XPEL Reports 34.8% Increase in Total Revenue for Fourth Quarter of FY 2022.
March 19, 2023
Earnings Overview
XPEL ($NASDAQ:XPEL) announced that for the quarter ending December 31, 2022, total revenue had increased by 34.8% to USD 8.4 million compared to the same quarter in the prior year. Additionally, net income rose 11.9% to USD 78.5 million and was reported on February 28, 2023.
Transcripts Simplified
XPEL reported Q4 2021 revenue of $78.5 million, up 11.9% from the same quarter the prior year. Net income grew 34.7% and EBITDA grew 32.4%. China sales declined 50%, due to a reduction in orders late in the quarter as a result of reopening policies and cash flow concerns for the distributor. The distributor is looking forward to a strong spring with their large dealer conference being held as usual.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Xpel. More…
| Total Revenues | Net Income | Net Margin |
| 323.99 | 41.38 | 12.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Xpel. More…
| Operations | Investing | Financing |
| 12.06 | -14.16 | 0.6 |
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 |
| 193.36 | 68.64 | 4.52 |
Key Ratios Snapshot
Some of the financial key ratios for Xpel are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 35.6% | 46.7% | 16.5% |
| FCF Margin | ROE | ROA |
| 0.8% | 27.8% | 17.3% |
Price History
On Tuesday, XPEL reported a 34.8% increase in total revenue for the fourth quarter of fiscal year 2022. The news sent XPEL stock rocketing, opening at $65.5 and closing at $66.8 – a 13.5% plunge from its last closing price of 77.2. The company’s revenue growth was driven by increased demand for its proprietary paint protection film and window tinting products as well as its digital media solutions. This significant jump in sales reaffirmed XPEL’s strengths as a leading automotive protection solutions provider.
This suggests that the company is making strides to maximize its profits and create lasting value for shareholders. The company’s outlook for the upcoming fiscal year is also encouraging, with expectations for both revenue and gross margin growth. XPEL’s diverse product portfolio and its robust partnerships with car manufacturers and automotive retailers points to continued success in the future. Live Quote…
Analysis
At GoodWhale, we have analyzed the fundamentals of XPEL and have determined that this stock is a high risk investment. We have identified 3 risk warnings in their balance sheet, cashflow statement, and financial journal. These warnings range from the company’s current ratio to its return on equity, which could be signs of financial distress. In our analysis, we also looked at their P/E ratio and price-to-book value which both showed signs of being expensive. To get a better understanding of XPEL’s risk profile, become a registered user and access our full report. We recommend doing your own due diligence when making an investment decision, so make sure to use GoodWhale’s analysis as a tool to supplement your research. More…
Peers
In the automotive industry, there are many suppliers of aftermarket paint and film protection products. The company has a long history and experience in this field, and its products are of high quality.
However, XPEL Inc faces stiff competition from its rivals, such as Mingxin Automotive Leather Co Ltd, Schaeffler India Ltd, and Wuhan Kotei Informatics Co Ltd.
– Mingxin Automotive Leather Co Ltd ($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
XPEL‘s fourth quarter of fiscal year 2022, ending December 31, 2022, saw a 34.8% increase in total revenue to USD 8.4 million. Net income increased 11.9% year-over-year to USD 78.5 million and was reported on February 28, 2023. This strong financial performance was not mirrored in the stock price, which saw an immediate dip on the same day. Investors are advised to continue monitoring XPEL’s progress and to weigh its performance against its peers in order to make informed decisions about their investments.
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