XPS Pensions Group Plc (XPS) AI Stock Analysis

• Market Cap: £693.70M
• Dividend Yield: 3.54%
• Average Volume (3M): 719.57K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.31
• Revenue Growth: 13.53%
• EPS Growth: -57.83%
• Country: UK
• Employees: 1,712
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.10
• Shares Outstanding: 208,355,410
• 10 Day Avg. Volume: 709,702
• 30 Day Avg. Volume: 719,574
• PEG Ratio: -0.60
• Price to Book (P/B): 4.18
• Price to Sales (P/S): 3.34
• P/FCF Ratio: 23.02
• 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: £440.80
• Price Target Upside: 31.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 378.00p ▲(12.50% Upside)

XPS Pensions Group Plc's overall stock score reflects strong corporate events and strategic growth initiatives, which are offset by concerns over valuation and financial performance. The company's recent acquisitions and major contract wins are positive indicators of future growth, but challenges in maintaining profitability and liquidity remain.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for XPS's services and suggests the company is effectively expanding its market presence and client base.

Gross Profit Margins

Strong gross profit margins reflect effective cost control and pricing power, which can support long-term profitability and competitive positioning.

Capital Structure

A stable equity ratio indicates a well-balanced capital structure, providing financial stability and resilience against economic fluctuations.

Negative Factors

Net Profit Margins

Declining net profit margins may indicate rising costs or inefficiencies, which could pressure future profitability unless addressed.

Operational Efficiency

Reduced operational efficiency can hinder profitability and growth, necessitating strategic improvements to maintain competitive advantage.

Free Cash Flow Growth

Negative free cash flow growth suggests potential liquidity issues, which could limit the company's ability to invest in growth opportunities.

XPS Pensions Group Plc Business Overview & Revenue Model

Company Description

XPS Pensions Group plc, together with its subsidiaries, provides employee benefit consultancy and related business services in the United Kingdom. The company offers advisory services to pension schemes and corporate sponsors; independent investment advisory services; DB and DC master trust schemes; and self-invested personal pension (SIPP) and SSAS pension services. It also provides administer services, such as scheme administration, outsourcing and member communication, scam identification and protection, payroll, pension scheme accounting, de-risking projects, technical consultancy, GMP equalization, data audits and cleansing, trustee secretarial, and pension management services. The company was formerly known as Xafinity Plc and changed its name to XPS Pensions Group Plc in May 2018. XPS Pensions Group plc was incorporated in 2012 and is headquartered in Reading, the United Kingdom.

How the Company Makes Money

XPS generates revenue primarily through its consulting and administration services. Key revenue streams include fees charged for actuarial services, investment advisory, and ongoing pension scheme administration. The company also earns income from project-based consulting engagements and performance fees tied to investment management. Significant partnerships with various financial institutions and pension funds enable XPS to expand its service offerings and client base, further contributing to its earnings. Additionally, XPS's emphasis on technology-driven solutions enhances efficiency and client satisfaction, which can lead to increased retention and referrals, positively impacting overall revenue.

XPS Pensions Group Plc Financial Statement Overview

Summary

XPS Pensions Group Plc shows strong revenue growth and solid gross profit margins, but declining net profit margins and reduced operational efficiency are concerns. The balance sheet reflects moderate leverage with a stable equity ratio, but declining return on equity. Cash flow metrics indicate potential liquidity issues with negative free cash flow growth. Overall, the company is financially stable but faces challenges in maintaining profitability and cash flow.

Income Statement

XPS Pensions Group Plc has demonstrated consistent revenue growth over the years, with a notable 6.16% increase in the latest period. The gross profit margin is strong at 53.03%, indicating efficient cost management. However, the net profit margin has decreased from 27.16% to 13.09%, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins have also declined, reflecting reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.37, indicating a moderate level of leverage, which is still manageable. Return on equity has decreased from 29.14% to 16.37%, suggesting reduced profitability from shareholders' investments. The equity ratio remains stable, showing a solid capital structure.

Cash Flow

Operating cash flow has decreased slightly, and free cash flow growth is negative at -29.47%, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.80, showing a reasonable conversion of income to cash. The free cash flow to net income ratio is healthy at 0.80, but the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	246.90M	231.78M	199.43M	166.79M	138.62M	127.93M
Gross Profit	9.51M	122.92M	104.01M	65.36M	55.56M	49.93M
EBITDA	64.05M	57.26M	79.27M	34.58M	30.26M	24.36M
Net Income	25.95M	30.34M	54.17M	15.84M	9.42M	8.96M
Balance Sheet
Total Assets	321.54M	323.48M	281.87M	283.76M	271.65M	266.01M
Cash, Cash Equivalents and Short-Term Investments	10.84M	14.72M	10.01M	13.29M	10.15M	8.62M
Total Debt	89.19M	68.97M	32.55M	77.25M	74.99M	70.95M
Total Liabilities	153.31M	138.07M	96.01M	134.48M	127.22M	116.95M
Stockholders Equity	168.23M	185.41M	185.85M	149.28M	144.44M	149.07M
Cash Flow
Free Cash Flow	34.33M	33.63M	35.42M	26.13M	18.10M	26.42M
Operating Cash Flow	35.56M	41.82M	42.93M	31.58M	27.44M	29.32M
Investing Cash Flow	-22.00M	-21.86M	29.17M	-13.76M	-9.37M	-3.61M
Financing Cash Flow	-12.29M	-15.25M	-75.39M	-14.69M	-16.54M	-31.52M

XPS Pensions Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 336.00
• 50DMA: Negative
• 100DMA: Negative
• 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:XPS, the sentiment is Negative. The current price of 336 is below the 20-day moving average (MA) of 342.93, below the 50-day MA of 341.67, and below the 200-day MA of 358.58, indicating a bearish trend. The MACD of -1.78 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 33.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
MER	75 Outperform	£303.04M	6.29	25.63%	4.65%	-2.79%	37.33%
XPS	70 Outperform	£693.70M	26.62	14.79%	3.54%	13.53%	-57.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

XPS Pensions Group Plc Corporate Events

XPS Pensions Group Reports Strong Revenue Growth and Strategic Expansion

XPS Pensions Group Plc reported strong financial performance for the half year ended 30 September 2025, with a 13% increase in group revenues driven by strong client demand and service expansion. The acquisition of Polaris and strategic growth in the insurance consulting market contributed to this success. Despite challenges like the NI headwind, the company achieved an 8% increase in adjusted EBITDA, reflecting operational efficiencies and strategic investments. The company declared an increased interim dividend, highlighting confidence in its growth strategy and market positioning. The outlook remains positive as XPS continues to capitalize on regulatory changes and market opportunities, supported by a strong employee-centric culture and innovative technology solutions.

XPS Pensions Group Secures Major Contract with Metropolitan Police

XPS Pensions Group Plc has been selected by the Metropolitan Police Service to provide administration services for its Police Pension Scheme, marking XPS’s largest public sector administration client with over 80,000 members. This appointment, which follows a competitive tendering process and is subject to contract, further solidifies XPS’s position as a leading administrator of police pensions in England and Wales, and highlights its successful track record, including the delivery of the McCloud Remedy for 38,000 members across 33 UK Police Forces.

XPS Pensions Group Secures Major Contract with Metropolitan Police

XPS Pensions Group PLC has been appointed to provide administration services for the Metropolitan Police Service’s Police Pension Scheme, which has over 80,000 members, making it XPS’s largest public sector client. The appointment, part of a consortium led by DXC Technology, follows XPS’s successful delivery of the McCloud Remedy for UK police forces and reinforces its position as a leading administrator of police pensions in England and Wales.

XPS Pensions Group Corrects Half Year Results Presentation Notice

XPS Pensions Group announced a correction to their Notice of Half Year Results Presentation, initially released with an incorrect hyperlink. The company will present its interim results for the half year ended 30 September 2025 on 20 November 2025, with a webcast and live Q&A session for analysts and investors. This announcement underscores XPS’s commitment to transparency and effective communication with stakeholders, reinforcing its position as a key player in the pensions and insurance consulting industry.

XPS Pensions Group to Announce Interim Results for Half Year 2025

XPS Pensions Group announced it will release its interim results for the half year ended 30 September 2025 on 20 November 2025. The announcement will be accompanied by a webcast for analysts and investors, followed by a live Q&A session, highlighting the company’s commitment to transparency and stakeholder engagement.

XPS Pensions Group Reports Robust Revenue Growth and Successful Integration of Polaris

XPS Pensions Group has reported a strong 13% revenue growth for the six months ending September 2025, with organic growth at 8%. The acquisition of Polaris Actuaries and Consultants Limited has been successfully integrated, enhancing XPS’s capabilities in the insurance sector. The company is experiencing increased demand due to regulatory changes, particularly the Pensions Act 2025, which is expected to drive further consulting demand. XPS is well-positioned to support both defined benefit schemes and risk transfer projects, and the board remains confident in meeting full-year expectations.

XPS Pensions Group to Release Half-Year Trading Update and Results

XPS Pensions Group has announced it will release a trading update for the half year ending September 30, 2025, on October 16, 2025, followed by its half-year results on November 20, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder confidence.

XPS Pensions Group Chairman Acquires Shares, Signaling Confidence

XPS Pensions Group Plc announced that Martin Sutherland, the Independent Non-Executive Chairman, purchased 11,658 ordinary shares at a price of 335.4 pence per share. This transaction, conducted on the London Stock Exchange, reflects a significant investment by a key executive, potentially indicating confidence in the company’s future performance.