As part of my automotive stock research, I decided to look into $XPEL , Inc. I found this company ab

• 12/18/21

As part of my automotive stock research, I decided to look into $XPEL , Inc. I found this company about a year ago while researching automotive stocks. Since I purchased this stock as a swing trade, this was one of the rare cases in which I purchased a stock without doing any Due Diligence (DD). My first purchase was December 14, 2020 at $47.57 a share, since then I have made about 10 swing trades. Today, XPEL trades around $67.14 and It’s quickly becoming one of my favorite stocks of 2020. Since I neglected to do my Due Diligence earlier this year, I decided to post my brief look into $XPEL Inc. ⛔️Full disclosure, the definitions are mine but I cheated and pulled a lot of data from the article that’s included at the bottom of this post. Company summary: $XPEL is a leading provider of protective films and coatings, including automotive paint protection film, surface protection film, automotive and architectural window films, and ceramic coatings. With a global footprint, a network of trained installers, and proprietary DAP software, XPEL is dedicated to exceeding customer expectations by providing high-quality products, leading customer service, expert technical support, and world-class training. XPEL, Inc. is publicly traded on Nasdaq under the symbol “XPEL”. Data from Q3, Sept 30, 2021: 🖌 “ Revenues increased approximately $78.8 million, or 71.4%, to $189.1 million as compared to $110.3 million in the same period of the prior year.” #Revenue is the top line number reported on its income statement and represents the money a company generates from sales of goods and services. Revenue is important because it helps us calculate a business #OperatingIncome which is the sale of goods or services minus a company’s operating expenses. 🎨 “Gross Margin was 35.9% compared to 34.5% in the first nine months of 2020.” #grossmargin , A rise in gross margins generally indicates the company is bringing in more money. Rising gross margins are generally a good sign but it doesn’t necessarily indicate that a company is keeping that money. Gross profits are the pile of money that a company pays its taxes, bills, and obligations from not the money it gets to keep after its expenses and obligations are paid. 😲 “Operating Expenses “increased to $36.4 million, or 19.2% of sales, compared to $22.0 million, or 20.0%, of sales in the same prior-year period.” #OperatingExpense is composed of companies' rent, marketing, equipment, inventory and it’s research and development cost. Operating expenses indicate how efficiently a company is being run. Reductions in operating expenses can cause a company to be more profitable. Cutting Maintenance costs, reductions of Sales commissions, reducing payroll through outsourcing, or reducing worker benefits are all Common operating expenses reductions that negatively affect worker morale and the quality of business operations. 🤨 “Net income was $25.4 million, or $0.92 per basic and diluted share, versus net income of $12.2 million, or $0.44 per basic and diluted share in the first nine months of 2020.” #NetIncome is a profitability measure that compares a company’s revenues to its expenses. Net income is a company’s sales (revenue), minus its expenses (Cost of goods sold, administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses). When you look at your paycheck the net is your take-home pay or what’s leftover after taxes and insurance is subtracted from your gross pay. 🙁 EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization was $34.1 million, or 18.1% of sales in 2021, compared to $17.2 million, or 15.6% of sales in the same period in 2020. #EBITDA is a measure of profitability, EXPEL’s higher EBITDA in 2021, tells me the company’s margin has shrunk. Shrinking margins indicate that EXPEL is making less money per dollar of sales and could be a result of a company discounting its product or an increase in the price of raw goods. https://www.businesswire.com/news/home/20211109005709/en/XPEL-Reports-Revenue-of-68.5-Million-in-Third-Quarter-2021-Net-Income-of-8.3-Million/ #pocketchangeinvestments

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