Xaar plc (XAR) AI Stock Analysis

• Market Cap: £98.13M
• Dividend Yield: N/A
• Average Volume (3M): 53.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -13.04%
• EPS Growth: -387.05%
• Country: UK
• Employees: 331
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.10
• Shares Outstanding: 79,583,115
• 10 Day Avg. Volume: 38,166
• 30 Day Avg. Volume: 53,149
• PEG Ratio: 0.05
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.72
• 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: £141.00
• Price Target Upside: 12.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• 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 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 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

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: Positive
• Last Price: 125.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOLI	78 Outperform	£101.14M	198.33	0.81%	208.96%	-11.80%	-32.11%
SDI	72 Outperform	£95.66M	27.56	7.69%	―	-5.19%	115.58%
GHH	65 Neutral	£164.32M	30.18	4.79%	217.82%	1.74%	359.50%
KETL	55 Neutral	£100.10M	22.36	4.44%	9.43%	-1.95%	-110.12%
XAR	54 Neutral	£98.13M	―	-15.96%	―	-13.04%	-387.05%
Sector *	51 Neutral	AU$1.67B	2.47	-31.66%	3.57%	16.42%	-7.36%
TTG	49 Neutral	£182.79M	―	-22.95%	516.23%	-15.12%	-690.29%

Xaar plc Corporate Events

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.

Xaar plc Announces Share Awards Under Long Term Incentive Plan

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.

Xaar plc Announces Total Voting Rights Update

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.