Motorcar Parts Of America (MPAA)
NASDAQ:MPAA
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Motorcar Parts Of America
(NASDAQ:MPAA)
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Rating:51Neutral
Price Target:
$9.50
▼(-18.52% Downside)
Action:Reiterated
Date:02/10/26
The score is driven primarily by moderate financial performance (reasonable operating margins, manageable leverage, and positive cash flow) but constrained by weak technicals (price below major moving averages and negative MACD) and unattractive valuation (very high P/E with no dividend yield provided). Earnings call commentary is mixed, with a near-term customer-driven guidance cut partly offset by strong liquidity, low leverage, and expectations for margin improvement.
Positive Factors
Core remanufacturing model
The core remanufacturing model creates durable input-cost advantages and supply circularity. By recovering and rebuilding parts, MPAA can shield margins from raw-material swings, scale input sourcing with customer channels, and sustain cost competitiveness over multiple quarters.
Negative Factors
Customer concentration risk
Heavy reliance on a large customer creates a persistent structural risk: substantial order reductions or store closures can materially dent revenues and underutilize fixed capacity. Recovery depends on that customer's decisions, limiting predictability over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Core remanufacturing model
The core remanufacturing model creates durable input-cost advantages and supply circularity. By recovering and rebuilding parts, MPAA can shield margins from raw-material swings, scale input sourcing with customer channels, and sustain cost competitiveness over multiple quarters.
Read all positive factors
Motorcar Parts Of America Key Performance Indicators (KPIs)
Motorcar Parts Of America (MPAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$210.55M
Dividend YieldN/A
Average Volume (3M)96.24K
Price to Earnings (P/E)33.6
Beta (1Y)1.59
Revenue Growth2.24%
EPS GrowthN/A
CountryUS
Employees5,900
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.10
Shares Outstanding19,210,955
10 Day Avg. Volume60,551
30 Day Avg. Volume96,237
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)0.73
Price to Sales (P/S)0.25
P/FCF Ratio4.57
Enterprise Value/Market Cap1.83
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit2.60
Enterprise Value/Ebitda6.05
Forecast
1Y Price Target
$18.00Price Target Upside54.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.53
Revenue Forecast (FY)$809.53M
Motorcar Parts Of America Business Overview & Revenue Model
Company Description
Motorcar 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...
How the Company Makes Money
Motorcar Parts of America generates revenue primarily through the sale of aftermarket automotive parts. The company's revenue model is based on manufacturing and distributing a comprehensive range of automotive components, which are sold to both r...
Motorcar Parts Of America Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 16, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but resilient picture: near-term performance was negatively affected by a material, one-customer sales disruption that drove a downward revision to fiscal 2026 sales guidance and caused a meaningful year-over-year gross margin contraction (24.1% → 19.6%). Offsetting this, the company demonstrated strong liquidity (~$146M), low leverage (net bank debt-to-EBITDA ~0.84), consistent cash generation, active share repurchases, sequential gross margin improvement within the year, secured new business commitments, and favorable long-term industry tailwinds (aging vehicle fleet and international demand). Management expects a rebound in the affected customer's orders and further margin improvement from operational efficiencies, tariff mitigation, and capacity utilization, while exploring strategic alternatives for a noncore EV emulator business.Positive Updates
Strong Liquidity and Reduced Net Bank Debt
Total cash and availability of approximately $146 million as of December 31, 2025; net bank debt decreased by $10.9 million to $70.5 million (from $81.4 million) for the 9-month period.
Negative Updates
Quarter Below Expectations and One Large Customer Disruption
Fiscal Q3 results were 'less than expected' due to a significant reduction in purchases from one of the company's largest customers; management estimates the customer's sales disruption could impact the company by up to approximately $50 million.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Liquidity and Reduced Net Bank Debt
Total cash and availability of approximately $146 million as of December 31, 2025; net bank debt decreased by $10.9 million to $70.5 million (from $81.4 million) for the 9-month period.
Read all positive updates
Company Guidance
Management revised fiscal 2026 guidance to sales of $750–760 million and operating income of $72–79 million (depreciation & amortization ≈ $10 million), reflecting an estimated up-to‑$50 million reduction in sales tied to one large customer (company is conservatively modeling a ~15% store reduction); Q3 gross margin was 19.6% (vs. 24.1% a year ago; sequentially 18.0% in Q1 and 19.3% in Q2) with sequential gross‑margin improvement expected in Q4. For the 9‑month period the company generated $23.7 million cash, repurchased 669,472 shares for $8.4 million at an average $12.47, and reduced net bank debt to $70.5 million from $81.4 million, leaving total cash and availability of about $146 million as of December 31, 2025; trailing‑12‑month EBITDA was $68.1 million ($84.0 million before noncash/one‑time items), implying net bank debt/EBITDA ≈ 0.84. Management reiterated expectations for continued annual positive cash flow (trailing‑12‑month cash from operations ≈ $32.8 million; ~$60 million over the past two years, ≈ $3.06 per share), further gross‑margin accretion from better brake capacity utilization, tariff mitigation, relocations to lower‑cost facilities and other cost reductions, and plans to pursue additional share repurchases, debt reduction and strategic alternatives for the EV‑emulator business, with FY‑27 guidance to be provided at the year‑end call in June.Motorcar Parts Of America Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
60
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 770.64M | 757.35M | 717.68M | 683.07M | 650.31M | 540.78M |
| Gross Profit | 148.02M | 153.83M | 132.55M | 113.96M | 117.86M | 109.46M |
| EBITDA | 63.61M | 50.26M | 58.59M | 48.89M | 41.59M | 57.78M |
| Net Income | 1.95M | -19.47M | -49.24M | -4.21M | 7.36M | 21.48M |
Balance Sheet | ||||||
| Total Assets | 991.31M | 957.64M | 1.01B | 1.03B | 1.02B | 847.88M |
| Cash, Cash Equivalents and Short-Term Investments | 19.57M | 11.31M | 15.81M | 13.61M | 25.22M | 17.18M |
| Total Debt | 200.13M | 201.28M | 239.34M | 277.22M | 262.71M | 186.45M |
| Total Liabilities | 732.76M | 699.94M | 726.89M | 708.09M | 700.43M | 546.74M |
| Stockholders Equity | 258.55M | 257.70M | 285.11M | 320.48M | 315.26M | 301.14M |
Cash Flow | ||||||
| Free Cash Flow | 29.91M | 40.90M | 38.17M | -25.95M | -52.41M | 42.15M |
| Operating Cash Flow | 32.77M | 45.48M | 39.17M | -21.75M | -44.86M | 56.09M |
| Investing Cash Flow | -5.00M | -4.47M | -479.00K | -4.19M | -7.94M | -14.21M |
| Financing Cash Flow | -22.20M | -44.66M | -36.44M | 14.31M | 60.22M | -76.57M |
Motorcar Parts Of America Technical Analysis
Positive
11.66
Price Trends
10.74
Positive
11.83
Negative
13.07
Negative
Market Momentum
0.18
Negative
62.18
Neutral
79.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPAA, the sentiment is Positive. The current price of 11.66 is above the 20-day moving average (MA) of 11.04, above the 50-day MA of 10.74, and below the 200-day MA of 13.07, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 62.18 is Neutral, neither overbought nor oversold. The STOCH value of 79.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MPAA.
Motorcar Parts Of America Risk Analysis
Motorcar Parts Of America disclosed 29 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.65B | 8.78 | 10.41% | 2.63% | 2.86% | 17.30% | |
70 Outperform | $142.71M | 1.74 | 11.39% | ― | 17.64% | 42.96% | |
70 Outperform | $279.60M | 23.71 | 10.75% | ― | 4.22% | 23.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $925.23M | 50.25 | 3.17% | ― | 5.81% | -53.66% | |
51 Neutral | $210.55M | 33.64 | 0.75% | ― | 2.24% | ― | |
51 Neutral | $189.74M | -1.90 | -53.45% | ― | -9.34% | -539.67% |
* Consumer Cyclical Sector Average
MPAA
Motorcar Parts Of America
10.96
0.23
2.14%
CAAS
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4.73
0.68
16.79%
LEA
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132.72
41.34
45.24%
SRI
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1.15
21.30%
STRT
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68.59
18.10
35.85%
THRM
Gentherm
30.34
2.66
9.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.