XP Power (XPP) AI Stock Analysis

• Market Cap: £347.34M
• Dividend Yield: N/A
• Average Volume (3M): 63.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• 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: £1,482.67
• Price Target Upside: 19.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: 1,250.00p ▲(0.81% Upside)

Overall score is driven mainly by mixed financial performance: strong cash generation and decent gross margin are outweighed by declining revenue, ongoing losses, and higher leverage. Technicals are supportive of an uptrend but look overbought, while valuation is penalized due to negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Gross margin quality

A ~39% gross margin reflects durable product-level profitability and pricing power in power supplies. High gross margins provide a buffer versus commodity cost swings, support continued R&D and customization, and help sustain operating cash flow even if volumes soften over months.

Cash generation

Robust operating and free cash flow growth improves liquidity and funds capex, R&D, and debt servicing without equity dilution. Strong cash conversion enables strategic investments, supports deleveraging and provides resilience through cyclical downturns over a 2–6 month horizon.

Business model & customer mix

XP's OEM-focused model, customized solutions and aftermarket services create sticky revenue and lower churn. Diversification across industrial, healthcare and tech reduces customer concentration risk and sustains demand trends, supporting stable baseline revenues across cycles.

Negative Factors

Revenue decline

A material year-over-year revenue decline undermines scale benefits and pricing leverage. Persistent top-line contraction limits the ability to absorb fixed costs, pressures margins and constrains funding for R&D or go-to-market investments, raising structural execution risk over months.

Negative profitability

Net losses and deteriorating EBIT/EBITDA margins indicate operational strain. Sustained unprofitability reduces reinvestment capacity, curtails shareholder returns and may force cost or capital-structure actions that impair growth prospects and strategic flexibility over the medium term.

Rising leverage

Elevated leverage (D/E ~1.12) increases fixed interest obligations and reduces balance-sheet flexibility. Coupled with declining revenue and losses, higher debt heightens refinancing and solvency risk and limits the company's ability to invest or weather shocks over a 2–6 month timeframe.

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 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

Mixed fundamentals: revenue declined materially from 2023 to 2024 and profitability is negative (net losses, weaker EBIT/EBITDA margins). Offsetting positives include a solid 2024 gross margin (~39%) and strong operating/free cash flow growth, though rising leverage (debt-to-equity ~1.12) increases financial risk.

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: Positive
• Last Price: 1240.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:XPP, the sentiment is Positive. The current price of 1240 is above the 20-day moving average (MA) of 1028.20, above the 50-day MA of 953.98, and above the 200-day MA of 905.83, indicating a bullish trend. The MACD of 87.72 indicates Negative momentum. The RSI at 78.60 is Negative, neither overbought nor oversold. The STOCH value of 87.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:XPP.

XP Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLX	75 Outperform	£810.84M	18.77	15.54%	1.11%	8.20%	25.85%
LUCE	69 Neutral	£241.67M	16.05	15.66%	3.92%	18.90%	-20.79%
TFW	64 Neutral	£316.85M	12.82	13.87%	2.58%	-0.33%	4.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DIA	63 Neutral	£133.24M	23.91	15.77%	―	-5.73%	―
XPP	58 Neutral	£347.34M	-21.90	-8.12%	―	-18.43%	24.86%
AFC	51 Neutral	£132.56M	-5.11	-86.37%	―	732.03%	12.60%

XP Power Corporate Events

XP Power to Exit RF Division as 2025 Trading Meets Expectations and Manufacturing Shifts to Malaysia

XP Power reported that its 2025 trading performance was in line with market expectations, with full-year order intake rising 24% to £225.9m and a stronger second half helping offset a 7% decline in revenue to £229.7m. The group ended the year with an order book of £116.1m, net debt reduced to £41.6m and leverage at around 1.2 times, supported by a large prepayment from a key customer, while maintaining a book-to-bill ratio close to parity. In a significant strategic shift, the company has decided to exit its lower-margin RF division over an estimated three-year wind-down, following new US export controls that block RF sales to key Chinese customers, and will redirect investment toward higher-growth, higher-return parts of its portfolio. XP Power has also completed construction of a new manufacturing facility in Malaysia and closed its Kunshan, China plant, a move aimed at improving flexibility in serving global, particularly US, markets and reshaping its production footprint without straining existing capacity. The combined actions mark a repositioning of the group’s operations and product mix, with further detail to follow alongside full-year results due on 3 March 2026.

The most recent analyst rating on (GB:XPP) stock is a Hold with a £921.00 price target. To see the full list of analyst forecasts on XP Power stock, see the GB:XPP Stock Forecast page.

XP Power CEO Exercises Share Options and Sells to Cover Tax

XP Power announced that CEO Gavin Griggs exercised options over 6,371 ordinary shares, granted under the company’s Deferred Bonus Plan, and sold 3,002 shares to cover tax liabilities. This transaction, compliant with UK Market Abuse Regulation, reflects internal financial management and may impact shareholder perceptions and market confidence.

The most recent analyst rating on (GB:XPP) stock is a Hold with a £963.00 price target. To see the full list of analyst forecasts on XP Power stock, see the GB:XPP Stock Forecast page.

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.

The most recent analyst rating on (GB:XPP) stock is a Hold with a £900.00 price target. To see the full list of analyst forecasts on XP Power stock, see the GB:XPP Stock Forecast page.

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.

The most recent analyst rating on (GB:XPP) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on XP Power stock, see the GB:XPP Stock Forecast page.