Xaar PLC (GB:XAR)
LSE:XAR
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Xaar plc
(LSE:XAR)
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Rating:54Neutral
Price Target:
130.00 p
▲(25.00% Upside)
Action:Reiterated
Date: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
Conservative balance sheet
Low net leverage and a sizable equity base give Xaar structural financial resilience, reducing bankruptcy and refinancing risk while the company executes growth. This balance-sheet strength supports continued R&D and selective CapEx without immediately forcing dilutive financing, aiding multi‑year execution.
Negative Factors
Ongoing net losses
The firm remains loss-making at the operating and net levels, meaning profitability targets are execution-dependent. Continued losses limit retained-earnings growth, constrain shareholder returns and increase reliance on internal cash or external funding until operating margins sustainably turn positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low net leverage and a sizable equity base give Xaar structural financial resilience, reducing bankruptcy and refinancing risk while the company executes growth. This balance-sheet strength supports continued R&D and selective CapEx without immediately forcing dilutive financing, aiding multi‑year execution.
Read all positive factors
Xaar plc (XAR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£95.35M
Dividend YieldN/A
Average Volume (3M)123.00K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth-2.20%
EPS Growth68.24%
CountryUK
Employees331
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.03
Shares Outstanding79,821,470
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.02
Revenue Forecast (FY)£71.10M
Xaar plc Business Overview & Revenue Model
Company Description
Xaar plc is a globally active enterprise involved in the design, development, manufacturing, and commercialization of innovative printheads and associated products, with operations spanning Europe, the Middle East, Africa, Asia, and the Americas. ...
How the Company Makes Money
Xaar primarily makes money by selling industrial inkjet printheads and associated components/systems to original equipment manufacturers (OEMs) and integrators who build complete printing or fluid-deposition equipment for end customers. Revenue is...
Xaar plc Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 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 | 22.96M | 22.22M | 26.89M | 28.64M | 20.19M |
| EBITDA | 896.00K | -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
Negative
104.00
Price Trends
137.07
Negative
125.74
Negative
121.74
Negative
Market Momentum
-3.76
Positive
36.25
Neutral
14.97
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 104 is below the 20-day moving average (MA) of 134.59, below the 50-day MA of 137.07, and below the 200-day MA of 121.74, indicating a bearish trend. The MACD of -3.76 indicates Positive momentum. The RSI at 36.25 is Neutral, neither overbought nor oversold. The STOCH value of 14.97 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £3.62B | 48.80 | 8.06% | 2.12% | 4.99% | -24.08% | |
70 Neutral | £91.61M | 19.95 | 9.07% | ― | 7.36% | 31.93% | |
67 Neutral | £256.19M | 63.46 | 3.10% | 2.19% | 12.73% | -26.74% | |
63 Neutral | £638.24M | 22.13 | 9.04% | 2.09% | 4.82% | 17.80% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | £95.35M | -32.93 | -5.90% | ― | -2.20% | 68.24% | |
39 Underperform | £26.03M | -19.69 | -12.60% | ― | -14.81% | -1362.50% |
* Technology Sector Average
GB:XAR
Xaar plc
121.50
-1.50
-1.22%
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Xaar plc Corporate Events
Regulatory Filings and Compliance
Xaar Confirms Total Voting Rights at 79.8 Million Shares
Neutral
Jun 2, 2026
Xaar plc has confirmed that its issued share capital now comprises 79,821,470 ordinary shares of 10 pence each, with no shares held in treasury, giving a total of 79,821,470 voting rights as at 31 May 2026. The figure includes shares held by Xaar ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Xaar Wins Strong Shareholder Backing for All AGM Resolutions
Positive
May 28, 2026
Xaar plc reported that all resolutions at its 27 May 2026 Annual General Meeting were passed by poll, with around 70% of the issued share capital voting. Shareholders approved the 2025 Annual Report, the directors’ remuneration report and a ...
Business Operations and StrategyExecutive/Board Changes
Xaar awards performance-linked share incentives to senior executives
Positive
May 6, 2026
Xaar plc has granted new conditional performance share awards to its chief executive John Mills, chief financial officer Paul James and chief operating officer Graham Tweedale under its 2017 Long Term Incentive Plan. The awards, based on adjusted ...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Xaar Releases 2025 Annual Report and Sets Date for AGM
Neutral
Apr 16, 2026
Xaar plc has published its Annual Report and Accounts for the year ended 31 December 2025, which includes the notice of its upcoming Annual General Meeting. The AGM is scheduled to take place on 27 May 2026 at 11:00 a.m. BST, and shareholders can ...
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.