XP Factory PLC (XPF) AI Stock Analysis

• Market Cap: £23.65M
• Dividend Yield: N/A
• Average Volume (3M): 496.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 29.71%
• EPS Growth: -58.70%
• Country: UK
• Employees: 1,049
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): N/A
• Shares Outstanding: 175,157,600
• 10 Day Avg. Volume: 659,562
• 30 Day Avg. Volume: 496,232
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £14.00
• Price Target Upside: 3.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: 14.00p ▲(3.70% Upside)

The overall stock score is primarily influenced by financial performance challenges, including high leverage and cash flow issues. While technical analysis shows positive momentum, the overbought condition suggests caution. The valuation is unattractive due to unprofitability and lack of dividends.

XP Factory PLC Business Overview & Revenue Model

Company Description

XP Factory Plc provides live escape-the-room experiences in the United Kingdom and internationally. The company develops and operates a network of franchised, licensed, and owner-operated branches and offsite escape-the-room type games under the Escape Hunt brand; and a network of owner-operated and franchised socializing cocktail bar venues under the Boom Battle Bar brand. It also engages in the game designing and IP licensing business. The company was formerly known as Escape Hunt plc and changed its name to XP Factory Plc in December 2021. XP Factory Plc was incorporated in 2016 and is based in Crawley, the United Kingdom.

How the Company Makes Money

XP Factory PLC generates revenue through multiple channels, primarily by selling tickets for its immersive experiences and adventure activities. The company also earns money from corporate events and team-building sessions, which are tailored to business clients looking for unique ways to engage their teams. Additionally, XP Factory may explore partnerships with other entertainment providers and local businesses to create bundled experiences or cross-promotional opportunities. Revenue is further supplemented through merchandise sales at its venues, food and beverage offerings, and potentially from licensing its game concepts to third-party operators.

XP Factory PLC Financial Statement Overview

Summary

XP Factory PLC demonstrates robust revenue growth, but profitability and cash flow issues persist. High leverage and negative returns on equity suggest financial instability. While the company manages production costs effectively, it needs to address its debt levels and improve cash flow management to enhance financial health.

Income Statement

XP Factory PLC shows a positive revenue growth trend with a 13.87% increase in the latest period, indicating strong top-line growth. However, the company struggles with profitability, as evidenced by a negative net profit margin and fluctuating EBIT margins. The gross profit margin remains healthy, suggesting efficient cost management at the production level.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risk. The equity ratio is moderate, suggesting a balanced asset structure. However, the negative return on equity highlights challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis shows a concerning decline in free cash flow, with a significant negative growth rate. The operating cash flow to net income ratio is positive, indicating some ability to convert income into cash, but the free cash flow to net income ratio is negative, reflecting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.82M	57.82M	45.87M	22.83M	6.98M	2.66M
Gross Profit	30.38M	36.98M	24.11M	14.71M	5.08M	1.88M
EBITDA	8.49M	8.49M	7.35M	6.52M	2.28M	-1.85M
Net Income	-1.25M	-1.25M	-336.00K	-994.00K	-874.00K	-6.58M
Balance Sheet
Total Assets	81.61M	81.61M	73.15M	61.91M	48.97M	11.38M
Cash, Cash Equivalents and Short-Term Investments	1.09M	1.09M	3.94M	3.19M	8.22M	2.72M
Total Debt	43.23M	43.23M	33.68M	25.52M	10.06M	4.03M
Total Liabilities	57.83M	57.83M	48.14M	40.31M	27.15M	6.17M
Stockholders Equity	23.78M	23.78M	25.00M	21.60M	21.82M	5.20M
Cash Flow
Free Cash Flow	-202.00K	-55.00K	3.29M	-5.89M	-1.96M	-3.30M
Operating Cash Flow	7.23M	7.63M	10.72M	3.32M	742.00K	-1.26M
Investing Cash Flow	-7.34M	-7.30M	-6.19M	-6.59M	-11.91M	-2.03M
Financing Cash Flow	-2.72M	-3.17M	-3.77M	-1.78M	16.67M	3.83M

XP Factory PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:XPF, the sentiment is Positive. The current price of 13.5 is above the 20-day moving average (MA) of 12.41, above the 50-day MA of 11.16, and above the 200-day MA of 11.70, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 81.06 is Negative, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:XPF.

XP Factory PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOWL	75 Outperform	£415.46M	14.97	19.65%	4.85%	7.46%	-18.88%
GYM	70 Neutral	£260.15M	35.02	3.34%	―	8.74%	―
HVTA	69 Neutral	£8.26M	4.14	7.52%	1.72%	2.76%	―
XPF	55 Neutral	£23.65M	―	-5.08%	―	29.71%	-58.70%
BOW	45 Neutral	£11.13M	-0.20	5143.27%	―	-26.54%	-164.52%
SYM	40 Underperform	£17.14M	-11.69	337.69%	―	3.78%	47.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%