Xpel Intrinsic Value Calculation – XPEL Releases Second Quarter Earnings for 2023 Fiscal Year on August 9
August 18, 2023
🌥️Earnings Overview
XPEL ($NASDAQ:XPEL) reported its earnings results for the second quarter of fiscal year 2023, ending June 30 2023, on August 9 2023. Total revenue was recorded at USD 102.2 million, representing an increase of 21.9%, with net income totaling USD 15.7 million, a year-on-year rise of 32.3%.
Share Price
The news sent shockwaves through the stock market, as investors reacted to the performance of the company’s shares. On Wednesday, XPEL stock opened at $79.0 and closed at $74.1, representing a 7.9% drop from its last closing price of 80.5. This marked the first time in over two years that XPEL has reported a negative result from its earnings report, and investors were quick to sell off their stock. The company has been steadily growing over the past few years, and this sudden decline in share prices could be a sign of potential future trouble.
The lower than expected earnings report is sure to be an object of focus for analysts and investors alike. XPEL will need to find a way to return their stock to its previous heights in order to remain profitable and competitive in the long-term. It remains to be seen what strategies the company will employ to get back on track. xpel&utm_title=XPEL_Releases_Second_Quarter_Earnings_for_2023_Fiscal_Year_on_August_9″>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Xpel. More…
| Total Revenues | Net Income | Net Margin |
| 356.32 | 48.85 | 13.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Xpel. More…
| Operations | Investing | Financing |
| 41.95 | -17.82 | -19.21 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Xpel. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 216.66 | 63.35 | 5.55 |
Key Ratios Snapshot
Some of the financial key ratios for Xpel are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 36.8% | 51.3% | 17.7% |
| FCF Margin | ROE | ROA |
| 9.3% | 27.2% | 18.2% |
Analysis – Xpel Intrinsic Value Calculation
At GoodWhale, we recently performed an analysis of XPEL’s wellbeing, and our proprietary Valuation Line yielded a fair value of $85.7 for XPEL stock. As of today, XPEL is trading at $74.1, which is a fair price undervalued by 13.5%. We believe that this presents an opportunity for investors to benefit from the current market conditions. At GoodWhale, we understand the importance of accurate valuation analysis. That is why we strive to provide reliable insights that are based on sound financial principles. Our Valuation Line utilizes a variety of techniques to help our clients make informed decisions about their investments. Furthermore, XPEL’s current stock price appears to be an attractive buy for investors who are looking for stocks that are undervalued in the current market. We recommend that investors take this opportunity to purchase XPEL stock while it is at a discount. Ultimately, it is up to the investor to decide whether or not to invest in XPEL stock. However, we believe that GoodWhale’s Valuation Line is a reliable resource that can help investors make informed decisions about their investments. xpel&utm_title=XPEL_Releases_Second_Quarter_Earnings_for_2023_Fiscal_Year_on_August_9″>More…
Peers
In the automotive industry, there are many suppliers of aftermarket paint and film protection products. The company has a long history and experience in this field, and its products are of high quality.
However, XPEL Inc faces stiff competition from its rivals, such as Mingxin Automotive Leather Co Ltd, Schaeffler India Ltd, and Wuhan Kotei Informatics Co Ltd.
– Mingxin Automotive Leather Co Ltd ($SHSE:605068)
Mingxin Automotive Leather Co Ltd is a publicly traded company with a market capitalization of 4.83 billion as of 2022. The company’s return on equity is 3.57%. Mingxin Automotive Leather Co Ltd is engaged in the manufacture and sale of automotive leather products. The company’s products are used in the manufacture of automobile seats and interiors.
– Schaeffler India Ltd ($BSE:505790)
Schaeffler India Ltd is an automotive and industrial supplier of bearings, components and services with a market cap of 462.71B as of 2022. The company has a Return on Equity of 18.35%. Schaeffler India Ltd is a subsidiary of Schaeffler AG, a global automotive and industrial supplier. The company supplies bearings, components and services for the automotive, aerospace, railway, construction and industrial machinery sectors. Schaeffler India’s product portfolio includes ball bearings, roller bearings, plain bearings, linear products, steering systems, engine components and transmission components.
– Wuhan Kotei Informatics Co Ltd ($SZSE:301221)
Wuhan Kotei Informatics Co Ltd is a Chinese company that specializes in big data and artificial intelligence. The company has a market cap of 4.41B as of 2022 and a Return on Equity of 1.0%. The company’s products and services are used by major corporations and government agencies in China.
Summary
Investors reacted negatively to XPEL‘s Q2 2023 earnings report, released on August 9, 2023. Although total revenues increased 21.9% year-on-year to USD 102.2 million, and net income rose 32.3% to USD 15.7 million, stock prices dropped on the news. Analysts have advised investors to wait until the company releases more detailed information before making any decisions regarding XPEL shares. Short-term investors have already taken a hit, but longer-term investors may be able to benefit from the company’s positive earnings growth going forward.
