XPEL, Inc. Fundamental Analysis (NASDAQ: XPEL)
XPEL, Inc. (NASDAQ: XPEL) shows moderate financial fundamentals with a PE ratio of 25.83, profit margin of 10.77%, and ROE of 19.15%. The company generates $0.5B in annual revenue with strong year-over-year growth of 13.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze XPEL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentXPEL demonstrates superior asset utilization.
Valuation Score
WeakXPEL trades at a premium to fair value.
Growth Score
ExcellentXPEL delivers strong and consistent growth momentum.
Financial Health Score
ExcellentXPEL maintains a strong and stable balance sheet.
Profitability Score
WeakXPEL struggles to sustain strong margins.
Key Financial Metrics
Is XPEL Expensive or Cheap?
P/E Ratio
XPEL trades at 25.83 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, XPEL's PEG of 2.07 indicates potential overvaluation.
Price to Book
The market values XPEL, Inc. at 4.61 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.65 times EBITDA. This signals the market has high growth expectations.
How Well Does XPEL Make Money?
Net Profit Margin
For every $100 in sales, XPEL, Inc. keeps $10.77 as profit after all expenses.
Operating Margin
Core operations generate 13.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.15 in profit for every $100 of shareholder equity.
ROA
XPEL, Inc. generates $11.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
XPEL, Inc. produces operating cash flow of $73.99M, showing steady but balanced cash generation.
Free Cash Flow
XPEL, Inc. generates weak or negative free cash flow of $-3.14M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.11 in free cash annually.
FCF Yield
XPEL converts -0.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How XPEL Stacks Against Its Sector Peers
| Metric | XPEL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.83 | 26.29 | Neutral |
| ROE | 19.15% | 966.00% | Weak |
| Net Margin | 10.77% | -4927.00% (disorted) | Strong |
| Debt/Equity | 0.21 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 2.61 | 2.32 | Strong Liquidity |
| ROA | 11.58% | 295.00% | Weak |
XPEL outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews XPEL, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
199.16%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
179.75%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
261.91%
Industry Style: Cyclical, Growth, Discretionary
High Growth