XPEL (XPEL) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: N/A
• Average Volume (3M): 301.62K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.99
• 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: 275,390
• 30 Day Avg. Volume: 301,619
• 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: 0.58
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 12.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $62.00 ▲(14.29% 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

Recurring revenue from certified installer network

XPEL’s certified installer network and training/support services create recurring revenue and product stickiness, improving revenue predictability and customer retention. Over months, this limits revenue volatility, supports aftermarket pricing power, and deepens distribution moat versus new entrants.

Low financial leverage

A very low debt-to-equity ratio provides durable financial flexibility to fund capex, working capital, and M&A without straining liquidity. This insulation from leverage risk supports investment in manufacturing and strategic initiatives and reduces refinancing exposure during downturns.

Strong free cash flow generation

High free cash flow growth and near parity to net income signal excellent cash conversion, enabling self-funding of strategic investments and returning capital to stakeholders. Sustained cash generation supports margin improvement programs and reduces reliance on external financing.

Negative Factors

Gross margin pressure

A 170bp hit to gross margin reflects input cost and pricing dynamics that materially compress profitability. If persistent, this erodes operating leverage and requires sustained execution on pricing, cost reductions, or mix shifts to restore long-term margin targets and cash generation.

Rising SG&A from acquisitions and bad debt

Step-up in SG&A tied to acquisitions and credit costs can structurally depress operating margins if not offset by acquired revenue synergies. Persistent elevated SG&A reduces incremental operating leverage and raises the break-even threshold for profitable growth.

Regional revenue volatility (Canada weakness)

Concentration in the automotive aftermarket combined with regional weakness (notably Canada) creates exposure to localized demand cycles. Geographic revenue swings can slow overall growth and complicate planning, requiring diversification or targeted marketing to stabilize longer-term trends.

XPEL Business Overview & Revenue Model

Company Description

XPEL, Inc. manufactures, sells, distributes, and installs after-market automotive products. The company offers automotive surface and paint protection films, headlight protection, and automotive and architectural window films, as well as proprietary software. It also provides merchandise and apparel; ceramic coatings; and tools and accessories, which includes squeegees and microfiber towels, application fluids, plotter cutters, knives, and other products. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. It sells its products to independent installers and new car dealerships, third-party distributors, and company-owned installation centers, as well as through franchisees and online sales channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.

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 shows strong financial health with robust revenue growth and profitability. The balance sheet is solid with low leverage, and cash flow generation is strong. However, there is some pressure on operational margins.

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: 54.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 54.25 is above the 20-day moving average (MA) of 52.42, above the 50-day MA of 47.84, and above the 200-day MA of 37.74, indicating a bullish trend. The MACD of 1.77 indicates Positive momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 75.58 is Neutral, 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	$1.50B	32.20	19.14%	―	10.29%	-3.90%
THRM	74 Outperform	$1.13B	37.20	4.44%	―	-0.10%	-53.49%
SMP	65 Neutral	$861.05M	12.74	10.49%	3.32%	23.96%	11.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ECX	52 Neutral	$677.82M	-8.74	―	―	6.59%	55.85%
AEVA	50 Neutral	$1.16B	-3.63	-192.35%	―	89.90%	5.13%
FOXF	48 Neutral	$813.04M	-3.15	-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.

The most recent analyst rating on (XPEL) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on XPEL stock, see the XPEL Stock Forecast page.