£534.7m market cap
2780p last close
XP Power is a developer and designer of power control solutions with production facilities in China, Vietnam and the US, and design, service and sales teams across Europe, the US and Asia.
Investment summary
Despite a tough trading environment in Q3, XP Power saw improving order flow (+8% y-o-y/+4% in constant currency) and a book-to-bill ratio of 1.04x. The company noted that order intake from healthcare, industrial and technology customers remained robust but orders from semiconductor equipment manufacturing customers (18% of H119 revenues) saw no notable recovery. Management anticipates meeting its FY19 expectations. Helped by currency, our FY19 revenue forecast appears conservative but in the face of volatile trading conditions, we maintain our estimates.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 166.8 | 41.7 | 36.1 | 147.0 | 18.9 | 17.8 |
| 2018A | 195.1 | 49.2 | 41.2 | 172.8 | 16.1 | 19.8 |
| 2019E | 199.8 | 49.0 | 36.8 | 153.7 | 18.1 | 12.5 |
| 2020E | 209.0 | 52.5 | 39.9 | 166.9 | 16.7 | 11.3 |
Industry outlook
XP supplies four end-markets: Healthcare, Industrial, Semiconductors and Technology, across Europe, North America and Asia. The Industrial segment is relatively fragmented, but the company sees demand across various applications. The Healthcare business continues to gain market share, with corporate approvals from the major suppliers in place. The Semiconductor segment is the most cyclical, tracking the capex requirements of semiconductor manufacturers.
Last updated on 13/11/2019
Sector |
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Share price graph
Balance sheet |
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|---|---|
| Forecast net debt (£m) | 53 |
| Forecast gearing ratio (%) | 36 |
Price performance
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Key management |
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|---|---|
| James Peters | Chairman |
| Duncan Penny | CEO |
| Gavin Griggs | Chief Financial Officer & Executive Director |
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