XPEL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. Both the health and profitability get an excellent rating, making XPEL a very profitable company, without any liquidiy or solvency issues. XPEL shows excellent growth, but is valued quite expensive already. These ratings would make XPEL suitable for growth and quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year XPEL was profitable.
In the past year XPEL had a positive cash flow from operations.
XPEL had positive earnings in each of the past 5 years.
XPEL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 12.05%, XPEL belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
The Return On Equity of XPEL (17.35%) is better than 95.24% of its industry peers.
With an excellent Return On Invested Capital value of 15.61%, XPEL belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for XPEL is significantly above the industry average of 9.10%.
The last Return On Invested Capital (15.61%) for XPEL is well below the 3 year average (23.42%), which needs to be investigated, but indicates that XPEL had better years and this may not be a problem.

		Industry Rank	Sector Rank
ROA	12.05%
ROE	17.35%
ROIC	15.61%

ROA(3y)19.43%

ROA(5y)19.95%

ROE(3y)27.57%

ROE(5y)30.88%

ROIC(3y)23.42%

ROIC(5y)25.18%

1.3 Margins

With an excellent Profit Margin value of 10.12%, XPEL belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Profit Margin of XPEL has remained more or less at the same level.
XPEL has a Operating Margin of 12.82%. This is amongst the best in the industry. XPEL outperforms 90.48% of its industry peers.
In the last couple of years the Operating Margin of XPEL has remained more or less at the same level.
XPEL has a Gross Margin of 41.94%. This is amongst the best in the industry. XPEL outperforms 88.10% of its industry peers.
In the last couple of years the Gross Margin of XPEL has grown nicely.

		Industry Rank	Sector Rank
OM	12.82%
PM (TTM)	10.12%
GM	41.94%

OM growth 3Y-3.1%

OM growth 5Y1.34%

PM growth 3Y-3.89%

PM growth 5Y0.08%

GM growth 3Y5.67%

GM growth 5Y4.73%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

XPEL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for XPEL remains at a similar level compared to 1 year ago.
Compared to 5 years ago, XPEL has about the same amount of shares outstanding.
XPEL has a better debt/assets ratio than last year.

2.2 Solvency

XPEL has an Altman-Z score of 10.67. This indicates that XPEL is financially healthy and has little risk of bankruptcy at the moment.
XPEL's Altman-Z score of 10.67 is amongst the best of the industry. XPEL outperforms 92.86% of its industry peers.
XPEL has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
XPEL has a better Debt to FCF ratio (0.00) than 97.62% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that XPEL is not too dependend on debt financing.
The Debt to Equity ratio of XPEL (0.00) is better than 90.48% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	10.67

ROIC/WACC1.69

WACC9.22%

2.3 Liquidity

A Current Ratio of 2.78 indicates that XPEL has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.78, XPEL is doing good in the industry, outperforming 73.81% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that XPEL should not have too much problems paying its short term obligations.
XPEL has a Quick ratio (1.25) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.78
Quick Ratio	1.25

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for XPEL have decreased by -6.11% in the last year.
The Earnings Per Share has been growing by 26.40% on average over the past years. This is a very strong growth
The Revenue has grown by 10.29% in the past year. This is quite good.
XPEL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.48% yearly.

EPS 1Y (TTM)-6.11%

EPS 3Y13.36%

EPS 5Y26.4%

EPS Q2Q%-12.96%

Revenue 1Y (TTM)10.29%

Revenue growth 3Y17.48%

Revenue growth 5Y26.48%

Sales Q2Q%11.13%

3.2 Future

XPEL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.00% yearly.
The Revenue is expected to grow by 10.62% on average over the next years. This is quite good.

EPS Next Y9.69%

EPS Next 2Y19.58%

EPS Next 3Y30%

EPS Next 5YN/A

Revenue Next Year14.06%

Revenue Next 2Y12.66%

Revenue Next 3Y14.75%

Revenue Next 5Y10.62%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 31.93, the valuation of XPEL can be described as expensive.
XPEL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.21, XPEL is valued at the same level.
The Price/Forward Earnings ratio is 22.33, which indicates a rather expensive current valuation of XPEL.
The rest of the industry has a similar Price/Forward Earnings ratio as XPEL.
XPEL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	31.93
Fwd PE	22.33

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XPEL is on the same level as its industry peers.
XPEL's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	22.9
EV/EBITDA	20.04

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of XPEL may justify a higher PE ratio.
A more expensive valuation may be justified as XPEL's earnings are expected to grow with 30.00% in the coming years.