1.17%
20.51%
-17.65%
-15.64%
-45.39%
-56.28%
-65.87%
AI Spotlight on XP
Company Description
XP Inc.provides financial products and services in Brazil.It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients.
The company also offers Xpeed, an online financial education portal that offers seminars, classes, and learning tools to help teach individuals on topics, such as basics of investing, techniques, and investment strategies, as well as insurance brokerage services.In addition, it operates XP Platform, an open product platform that provides clients to access investment products in the market, including equity and fixed income securities, mutual and hedge funds, private equity, structured products, credit cards, loan operations, life insurance, pension plans, real-estate investment funds, and others.The company was founded in 2001 and is based in SΓ£o Paulo, Brazil.
Market Data
| Last Price | 13.81 |
| Change Percentage | 1.17% |
| Open | 13.18 |
| Previous Close | 13.65 |
| Market Cap ( Millions) | 7459 |
| Volume | 4495923 |
| Year High | 26.31 |
| Year Low | 10.82 |
| M A 50 | 13.03 |
| M A 200 | 17.25 |
Financial Ratios
| FCF Yield | 51.36% |
| Dividend Yield | 4.71% |
| ROE | 21.56% |
| Debt / Equity | 239.47% |
| Net Debt / EBIDTA | 813.32% |
| Price To Book | 2.06 |
| Price Earnings Ratio | 10.07 |
| Price To FCF | 1.95 |
| Price To sales | 3.06 |
| EV / EBITDA | 15.71 |
News
- Jan -25 - XP: Weathering The Storm In Brazil's Financial Turmoil
- Dec -14 - These 2 emerging markets stocks could return 50% each in 2025
- Nov -20 - XP Inc. (XP) Q3 2024 Earnings Call Transcript
- Nov -19 - XP Inc. Announces New Share Repurchase Program
- Sep -06 - XP Q2 Earnings: On Track To Meet Its 2026 Financial Targets
- Aug -14 - XP Inc. (XP) Q2 2024 Earnings Call Transcript
- Aug -14 - XP Inc.A (XP) Misses Q2 Earnings Estimates
- Jul -12 - 7 Stocks at 52-Week Lows to Snag Before They Soar
- Jun -29 - XP Inc. Announces Pricing of Senior Notes Offering
- Jun -27 - XP INC. ANNOUNCES TENDER RESULTS AND EXPIRATION TIME OF CASH TENDER OFFER FOR ANY AND ALL OF THE OUTSTANDING U.S.$736,435,000 AGGREGATE PRINCIPAL AMOUNT OF 3.250% SENIOR UNSECURED NOTES DUE 2026 (CUSIP NOS. 98379X AA2/G98239 AA7)
- Jun -20 - XP INC. ANNOUNCES COMMENCEMENT OF CASH TENDER OFFER FOR ANY AND ALL OF THE OUTSTANDING U.S.$736,435,000 AGGREGATE PRINCIPAL AMOUNT OF 3.250% SENIOR UNSECURED NOTES DUE 2026 (CUSIP NOS. 98379X AA2/G98239 AA7)
- May -25 - XP Inc: The Post-Earnings Sell-Off Is A Buying Opportunity
- May -23 - XP Announces Share Repurchase Program
- May -22 - XP Inc. (XP) Q1 2024 Earnings Call Transcript
- May -21 - XP Inc.A (XP) Misses Q1 Earnings Estimates
- May -13 - XP Inc.A (XP) Earnings Expected to Grow: Should You Buy?
- Apr -26 - 5 High-Yielding Oversold Stocks with Bullish Ratings
- Apr -26 - XP Announces Corporate Governance Changes to Support its Next Chapter of Growth
- Apr -26 - XP Inc. Files Its Annual Report on Form 20-F for the Fiscal Year Ended December 31, 2023
- Apr -26 - XP Appoints Victor Mansur as Chief Financial Officer Effective August 1, 2024
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Reconciling Items
Expected Growth : 12 %
What the company do ?
Reconciling Items from XP Inc. refers to the process of identifying and resolving discrepancies between the company's financial records and external statements, ensuring accuracy and consistency.
Why we expect these perspectives ?
XP Inc.'s 12% growth is driven by increasing demand for digital payments, expansion into new markets, and strategic partnerships. Additionally, investments in technology and innovation have improved operational efficiency, reduced costs, and enhanced customer experience. Furthermore, the company's diversified revenue streams and strong brand recognition have contributed to its sustained growth momentum.
Segment nΒ°2 -> Brokerage
Expected Growth : 13 %
What the company do ?
Brokerage from XP Inc. is a platform that provides trading and investment services, offering a range of financial products and tools for individuals and institutions.
Why we expect these perspectives ?
XP Inc.'s 13% brokerage growth driven by increasing demand for online trading, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital platforms and mobile applications has improved user experience, attracting new customers and increasing trading volumes.
Segment nΒ°3 -> Securities Placement
Expected Growth : 11 %
What the company do ?
Securities Placement from XP Inc. allows clients to purchase securities in the primary market, providing access to initial public offerings (IPOs) and follow-on offerings.
Why we expect these perspectives ?
XP Inc.'s 11% securities placement growth is driven by increasing demand for digital brokerage services, expansion into new markets, and strategic partnerships. Additionally, the company's investment in technology and user experience has improved customer acquisition and retention rates, further fueling growth.
Segment nΒ°4 -> Management Fees
Expected Growth : 14 %
What the company do ?
Management Fees from XP Inc. refer to the costs associated with managing investment portfolios, typically a percentage of assets under management.
Why we expect these perspectives ?
XP Inc.'s 14% growth in Management Fees is driven by increasing assets under management, expansion into new markets, and a growing client base. Additionally, the company's digital platform and investment in technology have improved operational efficiency, leading to higher revenue. Strong brand recognition and a diversified product offering have also contributed to the growth.
Segment nΒ°5 -> Commission
Expected Growth : 12 %
What the company do ?
Commission from XP Inc. refers to the fee charged by the company on transactions, typically a percentage of the trade value, serving as a revenue stream.
Why we expect these perspectives ?
XP Inc.'s 12% commission growth is driven by increasing trading volumes, expansion into new markets, and a growing active user base. Additionally, the company's investments in digital marketing and user experience enhancements have improved customer engagement and retention, leading to higher revenue per user.
Segment nΒ°6 -> Sales Taxes and Contributions on Revenue
Expected Growth : 10 %
What the company do ?
Sales Taxes and Contributions on Revenue from XP Inc. refers to the amount of taxes and contributions levied on the revenue generated by XP Inc.
Why we expect these perspectives ?
XP Inc.'s 10% growth in Sales Taxes and Contributions on Revenue is driven by increasing online transactions, expansion into new markets, and rising average order value. Additionally, favorable tax policies and effective tax planning strategies have contributed to this growth.
Segment nΒ°7 -> Other
Expected Growth : 11 %
What the company do ?
XP Inc.'s 'Other' segment includes revenue from its investments, treasury, and other financial instruments, not attributed to its core banking business.
Why we expect these perspectives ?
XP Inc.'s 11% growth is driven by increasing demand for digital brokerage services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on technology and innovation, such as AI-powered investment platforms, has attracted new customers and increased revenue.
Segment nΒ°8 -> Insurance Brokerage
Expected Growth : 15 %
What the company do ?
XP Inc.'s Insurance Brokerage is a digital platform that connects clients with insurance companies, offering a range of products and personalized services.
Why we expect these perspectives ?
XP Inc.'s Insurance Brokerage growth is driven by increasing demand for digital insurance platforms, strategic partnerships, and expansion into new markets. The 15% growth rate is also fueled by the company's investment in AI-powered underwriting, enhanced customer experience, and a strong brand reputation, resulting in increased market share and revenue growth.
Xp Inc. Products
| Product Range | What is it ? |
|---|---|
| XP Investimentos | A platform that provides access to a wide range of financial products, including stocks, options, futures, and forex. |
| XP Clear | A digital platform that offers clearing and custody services for financial institutions and investors. |
| XP InvestPro | A professional trading platform that provides advanced tools and analytics for active traders. |
| XP Private | A wealth management platform that offers personalized investment advice and portfolio management services. |
| XP Educação | An online education platform that provides financial education and training programs. |
XP Inc.'s Porter Forces
Threat Of Substitutes
XP Inc. has a moderate threat of substitutes due to the presence of alternative digital payment methods, but its strong brand recognition and customer loyalty mitigate this threat.
Bargaining Power Of Customers
XP Inc.'s customers have limited bargaining power due to the company's dominant market position and lack of viable alternatives.
Bargaining Power Of Suppliers
XP Inc. has a moderate bargaining power of suppliers due to its dependence on a few key suppliers, but its strong relationships and contracts mitigate this risk.
Threat Of New Entrants
XP Inc. faces a high threat of new entrants due to the low barriers to entry in the digital payment industry and the attractiveness of the market.
Intensity Of Rivalry
XP Inc. operates in a highly competitive market with intense rivalry among existing players, which puts pressure on prices, innovation, and customer acquisition.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 76.01% |
| Debt Cost | 3.95% |
| Equity Weight | 23.99% |
| Equity Cost | 12.42% |
| WACC | 5.98% |
| Leverage | 316.83% |
XP Inc. : Quality Control
XP Inc. passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| RJF | Raymond James Financial, Inc., a diversified financial services company, provides private client group, capital markets, asset management, banking, and other services to individuals, corporations, and municipalities in the United States, β¦ |
| MS | Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. It β¦ |
| SCHW | The Charles Schwab Corporation, together with its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates in two segments, Investor Services and β¦ |
| GS | The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through four segments: Investment Banking, Global β¦ |
| NU | Nu Holdings Ltd. operates as a digital financial services platform and technology company primarily in Brazil, Mexico, and Colombia. It offers Nu credit and debit cards; Ultraviolet credit and debit β¦ |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
π₯
Morgan Stanley
A-Score
1-Year Total Return ->
π₯
Raymond James Financial
A-Score
1-Year Total Return ->
π₯
Goldman Sachs
A-Score
1-Year Total Return ->
4
XP
A-Score
1-Year Total Return ->
5
Nu
A-Score
1-Year Total Return ->
6
