Xperi Holding (XPER) Company Overview & Stock Price Forecast
This article provides a brief analysis and stock rating for Xperi Holdings (XPER) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.
Xperi Holdings Fundamentals
Stock Price Target: $22.49
In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for Xperi Holdings in comparison to the Software industry and the S&P 500.
Xperi Holdings is a Small Cap company with a Market Cap of $1.73B.
How are investors using Xperi Holdings earnings yield to assess the company?
The earnings yield is used to show the percentage of a company’s earnings per share. Investors typically use earnings yield to determine which assets are underpriced or overpriced relative to other variables, like sector, industry or bond yields. Simply put, the earnings yield of a company can be used to assess how expensive a company is in relation to the earnings that are generated. When valuing companies, the SIS Research Group does not utilize the inverse P/E ratio to calculate the earnings yield. Instead, we use an adjusted earning yield calculation to capture variation amongst companies (i.e. debt and tax rates).
The current earnings yield for Xperi Holdings is 16%, in comparison to 3.97% for the S&P 500 and 1.92% for the 10-year treasury bond. The median earnings yield for the Software industry is 3.06%.
What does Xperi Holdings Price-to-Earnings Ratio (P/E) tell investors about the company?
The price-to-earnings ratio (P/E) is a relatively popular metric used by investors and analysts for valuing a company’s stock. The P/E ratio can be used to show how a stock’s valuation compares to other companies and the total market. Investors use the P/E ratio to determine what the market is willing to pay today based on a company’s past or future earnings. A high P/E ratio could mean that a stock’s price is too high relative to earnings, which could be a signal that a stock is currently overvalued. In turn, a low P/E ratio could indicate that a company’s current stock price is low relative to earnings.
Xperi Holdings is currently trading at a P/E of 12.81. The P/E for the Software industry is 66.38 and the P/E for the S&P 500 is 25.2.
What is the current Price-to-Sales Ratio (P/S) for Xperi Holdings?
The Price-to-Sales Ratio (P/S) looks at a company’s market cap and revenue to determine valuation. The P/S ratio is calculated by taking a company’s market cap and dividing by the total sales or revenue. The P/S ratio gives an idea of how much the market values every dollar of a company’s sales and can be effective in valuing unprofitable growth stocks or companies that are currently undergoing special situations or challenges. A lower the P/S ratio can be an indicator of good value.
Xperi Holdings is currently trading at a P/S of 1.55. The P/S for the Software industry is 12.44 and the P/S for the S&P 500 is 2.92.
How does Xperi Holdings Price-to-BookRatio (P/B) compare to the Software industry?
Price-to-book value (P/B) is the ratio of the market value of a company’s shares divided by its book value of equity (the value of it’s assets on the books). The book value is the difference between the book value of assets and liabilities. Typically, investors use the P/B ratio to assess if a stock is valued properly (a value of one means that the stock price is trading in line with the book value of the company). A company with a high P/B ratio could mean the stock price is overvalued as well as the converse.
Xperi Holdings P/B ratio is 1.18. The P/B for the Software industry is 14.52 and the P/B for the S&P 500 is 4.49.
How attractive is Xperi Holdings Return on Invested Capital (ROIC) to investors?
Investors use the return on invested capital (ROIC) to assess how efficient a company is at turning capital into profits. The ROIC is the amount of money a company makes on it’s investments that is above the average cost of debt and equity.
Investors can use the ROIC to provide context for metrics like the (P/E) ratio. For instance, when used in isolation a low P/E ratio could suggest a company is oversold but the decline could be because a company is no longer generating value for shareholders. Conversely, companies that consistently generate high rates of ROIC can plausibly trade at a premium compared to other stocks, even if their P/E ratios are high.
Xperi Holdings ROIC is currently 6.18% in comparison to 14.68% for the Software industry and 9.10% for the S&P 500.
How has XPER stock performed over the past year? What is the current analyst price target?
Over the past 52 weeks, Xperi Holdings has traded between the range of $15.84 and $25.03.
The current Analyst Price Target for Xperi Holdings is $22.49.
What is Xperi Holdings YOY Performance in comparison to its industry and the total market?
The YOY performance for Xperi Holdings is -23.19%. The Software industry has a YOY performance of 12.76% in comparison to the YOY S&P 500 performance of 11.86%.
Recent Financial Results
- Revenue of $219.4M, up 8.2% year-over-year
- Cash Flow from Operations of $82.9M
- Adjusted Free Cash Flow of $87.7M
- Repurchased $24.8M of common stock
- Company paid $5.2M to stockholders of record on August 2021, for a quarterly cash dividend of $0.05 per share of common stock
Stock Price Target: $22.49
Xperi Holding operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners.
The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands.
The company is headquartered in San Jose, California. The current CEO is Jon Kirchner.
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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.