A Business at a Glance
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«Table of Contents ITEM 4. INFORMATION ON THE COMPANY A. History and Development of the Company We are a Cayman Islands exempted company incorporated with limited liability on August 29, 2019 for purposes of effectuating our initial public offering. At the time of our incorporation, XP Controle (the predecessor-in-interest to XP Control), Itaú Unibanco (the predecessor-in-interest to ITB Holding and Itaú Unibanco Holding), G.A. Brasil IV Fundo de Investimento em Participações (the predecessor-in-interest to GA Bermuda) and DYNA III held 2,036,988,542 shares (prior to giving effect to the Share Split) of XP Brazil, our Brazilian principal non-operating holding company at the time. On November 29, 2019, XP Controle, ITB Holding, GA Bermuda and DYNA III contributed all of their shares in XP Brazil to us.
| Metric | TTM | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | 1.4B | 1.4B | 1.3B | 1.2B | 1.1B | 971M |
| Net Income | 832M | 832M | 784M | 697M | 665M | 403M |
| EPS | $2.00 | $2.00 | $1.90 | $1.60 | $1.53 | $0.95 |
| Free Cash Flow | 2.0B | 2.0B | 1.6B | 1.6B | -769M | 264M |
| ROIC | 106.8% | 22.9% | 21.4% | 22.8% | 28.4% | 23.1% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.00 | 16.33 | 11.80 | 13.47 | 8.66 | 7.81 |
| Dividends/Share | $0.90 | $0.90 | $1.72 | $0.00 | $0.00 | - |
| Operating Income | 3.1B | 3.1B | 3.0B | 2.6B | 2.2B | 1.6B |
| Operating Margin | 229.4% | 229.4% | 227.5% | 224.7% | 194.9% | 162.5% |
| ROE | 22.5% | 22.9% | 21.4% | 22.8% | 28.4% | 23.1% |
| Shares Outstanding | 416M | 416M | 413M | 435M | 436M | 426M |
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | TTM | ||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | 401M | 563M | 912M | 971M | 1.1B | 1.2B | 1.3B | 1.4B | 1.4B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 10M | 26M | 39M | 26M | 42M | 27M | 34M | 27M | 27M |
| EBIT | 595M | 810M | 1.3B | 1.6B | 2.2B | 2.6B | 3.0B | 3.1B | 3.1B |
| Op. Margin | 148.5% | 144.0% | 142.6% | 162.5% | 194.9% | 224.7% | 227.5% | 229.4% | 229.4% |
| Net Income | 132M | 127M | N/A | 403M | 665M | 697M | 784M | 832M | 832M |
| Net Margin | 33.0% | 22.6% | N/A | 41.5% | 58.0% | 60.3% | 59.7% | 60.8% | 60.8% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||
| ROIC | 37.7% | N/A | N/A | 23.1% | 28.4% | 22.8% | 21.4% | 22.9% | 106.8% |
| ROE | 37.7% | N/A | N/A | 23.1% | 28.4% | 22.8% | 21.4% | 22.9% | 22.5% |
| ROA | N/A | 150.8% | N/A | 3.0% | 3.1% | 1.8% | 1.6% | 1.5% | 1.3% |
| Cash Flow | |||||||||
| Op. Cash Flow | 82M | -125M | 967M | 292M | -744M | 1.6B | 1.6B | 2.1B | 2.1B |
| Free Cash Flow | 72M | -148M | 949M | 264M | -769M | 1.6B | 1.6B | 2.0B | 2.0B |
| Owner Earnings | 79M | -132M | 953M | 279M | -757M | 1.6B | 1.6B | 2.0B | 2.0B |
| CapEx | 9.5M | 23M | 18M | 28M | 25M | 8.7M | 13M | 27M | 27M |
| Maint. CapEx | 2.9M | 6.7M | 13M | 13M | 13M | 21M | 24M | 23M | 23M |
| Growth CapEx | 6.6M | 16M | 4.9M | 15M | 12M | 0 | 0 | 3.6M | 3.6M |
| D&A | 2.9M | 6.7M | 13M | 13M | 13M | 21M | 24M | 23M | 23M |
| CapEx/OCF | N/A | N/A | N/A | 9.6% | N/A | 2.5% | 0.8% | 1.3% | 1.3% |
| Capital Allocation | |||||||||
| Dividends Paid | 59M | 89M | 127M | 0 | 0 | 0 | 712M | 376M | 376M |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | 9.7% | 4.8% | 4.4% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt Repayment | 0 | 189M | 31M | 30M | 14M | 20M | 395M | 439M | 439M |
| Balance Sheet | |||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -1.0B |
| Cash & Equiv. | 48M | 19M | 225M | 378M | 460M | 692M | 793M | 1.0B | 1.0B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | N/A | N/A | 5.10 | 7.81 | 8.66 | 13.47 | 11.80 | 16.33 | 0.00 |
| Interest Coverage | 31.2 | 40.9 | 60.8 | 154.8 | 89.0 | 33.2 | 24.1 | 21.8 | 21.8 |
| Equity | 359M | N/A | 1.8B | 2.1B | 2.7B | 3.3B | 3.9B | 3.7B | 3.7B |
| Total Assets | N/A | 37M | 11.1B | 18.6B | 25.8B | 48.5B | 50.1B | 64.1B | 64.1B |
| Total Liabilities | N/A | N/A | 9.2B | 16.5B | 23.1B | 44.7B | 46.2B | 60.4B | 60.4B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||
| EPS | 0.35 | 0.34 | 7,050.07 | 0.95 | 1.53 | 1.60 | 1.90 | 2.00 | 2.00 |
| Owner EPS | 0.21 | -0.35 | N/A | 0.66 | -1.74 | 3.59 | 3.90 | 4.89 | 4.89 |
| Book Value | 0.95 | N/A | N/A | 4.96 | 6.12 | 7.63 | 9.46 | 8.88 | 8.88 |
| Cash Flow/Share | 0.22 | -0.33 | N/A | 0.69 | -1.71 | 3.64 | 3.95 | 4.95 | 2.05 |
| Dividends/Share | 0.16 | 0.24 | N/A | N/A | 0.00 | 0.00 | 1.72 | 0.90 | 0.90 |
| Shares Out. | 376.8M | 377.5M | N/A | 425.6M | 435.8M | 435.2M | 413.3M | 416.5M | 416.5M |
| Valuation | |||||||||
| P/E Ratio | N/A | N/A | 16.2 | 9.6 | 4.1 | 2.1 | 3.5 | 1.5 | 10.2 |
| P/FCF | N/A | N/A | N/A | 57.7 | N/A | 3.7 | 6.3 | 2.4 | 4.2 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2.4 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | 0.7 | 0.3 | 2.3 |
| Price/Sales | N/A | N/A | N/A | 3.8 | 3.3 | 2.0 | 1.5 | 1.4 | 6.2 |
| FCF Yield | N/A | N/A | N/A | 1.3% | -5.3% | 20.7% | 12.0% | 31.0% | 24.0% |
| Market Cap | N/A | N/A | N/A | 20.1B | 14.6B | 7.6B | 13.5B | 6.6B | 8.5B |
| Avg. Price | N/A | N/A | 33.34 | 33.68 | 36.03 | 20.49 | 17.77 | 18.83 | 20.37 |
| Year-End Price | N/A | N/A | 34.31 | 35.81 | 25.49 | 13.28 | 24.82 | 11.96 | 20.37 |
XP Inc. passes 5 of 9 quality checks, suggesting mixed fundamentals.
XP Inc. trades at 2.5x trailing earnings, compared to its 15-year median P/E of 3.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 1.0x vs a median of 5.0x. The company's 5-year average ROIC is 23.7%. Total shareholder yield (dividends) is 4.4%. At current prices, the estimated annualized return to fair value is +75.3%.
XP Inc. (XP) has a current P/E ratio of 2.5, compared to its historical median P/E of 3.8. The stock is currently considered Fair based on its historical valuation range.
XP Inc. (XP) has a 5-year average return on invested capital (ROIC) of 23.7%. This indicates strong capital allocation and a potential competitive advantage.
XP Inc. (XP) has a market capitalization of $8.5B. It is classified as a mid-cap stock.
Yes, XP Inc. (XP) pays a dividend with a trailing twelve-month yield of 4.43%.
Based on historical P/E analysis, XP Inc. (XP) appears fair. The current P/E of 2.5 is 34% below its historical median of 3.8. The estimated fair value CAGR (P/E method) is 20.0%.
XP Inc. (XP) operates in the Security Brokers, Dealers & Flotation Companies industry, within the Financials sector.
XP Inc. (XP) reported annual revenue of $1.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
XP Inc. (XP) has a net profit margin of 60.8%. This is a strong margin indicating high profitability.
XP Inc. (XP) generated $2.0 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
XP Inc. (XP) has a debt-to-equity ratio of 16.33. This indicates higher leverage, which may increase financial risk.
XP Inc. (XP) reported earnings per share (EPS) of $2.00 in its most recent fiscal year.
XP Inc. (XP) has a return on equity (ROE) of 22.9%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 8 years of financial data for XP Inc. (XP), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
XP Inc. (XP) has a book value per share of $8.88, based on its most recent annual SEC filing.