In this segment of "Industry Focus" on Motley Fool Live, recorded on Dec. 2, Fool analysts Nick Sciple and Auri Hughes discuss what makes XPEL (XPEL 1.80%) an appealing company for investment.
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Nick Sciple: Yes, so we talked about paint protection film, sounds pretty boring. It sounds like a pretty niche market. Why is this a company that you are excited to own and invest in?
Auri Hughes: I think leadership for me, I don't like the super hard thesis where you have to pull it out. I like to see that it's a good business and I think from day one when I first put on the XPEL investment, I saw they were growing.
They were clean as far as profitability and their balance sheet, which is very rare in the micro-cap space. A lot of micro-cap companies tend to be very messy or have weird financials, but they were growing steadily and getting bigger year-over-year, and then I started reading about the product and seeing what they were doing.
Then it's just been a steady compounder from a small base which usually have good results when you see that in stocks.
