XP Power


£854.1m market cap

4350p 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

XP Power’s Q3 trading update confirmed that production volumes grew rapidly in its Asian facilities, allowing the company to satisfy some of the orders placed in H120. As expected, bookings returned to a more normal level in Q3. XP reported 28% y-o-y growth in revenues for Q3, prompting upgrades to our FY20/21 revenue and EPS forecasts. The company also announced that CEO Duncan Penny will retire at the end of the year, to be replaced by current CFO Gavin Griggs from 1 January 2021.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 195.1 49.2 41.2 172.8 25.2 31.1
2019A 199.9 45.4 33.2 145.5 29.9 18.1
2020E 230.7 54.0 40.6 162.9 26.7 24.7
2021E 233.8 57.0 43.2 173.2 25.1 17.5
Industry outlook

XP supplies four end-markets: healthcare, industrial electronics, semiconductors and technology, across Europe, North America and Asia. The industrial electronics 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 21/10/2020
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Share price graph
Balance sheet
Forecast net debt (£m) 38.2
Forecast gearing ratio (%) 25
Price performance
Actual 3.8 16.9 69.9
Relative* 3.2 24.4 106.6
52-week high/low 4730.0p/2130.0p
*% relative to local index
Key management
James Peters Chairman
Duncan Penny CEO
Gavin Griggs Chief Financial Officer & Executive Director

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