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Xpel, Inc. (XPEL)
:XPEL
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XPEL
(NASDAQ:XPEL)
70Outperform
XPEL (XPEL) vs. S&P 500 (SPY)
Market Cap
$812.42M
Dividend YieldN/A
Average Volume (3M)252.93K
Price to Earnings (P/E)17.9
Beta (1Y)1.13
Revenue Growth6.08%
EPS Growth-13.90%
CountryUS
Employees1,143
SectorConsumer Cyclical
Sector Strength51
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.65
Shares Outstanding27,652,225
10 Day Avg. Volume195,160
30 Day Avg. Volume252,926
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.12
Price to Cash Flow (P/CF)35.30
P/FCF Ratio35.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$45.00Price Target Upside53.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
XPEL Business Overview & Revenue Model
Company DescriptionXPEL, Inc. manufactures, sells, distributes, and installs after-market automotive products. The company offers automotive surface and paint protection films, headlight protection, and automotive and architectural window films, as well as proprietary software. It also provides merchandise and apparel; ceramic coatings; and tools and accessories, which includes squeegees and microfiber towels, application fluids, plotter cutters, knives, and other products. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. It sells its products to independent installers and new car dealerships, third-party distributors, and company-owned installation centers, as well as through franchisees and online sales channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.
How the Company Makes MoneyXPEL generates revenue primarily through the sale and distribution of its protective film products. The company's revenue model is centered around direct sales to consumers, partnerships with automotive dealerships, and collaborations with professional installers. Significant revenue streams include the sale of paint protection films and window tints, which are marketed for their ability to protect vehicle surfaces and interiors from damage and wear. XPEL's partnerships with automotive dealers and aftermarket service providers play a crucial role in expanding its market reach and enhancing sales volumes. Additionally, the company's global distribution network and focus on high-quality product innovation contribute to its strong market position and revenue growth.
XPEL Financial Statement Overview
Summary
XPEL maintains a strong financial position with consistent revenue and profit growth, a low Debt-to-Equity Ratio, and robust cash flow management. The company is well-positioned for future growth, though improvements in operational efficiencies could enhance profitability further.Income Statement
XPEL has demonstrated solid revenue growth with a TTM increase to $420.4M from $396.3M in the previous year, reflecting a growth rate of 6.08%. Gross Profit Margin is stable at 42.2%, and Net Profit Margin is strong at 10.82%. However, EBIT and EBITDA margins have slightly decreased, indicating some pressure on operational efficiency.87
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a low Debt-to-Equity Ratio of 0.093, indicating strong equity backing. The Return on Equity (ROE) is impressive at 20.17%, showing effective use of equity capital. The Equity Ratio is high at 78.9%, highlighting a solid financial foundation. However, overall asset growth could be optimized further.80
Positive
Cash Flow
XPEL exhibits robust cash flow management with a substantial Free Cash Flow growth of 38.2% in the TTM. The Operating Cash Flow to Net Income Ratio is 1.05, reflecting efficient conversion of net income into cash. The Free Cash Flow to Net Income Ratio is 0.90, underscoring strong free cash flow generation aligned with profitability.92
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 420.40M | 396.29M | 323.99M | 259.26M | 158.92M | Gross Profit |
| 177.36M | 162.41M | 127.51M | 92.68M | 54.03M | EBIT |
| 59.15M | 66.97M | 53.94M | 40.12M | 23.37M | EBITDA |
| 69.47M | 76.87M | 61.77M | 40.12M | 23.37M | Net Income Common Stockholders |
| 45.49M | 52.80M | 41.38M | 31.57M | 18.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 22.09M | 11.61M | 8.06M | 9.64M | 29.03M | Total Assets |
| 285.61M | 252.04M | 193.36M | 161.01M | 83.84M | Total Debt |
| 21.08M | 36.06M | 42.08M | 38.26M | 12.12M | Net Debt |
| -1.00M | 24.45M | 34.02M | 28.61M | -16.91M | Total Liabilities |
| 60.15M | 72.05M | 68.64M | 76.55M | 30.46M | Stockholders Equity |
| 225.46M | 179.99M | 124.72M | 84.46M | 53.38M |
| Cash Flow | Free Cash Flow | |||
| 41.11M | 29.74M | 2.50M | 10.58M | 16.31M | Operating Cash Flow |
| 47.82M | 37.38M | 12.06M | 18.27M | 18.47M | Investing Cash Flow |
| -18.40M | -26.35M | -14.16M | -56.81M | -4.66M | Financing Cash Flow |
| -19.25M | -7.26M | 602.00K | 19.24M | 3.51M |
XPEL Technical Analysis
Negative
29.38
Price Trends
37.06
Negative
39.83
Negative
40.01
Negative
Market Momentum
-1.43
Negative
31.48
Neutral
10.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XPEL, the sentiment is Negative. The current price of 29.38 is below the 20-day moving average (MA) of 31.39, below the 50-day MA of 37.06, and below the 200-day MA of 40.01, indicating a bearish trend. The MACD of -1.43 indicates Negative momentum. The RSI at 31.48 is Neutral, neither overbought nor oversold. The STOCH value of 10.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XPEL.
XPEL Risk Analysis
XPEL disclosed 52 risk factors in its most recent earnings report. XPEL reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
XPEL Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.69B | 19.62 | 15.44% | ― | 4.11% | 50.07% | |
73 Outperform | $4.17B | 25.81 | 20.25% | ― | 4.87% | -29.43% | |
70 Outperform | $812.42M | 17.85 | 22.44% | ― | 6.08% | -13.90% | |
70 Outperform | $843.93M | 12.95 | 10.30% | ― | -0.88% | 67.38% | |
62 Neutral | $487.53M | 14.15 | 5.79% | ― | 0.75% | ― | |
59 Neutral | $5.32B | 13.26 | 16.69% | 2.05% | 0.61% | -4.04% | |
59 Neutral | $12.24B | 11.04 | -1.00% | 3.78% | 1.30% | -19.54% |
* Consumer Cyclical Sector Average
Performance Comparison
XPEL
XPEL
29.38
-28.06
-48.85%
AXL
American Axle
4.07
-3.12
-43.39%
DORM
Dorman Products
120.54
23.87
24.69%
GNTX
Gentex
23.30
-12.52
-34.95%
MOD
Modine
76.75
-16.50
-17.69%
THRM
Gentherm
26.74
-28.52
-51.61%
XPEL Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -27.15% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in regions outside of China and successful product launches, but faced significant challenges in the Chinese market, OEM revenue, and increased SG&A expenses. The company is navigating uncertain macroeconomic conditions, including tariffs and FX impacts.Highlights
Revenue Growth Excluding China
XPEL achieved a solid fourth quarter with revenue excluding China growing at 10.5%, indicating strong performance in other regions despite challenges in the Chinese market.
Gross Margin Improvement
The gross margin for the year improved to 42.2%, a 120 basis point increase over 2023, showing effective cost management and operational efficiency.
Strong Window Film Product Line Growth
Total window film product line grew 32.9% in the quarter, driven by automotive growth of 31.7% to $14.3 million, with significant contributions from the partnership with Tint World.
Successful Launch of Windshield Protection Film
The new windshield protection film launched during Q4 and generated $1.5 million in revenue in just one month, indicating strong market reception.
Dealer Conference Record Attendance
The dealer conference saw over 700 attendees from 38 countries, marking an all-time record and demonstrating strong engagement and interest from partners.
Lowlights
China Market Challenges
Revenue from China decreased from $16.6 million in Q4 2023 to $9.2 million, impacted by difficult comps and ongoing inventory management issues.
OEM Revenue Decline
OEM revenue declined slightly due to changes in the Rivian program, negatively impacting the quarter while transitioning to new product offerings.
SG&A Expense Increase
SG&A expenses grew by 17.4% to $31.4 million in the quarter, driven by acquisition-related costs, marketing, and R&D, impacting overall profitability.
Net Income and EPS Decline
Net income for the quarter declined 25.7% to $8.9 million, and EPS was $0.32 per share, partly due to significant FX losses impacting earnings.
Inventory and Tariff Concerns
Inventory levels increased due to new manufacturing scale-up and tariff concerns, leading to potential operational challenges and increased costs.
Company Guidance
In the XPEL, Inc. fourth quarter and year-end 2024 earnings call, CEO Ryan Pape and CFO Barry Wood provided a detailed overview of the company's performance and strategic direction. Despite facing macroeconomic challenges, XPEL achieved a 6% revenue growth for the year, reaching $420.4 million. The US region saw a 6.2% increase in Q4, contributing $59.1 million to revenue. The company's gross margin improved by 120 basis points to 42.2% for the year, though Q4 saw a dip to 40.6% due to product mix and inventory monetization strategies. XPEL's SG&A expenses rose by 17.4% in Q4, totaling $31.4 million, driven by acquisition-related costs and increased marketing and R&D expenditures. The company took measures to manage expenses, including a workforce reduction to save $2 million annually. Product revenue, excluding China, grew 10.9% in Q4, with window film products showing a 32.9% increase. XPEL also discussed plans for geographic expansion and product diversification, including a successful launch of windshield protection film and upcoming colored film products. The company remains focused on optimizing its operations and capital deployment for future growth, with a strategic emphasis on expanding services, especially in new car dealerships.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.