shares, with no shares held in treasury, as of April 30, 2025. This announcement is in accordance with the FCA’s Disclosure and Transparency Rule, providing shareholders with the necessary information to determine their interest in the company. The total number of voting rights is crucial for stakeholders to assess their shareholding positions and comply with regulatory requirements.

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: Jul 01, 2025