XPEL Technologies Corp demonstrated healthy growth in recent years
07.04.2015 • About XPEL Technologies Corp (
$DAP.U) • By InTwits
Have you thought about XPEL Technologies Corp as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
XPEL Technologies Corp showed growth in the last financial year. XPEL Technologies Corp's revenue surged on 65.5% in FY2014. EBITDA also increased considerably: 34.7% for the same period.
If we look for the longer period the company showed fast revenue growth of 69.9% from 2011 to 2014 annually. EBITDA surged on 50.9% from 2011 to 2014 annually.
XPEL Technologies Corp ($DAP.U) financials for the last 5 years
| mln. $ | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 4 | 6 | 11 | 18 | 30 |
|---|
| Revenue growth, % | | 46.3% | 76.6% | 67.7% | 65.5% |
|---|
| Gross margin, % | 47.3% | 41.6% | 34.1% | 32.1% | 31.2% |
|---|
| SG&A, % | | | | 20.7% | 21.8% |
|---|
| EBITDA | 1 | 1 | 1 | 2 | 3 |
|---|
| EBITDA growth, % | | 44.5% | 50.0% | 69.9% | 34.7% |
|---|
| EBITDA margin, % | 16.0% | 15.8% | 13.4% | 13.6% | 11.0% |
|---|
| Net Income | 0 | 1 | 1 | 1 | 3 |
|---|
| Net Income margin, % | 10.3% | 13.5% | 10.9% | 7.38% | 10.5% |
|---|
| |
| CAPEX | 0 | 0 | 0 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 1.33% | 1.25% | 1.10% | 1.81% | 1.25% |
|---|
| Debt | 0 | 0 | 0 | 0 | 1 |
|---|
| Cash | 0 | 0 | 1 | 1 | 1 |
|---|
| Net Debt/EBITDA | -0.2x | -0.4x | -1.0x | -0.6x | -0.1x |
|---|
| |
| ROIC, % | 41.1% | 52.9% | 54.7% | 57.5% | 43.2% |
|---|
| ROE, % | 54.0% | 57.6% | 48.1% | 36.1% | 52.9% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 13.6% in FY2013 to 11% in FY2014. In the longer period the company showed big decline in EBITDA margin of 4.80 pp from 15.8% in 2011 to 11% in 2014.
We call XPEL Technologies Corp an attractive growth stock as together with the growth it delivers high ROIC at 43.2%. During the last three years it dropped - it was 52.9% in FY2011. Average ROIC for the last three years was 51.8%.
Net Income margin surged on 3.10 pp from 7.40% to 10.5% in 2014. In the longer period XPEL Technologies Corp's Net Income margin dropped on 3 pp from 13.5% in 2011 to 10.5% in 2014.
XPEL Technologies Corp operates at ROE of 52.9%. It's average ROE for the last three years was 45.7%.
Capital expenditures (CAPEX)
In FY2014 XPEL Technologies Corp had CAPEX/Revenue of 1.25%. XPEL Technologies Corp's CAPEX/Revenue showed almost no change on 0 pp from 1.25% in 2011 to 1.25% in 2014. For the last three years the average CAPEX/Revenue was 1.39%.
Leverage (Debt)
XPEL Technologies Corp has negative net debt at -0.1x Net Debt/EBITDA - at the same time with high growth. In the longer period leverage surged on 0.30x from -0.45x in 2011 to -0.15x in 2014.
Peers in Consumer, Cyclical
Below you can find XPEL Technologies Corp benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Amaya Inc ($AYA) | | 216.4% | 311.5% | 85.2% | 254.0% |
| Partner Jet Corp ($PJT) | | -19.9% | -15.2% | 1.2% | 119.7% |
| Kelso Technologies Inc ($KLS) | | 80.5% | 577.5% | 487.8% | 81.4% |
| Holloway Lodging Corp ($HLC) | | 5.4% | -24.6% | 2.7% | 62.7% |
| AutoCanada Inc ($ACQ) | | 16.1% | 9.2% | 27.9% | 57.2% |
| |
|---|
| Median (62 companies) | | 9.2% | 5.3% | 4.9% | 6.3% |
|---|
| XPEL Technologies Corp ($DAP.U) | | 46.3% | 76.6% | 67.7% | 65.5% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Restaurant Brands International Inc ($QSR) | | | | 69.7% | 87.0% |
| Imvescor Restaurant Group Inc ($IRG) | 95.5% | 96.2% | 94.2% | 89.7% | 84.9% |
| DEQ Systems Corp ($DEQ) | 79.1% | 74.3% | 77.5% | 78.4% | 84.7% |
| Second Cup Ltd/The ($SCU) | 89.6% | 91.1% | 86.6% | 85.1% | 72.7% |
| New Look Vision Group Inc ($BCI) | 70.4% | 72.3% | 71.8% | 72.6% | 72.6% |
| |
|---|
| Median (55 companies) | 28.1% | 36.1% | 35.3% | 31.6% | 34.6% |
|---|
| XPEL Technologies Corp ($DAP.U) | 47.3% | 41.6% | 34.1% | 32.1% | 31.2% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | | 49.7% | 65.9% | 60.9% |
| Gamehost Inc ($GH) | 44.4% | 44.2% | 46.1% | 45.7% | 45.9% |
| Great Canadian Gaming Corp ($GC) | 20.6% | 34.1% | 16.8% | 41.1% | 40.1% |
| Amaya Inc ($AYA) | 12.6% | -5.7% | 7.2% | 38.2% | 39.3% |
| MTY Food Group Inc ($MTY) | 38.6% | 32.2% | 36.3% | 38.7% | 37.0% |
| |
|---|
| Median (60 companies) | 9.7% | 8.8% | 8.2% | 10.2% | 10.1% |
|---|
| XPEL Technologies Corp ($DAP.U) | 16.0% | 15.8% | 13.4% | 13.6% | 11.0% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | | 32.5% |
| WestJet Airlines Ltd ($WJA) | 1.9% | 3.9% | 7.9% | 19.5% | 18.6% |
| Exchange Income Corp ($EIF) | 23.9% | 8.2% | 7.9% | 15.8% | 15.5% |
| Holloway Lodging Corp ($HLC) | 4.9% | 3.4% | 8.2% | 6.7% | 14.8% |
| Kelso Technologies Inc ($KLS) | 0.0% | 79.2% | 0.4% | 0.7% | 13.5% |
| |
|---|
| Median (63 companies) | 1.9% | 2.9% | 2.7% | 2.7% | 2.3% |
|---|
| XPEL Technologies Corp ($DAP.U) | 1.3% | 1.2% | 1.1% | 1.8% | 1.2% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Partner Jet Corp ($PJT) | 4.9% | -30.7% | -51.6% | -50.8% | 85.1% |
| Kelso Technologies Inc ($KLS) | | -121.3% | | | 48.8% |
| Westshore Terminals Investment Corp ($WTE) | | | 24.0% | 37.8% | 35.0% |
| Iplayco Corp Ltd ($IPC) | -11.7% | -35.4% | 23.0% | 58.5% | 33.6% |
| BRP Inc/CA ($DOO) | | | 29.8% | 26.8% | 32.3% |
| |
|---|
| Median (63 companies) | 11.8% | 10.9% | 10.2% | 11.2% | 10.1% |
|---|
| XPEL Technologies Corp ($DAP.U) | 41.1% | 52.9% | 54.7% | 57.5% | 43.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Restaurant Brands International Inc ($QSR) | | | | 3.8x | 33.6x |
| Hudson's Bay Co ($HBC) | 0.0x | 8.7x | 3.8x | 3.6x | 19.1x |
| Amaya Inc ($AYA) | -7.0x | | 17.9x | 1.8x | 13.5x |
| Dorel Industries Inc ($DII.A) | 1.6x | 1.6x | 1.5x | 2.8x | 12.2x |
| Performance Sports Group Ltd ($PSG) | | | 2.6x | 3.5x | 12.2x |
| |
|---|
| Median (54 companies) | 0.8x | 1.3x | 1.4x | 1.8x | 1.8x |
|---|
| XPEL Technologies Corp ($DAP.U) | -0.2x | -0.4x | -1.0x | -0.6x | -0.1x |
