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, which specializes in automotive paint protection films and window tints, meets key criteria from Peter Lynch’s investment strategy, balancing solid growth with sound financial health and reasonable valuation.

Why XPEL Fits the GARP Approach

• Strong Earnings Growth: XPEL has delivered a 5-year average EPS growth of 26.4%, well within Lynch’s preferred range of 15-30%. This indicates sustainable expansion without excessive risk.
• Attractive Valuation: With a PEG ratio (5Y) of 0.76, the stock trades below the ideal threshold of 1, suggesting it is reasonably priced relative to its growth.
• Healthy Financials: The company maintains a robust balance sheet, with a Debt/Equity ratio near zero and a Current Ratio of 4.29, reflecting strong liquidity and minimal debt reliance.
• High Profitability: XPEL’s Return on Equity (ROE) of 20.14% exceeds Lynch’s 15% benchmark, demonstrating efficient use of shareholder capital.

Fundamental Snapshot

Our fundamental analysis assigns XPEL a rating of 7 out of 10, highlighting its excellent profitability and financial health. The company outperforms most peers in its industry, with strong margins and consistent revenue growth. While its valuation appears slightly expensive on some metrics, its growth prospects and financial stability make it a compelling choice for long-term investors.

For a deeper dive, review the full fundamental report on XPEL.

Our Peter Lynch Strategy screener lists more stocks that fit this strategy and is updated regularly.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.