In this segment of "Industry Focus" on Motley Fool Live, recorded on Dec. 2, Fool analyst Nick Sciple talks about the significant growth opportunity that lies ahead for XPEL (XPEL 1.80%).
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Nick Sciple: We mentioned paint protection film so far. With the PermaPlate acquisitions, touching window protection films, the majority of the business still today is the paint protection film. But XPEL also offers window film for automotive applications. Think about window tinting, things like that. Also window film for building applications, for greening buildings, and preserving heat, and things like that.
With this PermaPlate acquisition, what they're doing is acquiring this window film business that is historically, before cars go to the lot or as soon as they roll onto the lot they would attach that window film. Now, XPEL has that part of the business, it's integrated with some of these dealerships and that gives them the opportunity not only to grow the window film side of the business but potentially to cross-sell some of the paint protection film products and other things.
Of course, if you ever into a dealership, they like to add on add-ons that add them profitability, things like a paint stripe for a couple of 100 bucks, so you see both from the perspective of XPEL, growing their market and from the perspective of their customer's ability to add some more add-ons.
It makes sense for them and I think there's lots of opportunity to continue to go downmarket from this high-end car enthusiast to your everyday person who wants these added features driving up the lot, or that dealerships can convince them they need driving up the lot.
