Breaking Down XPEL, Inc. (XPEL) Financial Health: Key Insights for Investors

Breaking Down XPEL, Inc. (XPEL) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Auto - Parts | NASDAQ

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Understanding XPEL, Inc. (XPEL) Revenue Streams

Revenue Analysis

For the fiscal year ending December 31, 2023, the company reported total revenue of $385.9 million, representing a 25.3% year-over-year growth from the previous year's $307.8 million.

Revenue Source 2023 Revenue Percentage of Total Revenue
Paint Protection Film $278.4 million 72.1%
Window Films $62.1 million 16.1%
Ceramic Coatings $45.4 million 11.8%

Geographic revenue breakdown for 2023:

  • United States: $312.6 million (81% of total revenue)
  • Canada: $36.7 million (9.5% of total revenue)
  • International Markets: $36.6 million (9.5% of total revenue)

Quarterly revenue growth trends in 2023:

Quarter Revenue Quarter-over-Quarter Growth
Q1 2023 $87.2 million 6.5%
Q2 2023 $96.5 million 10.7%
Q3 2023 $100.3 million 4.0%
Q4 2023 $101.9 million 1.6%



A Deep Dive into XPEL, Inc. (XPEL) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 46.3% 48.7%
Operating Profit Margin 15.2% 17.6%
Net Profit Margin 11.8% 13.5%

Key profitability characteristics include:

  • Revenue growth of $421.6 million in 2023
  • Operating income of $74.2 million
  • Year-over-year net income increase of 22.7%
Efficiency Metrics 2023 Performance
Return on Equity 25.3%
Return on Assets 18.6%

Comparative industry analysis demonstrates competitive positioning with superior margin performance.




Debt vs. Equity: How XPEL, Inc. (XPEL) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, XPEL's debt and equity structure reveals critical insights into the company's financial strategy:

Debt Metric Value
Total Long-Term Debt $23.4 million
Short-Term Debt $5.6 million
Total Shareholders' Equity $108.7 million
Debt-to-Equity Ratio 0.27

Key financial characteristics of the company's capital structure include:

  • Current credit rating: BBB-
  • Interest coverage ratio: 8.5x
  • Weighted average cost of debt: 4.2%

Recent debt financing details:

  • Revolving credit facility: $50 million
  • Unused credit line: $35.6 million
  • Most recent debt refinancing: Q4 2023
Equity Funding Source Amount
Common Stock Issuance $12.3 million
Retained Earnings $96.4 million



Assessing XPEL, Inc. (XPEL) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Value Year
Current Ratio 2.43 2023
Quick Ratio 1.87 2023
Working Capital $42.6 million 2023

Cash Flow Analysis

Cash Flow Category Amount Year
Operating Cash Flow $56.3 million 2023
Investing Cash Flow -$18.7 million 2023
Financing Cash Flow -$12.4 million 2023

Liquidity Strengths

  • Positive operating cash flow of $56.3 million
  • Current ratio above 2.0, indicating strong short-term liquidity
  • Sufficient working capital of $42.6 million

Potential Liquidity Considerations

  • Negative investing and financing cash flows
  • Quick ratio slightly below current ratio, suggesting potential inventory dependency



Is XPEL, Inc. (XPEL) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of the latest financial reporting period, the company's key valuation metrics reveal important insights for investors.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 35.6x 32.4x
Price-to-Book (P/B) Ratio 4.2x 3.9x
Enterprise Value/EBITDA 18.7x 16.5x

Stock price performance over the past 12 months demonstrates notable volatility:

  • 52-week low: $48.25
  • 52-week high: $79.63
  • Current stock price: $65.42
  • Total price movement: +35.6%

Dividend characteristics:

Dividend Metric Current Value
Annual Dividend Yield 0.82%
Dividend Payout Ratio 22.4%

Analyst recommendations breakdown:

  • Buy ratings: 68%
  • Hold ratings: 24%
  • Sell ratings: 8%
  • Average price target: $72.35



Key Risks Facing XPEL, Inc. (XPEL)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning in the market.

Competitive Landscape Risks

Risk Category Potential Impact Severity Rating
Market Competition Intense rivalry in automotive protection film industry High
Technology Disruption Potential emergence of alternative protective technologies Medium
Price Pressure Potential margin compression Medium

Financial Risk Assessment

  • Revenue Concentration: 62% of revenue from top five customers
  • Debt-to-Equity Ratio: 0.45
  • Working Capital Ratio: 2.3

Operational Risks

Key operational risks include:

  • Supply Chain Disruptions
  • Raw Material Price Volatility
  • Manufacturing Capacity Constraints

Market Condition Risks

External market risks encompass:

  • Automotive Industry Cyclicality
  • Economic Recession Potential
  • Consumer Spending Fluctuations

Regulatory Risk Factors

Regulatory Domain Potential Compliance Challenge Estimated Impact
Environmental Regulations Potential manufacturing restrictions Medium
Trade Policies Potential import/export complications Low
Product Safety Standards Potential certification requirements High



Future Growth Prospects for XPEL, Inc. (XPEL)

Growth Opportunities

The company's growth trajectory is supported by several key strategic drivers and market dynamics:

  • Total addressable market for paint protection film estimated at $2.1 billion by 2027
  • Projected automotive aftermarket growth rate of 5.7% annually through 2026
  • Expanding product portfolio across automotive and architectural protection segments
Growth Metric 2023 Value 2024 Projection
Revenue Growth $330.4 million $380-$400 million
International Market Expansion 32% of total revenue 38-40% projected
New Product Introduction 3 product lines 5-6 new product lines

Strategic growth initiatives include:

  • Continued geographic expansion into European and Asian markets
  • Investment in $8.2 million manufacturing capacity enhancement
  • Development of advanced protective film technologies

Key competitive advantages driving future growth:

  • Proprietary technology with 14 registered patents
  • Direct-to-consumer distribution channels
  • Advanced digital installation training platform

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