XPEL, Inc. (NASDAQ: XPEL)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001767258
Market Cap 1.48 Bn
P/B 5.50
P/E 31.68
P/S 3.21
ROIC (Qtr) 16.43
Div Yield % 0.00
Rev 1y % (Qtr) 11.13
Total Debt (Qtr) 23.42 Mn
Debt/Equity (Qtr) 0.09

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 70.60M provides robust 3.01x coverage of total debt 23.42M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 64.50M provide 9.84x coverage of short-term debt 6.56M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 279.14M provides 11.92x coverage of total debt 23.42M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 70.60M provides exceptional 624.76x coverage of minority interest expenses 113000, showing strong core operations.
  • Operating cash flow of 70.60M provides exceptional 603.40x coverage of interest expenses 117000, showing strong debt service capability.

Bear case

  • Operating cash flow of 70.60M barely covers its investment activities of (26.20M), with a coverage ratio of -2.69, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 64.50M provide limited coverage of acquisition spending of (18.50M), which is -3.49x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 64.19M represents just -482.66x of debt issuance (133000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 251.93M provide limited buffer against comprehensive income items of (843000), which is -298.85x, indicating elevated exposure to market risks.
  • Tangible assets of 279.14M provide limited backing for working capital of 150.19M, which is 1.86x, suggesting increased operational risk in market downturns.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Auto Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ORLY O Reilly Automotive Inc 80.07 Bn 32.23 4.59 8.40 Bn
2 AZO Autozone Inc 57.24 Bn 23.23 2.97 12.05 Bn
3 APTV Aptiv PLC 19.67 Bn 66.67 0.98 8.03 Bn
4 GPC Genuine Parts Co 17.83 Bn 22.05 0.74 6.40 Bn
5 MGA Magna International Inc 15.86 Bn 15.36 0.38 7.48 Bn
6 ALV Autoliv Inc 9.72 Bn 12.92 0.92 2.19 Bn
7 MBLY Mobileye Global Inc. 9.47 Bn -28.17 4.88 0.00 Bn
8 BWA Borgwarner Inc 8.87 Bn 66.21 0.63 3.90 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.75 1.16
EV to Cash from Ops. EV/CFO 20.57 9.30
EV to Debt EV to Debt 62.00 34.64
EV to EBIT EV/EBIT 24.44 4.45
EV to EBITDA EV/EBITDA 20.16 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF 22.62 17.25
EV to Market Cap EV to Market Cap 0.98 1.58
EV to Revenue EV/Rev 3.15 3.42
Price to Book Value [P/B] P/B 5.50 -0.33
Price to Earnings [P/E] P/E 31.68 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.18
Dividend per Basic Share Div per Share (Qtr) 0.00 0.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 13.70
Interest Coverage Int. cover (Qtr) 507.76 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 19.37 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 207.33 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -5.59 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -0.46 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -3.46 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) -1.63 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) -2.86 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) 97.90 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.85 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.19 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.25
Cash Ratio Cash Ratio (Qtr) 0.76 0.69
Current Ratio Curr Ratio (Qtr) 2.78 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 0.22
Interest Cover Ratio Int Coverage (Qtr) 507.76 -110.44
Times Interest Earned Times Interest Earned (Qtr) 507.76 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.60 -952.44
EBIT Margin % EBIT Margin % (Qtr) 12.87 -997.37
EBT Margin % EBT Margin % (Qtr) 12.85 -987.56
Gross Margin % Gross Margin % (Qtr) 41.90 -122.43
Net Profit Margin % Net Margin % (Qtr) 10.10 -979.78