XP Power (XPP) AI Stock Analysis

• Market Cap: £252.94M
• Dividend Yield: N/A
• Average Volume (3M): 63.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -18.43%
• EPS Growth: 24.86%
• Country: UK
• Employees: 2,138
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): <0.01
• Shares Outstanding: 28,032,179
• 10 Day Avg. Volume: 91,192
• 30 Day Avg. Volume: 63,098
• PEG Ratio: 2.90
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 8.78
• 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: £1,200.00
• Price Target Upside: 32.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: 963.00p ▲(6.53% Upside)

XP Power's overall stock score is primarily impacted by its financial performance, which shows strong cash flow but declining revenues and profitability. Technical analysis suggests a bearish trend, while valuation metrics indicate challenges with negative earnings. Positive corporate events provide some optimism, reflecting confidence in the company's strategic direction.

Positive Factors

Cash Flow Strength

Strong cash flow and free cash flow growth indicate XP Power's ability to generate cash effectively, supporting operations and potential investments, which is crucial for long-term sustainability.

Cost Management

Effective cost management, as reflected in a solid gross profit margin, helps maintain profitability and competitiveness, even amid revenue challenges, supporting long-term financial health.

Product Innovation

Continuous investment in R&D for product innovation enhances XP Power's competitive edge, ensuring it meets evolving market demands and strengthens its market position over time.

Negative Factors

Declining Revenue

Declining revenue can limit growth potential and strain resources, impacting XP Power's ability to invest in new opportunities and maintain its market position.

Negative Net Income

Negative net income reflects profitability challenges, which can hinder XP Power's ability to reinvest in the business and reward shareholders, affecting long-term viability.

Increasing Leverage

Rising leverage increases financial risk, potentially limiting XP Power's flexibility to navigate economic downturns and invest in growth, posing a threat to long-term stability.

XP Power Business Overview & Revenue Model

Company Description

XP Power (XPP) is a leading provider of power solutions, specializing in the design and manufacture of power supplies and components for a variety of industries, including industrial, healthcare, and technology. The company offers a broad range of products, including AC-DC power supplies, DC-DC converters, and high voltage power supplies, catering to the needs of original equipment manufacturers (OEMs) and end-users in sectors that require reliable power solutions.

How the Company Makes Money

XP Power generates revenue primarily through the sale of its power supply products, which are essential components in various electronic systems. The company’s revenue model is based on direct sales to OEMs and distributors, with a focus on high-margin products that meet stringent industry standards. Key revenue streams include standard power supplies, customized solutions, and aftermarket services. Additionally, XP Power benefits from long-term partnerships with major OEMs, which provide a steady demand for its products. Market trends towards energy-efficient and compact power solutions also contribute positively to its earnings.

XP Power Financial Statement Overview

Summary

XP Power's financial performance is mixed. Strong cash flow and effective cost management are positives, but declining revenues and negative net income impact 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.10M	247.30M	316.40M	290.40M	240.30M	233.30M
Gross Profit	91.50M	97.00M	131.30M	120.60M	108.30M	110.10M
EBITDA	10.70M	24.00M	32.80M	-7.10M	42.90M	51.50M
Net Income	-13.60M	-9.60M	-9.20M	-20.00M	22.60M	31.50M
Balance Sheet
Total Assets	406.90M	416.20M	446.30M	481.70M	272.20M	242.20M
Cash, Cash Equivalents and Short-Term Investments	17.60M	13.90M	12.00M	22.30M	9.00M	13.90M
Total Debt	127.80M	163.20M	180.80M	225.70M	41.70M	36.70M
Total Liabilities	227.70M	270.30M	291.00M	342.20M	99.80M	77.70M
Stockholders Equity	178.60M	145.30M	154.60M	138.60M	171.50M	163.80M
Cash Flow
Free Cash Flow	28.10M	35.30M	17.40M	-26.90M	13.60M	29.40M
Operating Cash Flow	31.50M	55.40M	57.50M	-7.50M	35.50M	44.30M
Investing Cash Flow	-23.30M	-20.00M	-39.90M	-89.30M	-21.90M	-15.40M
Financing Cash Flow	2.10M	-33.50M	-27.00M	103.30M	-18.70M	-26.20M

XP Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 904.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 904 is below the 20-day moving average (MA) of 909.50, below the 50-day MA of 960.32, and above the 200-day MA of 878.52, indicating a neutral trend. The MACD of -14.08 indicates Negative momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 37.60 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
TFW	78 Outperform	£320.05M	12.86	13.87%	2.51%	-0.33%	4.58%
VLX	75 Outperform	£743.41M	17.02	15.54%	1.14%	8.20%	25.85%
LUCE	69 Neutral	£200.36M	13.82	15.66%	3.86%	18.90%	-20.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CWR	63 Neutral	£530.29M	-14.59	-23.26%	―	12.58%	12.39%
DIA	63 Neutral	£130.04M	24.41	15.77%	―	-5.73%	―
XPP	57 Neutral	£252.94M	-15.96	-8.12%	―	-18.43%	24.86%

XP Power Corporate Events

XP Power Announces Board Changes with Appointment of Charlotta Ginman

XP Power has announced the appointment of Charlotta Ginman as a Non-Executive Director and Senior Independent Director designate, effective from January 2026. Ginman, who brings extensive experience from various sectors, will succeed Polly Williams in February 2026. This change is expected to enhance the board’s capabilities with Ginman’s global business perspective and investment community understanding.

XP Power Director Increases Shareholding, Signaling Confidence

XP Power Limited announced that Non-Executive Director Daniel Shook has purchased 1,871 ordinary shares of the company, increasing his total shareholding to 4,948 shares. This transaction, conducted on 22 and 24 October 2025, reflects confidence in the company’s market position and potential for growth, potentially impacting stakeholder perceptions positively.

XP Power Announces Q3 2025 Trading Update and Investor Seminar

XP Power announced its upcoming Q3 2025 trading update release on 21 October 2025, along with an investor seminar on 5 November 2025. The seminar will cover the company’s market position, technology, operations, and sustainability, highlighting its strategic focus and industry leadership. This announcement underscores XP Power’s commitment to transparency and engagement with stakeholders, as well as its emphasis on innovation and sustainability in its operations.

XP Power Announces Board Change with Departure of Non-Executive Director

XP Power announced the resignation of Amina Hamidi from her role as Non-Executive Director, following her promotion at ABB. The company expressed gratitude for her contributions over the past three years. This change in the board may impact the company’s governance dynamics, but XP Power continues to focus on its core sectors and global operations.