Looking for a profitable fast-growing stock? Look at XPEL Technologies Corp
05.04.2016 • About XPEL Technologies Corp (
$DAP.U) • By InTwits
Pay attention to XPEL Technologies Corp as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
XPEL Technologies Corp showed growth in the last financial year. XPEL Technologies Corp's revenue surged on 40.0% in FY2015. EBITDA also increased: 7.04% for the same period.
If we look for the longer period the company showed fast revenue growth of 57.2% from 2012 to 2015 annually. EBITDA surged on 34.8% from 2012 to 2015 annually.
XPEL Technologies Corp ($DAP.U) financials for the last 5 years
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 6 | 11 | 18 | 30 | 41 |
|---|
| Revenue growth, % | | 76.6% | 67.7% | 65.5% | 40.0% |
|---|
| Gross margin, % | 41.6% | 34.1% | 32.1% | 31.2% | 29.7% |
|---|
| SG&A, % | | | 20.7% | 21.8% | 23.4% |
|---|
| EBITDA | 1 | 1 | 2 | 3 | 3 |
|---|
| EBITDA growth, % | | 50.0% | 69.9% | 34.7% | 7.0% |
|---|
| EBITDA margin, % | 15.8% | 13.4% | 13.6% | 11.0% | 8.44% |
|---|
| Net Income | 1 | 1 | 1 | 3 | 2 |
|---|
| Net Income margin, % | 13.5% | 10.9% | 7.38% | 10.5% | 3.75% |
|---|
| |
| CAPEX | 0 | 0 | 0 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 1.25% | 1.10% | 1.81% | 1.25% | 1.09% |
|---|
| Debt | 0 | 0 | 0 | 1 | 6 |
|---|
| Cash | 0 | 1 | 1 | 1 | 3 |
|---|
| Net Debt/EBITDA | -0.4x | -1.0x | -0.6x | -0.1x | 0.9x |
|---|
| |
| ROIC, % | 52.9% | 54.7% | 57.5% | 43.2% | 22.4% |
|---|
| ROE, % | 57.6% | 48.1% | 36.1% | 52.9% | 19.8% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the longer period EBITDA margin dropped on 5 pp from 13.4% in 2012 to 8.40% in 2015.
We call XPEL Technologies Corp an attractive growth stock as together with the growth it delivers high ROIC at 22.4%. During the last three years it dropped - it was 54.7% in FY2012. It's average level of ROIC for the last three years was 41.0%.
The company showed big decline in Net Income margin of 6.80 pp from 10.5% to 3.70% in 2015. In the longer period Net Income margin dropped on 7.20 pp from 10.9% in 2012 to 3.70% in 2015.
XPEL Technologies Corp operates at ROE of 19.8%. It's average ROE for the last three years was 36.3%.
Capital expenditures (CAPEX)
In FY2015 XPEL Technologies Corp had CAPEX/Revenue of 1.09%. XPEL Technologies Corp's CAPEX/Revenue decreased slightly on 0.0169 pp from 1.10% in 2012 to 1.09% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.38%.
Leverage (Debt)
The company has low debt level at 0.9x Net Debt/EBITDA - at the same time with high growth. In the longer period leverage surged on 1.89x from -0.98x in 2012 to 0.92x in 2015.
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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Restaurant Brands International Inc ($QSR) | | | | 4.6% | 238.0% |
| DHX Media Ltd ($DHX.A) | | 31.1% | 33.9% | 19.4% | 127.4% |
| Amaya Inc ($AYA) | | 311.5% | 85.2% | 254.0% | 113.8% |
| Hudson's Bay Co ($HBC) | | 3.5% | 5.9% | 28.1% | 56.4% |
| Exchange Income Corp ($EIF) | | 56.9% | -36.4% | 6.6% | 48.8% |
| |
|---|
| Median (65 companies) | 6.4% | 5.2% | 4.7% | 6.8% | 4.9% |
|---|
| XPEL Technologies Corp ($DAP.U) | | 76.6% | 67.7% | 65.5% | 40.0% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | 82.7% |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | 78.7% |
| Cara Operations Ltd ($CAO) | | | 79.2% | 78.9% | 78.4% |
| |
|---|
| Median (57 companies) | 37.0% | 37.0% | 36.1% | 36.2% | 33.7% |
|---|
| XPEL Technologies Corp ($DAP.U) | 41.6% | 34.1% | 32.1% | 31.2% | 29.7% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | 42.8% |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | 36.6% |
| Imvescor Restaurant Group Inc ($IRG) | 26.5% | 27.9% | 27.3% | 25.5% | 35.9% |
| Whistler Blackcomb Holdings Inc ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (60 companies) | 8.8% | 8.0% | 9.7% | 10.0% | 9.7% |
|---|
| XPEL Technologies Corp ($DAP.U) | 15.8% | 13.4% | 13.6% | 11.0% | 8.4% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | 26.7% |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Westshore Terminals Investment Corp ($WTE) | | 25.7% | 11.5% | 6.2% | 21.2% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Chorus Aviation Inc ($CHR.A) | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% |
| |
|---|
| Median (65 companies) | 3.0% | 2.7% | 2.9% | 2.5% | 2.8% |
|---|
| XPEL Technologies Corp ($DAP.U) | 1.2% | 1.1% | 1.8% | 1.2% | 1.1% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | 51.1% |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| BRP Inc/CA ($DOO) | | 29.8% | 26.8% | 32.3% | 35.3% |
| Cara Operations Ltd ($CAO) | | | | 24.7% | 35.1% |
| Jean Coutu Group PJC Inc/The ($PJC.A) | 33.5% | 34.4% | 29.8% | 29.2% | 30.2% |
| |
|---|
| Median (65 companies) | 10.6% | 9.7% | 9.9% | 9.7% | 10.9% |
|---|
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | 22.4% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Holloway Lodging Corp ($HLC) | | | 5.8x | 8.4x | 17.1x |
| Discovery Air Inc ($DA.A) | 3.2x | 2.8x | 3.8x | 7.5x | 11.4x |
| AutoCanada Inc ($ACQ) | 1.9x | 4.2x | 4.7x | 6.4x | 8.0x |
| Second Cup Ltd/The ($SCU) | 0.6x | 1.0x | 0.6x | 0.0x | 7.5x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | 6.6x |
| |
|---|
| Median (53 companies) | 1.3x | 1.5x | 1.9x | 2.1x | 1.9x |
|---|
| XPEL Technologies Corp ($DAP.U) | -0.4x | -1.0x | -0.6x | -0.1x | 0.9x |
