XP Power


£1076m market cap

5480p 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 reported a strong finish to 2020, with Q4 revenues up 24% y-o-y and 4% ahead of our forecast, driving FY20 profitability ahead of expectations. Order intake has normalised to pre-COVID-19 levels (Q420 £55.9m, -4% y-o-y), reflecting continued strong demand from the semiconductor sector. Year-end net debt of £18.0m was substantially lower than our £38.2m forecast, mainly due to good working capital management, but aided by the weaker dollar at year-end. We have revised our estimates to reflect strong Q420 performance and the weaker dollar, driving a 3.0% increase in FY20 EPS and a 2.3% cut to our FY21 EPS.

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 31.7 39.2
2019A 199.9 45.4 33.2 145.5 37.7 22.8
2020E 232.9 55.3 41.9 167.9 32.6 22.0
2021E 227.4 55.5 42.2 169.2 32.4 25.5
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 26/02/2021
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Share price graph
Balance sheet
Forecast net debt (£m) 18
Forecast gearing ratio (%) 11
Price performance
Actual 3.0 25.1 71.3
Relative* 4.7 21.3 81.7
52-week high/low 5700.0p/2130.0p
*% relative to local index
Key management
James Peters Chairman
Gavin Griggs Chief Financial Officer & Executive Director

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