£700.2m market cap
3640p 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
While previously reported issues with an ERP upgrade limited the amount of product XP could ship in Q419, revenues for FY19 came in ahead of our forecast and XP closed the year with a strong order book after an acceleration in demand across all markets in December. We have revised our forecasts to reflect both factors, with normalised EPS upgrades of 4.3% in FY19 and 1.5% in FY20.
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 | 24.8 | 23.3 |
| 2018A | 195.1 | 49.2 | 41.2 | 172.8 | 21.1 | 25.9 |
| 2019E | 194.8 | 45.1 | 32.9 | 137.3 | 26.5 | 16.9 |
| 2020E | 209.0 | 52.5 | 39.9 | 166.8 | 21.8 | 15.4 |
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 17/01/2020
Sector |
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Share price graph
Balance sheet |
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| Forecast net debt (£m) | 54.2 |
| Forecast gearing ratio (%) | 38 |
Price performance
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1m |
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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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