ScoreWhy is XP, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 21.51%
2
Healthy long term growth as Net Sales has grown by an annual rate of 15.10% and Operating profit at 17.56%
3
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 8,960.24 MM
- NET PROFIT(Q) Highest at USD 278.12 MM
- DIVIDEND PAYOUT RATIO(Y) Highest at 0.04%
4
With ROE of 21.82%, it has a very attractive valuation with a 2.17 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 7.13%, its profits have risen by 11.4% ; the PEG ratio of the company is 0.7
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to XP, Inc. should be less than 10%
- Overall Portfolio exposure to Capital Markets should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is XP, Inc. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
XP, Inc.
6.82%
0.25
48.62%
S&P 500
16.06%
1.20
13.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.10%
EBIT Growth (5y)
17.56%
EBIT to Interest (avg)
22.07
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.80
Tax Ratio
8.84%
Dividend Payout Ratio
0.01%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
32.58%
ROE (avg)
21.51%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
2.17
EV to EBIT
6.78
EV to EBITDA
6.46
EV to Capital Employed
3.09
EV to Sales
2.23
PEG Ratio
0.67
Dividend Yield
NA
ROCE (Latest)
45.58%
ROE (Latest)
21.82%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 8,960.24 MM
NET PROFIT(Q)
Highest at USD 278.12 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 0.04%
RAW MATERIAL COST(Y)
Fallen by 1.08% (YoY
NET SALES(Q)
Highest at USD 966.46 MM
PRE-TAX PROFIT(Q)
Highest at USD 292.03 MM
EPS(Q)
Highest at USD 0.53
-3What is not working for the Company
INTEREST(Q)
At USD 23.01 MM has Grown at 17.52%
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.54 times
Here's what is working for XP, Inc.
Net Profit
Highest at USD 278.12 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 8,960.24 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 966.46 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 292.03 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
EPS
Highest at USD 0.53
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Dividend Payout Ratio
Highest at 0.04%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 1.08% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 20.28 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 20.28 MM has Grown at 27.86%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for XP, Inc.
Interest
At USD 23.01 MM has Grown at 17.52%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debtors Turnover Ratio
Lowest at 0.54 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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