XPEL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. XPEL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. XPEL is valued quite expensively, but it does show have an excellent growth rating. This makes XPEL very considerable 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

XPEL had positive earnings in the past year.
XPEL had a positive operating cash flow in the past year.
Each year in the past 5 years XPEL has been profitable.
In the past 5 years XPEL always reported a positive cash flow from operatings.

1.2 Ratios

XPEL's Return On Assets of 12.05% is amongst the best of the industry. XPEL outperforms 92.86% of its industry peers.
XPEL has a Return On Equity of 17.35%. This is amongst the best in the industry. XPEL outperforms 95.24% of its industry peers.
The Return On Invested Capital of XPEL (15.61%) is better than 92.86% of its industry peers.
XPEL had an Average Return On Invested Capital over the past 3 years of 23.42%. This 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

Looking at the Profit Margin, with a value of 10.12%, XPEL belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
XPEL's Profit Margin has been stable in the last couple of years.
The Operating Margin of XPEL (12.82%) is better than 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.
Looking at the Gross Margin, with a value of 41.94%, XPEL belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
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.
The debt/assets ratio for XPEL has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 10.67 indicates that XPEL is not in any danger for 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.
The Debt to FCF ratio of XPEL is 0.00, which is an excellent value as it means it would take XPEL, only 0.00 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.00, XPEL belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that XPEL is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, XPEL belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.

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

ROIC/WACC1.7

WACC9.2%

2.3 Liquidity

XPEL has a Current Ratio of 2.78. This indicates that XPEL is financially healthy and has no problem in meeting 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's Quick ratio of 1.25 is in line compared to the rest of the industry. XPEL outperforms 52.38% of its industry peers.

		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.
XPEL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.40% yearly.
Looking at the last year, XPEL shows a quite strong growth in Revenue. The Revenue has grown by 10.29% in the last year.
Measured over the past years, XPEL shows a very strong growth in Revenue. The Revenue has been growing by 26.48% on average per year.

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.
Based on estimates for the next years, XPEL will show a quite strong growth in Revenue. The Revenue will grow by 10.62% on average per year.

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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 31.93, XPEL can be considered very expensive at the moment.
XPEL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.21, XPEL is valued at the same level.
XPEL is valuated rather expensively with a Price/Forward Earnings ratio of 22.33.
XPEL's Price/Forward Earnings is on the same level as the industry average.
XPEL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	31.93
Fwd PE	22.33

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as XPEL.
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 XPEL does not grow enough to justify the current Price/Earnings ratio.
XPEL has an outstanding profitability rating, which may justify a higher PE ratio.
XPEL's earnings are expected to grow with 30.00% in the coming years. This may justify a more expensive valuation.