Xaar plc (XAR) AI Stock Analysis

• Market Cap: £80.60M
• Dividend Yield: N/A
• Average Volume (3M): 123.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• 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: 79,783,940
• 10 Day Avg. Volume: 71,364
• 30 Day Avg. Volume: 123,000
• PEG Ratio: -0.01
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 10.07
• 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: £160.00
• Price Target Upside: 56.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 124.00p ▲(21.57% Upside)

Xaar plc's overall stock score reflects significant challenges in financial performance, with declining revenue and profitability. However, the company's strong equity position and recent positive corporate events, including director share purchases and a positive outlook, provide some optimism. Technical analysis suggests a neutral trend, while valuation remains unattractive due to negative earnings.

Positive Factors

Strong Equity Position

A strong equity position with low leverage provides financial stability, allowing Xaar to withstand market fluctuations and invest in growth opportunities.

Improved Free Cash Flow

Improved free cash flow indicates better cash generation, enhancing Xaar's ability to reinvest in its business and support operational needs.

Innovative Product Offerings

Xaar's focus on innovation in digital inkjet printing positions it well in the industrial printing sector, potentially driving long-term growth and market share expansion.

Negative Factors

Declining Revenue

Declining revenue growth poses a challenge to Xaar's market position and could impact its ability to invest in new technologies and maintain competitive advantages.

Profitability Issues

Ongoing profitability issues may limit Xaar's ability to reinvest in its business, potentially hindering long-term growth and operational efficiency.

Operational Inefficiencies

Operational inefficiencies can lead to increased costs and reduced competitiveness, affecting Xaar's ability to sustain margins and improve profitability over time.

Xaar plc Business Overview & Revenue Model

Company Description

Xaar plc (XAR) is a leading inkjet technology company based in the United Kingdom, specializing in the development and manufacture of industrial inkjet printing systems. The company operates primarily in the sectors of digital printing and manufacturing, providing high-performance printheads and related technologies. Xaar's core products include a range of piezoelectric inkjet printheads designed for various applications, including ceramics, labels, packaging, and industrial printing. Their innovative solutions enable businesses to enhance productivity and achieve high-quality print results across multiple industries.

How the Company Makes Money

Xaar generates revenue primarily through the sale of its inkjet printheads and associated products, which are sold to manufacturers and businesses in various sectors. Key revenue streams include direct sales of printheads, components, and systems, as well as recurring income from consumables such as inks and maintenance services. The company also engages in partnerships with equipment manufacturers and technology providers to integrate its printheads into broader printing solutions, which can lead to additional revenue opportunities. Xaar's focus on research and development enables it to maintain a competitive edge, continually innovating and expanding its product offerings to meet evolving market demands.

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, which provides 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.98M	61.41M	70.61M	72.78M	59.25M	47.98M
Gross Profit	21.18M	22.22M	26.89M	28.64M	20.19M	13.01M
EBITDA	-6.43M	-4.42M	3.45M	6.03M	5.90M	288.00K
Net Income	-11.19M	-10.69M	-2.17M	1.63M	16.22M	-11.69M
Balance Sheet
Total Assets	74.99M	80.69M	97.26M	102.44M	103.94M	73.54M
Cash, Cash Equivalents and Short-Term Investments	6.79M	10.56M	9.46M	9.06M	25.05M	18.12M
Total Debt	5.34M	6.49M	10.10M	9.21M	9.19M	2.58M
Total Liabilities	16.36M	18.50M	25.43M	30.67M	35.14M	17.38M
Stockholders Equity	58.62M	62.18M	71.83M	71.77M	68.80M	52.39M
Cash Flow
Free Cash Flow	589.00K	5.58M	-2.39M	-10.89M	-3.97M	-3.90M
Operating Cash Flow	1.94M	6.60M	-449.00K	-5.50M	-2.05M	-2.81M
Investing Cash Flow	-1.78M	-768.00K	570.00K	-8.63M	7.81M	-636.00K
Financing Cash Flow	-4.08M	-4.29M	-1.35M	-2.92M	-674.00K	-1.22M

Xaar plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 102.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 102 is below the 20-day moving average (MA) of 113.80, below the 50-day MA of 119.67, and below the 200-day MA of 113.67, indicating a bearish trend. The MACD of -4.66 indicates Positive momentum. The RSI at 34.00 is Neutral, neither overbought nor oversold. The STOCH value of 19.84 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	70 Neutral	£83.66M	18.26	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£90.93M	37.56	3.88%	1.56%	8.75%	-54.73%
KETL	68 Neutral	£106.00M	13.89	18.63%	―	-3.41%	58.10%
GHH	67 Neutral	£163.20M	43.96	3.13%	2.20%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£80.60M	-7.21	-16.64%	―	-7.35%	-222.10%
TTG	54 Neutral	£200.25M	-2.87	-31.42%	―	-16.33%	-448.12%

Xaar plc Corporate Events

Xaar plc Announces Total Voting Rights Update

Xaar plc announced that its issued share capital comprises 79,783,945 ordinary shares, with no shares held in treasury. This announcement is in accordance with the FCA’s Disclosure and Transparency Rules, and the total voting rights figure will be used by shareholders to assess their interests in the company.

Xaar plc Announces Lapse of Share Options by COO

Xaar plc announced a transaction involving the lapse of share options under the Xaar 2017 Sharesave Plan by Graham Tweedale, the Chief Operating Officer and Person Discharging Managerial Responsibilities. This transaction, involving 3,857 shares at a price of £1.40 each, was conducted outside a trading venue and reflects the company’s adherence to the UK Market Abuse Regulation, ensuring transparency and regulatory compliance.

Xaar plc Announces Total Voting Rights Update

Xaar plc has announced its total voting rights, with the company’s issued share capital consisting of 79,783,945 ordinary shares as of October 31, 2025. This figure is crucial for shareholders to determine their required notifications under the FCA’s Disclosure and Transparency Rules, impacting how stakeholders manage their interests in the company.

Xaar plc Grants Share Options to COO Under Sharesave Plan

Xaar plc, a leader in the field of inkjet printing technology, has announced a significant transaction involving its Chief Operating Officer, Graham Tweedale. On 21 October 2025, Tweedale was granted options over 5,673 ordinary shares at a price of £1.068 each under the company’s 2017 Sharesave Plan. This move is part of Xaar’s ongoing efforts to align management interests with shareholder value, potentially impacting the company’s operational focus and market positioning.

Xaar plc Director Purchases Shares Under Regulatory Compliance

Xaar plc announced a transaction involving its Non-Executive Director, Ms. Jacqueline Sutton, who purchased 4,107 ordinary shares at a price of £1.20825 per share. This transaction, conducted in London, is part of the regulatory requirements under the UK Market Abuse Regulation, highlighting the company’s commitment to transparency and compliance.

Xaar plc Announces Director’s Share Transaction

Xaar plc, a company involved in the technology sector, announced a transaction involving its Non-Executive Director, Mr. Ben Stocks. The transaction, which took place on October 1, 2025, involved the purchase of 16,114 ordinary shares by Mrs. Sara Stocks, Mr. Stocks’ wife, at a price of £1.285 per share. This transaction was conducted in accordance with the UK Market Abuse Regulation and has been duly notified to the Financial Conduct Authority.

Xaar plc Director Purchases Shares, Signaling Confidence

Xaar plc announced a transaction involving Dr. Inken Braunschmidt, a Non-Executive Director, who purchased 4,000 ordinary shares at a price of £1.28 per share. This transaction, compliant with UK Market Abuse Regulation, reflects confidence in the company’s future prospects and may influence stakeholder perceptions positively.

Xaar plc Updates Total Voting Rights and Share Capital Structure

Xaar plc announced that its issued share capital comprises 79,767,612 ordinary shares, with no shares held in treasury. This figure is significant for shareholders for calculating their interests under the FCA’s Disclosure and Transparency Rules, impacting how they manage their stakes in the company.

Xaar plc Maintains Positive Outlook Amid New Market Opportunities and Tax Liabilities

Xaar plc has announced a trading update, maintaining confidence in its financial performance for the year ending 31 December 2025, with new market initiatives progressing as planned. The company has identified historic tax liabilities in an overseas jurisdiction, estimated between £3 million and £4 million, which are not expected to affect future trading. Additionally, Ben Stocks has joined as Chairman and Independent Non-Executive Director, expressing optimism about Xaar’s growth potential.