XPEL INC (NASDAQ:XPEL) – A Strong Contender for GARP Investors

XPEL INC (NASDAQ:XPEL) stands out as a potential candidate for investors seeking growth at a reasonable price (GARP). The company, known for its automotive paint protection films and window tints, meets key criteria from Peter Lynch’s investment strategy, balancing solid growth with sound financial health.

Why XPEL Fits the GARP Approach

• Strong Historical Growth: XPEL has delivered an impressive 5-year average EPS growth of 26.4%, well above the 15% threshold in Lynch’s strategy. While recent EPS dipped slightly (-7.57% YoY), long-term trends remain robust.
• Reasonable Valuation: The stock’s PEG ratio (0.82) is below 1, indicating it is reasonably priced relative to its growth. The P/E ratio of 21.61 is in line with industry averages.
• Healthy Financials: With a Debt/Equity ratio near zero (0.0006) and a Current Ratio of 4.29, XPEL has minimal leverage and ample liquidity.
• High Profitability: The company’s Return on Equity (20.14%) and Return on Invested Capital (19.29%) rank in the top tier of its industry.

Fundamental Analysis Highlights

XPEL’s fundamental report rates it 7 out of 10, with strengths in profitability and financial health. Key takeaways:

• Profit Margins: Gross margin (42.24%) and operating margin (14.06%) outperform most peers.
• Growth Outlook: Analysts expect 22.96% annual EPS growth and 16.36% revenue growth in coming years.
• Solvency & Liquidity: No debt concerns, with strong cash flow and balance sheet metrics.

For investors following a GARP strategy, XPEL presents a compelling mix of growth potential and financial stability.

Our Peter Lynch Strategy screener lists more stocks matching these criteria and is updated regularly.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.