Should you buy Xpel stock? (June 2024)

Published first at https://www.3minutebreakdowns.com Xpel stock analysis. Ticker: $XPEL Xpel specializes in paint protection film for vehicles and over the last 10 years its been one of the best stocks in the whole market. However, shares have fallen almost 50% over the last 12 months. At the latest price the company has a market cap of 1 billion dollars with annual revenues of 400 million. Adjusted EBITDA comes to 74 million with 48 million of net income and 25 million of free cash flow. So the stock is valued at just under 22 times earnings. Xpel nearly went bankrupt during the financial crisis and CEO Ryan Pape had to use his personal credit card to keep the company afloat. Since then, however, the company has gone from strength to strength. Revenue has compounded at an average rate of 35% over the past 10 years and at one point the stock was up over 5000%. But despite that success, Xpel is seeing volatility once again. Revenue in the latest quarter grew by only 5% and ebitda fell 31% to under 12 million dollars. And there are other reasons for investors to be nervous. A short report last year argued that Xpel faces existential risk from a new type of protective paint developed by PPG and Entrotech. And last October Tesla announced it was launching its own paint protection film and wrap for its vehicles. This is bad news for XPEL because the company derives a large portion of revenue from new electric vehicles. #xpelstock #investing #stockstobuy #3mb