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XPEL, Inc. (XPEL) Fundamental Analysis & AI Grade 2026

XPEL Nasdaq Coating, Engraving & Allied Services NV CIK: 0001767258
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
B
70% Confidence
N/A
B
70% Conf
Pending
Analysis scheduled

📊 XPEL Key Takeaways

Revenue: $117.4M
Net Margin: 8.8%
Free Cash Flow: $-2.3M
Current Ratio: 3.07x
Debt/Equity: 0.00x
EPS: $0.37
AI Grade: B with 70% confidence
XPEL, Inc. (XPEL) receives a B fundamental grade with 70% confidence from our AI analysis based on SEC 10-K filings. With revenue of $117.4M, net profit margin of 8.8%, and return on equity (ROE) of 3.6%, XPEL, Inc. demonstrates mixed fundamentals in the Services sector. Below is our complete XPEL stock analysis for 2026.

Is XPEL, Inc. (XPEL) a Good Investment?

Claude

XPEL demonstrates solid revenue growth of 13.3% YoY with strong profitability margins (43.7% gross, 11.1% operating) and an excellent balance sheet with minimal debt. However, negative free cash flow of -$2.3M and extremely low returns on equity (3.6%) and assets (2.6%) raise significant concerns about capital allocation efficiency and asset utilization.

XPEL, Inc. Key Strengths (XPEL)

Claude
  • + Strong top-line growth of 13.3% YoY with proportional net income growth of 13.4%
  • + Excellent profitability margins with 43.7% gross margin and 11.1% operating margin indicating operational efficiency
  • + Fortress balance sheet with minimal debt (Debt/Equity 0.00x), exceptional liquidity (Current Ratio 3.07x), and strong interest coverage (27.5x)

XPEL Stock Risks: XPEL, Inc. Investment Risks

Claude
  • ! Negative free cash flow of -$2.3M despite positive operating cash flow, indicating CapEx exceeds operational cash generation and will deplete cash reserves
  • ! Severely depressed returns with ROE of 3.6% and ROA of 2.6%, suggesting poor capital efficiency and suboptimal asset utilization
  • ! Capital expenditure of $9.7M significantly exceeds operating cash flow of $7.4M, limiting financial flexibility and raising questions about capital deployment strategy

Key Metrics to Watch

Claude
  • * Free cash flow trend and path to positive FCF; CapEx as percentage of revenue and expected payoff timeline
  • * Return on equity and return on assets improvements; asset turnover ratios to assess capital efficiency
  • * Operating cash flow growth rate relative to revenue growth to determine sustainability of business model

XPEL, Inc. (XPEL) Financial Metrics & Key Ratios

Revenue
$117.4M
Net Income
$10.3M
EPS (Diluted)
$0.37
Free Cash Flow
$-2.3M
Total Assets
$394.4M
Cash Position
$45.1M

💡 AI Analyst Insight

Strong liquidity with a 3.07x current ratio provides a solid financial cushion.

XPEL Profit Margin, ROE & Profitability Analysis

Gross Margin 43.7%
Operating Margin 11.1%
Net Margin 8.8%
ROE 3.6%
ROA 2.6%
FCF Margin -2.0%

XPEL vs Services Sector: How XPEL, Inc. Compares

How XPEL, Inc. compares to Services sector averages

Net Margin
XPEL 8.8%
vs
Sector Avg 10.0%
XPEL Sector
ROE
XPEL 3.6%
vs
Sector Avg 16.0%
XPEL Sector
Current Ratio
XPEL 3.1x
vs
Sector Avg 1.5x
XPEL Sector
Debt/Equity
XPEL 0.0x
vs
Sector Avg 0.7x
XPEL Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is XPEL, Inc. Stock Overvalued? XPEL Valuation Analysis 2026

Based on fundamental analysis, XPEL, Inc. has mixed fundamental signals relative to the Services sector in 2026.

Return on Equity
3.6%
Sector avg: 16%
Net Profit Margin
8.8%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

XPEL, Inc. Balance Sheet: XPEL Debt, Cash & Liquidity

Current Ratio
3.07x
Quick Ratio
1.37x
Debt/Equity
0.00x
Debt/Assets
25.8%
Interest Coverage
27.51x
Long-term Debt
$458.2K

XPEL Revenue & Earnings Growth: 5-Year Financial Trend

XPEL 5-year financial data: Year 2021: Revenue $259.3M, Net Income $14.0M, EPS $0.51. Year 2022: Revenue $324.0M, Net Income $18.3M, EPS $0.66. Year 2023: Revenue $396.3M, Net Income $31.6M, EPS $1.14. Year 2024: Revenue $420.4M, Net Income $41.4M, EPS $1.50. Year 2025: Revenue $476.2M, Net Income $52.8M, EPS $1.91.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: XPEL, Inc.'s revenue has grown significantly by 84% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.91 reflects profitable operations.

XPEL Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-2.0%
Free cash flow / Revenue

XPEL Quarterly Earnings & Performance

Quarterly financial performance data for XPEL, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $103.8M $8.6M $0.31
Q3 2025 $112.9M $12.9M $0.47
Q2 2025 $109.9M $15.0M $0.54
Q1 2025 $90.1M $6.7M $0.24
Q3 2024 $102.7M $13.7M $0.49
Q2 2024 $102.2M $15.0M $0.54
Q1 2024 $85.8M $6.7M $0.24
Q3 2023 $89.8M $13.3M $0.48

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

XPEL, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$7.4M
Cash generated from operations
Stock Buybacks
$2.9M
Shares repurchased (TTM)
Capital Expenditures
$9.7M
Investment in assets
Dividends
None
No dividend program

XPEL SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for XPEL, Inc. (CIK: 0001767258)

📋 Recent SEC Filings

Date Form Document Action
May 20, 2026 8-K xpel-20260515.htm View →
May 8, 2026 10-Q xpel-20260331.htm View →
May 6, 2026 8-K xpel-20260506.htm View →
Apr 30, 2026 DEF 14A xpel-20260430.htm View →
Apr 29, 2026 8-K xpel-20260423.htm View →

Frequently Asked Questions about XPEL

What is the AI rating for XPEL?

XPEL, Inc. (XPEL) has an AI grade of B with 70% confidence, based on fundamental analysis of SEC EDGAR filings.

What are XPEL's key strengths?

Claude: Strong top-line growth of 13.3% YoY with proportional net income growth of 13.4%. Excellent profitability margins with 43.7% gross margin and 11.1% operating margin indicating operational efficiency.

What are the risks of investing in XPEL?

Claude: Negative free cash flow of -$2.3M despite positive operating cash flow, indicating CapEx exceeds operational cash generation and will deplete cash reserves. Severely depressed returns with ROE of 3.6% and ROA of 2.6%, suggesting poor capital efficiency and suboptimal asset utilization.

What is XPEL's revenue and growth?

XPEL, Inc. reported revenue of $117.4M.

Does XPEL pay dividends?

XPEL, Inc. does not currently pay dividends.

Where can I find XPEL SEC filings?

Official SEC filings for XPEL, Inc. (CIK: 0001767258) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is XPEL's EPS?

XPEL, Inc. has a diluted EPS of $0.37.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is XPEL's fundamental grade?

Based on our AI fundamental analysis in June 2026, XPEL, Inc. has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is XPEL stock overvalued or undervalued?

Valuation metrics for XPEL: ROE of 3.6% (sector avg: 16%), net margin of 8.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

What is XPEL's AI grade for 2026?

Our dual AI analysis gives XPEL, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is XPEL's free cash flow?

XPEL, Inc.'s operating cash flow is $7.4M, with capital expenditures of $9.7M. FCF margin is -2.0%.

How does XPEL compare to other Services stocks?

Vs Services sector averages: Net margin 8.8% (avg: 10%), ROE 3.6% (avg: 16%), current ratio 3.07 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI