XP Power (XPP) AI Stock Analysis

• Market Cap: £266.11M
• Dividend Yield: N/A
• Average Volume (3M): 41.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: -18.43%
• EPS Growth: 24.86%
• Country: UK
• Employees: 2,138
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.07
• Shares Outstanding: 28,032,179
• 10 Day Avg. Volume: 38,340
• 30 Day Avg. Volume: 41,408
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £1,069.75
• Price Target Upside: 15.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: 939.00p ▲(1.19% Upside)

XP Power's overall stock score reflects strong cash flow and balanced technical indicators, but is weighed down by declining revenues, negative net income, and valuation concerns due to a negative P/E ratio. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Cash Flow Strength

Strong cash flow indicates robust cash generation capabilities, providing the company with financial flexibility to invest in growth and innovation.

Product Innovation

Continuous investment in R&D enhances product offerings, helping maintain a competitive edge and meet evolving customer demands in key industries.

Cost Management

Effective cost management supports margin sustainability, allowing the company to maintain profitability even amidst revenue pressures.

Negative Factors

Declining Revenue

Declining revenue signals potential challenges in market demand or competitive positioning, which could impact long-term growth prospects.

Rising Debt Levels

Increased debt levels may strain financial resources, limiting the company's ability to invest in growth and potentially increasing financial risk.

Negative Profit Margins

Negative profit margins indicate challenges in achieving profitability, which could hinder the company's ability to reinvest in the business and sustain operations.

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. The company operates on a business-to-business model, supplying its products to original equipment manufacturers (OEMs) and other industrial clients. Key revenue streams include direct sales, long-term supply agreements, and partnerships with distributors and resellers. Additionally, XP Power benefits from ongoing demand in sectors such as healthcare, where reliable power supplies are critical for medical devices, and technology, which increasingly relies on advanced power solutions. The company also invests in research and development to innovate and improve its product offerings, further enhancing its market position and revenue potential.

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	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: Positive
• Last Price: 928.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 928 is above the 20-day moving average (MA) of 904.40, above the 50-day MA of 900.78, and below the 200-day MA of 965.71, indicating a neutral trend. The MACD of 0.83 indicates Negative momentum. The RSI at 60.07 is Neutral, neither overbought nor oversold. The STOCH value of 74.53 is Neutral, 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
TFW	78 Outperform	365.06M	14.90	0.00%	1.37%	-0.29%	11.71%
VLX	75 Outperform	624.57M	16.71	13.27%	1.17%	17.23%	15.46%
LUCE	69 Neutral	198.82M	13.71	15.24%	4.02%	18.90%	-20.79%
CWR	58 Neutral	221.93M	-9.19	-18.40%	―	132.44%	47.77%
XPP	57 Neutral	£266.11M	―	-8.12%	―	-18.43%	24.86%
DIA	51 Neutral	84.03M	-7.98	-29.42%	―	-3.32%	9.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.