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Motorcar Parts Of America (MPAA)
NASDAQ:MPAA
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Motorcar Parts Of America
(NASDAQ:MPAA)
68Neutral
Motorcar Parts Of America (MPAA) vs. S&P 500 (SPY)
Market Cap
$186.05M
Dividend YieldN/A
Average Volume (3M)160.10K
Price to Earnings (P/E)―
Beta (1Y)1.85
Revenue Growth4.26%
EPS Growth64.64%
CountryUS
Employees5,900
SectorConsumer Cyclical
Sector Strength52
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.90
Shares Outstanding19,583,712
10 Day Avg. Volume104,630
30 Day Avg. Volume160,102
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)1.50
P/FCF Ratio1.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.00Price Target Upside54.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Motorcar Parts Of America Business Overview & Revenue Model
Company DescriptionMotorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers test solutions and diagnostic equipment for electric vehicle powertrain development and manufacturing, including electric motor test systems, e-axle test systems, advanced power emulators, and charging unit test systems, as well as test systems for alternators, starters, belt starter generator, and bench-top testers, as well as turbochargers and test services for electric vehicle inverters. The company sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. Motorcar Parts of America, Inc. was founded in 1968 and is headquartered in Torrance, California.
How the Company Makes MoneyMotorcar Parts of America makes money through the sale of its automotive aftermarket parts to a diverse customer base. The company's revenue model is primarily driven by its manufacturing and remanufacturing operations, which allow it to provide cost-effective replacement parts that meet or exceed OEM specifications. MPAA generates revenue through direct sales to major auto parts retailers, such as AutoZone and O'Reilly Auto Parts, as well as through wholesale distributors and OEMs. The company may also engage in strategic partnerships and contracts that enhance its market reach and distribution capabilities. Additionally, its remanufacturing process not only contributes to cost savings but also appeals to environmentally conscious customers, providing an added value proposition.
Motorcar Parts Of America Financial Statement Overview
Summary
Motorcar Parts of America shows strong revenue growth and operational cash flow generation, but faces challenges with profitability and high leverage. The balance sheet indicates a significant debt load, which could impact financial stability. Positive cash flow from operations provides liquidity support, though the negative net income and return on equity highlight profitability concerns.Income Statement
Motorcar Parts of America has shown consistent revenue growth over the years, with a TTM (Trailing-Twelve-Months) revenue increase of 5.02% compared to the previous annual period. However, the company is currently facing profitability challenges, as indicated by the negative net income margin of -2.31% for the TTM. Gross profit margin remains moderate at 20.02%, and EBIT margin is 4.81%, suggesting operational profitability, though it is impacted by high expenses leading to negative net profits.65
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 0.41, indicating significant leverage, which could pose risks in a volatile market. The equity ratio stands at 27.66%, showing a moderate level of equity financing. Return on equity is currently negative due to the company's net losses, which is a concern for shareholders. The overall stability is challenged by the high level of liabilities relative to equity, though total assets remain robust.58
Neutral
Cash Flow
Operating cash flow is positive at $25.74 million for the TTM, indicating strong cash generation from core operations. The free cash flow growth rate is declining compared to the previous year, but the company maintains a positive free cash flow to net income ratio, demonstrating efficient cash utilization. However, the operating cash flow to net income ratio is unfavorable due to negative net income.70
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 753.73M | 717.68M | 683.07M | 650.31M | 540.78M | 535.83M | Gross Profit |
| 150.86M | 132.55M | 113.96M | 117.86M | 109.46M | 118.40M | EBIT |
| 36.28M | 46.12M | 36.45M | 14.14M | 17.88M | 7.18M | EBITDA |
| 41.07M | 58.59M | 36.45M | 28.70M | 46.63M | 16.74M | Net Income Common Stockholders |
| -17.41M | -49.24M | -4.21M | 7.36M | 21.48M | -7.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.66M | 15.81M | 13.61M | 25.22M | 17.18M | 50.47M | Total Assets |
| 163.48M | 1.01B | 1.03B | 1.02B | 847.88M | 777.03M | Total Debt |
| 10.90M | 239.34M | 277.22M | 259.29M | 181.45M | 242.67M | Net Debt |
| 9.69M | 225.36M | 265.63M | 236.27M | 165.93M | 193.05M | Total Liabilities |
| 59.86M | 726.89M | 708.09M | 700.43M | 546.74M | 501.51M | Stockholders Equity |
| 103.62M | 285.11M | 320.48M | 315.26M | 301.14M | 275.52M |
| Cash Flow | Free Cash Flow | ||||
| 25.19M | 38.17M | -25.95M | -52.41M | 42.15M | 4.64M | Operating Cash Flow |
| 25.74M | 39.17M | -21.75M | -44.86M | 56.09M | 18.80M | Investing Cash Flow |
| -1.67M | -479.00K | -4.19M | -7.94M | -14.21M | -11.59M | Financing Cash Flow |
| -24.23M | -36.44M | 14.31M | 60.22M | -76.57M | 32.15M |
Motorcar Parts Of America Technical Analysis
Negative
9.07
Price Trends
9.08
Negative
8.18
Positive
7.16
Positive
Market Momentum
0.02
Positive
40.76
Neutral
10.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPAA, the sentiment is Negative. The current price of 9.07 is below the 20-day moving average (MA) of 10.28, below the 50-day MA of 9.08, and above the 200-day MA of 7.16, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 10.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MPAA.
Motorcar Parts Of America Risk Analysis
Motorcar Parts Of America disclosed 27 risk factors in its most recent earnings report. Motorcar Parts Of America reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Motorcar Parts Of America Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $63.78B | 25.57 | -14.95% | ― | 4.72% | 4.69% | |
71 Outperform | $11.00B | 16.27 | 11.33% | 2.82% | 3.53% | -25.71% | |
70 Outperform | $82.00B | 35.23 | -174.09% | ― | 5.67% | 5.40% | |
68 Neutral | $186.05M | ― | -6.40% | ― | 4.26% | 64.64% | |
68 Neutral | $16.53B | 18.41 | 20.69% | 3.36% | 1.71% | -30.78% | |
59 Neutral | $12.17B | 11.04 | -1.10% | 3.77% | 1.26% | -19.70% | |
45 Neutral | $2.35B | 59.62 | -23.45% | 2.55% | -9.34% | -852.37% |
* Consumer Cyclical Sector Average
Performance Comparison
MPAA
Motorcar Parts Of America
9.07
1.13
14.23%
AAP
Advance Auto Parts
39.02
-43.52
-52.73%
AZO
AutoZone
3,813.27
666.64
21.19%
GPC
Genuine Parts Company
118.45
-30.07
-20.25%
LKQ
LKQ
42.97
-7.69
-15.18%
ORLY
O'Reilly Auto
1,431.80
298.85
26.38%
Motorcar Parts Of America Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: 57.74% | Next Earnings Date: Jun 17, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook, marked by record sales, significant cash flow generation, and an effective share repurchase program. Despite challenges such as foreign exchange losses and interest rate impacts, the company's strategic initiatives and strong product performance indicate a robust position moving forward.Highlights
Record Sales and Gross Margin Improvement
Net sales increased 8.3% to a record $186.2 million. Gross profit increased 49.4% to a record $44.9 million, with a gross margin of 24.1% compared to 17.5% a year earlier.
Significant Cash Flow Generation
Generated approximately $34.4 million of cash from operating activities during the fiscal third quarter, leading to a reduction in net debt by $30.3 million, a 26% decrease.
Share Repurchase Program
Repurchased 268,130 shares for $2.1 million at an average price of $7.82, under the current repurchase authorization program.
Expansion in Brake-Related Products
Continued success and strong demand anticipated for brake-related products, contributing to gross margin improvement.
Strong Performance in Rotating Electrical Category
Rotating electrical, a 50-plus year flagship category, continues to generate solid performance with expectations of further growth.
Lowlights
Foreign Exchange Losses
Encountered non-cash foreign exchange losses due to a strengthening US dollar vs. the peso, impacting net income by $5 million.
Interest Rate Challenges
Interest rates, particularly applicable to vendor finance programs, are a headwind, though a recent decrease in rates is noted as positive.
Non-Cash Expenses Impacting Financials
Non-cash items reduced net income by $5 million and gross profit by $3.4 million for the quarter.
Company Guidance
During the fiscal 2025 third quarter conference call for Motorcar Parts of America, Inc., the company reported an 8.3% increase in net sales, reaching a record $186.2 million, with gross profit rising by 49.4% to $44.9 million. The improvement in gross margin to 24.1% from 17.5% the previous year was attributed to enhanced production efficiencies and new business ramp-ups, particularly in the brake-related product category. The company generated $34.4 million in cash from operating activities and reduced net debt by $30.3 million, showcasing a solid cash flow position. Additionally, they repurchased 268,130 shares at an average price of $7.82, amounting to $2.1 million, under their current repurchase authorization program. Despite facing non-cash foreign exchange losses due to Mexican lease liabilities and forward contracts, the company remains optimistic about continuing to drive shareholder value and leveraging growth opportunities across their product lines and geographic areas.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.