Author Topic: DAP-U.V - Xpel Technologies  (Read 57568 times)

snowball82

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DAP-U.V - Xpel Technologies
« on: February 02, 2014, 06:44:30 AM »
This stock has a great growth potential. I bought the stock few months ago... Mr market can't ignore the profitability here ! More than 29 % ROA, 40% ROIC & 50 % growth rate !!


About XPEL Technologies Corp.
Overview

XPEL Technologies Corp. (TSXV: DAP.U), publicly traded on the TSXV Exchange, is the developer of the Design Access Program software, and manufacturer of XPEL™ Automotive Paint and Headlamp Protection Products. XPEL has forged the cutting-edge of automotive protection technology, and leads the industry in price, quality, technical support and customer service. The Company's state-of-the-art Design Team develops industry-best products for the ultimate in vehicular protection. XPEL focuses on servicing and supporting its customers, while diligently marketing its unique products to the motoring public. For those with a vision into the future and an energetic entrepreneurial spirit, XPEL has developed a Dealer Program designed to assist individuals and companies in the offering of stealth-like Paint and Headlamp Products on a global basis.

Last trade 1.49
New retailers network in Europe
Nice net margin
Not capital intensive

http://www.xpel.com

See the product on Persad's car ...

http://m.youtube.com/watch?v=NrBaOlPpI3Y&desktop_uri=%2Fwatch%3Fv%3DNrBaOlPpI3Y
« Last Edit: February 02, 2014, 08:12:05 PM by Parsad »


snowball82

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Re: Dap-u - Xpel technologie
« Reply #1 on: February 02, 2014, 08:58:32 AM »
I forgot 2 things. 1) It's not the Persad's car 2) Do you know another company with comparable growth & 42 % return on equity (no leverage) ?

Amazing

mcliu

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Re: Dap-u - Xpel technologie
« Reply #2 on: February 02, 2014, 01:03:33 PM »
Very pricey stock...

LC

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Re: Dap-u - Xpel technologie
« Reply #3 on: February 02, 2014, 01:53:47 PM »
Also worth noting is 3M's offering in this field is woefully old, and the playing field isn't large enough to warrant them trying to come in and squash Xpel. Even if they do, the product itself has to be custom installed for each vehicle. Hence the fat margins, but for customers with luxury cars, it's worth it to spend more for a better job with better material than use a cookie cutter 3M product.
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snowball82

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Re: Dap-u - Xpel technologie
« Reply #4 on: February 02, 2014, 02:05:07 PM »
The company offer a sofware to cut film too. Here maybe the best product of the company, the ultimate film

http://m.youtube.com/watch?v=T6oEgfdwUU0&desktop_uri=%2Fwatch%3Fv%3DT6oEgfdwUU0

LC

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Re: Dap-u - Xpel technologie
« Reply #5 on: February 02, 2014, 03:19:14 PM »
I believe they also offer the machinery to cut the film as well. So how it works, they sell/lease this machinery to retail outlets, I believe with pretty poor margins, then continuously update the machine's software with the specifications for new car models. Then they also sell the rolls of film to the outlet as well. So the great margins come from the renewal of film inventory, fees, etc. it's more of a franchise model than anything.
"Lethargy bordering on sloth remains the cornerstone of our investment style."
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brk.b | cash

yadayada

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Re: Dap-u - Xpel technologie
« Reply #6 on: February 02, 2014, 03:26:29 PM »
if only you discovered this one in early 2013 lol. It was really insanely cheap for a while.

snowball82

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Re: Dap-u - Xpel technologie
« Reply #7 on: February 02, 2014, 07:28:05 PM »
I started to buy during last summer... So if they continue to grow at more than 50 %, this stock will be a "bagger" from here. I like the international profitable growth to come.

bz1516

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Re: DAP-U.V - Xpel Technologies
« Reply #8 on: February 02, 2014, 08:52:56 PM »
Snowy, not sure exactly what and who this company is?  here are some questions I have after doing some initial dd.

Is the company the same as Reflex and is that the same as the Texas company XPEL?  Is the company only able to do business in Canada and only exclusively in Manitoba, but not in the US?  Are they a distributor for film made by 3M and Avery Dennison?  Is the software their key product and is that licensed from the film supplier?

LanceSanity

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Re: DAP-U.V - Xpel Technologies
« Reply #9 on: February 02, 2014, 09:38:59 PM »
PPF is one of fastest growing industries in automotive aftermarket. Market penetration in North America is 4%, compared to 60% for window tinting, so there's plenty of room for growth. Other opportunities for growth: international sales and applications other than automotive. Xpel's been signing up more dealers and international distributors. The top guys - 3M, Suntek, Avery Dennison, and Xpel Technologies have sticky business models. They all have dealer programs offering film (full or pre-cut), software, training, and customer service. Xpel is an attractive option for installers because they offer 10-year warranty that covers yellowing. Installers usually offer multiple brands that they feel comfortable working with.

It's trading close to 20x EV/EBIT, so at first glance you'd think the valuation is too high. But for a capital light business with huge organic growth opportunities, it's not too bad. There's a VIC write-up with more details: http://www.valueinvestorsclub.com/value2/Idea/ViewIdea/105692

Also, here's the only presentation I have seen online by the company: http://microcapclub.com/2014/01/microcapclub-invitational-xpel-technologies-dap-u-xplt/
« Last Edit: February 02, 2014, 09:46:40 PM by LanceSanity »