XP Power


£398.2m market cap

2070p 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

The trading environment for XP Power has become more uncertain in recent months, with the US imposing higher tariffs on imports from China and threatening tariffs on imports from Mexico. At the same time, China has imposed tariffs on imports from the US. In addition, demand for semiconductors and consequently semiconductor equipment remains weak. We have revised down our revenue and EPS forecasts to reflect the combination of weaker demand and pressure on margins; despite this the valuation does not look challenging.

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 14.1 N/A
2018A 195.1 49.2 41.2 172.8 12.0 N/A
2019E 199.8 47.4 38.4 160.8 12.9 N/A
2020E 209.0 51.3 41.6 173.8 11.9 N/A
Last updated on 25/07/2019
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 25/07/2019
Share price graph
Balance sheet
Forecast net debt (£m) 49
Forecast gearing ratio (%) 33
Price performance
Actual (7.6) (20.4) (41.9)
Relative* (8.6) (20.8) (40.2)
52-week high/low 3620.0p/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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