XPEL Inc (XPEL, Financial), a prominent player in the Vehicles & Parts industry, has recently demonstrated impressive stock performance. Over the past week, the company's stock price has surged by 13.33%, and over the last three months, it has seen a substantial gain of 36.11%. Currently, XPEL boasts a market capitalization of $1.26 billion. According to GuruFocus's valuation, the stock is significantly undervalued, with a GF Value of $89.42, compared to its current trading price of $45.6. This valuation suggests a strong potential for future appreciation, maintaining its status as significantly undervalued from three months ago when the GF Value was $94.95.
Introduction to XPEL Inc
XPEL Inc specializes in the provision of protective films and coatings, including automotive paint protection film, surface protection film, and ceramic coatings. The company prides itself on its network of trained installers and proprietary DAP software, aiming to exceed customer expectations through superior product quality, customer service, technical support, and world-class training. Predominantly, XPEL's revenue is generated from the United States, positioning it as a key player in its sector.
Assessing XPEL's Profitability
XPEL's financial health is robust, with a Profitability Rank of 10/10, indicating top-tier profitability within its industry. The company's Operating Margin stands at 15.30%, which is higher than 90.81% of its peers. Additionally, its Return on Equity (ROE) is an impressive 29.18%, outperforming 94.51% of competitors. The Return on Assets (ROA) at 20.67% and Return on Invested Capital (ROIC) at 25.08% further underscore its efficiency in utilizing assets and capital, surpassing 98.17% and 95.89% of industry players, respectively. XPEL has maintained profitability consistently over the past decade, a testament to its financial resilience and operational efficiency.
Growth Trajectory of XPEL
XPEL's growth metrics are equally impressive, with a Growth Rank of 10/10. The company has achieved a 3-Year Revenue Growth Rate per Share of 35.60% and a 5-Year Rate of 31.70%, both metrics outperforming a significant majority of their industry counterparts. In terms of earnings, the 3-Year EPS Growth Rate stands at 41.60%, and the 5-Year Rate at 43.60%, highlighting sustained earnings acceleration that surpasses many peers. This consistent growth in both top-line revenue and earnings per share underscores XPEL's strong market position and operational effectiveness.
Investor Confidence and Market Position
Noteworthy investors have also shown confidence in XPEL's potential. Jeremy Grantham (Trades, Portfolio) holds 172,275 shares, making up 0.62% of the shares, followed by Paul Tudor Jones (Trades, Portfolio) with 31,754 shares, and Steven Cohen (Trades, Portfolio) with 4,400 shares. Their investments reflect a strong belief in the company's future growth trajectory and financial health.
Competitive Landscape
When compared to its competitors like American Axle & Mfg Holdings Inc (AXL, Financial) with a market cap of $720.602 million, Monro Inc (MNRO, Financial) at $790.958 million, and Miller Industries Inc (MLR, Financial) at $734.994 million, XPEL stands out not only in terms of market cap but also in profitability and growth metrics, positioning it as a leader in its industry.
Conclusion
XPEL Inc showcases a compelling combination of robust financial health, aggressive growth, and strategic market positioning. With its stock currently significantly undervalued according to GF Value, the company presents a promising investment opportunity for value investors looking for growth and stability. XPEL's strong profitability and growth metrics, backed by the confidence of notable investors, make it a noteworthy consideration in the Vehicles & Parts industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
