XPEL (XPEL) AI Stock Analysis

Compare

394 Followers

Top Page

XPEL

(NASDAQ:XPEL)

Rating:76Outperform

Price Target:

$39.00

▲(11.68% Upside)

XPEL's strong financial performance and positive earnings call are the most significant factors driving the score. Technical analysis presents some caution, while valuation is fair. The company's strategic focus and market positioning support a positive outlook.

XPEL (XPEL) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$954.99M

Dividend YieldN/A

Average Volume (3M)170.88K

Price to Earnings (P/E)19.8

Beta (1Y)1.15

Revenue Growth9.96%

EPS Growth2.74%

CountryUS

Employees1,143

SectorConsumer Cyclical

Sector Strength74

IndustryAuto - Parts

Share Statistics

EPS (TTM)0.59

Shares Outstanding27,664,764

10 Day Avg. Volume220,236

30 Day Avg. Volume170,880

Financial Highlights & Ratios

PEG Ratio-1.78

Price to Book (P/B)4.90

Price to Sales (P/S)2.63

P/FCF Ratio26.85

Enterprise Value/Market Cap1.01

Enterprise Value/Revenue2.15

Enterprise Value/Gross Profit5.11

Enterprise Value/Ebitda13.09

Forecast

1Y Price Target

$55.00

Price Target Upside57.50% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

XPEL Business Overview & Revenue Model

Company DescriptionXPEL, 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 MoneyXPEL generates revenue primarily through the sale of its protective film products and related services. The company's key revenue streams include direct sales to automotive dealerships, service centers, and aftermarket suppliers, as well as sales through a network of distributors. XPEL also earns income from providing installation training and support services to its partners. Significant partnerships with automotive manufacturers and dealerships enhance the company's market reach and contribute to its earnings. Additionally, XPEL's expanding product line into residential and commercial sectors provides new revenue opportunities.

XPEL Key Performance Indicators (KPIs)

Any

Product Revenue by Type

Product Revenue by Type
Analyzes revenue from different product lines, providing insight into which products drive growth and which may need strategic adjustments.

Chart InsightsXPEL's Paint Protection Film revenue shows steady growth with occasional dips, while Window Film revenue has surged, driven by new windshield protection products. The latest earnings call highlights a 28.1% growth in the window film line, reflecting strategic success. Despite challenges in Canada and China, strong U.S. and Middle East performance, along with a $50 million share repurchase plan, indicate confidence in future growth. The focus on cost management and strategic investments suggests resilience amid market uncertainties.

Data provided by:

Main Street Data

XPEL Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: 6.63%|

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Positive

The earnings call presented a mix of positive revenue growth and strategic positioning, particularly in the U.S. and key international markets. However, some challenges remain in Latin America and with increasing SG&A expenses. Overall, the company's performance in a volatile market environment is commendable.

Q2-2025 Updates

Positive Updates

Record Revenue Growth

Revenue grew 13.5% to $124.7 million, exceeding expectations. The U.S. region grew 8.4% to $70.4 million, marking a record for the quarter.

Strong Performance in Key Regions

Canada region revenue grew 7.4%, and China revenue came in at $7.7 million. Strong performance was also noted in Europe, India, and the Middle East.

Gross Margin Stability

Gross margin for the quarter was 42.9%, up 6 basis points sequentially.

Cash Flow and M&A Readiness

Generated just under $28 million in operating cash flow and ended the quarter with approximately $50 million net cash on the balance sheet, positioning well for M&A opportunities.

Growth in Window Film Product Line

Total window film product line grew 27%, driven by automotive window tint which grew 22.5%.

Negative Updates

Revenue Challenges in Latin America

Revenue decline quarter-over-quarter due to inconsistent revenue timing in large distributor markets in South America.

Increase in SG&A Expenses

SG&A expenses grew 19.3% to $34.2 million, attributed to overhead from distributor acquisitions and $1.6 million in one-time costs.

Volatility in U.S. Car Market

U.S. car market experienced volatility with tariff anxiety and mixed SAAR impacts, though this was not overwhelmingly negative.

Company Guidance

In the second quarter of 2025, XPEL, Inc. reported record revenue growth of 13.5%, reaching $124.7 million. The U.S. market saw an 8.4% increase, generating $70.4 million, while Canada experienced a 7.4% growth. China contributed $7.7 million, and other regions like Europe, India, and the Middle East also performed well, except for a decline in Latin America. The company's gross margin was 42.9%, and they generated nearly $28 million in operating cash flow, ending the quarter with $50 million in net cash. XPEL's EBITDA grew 14.7% to $25 million, or 20% of revenue, after adjusting for $1.6 million in one-time SG&A costs. Looking ahead, Q3 revenue is expected to be between $117 million and $119 million. The company is advancing multiple M&A opportunities and remains focused on expanding its personalization platform and launching new products like colored paint protection films.

XPEL Financial Statement Overview

Summary

XPEL exhibits strong financial health with consistent revenue growth, robust profitability, and a stable balance sheet. While operational margins show slight pressure, the company's low leverage and effective cash flow management position it well for future growth.

Income Statement

Very Positive

XPEL has demonstrated consistent revenue growth with a TTM growth rate of 3.41% and strong historical growth. The gross profit margin remains robust at 42.24% TTM, indicating effective cost management. However, there is a slight decline in EBIT and EBITDA margins over the TTM, suggesting potential pressure on operational efficiency.

Balance Sheet

Positive

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.09 TTM, reflecting prudent financial leverage. Return on equity is strong at 21.51% TTM, showcasing effective use of shareholder funds. The equity ratio is solid, indicating a stable financial position.

Cash Flow

Positive

XPEL's cash flow performance is commendable with a free cash flow growth rate of 4.66% TTM. The operating cash flow to net income ratio is healthy at 1.35 TTM, indicating efficient cash generation. However, the free cash flow to net income ratio suggests a slight decrease in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	448.90M	420.40M	396.29M	323.99M	259.26M	158.92M
Gross Profit	189.03M	177.36M	162.41M	127.51M	92.68M	54.03M
EBITDA	73.79M	69.47M	76.87M	61.77M	40.12M	23.37M
Net Income	48.67M	45.49M	52.80M	41.38M	31.57M	18.28M
Balance Sheet
Total Assets	318.07M	285.61M	252.04M	193.36M	161.01M	83.84M
Cash, Cash Equivalents and Short-Term Investments	49.59M	22.09M	11.61M	8.06M	9.64M	29.03M
Total Debt	21.76M	21.08M	36.06M	42.08M	38.26M	12.12M
Total Liabilities	62.41M	60.15M	72.05M	68.64M	76.55M	30.46M
Stockholders Equity	255.66M	225.46M	179.99M	124.72M	84.46M	53.38M
Cash Flow
Free Cash Flow	53.01M	41.11M	29.74M	2.50M	10.58M	16.31M
Operating Cash Flow	57.00M	47.82M	37.38M	12.06M	18.27M	18.47M
Investing Cash Flow	-10.71M	-18.40M	-26.35M	-14.16M	-56.81M	-4.66M
Financing Cash Flow	-11.39M	-19.25M	-7.26M	602.00K	19.24M	3.51M

XPEL Technical Analysis

Technical Analysis Sentiment

Positive

Last Price34.92

Price Trends

50DMA

35.86

Negative

100DMA

33.52

Positive

200DMA

37.12

Negative

Market Momentum

MACD

-0.67

Negative

RSI

51.23

Neutral

STOCH

50.76

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 34.92 is above the 20-day moving average (MA) of 34.28, below the 50-day MA of 35.86, and below the 200-day MA of 37.12, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 50.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XPEL.

XPEL Risk Analysis

XPEL disclosed 52 risk factors in its most recent earnings report. XPEL reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

XPEL Peers Comparison

Overall Rating

UnderperformOutperform

Sector (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPEL	76 Outperform	$954.99M	19.85	21.27%	―	9.96%	2.74%
PLOW	75 Outperform	$666.57M	10.40	25.41%	3.83%	1.47%	131.61%
THRM	73 Outperform	$1.00B	33.03	4.72%	―	-0.78%	-51.80%
SMP	72 Outperform	$804.75M	12.41	9.90%	3.29%	13.53%	-4.76%
ADNT	68 Neutral	$1.92B	805.10	-11.85%	―	-3.00%	-447.89%
Sector *	67 Neutral	¥265.09B	13.26	6.53%	2.53%	5.21%	-14.31%
FOXF	51 Neutral	$1.22B	128.36	-23.41%	―	1.26%	-435.73%

* Consumer Cyclical Sector Average

Performance Comparison

XPEL

34.92

-11.97

-25.53%

PLOW

Douglas Dynamics

30.77

4.44

16.86%

SMP

Standard Motor Products

36.50

7.66

26.56%

FOXF

Fox Factory Holding

30.10

-10.21

-25.33%

THRM

Gentherm

33.10

-16.11

-32.74%

ADNT

Adient

22.74

1.46

6.86%

XPEL Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy

XPEL Holds Annual Stockholders Meeting on June 4, 2025

Positive

Jun 9, 2025

On June 4, 2025, XPEL, Inc. held its annual stockholders meeting, where key decisions were made. The meeting included the election of five board directors, the ratification of Deloitte & Touche, LLP as the accounting firm, approval of executive compensation, and the adoption of the 2025 Employee Stock Purchase Plan, reflecting strong shareholder support and strategic alignment for the company’s future operations.

The most recent analyst rating on (XPEL) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on XPEL stock, see the XPEL Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025