XPEL, Inc. (XPEL) Bundle
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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