Applying Peter Lynch’s stock selection rules to XPEL INC (NASDAQ:XPEL)

Peter Lynch’s approach focused on identifying undervalued growth stocks with simple, scalable businesses. We examine whether XPEL INC (NASDAQ:XPEL) fits the characteristics of a Lynch-approved investment.

Applying Peter Lynch’s stock selection rules to XPEL INC (NASDAQ:XPEL)

• XPEL exhibits a strong Return on Equity (ROE) of 20.18%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• At a Debt/Equity ratio of 0.0, XPEL seems well-positioned to sustain growth while keeping debt in check.
• The 5-year EPS growth of XPEL (26.4) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• With a PEG ratio of 0.75, XPEL is valued very reasonably for the growth it experiences.
• XPEL’s Current Ratio of 4.05 highlights its ability to sustain day-to-day operations without liquidity concerns.

Zooming in on the fundamentals.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

XPEL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. XPEL gets an excellent profitability rating and is at the same time showing great financial health properties. XPEL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes XPEL very considerable for growth and quality investing!

For an up to date full fundamental analysis you can check the fundamental report of XPEL

More Affordable Growth stocks can be found in our Peter Lynch screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.