XPEL

XPEL Inc - Ordinary Shares - Reg S

Industrial/Transportation


Presented:01/22/2020
Price:$16.35
Cap:$0.45B
Current Price:$42.10
Cap:$1.16B

Presented

Date01/22/2020
Price$16.35
Market Cap$0.45B
Ent Value$0.32B
P/E Ratio39.63x
Book Value$1.10
Div Yield0%
Shares O/S27.61M
Ave Daily Vol182,544
Short IntN/A

Current

Price$42.10
Market Cap$1.16B
XPEL, Inc. engages in the manufacture and distribution of automotive products. It offers paint protection, aumototive, and flat glass window films, and plotters. The company was founded on October 14, 2003 and is headquartered in San Antonio, TX.

Publicly traded companies mentioned herein: Bayerische Motoren Werke AG (BMW GR), Eastman Chemical Co (EMN), Ferrari NV (RACE), Porsche Automobil Holding SE (PAH3 GR), Tesla Inc (TSLA), Toyota Motor Corp (7203 JP), Uber Technologies Inc (UBER), XPEL Inc (XPEL), 3M Co (MMM)

Highlights

The presenter is long shares of XPEL Inc (XPEL), which he believes is the market leader in the niche but fast-growing paint protection film (PPF) industry. At first glance, PPF seems like a commodity product, but the presenter thinks XPEL is a leader in an underpenetrated market with a loyal customer base and a differentiated distribution channel; this is evident to him in XPEL’s 40% revenue CAGR over the past 5 years. XPEL has a ~$450MM market cap and operates at ~14% EBIT margins. The presenter estimates 2019 revenue of $125MM, and expects the company to maintain a 20%+ revenue growth rate for the next 3 - 4 years and to expand gross margins moderately. The stock currently trades ~$16 per share, or 25x his 2020 EPS estimate. He believes XPEL’s earnings growth CAGR will result in a multiple expansion to 35x earnings, with shares appreciating to the mid-$20 range.

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