XPEL, Inc. (XPEL): A Bull Case Theory

We came across a bullish thesis on XPEL, Inc. on on FluentInQuality’s Substack. In this article, we will summarize the bulls’ thesis on XPEL. XPEL, Inc.'s share was trading at $38.48 as of September 8th. XPEL’s forward P/E was 21.87 according to Yahoo Finance.

XPEL is a global leader in protective automotive films and coatings, serving drivers, dealerships, and automotive enthusiasts worldwide. The company generates revenue primarily through paint protection films (PPF), window tint, ceramic coatings, and supporting software and cutting tools for installers, complemented by dealer services and training programs. Beyond initial installations, XPEL benefits from recurring revenue driven by ongoing demand for PPF on new vehicles, repeat business from dealerships and installers, and an expanding global distribution network. The company’s high-quality positioning stems from its strong brand reputation in premium PPF and tint solutions, a robust and scalable distribution model, and high-margin products including consumables and software.

XPEL’s growth potential is amplified by its ability to expand into new regions and verticals, leveraging its trusted brand and established dealer relationships. Its products not only protect vehicles but also enhance resale value, improve aesthetics and durability, and provide comfort and energy efficiency through advanced tinting solutions. This combination of recurring revenue streams, brand strength, and scalable operations positions XPEL as a resilient business with multiple avenues for growth. By building trust with car owners and strengthening dealer networks, the company captures ongoing demand while maintaining premium margins.

XPEL’s integrated approach—balancing high-quality products, strong customer relationships, and strategic expansion—creates a compelling investment case. The business model offers predictable revenue growth with limited downside risk, making XPEL a uniquely attractive opportunity in the automotive aftermarket sector. Its recurring revenue, scalable distribution, and premium positioning suggest significant upside potential as the company continues to expand globally and deepen its penetration across key markets.

Previously we covered a bullish thesis on XPEL, Inc. by Reasonable-Green-464 in January 2024, which highlighted the company’s growth in the automotive aftermarket sector through product diversification, international expansion, and rising EV adoption. The company's stock price has depreciated approximately by 11.25% as of January 2025, as the thesis didn’t fully play out amid macro and regional challenges. The thesis still stands, and FluentInQuality shares a similar perspective but emphasizes recurring revenue, scalable distribution, and the company’s integrated approach to dealer and customer relationships.

XPEL, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held XPEL at the end of the first quarter which was 9 in the previous quarter. While we acknowledge the potential of XPEL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.