Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

Analyzing past growth in Revenue, Operating Income, and Net Income allows investors to assess the company's profitability and operational efficiency. Consistent improvement in these metrics typically signals long-term strength and stability.

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Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

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Earnings Waterfall
Xp Inc

Revenue
17B BRL
Operating Expenses
-11.3B BRL
Operating Income
5.7B BRL
Other Expenses
-1.2B BRL
Net Income
4.5B BRL

Margins Comparison
Xp Inc Competitors

Country Company Market Cap Operating
Margin
Net
Margin
BR
Xp Inc
NASDAQ:XP
8.7B USD
34%
27%
US
Morgan Stanley
NYSE:MS
192.1B USD
17%
12%
US
Goldman Sachs Group Inc
NYSE:GS
175.3B USD
15%
11%
EG
EFG Hermes Holdings SAE
LSE:EFGD
167.9B USD
0%
17%
US
Charles Schwab Corp
NYSE:SCHW
152.3B USD
32%
23%
US
Interactive Brokers Group Inc
NASDAQ:IBKR
76.4B USD
41%
8%
CN
CITIC Securities Co Ltd
SSE:600030
371.7B CNY
38%
29%
CN
Guotai Junan Securities Co Ltd
SSE:601211
303.8B CNY
34%
25%
US
Robinhood Markets Inc
NASDAQ:HOOD
43.9B USD
39%
49%
US
Raymond James Financial Inc
NYSE:RJF
28.8B USD
18%
14%
CN
China Securities Co Ltd
SSE:601066
180.4B CNY
36%
25%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

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Return on Capital Comparison
Xp Inc Competitors

Country Company Market Cap ROE ROA ROCE ROIC
BR
Xp Inc
NASDAQ:XP
8.7B USD
23%
2%
3%
2%
US
Morgan Stanley
NYSE:MS
192.1B USD
13%
1%
3%
2%
US
Goldman Sachs Group Inc
NYSE:GS
175.3B USD
12%
1%
3%
1%
EG
EFG Hermes Holdings SAE
LSE:EFGD
167.9B USD
15%
3%
0%
0%
US
Charles Schwab Corp
NYSE:SCHW
152.3B USD
13%
1%
12%
2%
US
Interactive Brokers Group Inc
NASDAQ:IBKR
76.4B USD
19%
1%
24%
12%
CN
CITIC Securities Co Ltd
SSE:600030
371.7B CNY
7%
1%
5%
2%
CN
Guotai Junan Securities Co Ltd
SSE:601211
303.8B CNY
7%
1%
4%
2%
US
Robinhood Markets Inc
NASDAQ:HOOD
43.9B USD
21%
4%
17%
8%
US
Raymond James Financial Inc
NYSE:RJF
28.8B USD
19%
3%
18%
3%
CN
China Securities Co Ltd
SSE:601066
180.4B CNY
6%
1%
4%
2%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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