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XPEL: Manufacturing Investments And Product Expansion Will Support Future Margin Strength

Emerging Markets And Personalized Platforms Will Define Future Success

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XPEL
AnalystConsensusTarget
Not Invested
Published 15 Sep 2024

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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14.7%
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2.7%

Analysts have nudged their price target on XPEL shares slightly higher to approximately $52.00, reflecting modest improvements in discount rate assumptions and long term profitability expectations that support a marginally richer valuation multiple.

What's in the News

  • XPEL issued fourth quarter 2025 revenue guidance in the range of approximately $123 million to $125 million, reflecting the company’s expectations for continued top line growth. (Company guidance)
  • The company plans to invest between $75 million and $150 million over the next two years in manufacturing and supply chain through capex, M&A, and joint ventures, with a goal of achieving gross margins of 52% to 54% and operating margins in the mid to high 20 percent range by the end of 2028. (Company announcement)
  • XPEL amended its bylaws to designate Nevada state courts as the exclusive forum for most internal corporate and fiduciary duty claims, and U.S. federal courts as the exclusive forum for federal securities law claims. (Regulatory filing)
  • At the 2025 SEMA Show in Las Vegas, XPEL debuted its XPEL COLOR Paint Protection Film, a 16 color palette product that combines paint protection with vehicle customization, alongside live installation demos and showcases of high end vehicles protected with its broader product suite. (Trade show announcement)

Valuation Changes

  • Fair Value Estimate: effectively unchanged at approximately $52.00 per share, indicating a stable intrinsic value assessment.
  • Discount Rate: fallen slightly from about 8.23% to approximately 8.16%, modestly lowering the required return in the valuation model.
  • Revenue Growth Assumption: essentially unchanged at roughly 10.94% per year, suggesting a consistent view of long term top line expansion.
  • Net Profit Margin: effectively flat at about 17.83%, signaling no material shift in long term profitability expectations.
  • Future P/E Multiple: edged down slightly from roughly 15.84x to about 15.81x, implying a marginally less aggressive valuation multiple on forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.