XPEL (XPEL) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: N/A
• Average Volume (3M): 306.37K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 1.01
• Revenue Growth: 10.29%
• EPS Growth: -3.90%
• Country: US
• Employees: 1,143
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.47
• Shares Outstanding: 27,678,600
• 10 Day Avg. Volume: 233,085
• 30 Day Avg. Volume: 306,372
• PEG Ratio: -1.78
• Price to Book (P/B): 4.90
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 26.85
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 1.91
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 12.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.82
• Revenue Forecast (FY): $474.89M

• Rating: 78 Outperform
• Price Target: $56.00 ▲(61.62% Upside)

XPEL's overall stock score reflects strong financial performance and positive corporate events, offset by valuation concerns and technical indicators suggesting overbought conditions. The company's strategic initiatives and record revenue growth are significant positives, but operational margin pressures and high P/E ratio present challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

International Expansion

Successful international expansion, particularly in Europe, enhances market diversification and reduces reliance on any single region.

Financial Flexibility

Extended credit agreement enhances financial stability and supports strategic investments, enabling sustained growth and operational resilience.

Negative Factors

Gross Margin Pressure

Persistent margin pressure from cost increases may affect profitability, requiring strategic adjustments to maintain competitive pricing.

SG&A Expenses

Rising SG&A expenses could strain profitability if not managed, impacting the company's ability to invest in growth initiatives.

EBITDA Decline

Declining EBITDA reflects challenges in operational efficiency, potentially affecting cash flow and investment capacity in the long term.

XPEL Business Overview & Revenue Model

Company Description

XPEL Inc. is a leading provider of protective films and coatings, focusing primarily on the automotive aftermarket. Founded in 1997, the company specializes in advanced surface protection solutions, including paint protection film, window films, and related accessories. XPEL's products are designed to safeguard vehicles from damage caused by road debris, scratches, and UV exposure, and are widely used by automotive dealers, installers, and consumers seeking to maintain the appearance and value of their vehicles.

How the Company Makes Money

XPEL generates revenue primarily through the sale of its protective films and coatings. The company has established a robust distribution network, selling its products to a wide range of automotive dealerships, professional installers, and directly to consumers. Key revenue streams include the sale of paint protection films, window films, and installation services. Additionally, XPEL benefits from recurring revenue through its network of certified installers who use its products, as well as through training and support services. Strategic partnerships with automotive brands and participation in industry events further enhance its visibility and market presence, contributing to its financial performance. The company also engages in international expansion, tapping into new markets to drive growth.

XPEL Financial Statement Overview

Summary

XPEL demonstrates strong revenue growth and profitability with a robust balance sheet and effective cash flow generation. Despite some pressure on operational margins, the company's financial health is solid, positioning it well for future growth.

Income Statement

XPEL demonstrates strong revenue growth with a TTM increase of 2.8%, supported by a consistent gross profit margin around 42%. Although the net profit margin slightly decreased to 10.1% in the TTM, it remains healthy. The EBIT and EBITDA margins have seen a decline, indicating some pressure on operational efficiency.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.086, indicating prudent financial leverage. Return on equity is strong at 20.8%, reflecting efficient use of equity. The equity ratio is solid, showcasing a stable financial structure.

Cash Flow

XPEL's cash flow is strong, with a notable free cash flow growth of 24.6% in the TTM. The operating cash flow to net income ratio is 0.84, indicating good cash generation relative to net income. The free cash flow to net income ratio is high at 0.94, highlighting effective cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	461.46M	420.40M	396.29M	323.99M	259.26M	158.92M
Gross Profit	193.54M	177.36M	162.41M	127.51M	92.68M	54.02M
EBITDA	72.04M	69.47M	76.87M	61.21M	44.13M	25.28M
Net Income	46.71M	45.49M	52.80M	41.38M	31.57M	18.28M
Balance Sheet
Total Assets	387.69M	285.61M	252.04M	193.36M	161.01M	83.84M
Cash, Cash Equivalents and Short-Term Investments	64.50M	22.09M	11.61M	8.06M	9.64M	29.03M
Total Debt	23.42M	21.08M	36.06M	42.08M	38.26M	12.12M
Total Liabilities	113.84M	60.15M	72.05M	68.64M	76.55M	30.46M
Stockholders Equity	269.28M	225.46M	179.99M	124.72M	84.46M	53.38M
Cash Flow
Free Cash Flow	65.51M	41.11M	29.74M	2.50M	10.58M	16.31M
Operating Cash Flow	70.60M	47.82M	37.38M	12.06M	18.27M	18.47M
Investing Cash Flow	-26.20M	-18.40M	-26.35M	-14.16M	-56.81M	-4.66M
Financing Cash Flow	-459.00K	-19.25M	-7.26M	602.00K	19.24M	3.51M

XPEL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XPEL, the sentiment is Positive. The current price of 34.65 is below the 20-day moving average (MA) of 46.28, below the 50-day MA of 39.87, and below the 200-day MA of 35.35, indicating a bullish trend. The MACD of 3.12 indicates Negative momentum. The RSI at 80.64 is Negative, neither overbought nor oversold. The STOCH value of 82.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XPEL.

XPEL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPEL	78 Outperform	$1.40B	29.98	19.14%	―	10.29%	-3.90%
THRM	74 Outperform	$1.13B	37.26	4.44%	―	-0.10%	-53.49%
SMP	65 Neutral	$835.75M	12.37	10.49%	3.26%	23.96%	11.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AEVA	52 Neutral	$961.88M	-3.01	-192.35%	―	89.90%	5.13%
ECX	52 Neutral	$619.12M	-7.68	―	―	6.59%	55.85%
FOXF	48 Neutral	$712.30M	-2.76	-23.94%	―	6.23%	-2508.93%

XPEL Corporate Events

XPEL Amends Bylaws for Legal Jurisdiction Clarity

On October 28, 2025, XPEL, Inc. amended its bylaws to designate the Eighth Judicial District Court of Clark County, Nevada, as the exclusive forum for certain legal actions involving the company, including those related to fiduciary duties and internal corporate matters. Additionally, the amendment specifies that federal district courts in the United States will be the exclusive forum for claims under the Securities Act of 1933 and the Securities Exchange Act of 1934, potentially streamlining legal processes and providing clarity in jurisdictional matters for stakeholders.

XPEL Amends Credit Agreement with Wells Fargo Bank

On September 11, 2025, XPEL, Inc. amended its Credit Agreement with Wells Fargo Bank, extending the maturity date from April 6, 2026, to September 11, 2028. This agreement, which allows for secured revolving loans and letters of credit up to $125 million, includes interest rates based on either a Base Rate or Adjusted Term SOFR, with fees and margins dependent on XPEL’s financial ratios. The amendment is significant as it secures XPEL’s financial flexibility and stability for the coming years, ensuring compliance with various financial covenants and maintaining a first priority security interest in its assets.