XP Power (XPP) AI Stock Analysis

• Market Cap: £234.46M
• Dividend Yield: N/A
• Average Volume (3M): 28.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -21.84%
• EPS Growth: 10.56%
• Country: UK
• Employees: 2,138
• Sector: Industrials
• Sector Strength: 87
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.07
• Shares Outstanding: 27,932,178
• 10 Day Avg. Volume: 50,682
• 30 Day Avg. Volume: 28,183
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £1,180.00
• Price Target Upside: 38.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: 948.00p ▲(11.40%Upside)

XP Power has shown notable strengths in cash flow and order growth in key sectors, which are crucial for long-term prospects. However, declining revenues, negative profitability, and valuation concerns temper the overall outlook.

Positive Factors

Cost Management

A new round of cost savings ensures that the absolute changes to EBITA forecasts are relatively small.

Order Intake

Order intake patterns have somewhat normalised, aided by the Industrial Technology and Healthcare markets, which saw the greatest impact from destocking.

Negative Factors

Export and Destocking Challenges

XP Power is not guiding to a recovery, with results expected to be sequentially lower due to export license issues and further de-stocking.

Financial Performance

XPP's 1H25 results were softer than expected.

Revenue Expectations

Order intake is expected to be lumpy, and there is uncertainty about meeting revenue expectations in coming quarters.

XP Power Business Overview & Revenue Model

Company Description

XP Power Limited, an investment holding company, designs and manufactures power supply solutions in Europe, North America, and Asia. The company offers AC-DC power supplies, DC-DC converters, high voltage DC-DC converters, high voltage AC-DC power supplies, RF power systems, EMI filters, custom power supplies, and 3 phase power sources. It also offers engineering services. The company serves healthcare, industrial technology, and semiconductor equipment manufacturing industries. XP Power Limited was founded in 1988 and is based in Singapore.

How the Company Makes Money

XP Power generates revenue primarily through the sale of its power supply products, which are integral components for various electronic devices and systems. The company's revenue model is centered around the design, manufacture, and distribution of these products to OEMs (Original Equipment Manufacturers) and end-users across its key market sectors. XP Power's earnings are bolstered by strong customer relationships and its ability to offer customized solutions that meet specific customer needs. Additionally, the company benefits from strategic partnerships with distributors and direct sales channels, which expand its market reach and drive sales. Its focus on innovation and development of energy-efficient and high-performance power solutions also contributes to its competitive edge in the market.

XP Power Financial Statement Overview

Summary

XP Power's financial performance shows strong cash flow and effective cost management, but declining revenues and negative net income impact overall profitability. Increasing leverage suggests potential financial risks.

Income Statement

XP Power has faced declining revenue, with a significant decrease from 2023 to 2024. The gross profit margin in 2024 was approximately 39.21%, indicating effective cost management. However, the net profit margin was negative due to net losses, suggesting challenges in overall profitability. EBIT and EBITDA margins also decreased, reflecting a decline in operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased over the years, reaching 1.12 in 2024, which may imply higher financial risk. The equity ratio stood at about 34.90% in 2024, indicating a moderate reliance on equity financing. Return on equity was negative, reflecting the impact of net losses on shareholder returns.

Cash Flow

Operating cash flow remained strong, and the free cash flow showed significant growth from 2023 to 2024, indicating improved cash generation capabilities. The free cash flow to net income ratio is positive despite net losses, suggesting a better cash position relative to earnings. However, the operating cash flow to net income ratio indicates that while operational cash generation is robust, net income performance remains weak.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	247.30M	316.40M	290.40M	240.30M	233.30M
Gross Profit	97.00M	131.30M	120.60M	108.30M	110.10M
EBITDA	24.00M	32.80M	-7.10M	52.50M	55.30M
Net Income	-9.60M	-9.20M	-20.00M	22.60M	31.50M
Balance Sheet
Total Assets	416.20M	446.30M	481.70M	272.20M	242.20M
Cash, Cash Equivalents and Short-Term Investments	13.90M	12.00M	22.30M	9.00M	13.90M
Total Debt	163.20M	180.80M	225.70M	41.70M	36.70M
Total Liabilities	270.30M	291.00M	342.20M	99.80M	77.70M
Stockholders Equity	145.30M	154.60M	138.60M	171.50M	163.80M
Cash Flow
Free Cash Flow	35.30M	17.40M	-26.90M	13.60M	29.40M
Operating Cash Flow	55.40M	57.50M	-7.50M	35.50M	44.30M
Investing Cash Flow	-20.00M	-39.90M	-89.30M	-21.90M	-15.40M
Financing Cash Flow	-33.50M	-27.00M	108.80M	-18.70M	-26.20M

XP Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 851.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:XPP, the sentiment is Negative. The current price of 851 is below the 20-day moving average (MA) of 869.20, below the 50-day MA of 878.42, and below the 200-day MA of 1023.64, indicating a bearish trend. The MACD of -11.80 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 51.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:XPP.

XP Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLX	78 Outperform	£675.53M	18.11	13.95%	0.93%	31.15%	5.55%
TFW	78 Outperform	£388.31M	15.84	14.53%	1.28%	-0.29%	11.71%
CWR	66 Neutral	£226.76M	―	-16.93%	―	132.44%	47.77%
LUCE	65 Neutral	£189.57M	12.91	15.40%	4.07%	16.03%	-11.84%
XPP	61 Neutral	£234.46M	―	-6.40%	―	-21.84%	10.56%
Sector *	59 Neutral	AU$1.62B	9.94	2.84%	3.53%	9.79%	5.94%

XP Power Corporate Events

Ameriprise Financial Reduces Stake in XP Power Ltd

XP Power Ltd, a non-UK issuer, has experienced a change in its voting rights as Ameriprise Financial, Inc. reported a reduction in its stake. The voting rights held by Ameriprise Financial, Inc. decreased from 5.275% to 4.93% as of April 30, 2025. This change in holdings could impact the company’s shareholder dynamics and influence future decision-making processes.