Position initiated: August 2022
Xpel sells, distributes and installs protective films for the auto and boating industries.
CEO Ryan Papa took over the company and brought it back from the dead and has commanded an amazing growth story from $0.04 to $56. Today the company is being run responsibly.
The company is growing through small acquisitions of distributors and pays for these acquisitions through profits, keeping debt to a minimum.
Reasons why:
- Founder led company. CEO has proven his ability to grow with the company and has been there from the beginning.
- Moat. Several companies manufacture protective films, but Xpel has the software which includes all car models and precuts the films to fit all auto parts in advance saving the auto shops time and cost when applying the film.
- International markets are responsible for about 40% of revenue. I like that Xpel is putting the investment in now to be the number one brand in every country – you only get one chance to be a world leader.
- This is an under the radar company, not covered by many analysts.
- Luxury markets are on a global upward trend.
Threats:
- Changes in paint technology could provide future paints with film protection quality.