XPEL, Inc. (XPEL) stock analysis

P/E below its 5-year median

XPEL's P/E of 18.0 is below its own 5-year median of 27.7.

P/E below the industry

XPEL's P/E of 18.0 is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 21.9.

EV/EBITDA below its 5-year median

XPEL's EV/EBITDA of 14.4 is below its 5-year median of 21.5.

P/B above the industry

XPEL's price-to-book of 3.23 is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 2.69.

Trading below fair value

The share price of $37.62 is below our fair value estimate of $49.03.

Margin of safety over 20%

The price is 23.3% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 13.7% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 7.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 24.4% over the last twelve months, against a 5-year average of 22.9% a year.

Growing faster than the industry

Revenue grew 12.8% over the last twelve months; the Fabricated Metal Products, except Machinery and Transportation Equipment median is 10.2%.

Guidance issued

The latest outlook (fourth quarter 2026 revenue, Nov 4, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 43.6% over the last twelve months, against 41.9% a year earlier.

Return on equity over 15%

Return on equity was 19.7% over the last twelve months and averaged 32.5% over five years.

Return on capital over 10%

Return on invested capital was 22.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

XPEL's return on equity of 19.7% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 9.0%.

Earnings grew over 5 years

Net income grew 22.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 11.2% over the last twelve months, against a 5-year average of 12.0%.

Net margin above the industry

XPEL's net margin of 11.2% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 4.5%.

Low debt

Debt is 13.8% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 6.7% five years ago to 13.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 140% of total debt.

Interest well covered

Operating income covers interest expense 108.0 times.

Short-term assets cover short-term debts

Current assets are 2.56 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.61; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

XPEL has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.