Xeros Technology (XSG) AI Stock Analysis

• Market Cap: £6.51M
• Dividend Yield: N/A
• Average Volume (3M): 350.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: -45.79%
• EPS Growth: 57.80%
• Country: UK
• Employees: 24
• Sector: Industrials
• Sector Strength: 71
• Industry: Industrial - Machinery
• EPS (TTM): >-0.01
• Shares Outstanding: 520,686,400
• 10 Day Avg. Volume: 211,995
• 30 Day Avg. Volume: 350,408
• 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: £1.50
• Price Target Upside: 15.38% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: 1.50p ▲(15.38% Upside)

The overall stock score reflects significant financial challenges and valuation concerns, despite some positive technical indicators. The high debt levels and lack of earnings continue to weigh heavily on the stock's prospects.

Positive Factors

Environmental Initiatives

The block listing supports Xeros' strategy to enhance financial flexibility and invest in reducing clothing production's environmental impact, aligning with global sustainability trends.

Strategic Partnerships

Partnerships with companies like Russell Hobbs and Yilmak Makina enhance Xeros' market reach and technological adoption, supporting long-term growth in sustainable laundry solutions.

Innovative Business Model

Xeros' business model, focusing on licensing and royalties, leverages its innovative technologies, positioning it well for sustainable market opportunities and regulatory alignment.

Negative Factors

Revenue Decline

Ongoing revenue decline indicates challenges in market penetration and product adoption, potentially impacting long-term financial stability and growth prospects.

High Debt Levels

High debt levels pose a risk to financial stability, limiting the company's ability to invest in growth initiatives and manage economic downturns effectively.

Negative Cash Flow

Negative cash flow indicates reliance on external financing, which can constrain operational flexibility and increase financial risk, affecting long-term viability.

Xeros Technology Business Overview & Revenue Model

Company Description

Xeros Technology Group plc, together with its subsidiaries, develops and commercializes polymer-based technologies in Europe, North America, and internationally. The company also engages in the research, development, and commercialization of polymer technology alternatives to traditional aqueous based technologies. Its technologies reduced water usage, lower energy consumption and less microplastic pollution in the fields of fabric and garment manufacture, and industrial and domestic laundry. The company offers XOrbs, a reusable polymer technology that replace pumice and reduce water, energy, and chemistry, as well as wash and care for clothes in domestic and commercial washing machines; XDrum, a technology collects the XOrbs back into their storage system; and XFilter, a washing machine filtration technology, which prevents harmful microfibers pollution from being released into the rivers and oceans. The company was formerly known as Hamsard 3323 Limited and changed its name to Xeros Technology Group plc in March 2014. Xeros Technology Group plc was incorporated in 2013 and is based in Rotherham, the United Kingdom.

How the Company Makes Money

Xeros Technology generates revenue primarily through the sale of its innovative cleaning systems and associated polymer products. The company utilizes a business model that includes direct sales to commercial clients, leasing agreements for its cleaning technology, and recurring revenue from the sale of proprietary polymers used in their systems. Key revenue streams include initial equipment sales, ongoing maintenance and service contracts, and the sale of consumables necessary for the operation of their systems. Additionally, Xeros has established partnerships with various industries that enhance market reach and drive sales, thereby contributing significantly to its earnings.

Xeros Technology Financial Statement Overview

Summary

Xeros Technology faces significant financial challenges, with consistent net losses, negative EBIT, and cash flow issues. Despite some equity and gross margin improvements, high debt and liquidity concerns remain substantial risks.

Income Statement

Xeros Technology shows a consistent decline in revenue over the years, with significant net losses and negative EBIT and EBITDA margins. Although gross profit margins have improved from previous years, the company struggles with profitability, reflected in substantial net losses and negative profit margins.

Balance Sheet

The company's equity has improved over the years, but it still faces challenges with a high debt-to-equity ratio and significant liabilities. Stockholders' equity has seen growth, yet the debt levels suggest a risk of financial instability.

Cash Flow

Xeros Technology's cash flow situation is concerning with consistently negative operating and free cash flows. The company is reliant on financing activities to cover its cash shortfalls, indicating potential liquidity issues. However, there is a slight improvement in free cash flow from the previous year.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	161.00K	297.00K	164.00K	474.00K	385.00K
Gross Profit	139.00K	94.00K	84.00K	281.00K	-49.00K
EBITDA	-4.48M	-4.58M	-7.27M	-6.73M	-7.41M
Net Income	-4.49M	-4.25M	-6.93M	-6.44M	-6.93M
Balance Sheet
Total Assets	4.32M	3.01M	7.85M	8.42M	6.06M
Cash, Cash Equivalents and Short-Term Investments	2.81M	1.60M	6.47M	7.81M	5.16M
Total Debt	646.00K	810.00K	681.00K	19.00K	19.00K
Total Liabilities	1.20M	1.41M	1.98M	1.36M	1.54M
Stockholders Equity	3.12M	1.60M	5.87M	7.06M	4.52M
Cash Flow
Free Cash Flow	-4.56M	-4.77M	-7.03M	-5.88M	-6.36M
Operating Cash Flow	-4.49M	-4.70M	-6.97M	-5.82M	-6.35M
Investing Cash Flow	-5.00K	-79.00K	5.24M	-5.37M	183.00K
Financing Cash Flow	5.71M	-105.00K	5.71M	8.52M	5.67M

Xeros Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:XSG, the sentiment is Negative. The current price of 1.3 is above the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.39, and above the 200-day MA of 1.13, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 14.86 is Positive, neither overbought nor oversold. The STOCH value of 36.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:XSG.

Xeros Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
SNT	46 Neutral	£1.81M	―	-570.98%	―	-45.00%	19.80%
XSG	40 Underperform	£6.51M	―	-189.96%	―	-45.79%	57.80%
INSP	―	£156.66K	―	-158.23%	―	―	―

Xeros Technology Corporate Events

Xeros Technology Group Announces Change in Voting Rights Structure

Xeros Technology Group plc, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal of voting rights and financial instruments by Spreadex LTD. This adjustment has resulted in a decrease in the total percentage of voting rights held by Spreadex LTD from 6.9786% to 5.8269%. This change reflects a shift in the company’s shareholder composition, which could impact its strategic decisions and shareholder influence.

Xeros Technology Group Successfully Passes All AGM Resolutions

Xeros Technology Group plc announced that all resolutions at their Annual General Meeting were passed, including the re-election of directors and authorizations related to shares and auditor appointments. This outcome supports the company’s strategic direction and operational stability, reinforcing its commitment to reducing the environmental impact of the clothing industry through its innovative technologies.