Xaar: Progressive Research
delivered an in-line FY24 result (Adj EBITDA £3.7m, vs our £3.6m estimate) with a notable beat to cash, £8.7m, vs our £8.2m estimate. Revenue was down 13% Y/Y to £61.4m, £70.2m last year. Xaar’s precision inkjet technology uses high viscosity inks, which are thicker and permeate less into surfaces, so OEMs see improved print consistency, uniformity and lower cost while using fewer precious environmental resources. Recent years have shown the difficulty in developing these new markets, yet today’s results deliver evidence of a burgeoning demand environment. Xaar has inked contracts with an array of OEMs and those partners are starting to debut new products. While some of the KPIs urge caution for the immediate term, there are positive signs that this market is braced to ‘unclog’. Despite the potential for this restoring confidence, the shares currently trade on just 0.6x EV/Sales, a sharp discount to wider tech (3.0x).
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