XPEL Inc. Common Stock (XPEL)

FairStock Score: 70/100 — STEADY

Key Financials

Strengths

• Generates $44 million in annual free cash flow (3.4% yield on market cap)
• High return on equity of 20.2% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.08, providing financial flexibility
• Altman Z-Score of 9.8 confirms minimal bankruptcy risk and strong solvency
• FairStock composite score of 70/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Trades significantly above Graham Number ($21) with negative 126% margin of safety—limited downside protection

AI Analysis

XPEL Inc. Common Stock is a micro-cap consumer cyclical company valued at $1.3 billion. The business generates $476 million in annual revenue with a 2.8% net margin and $44 million in free cash flow. From a quality standpoint, XPEL shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 9.8 confirms fortress-level solvency. On valuation, the stock is trading at a premium 25.3x earnings, with trades far above its Graham Number ($21) with no margin of safety. Growth dynamics show revenue growing at 13.7% and profit growth of 50.7%. Our composite FairStock Score of 70/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $44 million in annual free cash flow (3.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer