Overall XPEL gets a fundamental rating of 7 out of 10. We evaluated XPEL 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 is valued quite expensively, but it does show have an excellent growth rating. These ratings could make XPEL a good candidate 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.
In the past year XPEL had a positive cash flow from operations.
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

Looking at the Return On Assets, with a value of 12.05%, XPEL belongs to the top 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.
The Return On Invested Capital of XPEL (15.61%) is better than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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

XPEL has a better Profit Margin (10.12%) than 95.24% of its industry peers.
XPEL's Profit Margin has been stable in the last couple of years.
XPEL has a Operating Margin of 12.82%. This is amongst the best in the industry. XPEL outperforms 90.48% of its industry peers.
XPEL's Operating Margin has been stable in the last couple of years.
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.
XPEL's Gross Margin has improved in the last couple of years.

		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

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

2.2 Solvency

An Altman-Z score of 10.45 indicates that XPEL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.45, XPEL belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
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 Debt to FCF ratio of 0.00. This is amongst the best in the industry. XPEL outperforms 97.62% of its industry peers.
XPEL has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
XPEL has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. XPEL outperforms 90.48% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	10.45

ROIC/WACC1.7

WACC9.21%

2.3 Liquidity

A Current Ratio of 2.78 indicates that XPEL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.78, XPEL is in the better half of 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

XPEL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.11%.
The Earnings Per Share has been growing by 26.40% on average over the past years. This is a very strong growth
XPEL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.29%.
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

Based on estimates for the next years, XPEL will show a very strong growth in Earnings Per Share. The EPS will grow by 30.00% on average per year.
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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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

The Price/Earnings ratio is 30.91, which means the current valuation is very expensive for XPEL.
The rest of the industry has a similar Price/Earnings ratio as XPEL.
When comparing the Price/Earnings ratio of XPEL to the average of the S&P500 Index (28.60), we can say XPEL is valued inline with the index average.
XPEL is valuated rather expensively with a Price/Forward Earnings ratio of 21.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XPEL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 25.83. XPEL is around the same levels.

		Industry Rank	Sector Rank
PE	30.91
Fwd PE	21.61

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.
The rest of the industry has a similar Price/Free Cash Flow ratio as XPEL.

		Industry Rank	Sector Rank
P/FCF	22.17
EV/EBITDA	19.41

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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.