# XP Inc. (XP) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Financial Services / Capital Markets. Price $19.86, market value $10.1 billion.

## Valuation
- **P/E (trailing): 10.0×** (5-yr avg 2.5×, 3-yr avg 2.2×). XP Inc. trades at 10.0× trailing earnings, well above its own five-year average of 2.5×: investors are paying up relative to the company's past. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 8.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.46**. A PEG of 0.46 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 6.1×**. Each dollar of revenue is priced at 6.1×.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 12.6×**. Enterprise value is 12.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 24.8%** (5-yr avg 73.2%). Free cash flow equals 24.8% of the market value, below its five-year average of 73.2%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 10.0%**. The inverse of the P/E: 10.0% of the price is earned each year.

## Profitability
- **Gross margin: 27.6%**. XP Inc. keeps 27.6% of revenue after the direct cost of what it sells.
- **Operating margin: -55.6%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: 64.9%**. 64.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 22.0%**. 22.0% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: -7.9%**. Return on all capital, debt included, is -7.9%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 1.3%**. Each dollar of assets produces 1.3% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 7.3%** (3-yr 10.3%/yr, 5-yr 9.7%/yr). Revenue grew 7.3% over the last year, against 9.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 18.1%** (3-yr 15.9%/yr, 5-yr 21.2%/yr). Earnings per share rose 18.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 87.3%/yr**. Free cash flow has compounded at 87.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.
- **Cash and short-term investments: $14.3 billion**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 1.01%** ($0.20 per share, trailing). XP Inc. yields 1.01%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 10%**. 10% of earnings goes out as dividends, leaving room to keep raising it.
- **Shareholder yield: 4.8%**. Dividends plus net buybacks return 4.8% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (11 analysts). 11 analysts cover XP Inc.; the consensus is strong_buy, with an average price target of $23.22 (+17% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 13.5%** (YTD 22.9%, 3-mo 31.1%). The shares are up 13.5% over twelve months including dividends.
- **From 52-week high: -14.1%** (34.2% above the low). Trading 14% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 75**. An RSI of 75 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 1.84** (volatility 46%). Beta of 1.84 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=XP · Page: https://foliofundamentals.com/stocks/xp

Not investment advice.