£392.5m market cap
2040p 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
As previously flagged, a drop in demand from XP’s semiconductor customers had a negative impact on Q4 revenues and orders. Conversely, demand from all other end-markets remained strong. With FY18 revenues likely to be 2% lower than we had expected, we have revised our forecasts to reflect this and expected weaker demand from the semiconductor sector in FY19. Despite the resulting 5% cut in EPS forecasts for FY19, the stock is trading at a discount to peers, with a superior dividend yield.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2016A | 129.8 | 33.0 | 28.6 | 115.3 | 17.7 | N/A |
| 2017A | 166.8 | 41.7 | 36.1 | 147.0 | 13.9 | N/A |
| 2018E | 194.8 | 48.2 | 40.7 | 170.5 | 12.0 | N/A |
| 2019E | 210.3 | 52.7 | 43.9 | 187.9 | 10.9 | N/A |
| Last updated on 21/02/2019 | ||||||
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 21/02/2019
Sector |
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Share price graph
Balance sheet |
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| Forecast net debt (£m) | 0 |
| Forecast gearing ratio (%) | 0 |
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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