XP Inc. (XP) on Decifer

Decifer ranks XP number 89 of 273 tracked names on durable business quality.

Why it ranks here

• Its returns on invested money are modest, around 1% and it turns most of its profit into real cash.
• Revenue is expected to grow about 12% a year, profits grew 19% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power.
• and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Expected 12 percent revenue growth and 19 percent profit growth are reasonable, but returns near 1 percent and momentum of 13 out of 35 with no funded role leave it in the middle.

The current read

The evidence on XP lines up on the supportive side: the intelligence feed flags this name as connected to what is moving markets now. The independent signals we track are telling the same story.

Themes

• Electronification of Capital Markets: Trading in equities, options, fixed income and rates is moving structurally onto electronic venues, driving volume and data-monetization growth for exchanges and platform brokers.

Read the full XP research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.