XP Power


£544.3m market cap

2830p 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

Despite a tough trading environment in Q3, XP Power saw improving order flow (+8% y-o-y/+4% in constant currency) and a book-to-bill ratio of 1.04x. The company noted that order intake from healthcare, industrial and technology customers remained robust but orders from semiconductor equipment manufacturing customers (18% of H119 revenues) saw no notable recovery. Management anticipates meeting its FY19 expectations. Helped by currency, our FY19 revenue forecast appears conservative but in the face of volatile trading conditions, we maintain our estimates.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 166.8 41.7 36.1 147.0 19.3 18.1
2018A 195.1 49.2 41.2 172.8 16.4 20.1
2019E 199.8 49.0 36.8 153.7 18.4 12.7
2020E 209.0 52.5 39.9 166.9 17.0 11.5
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 21/11/2019
Share price graph
Balance sheet
Forecast net debt (£m) 53
Forecast gearing ratio (%) 36
Price performance
Actual 10.6 28.1 25.8
Relative* 9.5 26.3 21.2
52-week high/low 2910.0p/1965.0p
*% relative to local index
Key management
James Peters Chairman
Duncan Penny CEO
Gavin Griggs Chief Financial Officer & Executive Director

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