There’s no denying that Xpel (XPEL 0.01%) is a booming software-as-a-service unicorn with a share price rise of over 40,000% in the last ten years. This is false, as Xpel dominates the lucrative (and glamorous) protective film industry.
As an industry leader in protective film, automotive window tinting, and residential and commercial window tinting, Xpel has grown to a $1.5 billion company in 20 years.
Aside from providing these products, the company offers installation services and certified training to use their design access program, which allows almost all car models to be precut with films.
Xpel operates in nine countries, but it has only just expanded globally, with around 70% of its sales coming from North America.
See also XPEL, Inc. (XPEL) Stock Price Today, Quote & News.
Reason to avoid
A beautiful balance between sales and earnings per share has been achieved by Xpel since 2012, with sales and earnings per share rising over 2,700%. It’s not all bad news for investors either; Xpel’s valuation has been cut in half since its highs — leaving the high-growth company trading at a fair price, despite recent P/E runs.
Its newly lowered valuation, global fragmentation, and long-term growth plans for its nonautomotive business make Xpel stock a likely candidate for continued growth over the long run.
Technical analysis
The XPEL stock closed up 7.5% on Thursday, August 11, 2022, on a volume that was 2.06 times normal. As a result of the stock’s strong upward trend, it may remain overbought for some time to come. Do not put too much emphasis on overboughtness when looking for an indication that it’s time to sell.
