XP logged a -0.4% change during today's morning session, and is now trading at a price of $22.5 per share.
XP returned gains of 54.1% last year, with its stock price reaching a high of $27.71 and a low of $10.3. Over the same period, the stock outperformed the S&P 500 index by 39.1%. More recently, the company's 50-day average price was $22.11. XP Inc. provides financial products and services in Brazil. The large-cap Finance company is headquartered in Grand Cayman, Cayman Islands. XP has returned a 29.0% dividend yield over the last 12 months, but the company's patchy cash flow history may not sustain it for much longer.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Revenue (MM) | $1,284 | $2,055 | $3,596 |
| Revenue Growth | n/a | 60.06% | 75.02% |
| Net Margins | 33% | 23% | 30% |
| Net Income (MM) | $424 | $471 | $1,090 |
| Free Cash Flow (MM) | $489 | -$196 | -$3,380 |
XP Has an Attractive P/B Ratio but a Worrisome P/E Ratio:
XP has a trailing twelve month P/E ratio of 16.4, compared to an average of 12.38 for the Finance sector. Based on its EPS guidance of $1.9, the company has a forward P/E ratio of 11.6. In contrast, the market is likely undervaluing XP in terms of its equity because its P/B ratio is 0.62 while the sector average is 1.58.
XP Has an Average Rating of Buy:
The 10 analysts following XP have set target prices ranging from $16.99 to $35.99 per share, for an average of $29.09 with a buy rating. As of April 2023, the company is trading -24.0% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
XP has an average amount of shares sold short because 2.9% of the company's shares are sold short. Institutions own 67.8% of the company's shares, and the insider ownership rate stands at 4.11%, suggesting a large amount of insider shareholders. The largest shareholder is Dodge & Cox Inc, whose 7% stake in the company is worth $681,461,389.
