XPS Pensions Group Plc (XPS) AI Stock Analysis

• Market Cap: £784.55M
• Dividend Yield: 2.81%
• Average Volume (3M): 652.65K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.61
• Revenue Growth: 18.41%
• EPS Growth: 301.21%
• Country: UK
• Employees: 1,712
• Sector: Consumer Cyclical
• Sector Strength: 51
• Industry: Personal Products & Services
• EPS (TTM): 0.30
• Shares Outstanding: 208,355,410
• 10 Day Avg. Volume: 461,036
• 30 Day Avg. Volume: 652,654
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.53
• Price to Cash Flow (P/CF): 20.60
• P/FCF Ratio: 25.10
• 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: 454.75p
• Price Target Upside: 21.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

XPS Pensions Group's strong financial performance, characterized by robust revenue growth and profitability, forms a solid foundation for its stock. The technical indicators show positive momentum, slightly offset by neutral RSI. The stock's attractive valuation with a reasonable P/E ratio and dividend yield adds to its appeal. Notable corporate events, including strategic acquisitions, further enhance its market position. Overall, the stock presents a compelling investment option with a score of 76.

Positive Factors

Acquisition Impact

The acquisition of Polaris is expected to be immediately earnings enhancing, leading to an increase in future earnings estimates.

Financial Performance

XPS expects operational gearing to have improved and full-year results to be materially ahead of previously upgraded expectations.

Market Demand

Demand is high across the business, driven by regulatory changes, new client wins, and continued market share gains, supported by the group's market-leading service offering.

Negative Factors

Market Conditions

The group has benefited from high levels of demand from continued regulatory change, new clients, and the inflation-linkage of contracts.

Valuation Concerns

The valuation of XPS is starting to get relatively full, but further upside is seen from ongoing earnings upgrades and potential new projects.

XPS Pensions Group Plc Business Overview & Revenue Model

Company Description

XPS Pensions Group Plc (XPS) is a UK-based company specializing in pension consulting and administration services. It operates in the financial services sector, providing expertise in pension scheme management, actuarial services, investment consulting, and compliance support. XPS serves a diverse client base, including corporate entities, trustees, and pension scheme members, offering tailored solutions to meet their specific needs.

How the Company Makes Money

XPS Pensions Group Plc generates revenue primarily through the provision of consulting and administration services to pension schemes. The company's key revenue streams include fees for actuarial services, investment consulting, and scheme administration. XPS also earns income from advising on risk management and regulatory compliance. Its business model is heavily reliant on long-term client relationships and recurring service contracts. Additionally, the company may benefit from strategic partnerships and collaborations with financial institutions and other service providers, contributing to its growth and earnings potential.

XPS Pensions Group Plc Financial Statement Overview

Summary

XPS Pensions Group demonstrates robust financial performance characterized by strong revenue growth, efficient operations, and prudent balance sheet management. The company maintains healthy profitability with high margins and an impressive return on equity. Although cash flow management is efficient, potential risks related to asset management require attention.

Income Statement

XPS Pensions Group has demonstrated strong growth in revenue, with a 19.53% increase from 2023 to 2024. The company maintains healthy profitability, evidenced by a gross profit margin of 52.16% and a net profit margin of 27.16% for 2024. The EBIT margin is robust at 33.59%, and the EBITDA margin stands at 39.76%. Such margins indicate efficient operations and strong cost management, contributing positively to the company's financial health.

Balance Sheet

The company's balance sheet reflects a solid equity base, with an equity ratio of 65.94% for 2024, indicating a strong capital structure. The debt-to-equity ratio is manageable at 0.18, showcasing low financial leverage. Return on equity is impressive at 29.14%, highlighting effective use of shareholders' funds to generate profits. However, a decline in total assets may pose potential risks if not addressed.

Cash Flow

XPS Pensions Group exhibits a positive trend in cash flow performance. The free cash flow growth rate is 35.54% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.79, reflecting adequate cash flow from operations relative to net income. The free cash flow to net income ratio is 0.65, suggesting efficient cash flow management despite significant financing outflows.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
199.43M	166.79M	138.62M	127.93M	119.75M
	Gross Profit
104.01M	65.36M	55.56M	49.93M	65.22M
	EBIT
66.97M	25.40M	18.34M	15.61M	16.93M
	EBITDA
79.27M	37.79M	30.26M	27.09M	28.25M
	Net Income Common Stockholders
54.17M	15.84M	9.42M	8.96M	7.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.01M	13.29M	10.15M	8.62M	14.43M
	Total Assets
281.87M	283.76M	271.65M	266.01M	277.69M
	Total Debt
32.55M	77.25M	74.99M	70.95M	82.99M
	Net Debt
22.55M	63.96M	64.84M	62.32M	68.56M
	Total Liabilities
96.01M	134.48M	127.22M	116.95M	124.75M
	Stockholders Equity
185.85M	149.28M	144.44M	149.07M	152.94M
Cash Flow		Free Cash Flow
35.42M	26.13M	18.10M	26.42M	18.44M
	Operating Cash Flow
42.93M	31.58M	27.44M	29.32M	21.84M
	Investing Cash Flow
29.17M	-13.76M	-9.37M	-3.61M	-10.81M
	Financing Cash Flow
-75.39M	-14.69M	-16.54M	-31.52M	-2.13M

XPS Pensions Group Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 375.00
• 50DMA: Positive
• 100DMA: Positive
• 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:XPS, the sentiment is Positive. The current price of 375 is above the 20-day moving average (MA) of 370.55, above the 50-day MA of 366.08, and above the 200-day MA of 331.40, indicating a bullish trend. The MACD of 2.35 indicates Negative momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 76.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:XPS.

XPS Pensions Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPS	76 Outperform	£784.55M	12.70	38.12%	2.81%	18.41%	301.21%
AJB	72 Outperform	£1.69B	20.28	45.56%	3.01%	23.46%	23.33%
PSON	70 Outperform	£8.07B	19.03	10.83%	1.88%	-3.32%	20.38%
STJ	65 Neutral	£5.41B	13.84	35.30%	1.38%	36.14%	―
Sector *	59 Neutral	$12.24B	11.04	-1.00%	3.78%	1.30%	-19.54%
QLT	56 Neutral	$2.10B	40.70	-2.38%	3.31%	17.79%	-181.35%

XPS Pensions Group Plc Corporate Events

Montanaro Asset Management Increases Stake in XPS Pensions Group

Montanaro Asset Management Limited has increased its voting rights in XPS Pensions Group Plc to 4.11%, crossing a previous threshold of 3.98%. This acquisition of voting rights indicates a growing interest from Montanaro in XPS Pensions Group, potentially impacting the company’s shareholder dynamics and signaling confidence in its market position.

XPS Pensions Group Plc Announces Change in Major Shareholder Voting Rights

XPS Pensions Group Plc announced a change in the voting rights held by Aberdeen Group plc, which has decreased to 12.386084% from a previous 12.998690%. This change reflects a reduction in the voting rights held indirectly by abrdn Investments (Holdings) Limited and abrdn Investment Management Limited, which fell below the 10% threshold due to trading activities. This adjustment in holdings may impact the company’s shareholder dynamics and influence future decision-making processes.

XPS Pensions Group Plc Announces Change in Voting Rights

XPS Pensions Group Plc has announced a change in its voting rights structure due to an acquisition or disposal by abrdn plc-affiliated investment management entities. The notification reveals that the total percentage of voting rights held by these entities has decreased from 13.44% to 12.99%, impacting the company’s shareholder composition and potentially influencing future corporate governance decisions.

XPS Pensions Group Expands with Polaris Acquisition

XPS Pensions Group plc has completed the acquisition of Polaris Actuaries and Consultants Limited, a move that significantly advances its strategy to become a leading entity in the fragmented UK Insurance Consulting market. This acquisition is expected to strengthen XPS’s market position and enhance its service offerings, potentially impacting stakeholders by increasing the company’s capabilities and market reach.

XPS Pensions Group Expands with Acquisition of Polaris Actuaries

XPS Pensions Group has announced the acquisition of Polaris Actuaries and Consultants Limited, a well-regarded UK insurance consultancy, in a move to accelerate its diversification strategy within the UK Insurance Consulting market. This acquisition will enhance XPS’s service offerings by integrating Polaris’s capabilities, thus allowing XPS to provide comprehensive services from strategic consultancy to implementation for major insurers. The acquisition is expected to be immediately earnings accretive and will strengthen XPS’s market position, leveraging Polaris’s established client relationships and expertise.

XPS Pensions Group Reports Strong Financial Performance Exceeding Expectations

XPS Pensions Group has reported an unscheduled trading update indicating a strong financial performance for the year ending 31 March 2025, with expected revenue growth of 15% to 16% year-over-year. This robust performance is driven by high demand for their services due to regulatory changes and new client acquisitions, alongside effective cost management and technological investments enhancing project delivery efficiency. The company’s strategic focus on regulatory compliance and market changes positions it well for sustained growth, with full year results to be announced in June 2025.

BlackRock Increases Stake in XPS Pensions Group to 10%

XPS Pensions Group Plc has announced a change in the voting rights held by BlackRock, Inc., which has acquired or disposed of both voting rights and financial instruments. As of February 12, 2025, BlackRock’s total voting rights in XPS Pensions Group have increased to 10%, reflecting a significant rise from its previous position. This development may impact XPS Pensions Group’s operational decisions and stakeholder engagement, as BlackRock is a major global investment management corporation.

XPS Pensions Group Appoints Deutsche Numis as Joint Corporate Broker

XPS Pensions Group has appointed Deutsche Numis as a joint Corporate Broker to work alongside Canaccord Genuity. This appointment is expected to enhance XPS’s market presence and strengthen its brokerage capabilities, potentially leading to improved stakeholder engagement and operational efficiency.

Montanaro Reduces Stake in XPS Pensions Group

Montanaro Asset Management Limited has reduced its shareholding in XPS Pensions Group PLC, bringing its voting rights to 3.98% as of January 29, 2025. This adjustment in holdings could influence the strategic decisions and governance at XPS Pensions, potentially affecting stakeholders interested in the company’s direction and performance.

XPS Pensions Group Plc Announces Change in Major Shareholder Voting Rights

XPS Pensions Group Plc has announced a change in the voting rights held by abrdn plc’s affiliated investment entities. The indirect voting rights held by abrdn Investments (Holdings) Limited and abrdn Investment Management Limited have decreased below the 11% notifiable threshold, now standing at 10.914359% due to recent trading activities. This adjustment in holdings reflects a slight reduction in abrdn’s influence over XPS Pensions Group Plc, which may have implications for the company’s strategic decisions and stakeholder engagement.