Standard Motor Products (SMP) AI Stock Analysis

• Market Cap: $544.80M
• Dividend Yield: 4.58%
• Average Volume (3M): 192.63K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.81
• Revenue Growth: 7.77%
• EPS Growth: -15.32%
• Country: US
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 49
• Industry: Auto - Parts
• EPS (TTM): 2.41
• Shares Outstanding: 21,861,880
• 10 Day Avg. Volume: 209,415
• 30 Day Avg. Volume: 192,626
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.38
• Price to Cash Flow (P/CF): -93.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $42.00
• Price Target Upside: 68.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Standard Motor Products' overall score reflects a combination of stable financial performance, attractive valuation, and positive earnings call guidance. Key strengths include consistent revenue growth and a solid dividend yield. However, technical analysis indicates bearish momentum, and increased leverage and cash flow challenges pose risks. The positive outlook from the earnings call, driven by strategic acquisitions and growth in key segments, balances these concerns, leading to a moderately positive overall assessment.

Standard Motor Products Business Overview & Revenue Model

Company Description

Standard Motor Products, Inc. manufactures and distributes replacement parts that are used in the maintenance, repair, and service of vehicles in the automotive aftermarket industry with a complementary focus on specialized original equipment parts for manufacturers across agriculture, heavy duty, and construction equipment industries. The company's Engine Management segment provides electronic ignition control modules, camshaft and crankshaft position sensors, ignition wires and coils, switches and relays, exhaust gas recirculation valves, pressure and temperature sensors, variable valve timing components, mass airflow and fuel pressure sensors, electronic throttle bodies, and diesel injectors and pumps; and anti-lock brake, vehicle speed, tire pressure monitoring, and park assist sensors. This segment offers its products under the Standard, Blue Streak, BWD, Intermotor, OEM, SMP Blue Streak Canada, GP Sorensen, Locksmart, Standard Motorcycle, and Blue Streak Race Wires brands. Its Temperature Control segment provides components for the temperature control systems, engine cooling systems, power window accessories, and windshield washer systems of motor vehicles under the Four Seasons, ACI, Hayden, Factory Air, and Maxair brands. Its products include air conditioning compressors and repair kits, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, actuators, hose assemblies, thermal expansion devices, heater valves, heater cores, A/C service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company serves primarily automotive aftermarket retailers, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Europe, Asia, Mexico, and other Latin American countries. The company was founded in 1919 and is headquartered in Long Island City, New York.

How the Company Makes Money

Standard Motor Products generates revenue primarily through the sale of automotive replacement parts and components within its Engine Management and Temperature Control segments. Key revenue streams include sales to automotive aftermarket retailers, warehouse distributors, and OEMs. The company benefits from a broad distribution network and strong brand recognition, which help it maintain a competitive position in the market. SMP also engages in strategic partnerships and maintains an extensive catalog of parts to meet diverse customer needs, further contributing to its revenue.

Standard Motor Products Financial Statement Overview

Summary

Standard Motor Products demonstrates a stable financial position with consistent revenue growth and effective cost management. Despite a strong equity base, increased leverage poses a risk. Cash flow challenges need to be addressed to ensure sustainable operational liquidity. The company shows resilience in a competitive industry but must focus on improving profitability and managing debt to maintain financial health.

Income Statement

Standard Motor Products has shown consistent revenue growth, with a notable increase from $1.36 billion in 2023 to $1.46 billion in 2024. The gross profit margin improved slightly, indicating effective cost management. However, the net profit margin is modest at around 3.7% for 2024, down from the previous year, suggesting pressure on profitability. EBIT and EBITDA margins reflect a stable operating environment but have shown some decline over the years. The overall trajectory is positive but faces pressure on net profitability.

Balance Sheet

The company has a solid equity base with stockholders' equity at $615 million in 2024. However, the debt-to-equity ratio has increased significantly, indicating higher leverage, which could be a potential risk. Despite this, the equity ratio remains strong, suggesting that the company is still relying more on equity than debt to finance its assets. Return on Equity (ROE) is reasonable, showing that the company is generating adequate returns on shareholders' equity.

Cash Flow

Operating cash flow decreased from $144 million in 2023 to $76 million in 2024, which could indicate some challenges in cash generation from operations. Free cash flow also reduced significantly, potentially affecting future investments. However, cash flow from financing activities has improved, reflecting strategic financial management. The operating cash flow to net income ratio suggests that cash generation is not fully aligned with reported profits.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.46B	1.36B	1.37B	1.30B	1.13B
	Gross Profit
423.32M	388.83M	382.54M	376.93M	336.65M
	EBIT
80.62M	92.68M	104.14M	129.00M	108.89M
	EBITDA
118.91M	121.65M	137.25M	159.74M	136.03M
	Net Income Common Stockholders
27.50M	34.15M	55.35M	90.89M	80.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.43M	32.53M	21.15M	21.75M	19.49M
	Total Assets
1.81B	1.29B	1.25B	1.20B	956.54M
	Total Debt
649.73M	245.19M	280.33M	159.64M	32.68M
	Net Debt
605.30M	212.66M	259.18M	137.89M	13.19M
	Total Liabilities
1.18B	642.17M	633.89M	585.33M	406.30M
	Stockholders Equity
615.75M	635.06M	610.02M	601.58M	550.24M
Cash Flow		Free Cash Flow
32.67M	115.63M	-53.49M	59.69M	80.08M
	Operating Cash Flow
76.69M	144.26M	-27.53M	85.56M	97.90M
	Investing Cash Flow
-418.68M	-25.70M	-27.82M	-151.25M	-17.80M
	Financing Cash Flow
349.55M	-109.61M	55.50M	69.01M	-71.52M

Standard Motor Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMP, the sentiment is Negative. The current price of 24.92 is below the 20-day moving average (MA) of 26.64, below the 50-day MA of 29.09, and below the 200-day MA of 30.32, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 27.72 is Positive, neither overbought nor oversold. The STOCH value of 23.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMP.

Standard Motor Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DORM	75 Outperform	$3.69B	19.64	15.44%	―	4.11%	50.07%
SMP	69 Neutral	$544.80M	10.33	8.57%	4.58%	7.77%	-15.32%
GPC	68 Neutral	$16.73B	18.30	20.69%	3.32%	1.71%	-30.78%
LEA	64 Neutral	$4.79B	10.86	10.81%	3.16%	-0.70%	-7.27%
AXL	62 Neutral	$487.53M	14.33	5.79%	―	0.75%	―
BWA	62 Neutral	$6.33B	20.12	6.46%	1.45%	-11.10%	-46.32%
Sector *	59 Neutral	$12.27B	11.11	-0.54%	3.71%	1.45%	-20.42%

Standard Motor Products Corporate Events

Standard Motor Products Expands with Nissens Acquisition

Standard Motor Products, Inc., a prominent automotive parts manufacturer, has completed its $390 million acquisition of Nissens Automotive, a leading European supplier of vehicle cooling and air conditioning products. This strategic move positions SMP as a dominant player in both North American and European markets, promising growth opportunities through enhanced synergies and cross-selling initiatives. The acquisition is expected to bolster SMP’s offerings in key product categories, leveraging Nissens’ strong leadership and cultural alignment.