£481.1m market cap
2500p 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
In FY18 XP reported strong organic growth and operating margins, generating EPS growth of 18%. After a series of acquisitions, it has a full portfolio of power solutions to meet all voltage and power requirements, and management is now focused on increasing its market share at key accounts. In our view, the stock is trading at close to trough multiples with a dividend yield above 4%.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 166.8 | 41.7 | 36.1 | 147.0 | 17.0 | N/A |
| 2018A | 195.1 | 49.2 | 41.2 | 172.8 | 14.5 | N/A |
| 2019E | 210.3 | 52.9 | 43.9 | 184.2 | 13.6 | N/A |
| 2020E | 220.0 | 55.8 | 46.0 | 192.4 | 13.0 | N/A |
| Last updated on 19/03/2019 | ||||||
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 19/03/2019
Sector |
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| TMT |
Share price graph
Balance sheet |
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|---|---|
| Forecast net debt (£m) | 43.3 |
| Forecast gearing ratio (%) | 28 |
Price performance
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12m |
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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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