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 shows excellent growth, but is valued quite expensive already. 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.
XPEL had a positive operating cash flow in the past year.
Each year in the past 5 years XPEL has been profitable.
Each year in the past 5 years XPEL had a positive operating cash flow.

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's Return On Equity of 17.35% is amongst the best of the industry. XPEL outperforms 95.24% of its industry peers.
XPEL has a better Return On Invested Capital (15.61%) than 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XPEL is significantly above the industry average of 9.10%.
The 3 year average ROIC (23.42%) for XPEL is well above the current ROIC(15.61%). The reason for the recent decline needs to be investigated.

		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's Profit Margin of 10.12% is amongst the best of the industry. XPEL outperforms 95.24% of its industry peers.
In the last couple of years the Profit Margin of XPEL has remained more or less at the same level.
XPEL's Operating Margin of 12.82% is amongst the best of 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 better Gross Margin (41.94%) than 88.10% of its industry peers.
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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so XPEL is creating value.
Compared to 1 year ago, XPEL has about the same amount of shares outstanding.
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 10.64. This indicates that XPEL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.64, XPEL belongs to the best of the industry, outperforming 92.86% 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.
The Debt to FCF ratio of XPEL (0.00) is better than 97.62% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that XPEL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, XPEL belongs to the top 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	10.64

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.
The Current ratio of XPEL (2.78) is better than 73.81% of its industry peers.
XPEL has a Quick Ratio of 1.25. This is a normal value and indicates that XPEL is financially healthy and should not expect problems in meeting its short term obligations.
XPEL has a Quick ratio (1.25) which is in line with 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
The Revenue has grown by 10.29% in the past year. This is quite good.
The Revenue has been growing by 26.48% on average over the past years. This is a very strong growth!

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

The Earnings Per Share is expected to grow by 30.00% on average over the next years. This is a very strong growth
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

Based on the Price/Earnings ratio of 31.93, the valuation of XPEL can be described as expensive.
XPEL's Price/Earnings ratio is in line with the industry average.
XPEL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
XPEL is valuated rather expensively with a Price/Forward Earnings ratio of 22.33.
The rest of the industry has a similar Price/Forward Earnings ratio as XPEL.
XPEL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, 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

XPEL's Enterprise Value to EBITDA ratio is in line with the industry average.
XPEL's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	22.9
EV/EBITDA	19.94

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.
XPEL's earnings are expected to grow with 30.00% in the coming years. This may justify a more expensive valuation.