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Motorcar Parts Of America (MPAA)
NASDAQ:MPAA

Motorcar Parts Of America (MPAA) AI Stock Analysis

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Motorcar Parts Of America

(NASDAQ:MPAA)

Rating:65Neutral
Price Target:
$12.00
▲(0.59%Upside)
Motorcar Parts Of America scores moderately due to strong cash flow and revenue growth offset by profitability issues and increased leverage. Technical indicators show positive trends, while the earnings call provides optimism despite challenges from tariffs and net losses.

Motorcar Parts Of America (MPAA) vs. SPDR S&P 500 ETF (SPY)

Motorcar Parts Of America Business Overview & Revenue Model

Company DescriptionMotorcar Parts of America (MPAA) is a leading manufacturer, remanufacturer, and distributor of aftermarket automotive parts. The company primarily serves the automotive industry, focusing on components such as alternators, starters, and wheel hub assemblies. MPAA supplies these essential parts to a wide range of customers, including retail and wholesale distributors, as well as repair shops and professional service providers. The company operates in a highly competitive market, leveraging its expertise in remanufacturing and quality assurance to maintain its position as a trusted partner in the automotive aftermarket sector.
How the Company Makes MoneyMotorcar Parts of America generates revenue through the sale of its automotive aftermarket products. Its primary revenue streams come from manufacturing and remanufacturing automotive parts, which are then sold to various customers, including large automotive retailers, wholesale distributors, and service providers. The company benefits from its extensive distribution network and partnerships with major automotive chains, which ensure consistent demand for its products. MPAA also focuses on quality and innovation, allowing it to charge competitive prices while maintaining customer loyalty. Additionally, the company may enter into strategic alliances and partnerships to expand its market reach and enhance its product offerings, contributing to its overall earnings.

Motorcar Parts Of America Earnings Call Summary

Earnings Call Date:Jun 09, 2025
(Q4-2025)
|
% Change Since: 0.08%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with record sales and gross profit, effective debt reduction, and strategic market share gains. However, the impact of tariffs and noncash expenses resulted in a net loss for the year, adding some uncertainty to future performance.
Q4-2025 Updates
Positive Updates
Record Net Sales and Gross Profit
Net sales increased by 5.5% to a record $757.4 million, and gross profit increased by 16.1% to a record $153.8 million for fiscal 2025.
Cash Flow and Debt Reduction
Generated cash from operating activities of $45.5 million and reduced net bank debt by $32.6 million to $81.4 million.
Successful Share Repurchase
Repurchased 542,134 shares for $4.8 million at an average price of $8.91 per share.
Market Share Growth in Key Segments
Continued success in brake-related applications and the heavy-duty aftermarket segment, with increased demand in Mexico.
Positive EBITDA Performance
EBITDA for fiscal 2025 was $50.3 million, with EBITDA before noncash and onetime cash expenses at $92.8 million.
Negative Updates
Impact of Tariffs
Tariff costs impacted gross profit by $4.6 million in Q4 and $5.9 million for the year, with ongoing uncertainty around their future impact.
Net Loss for the Year
Net loss for fiscal 2025 was $19.5 million or $0.99 per share, primarily due to noncash expenses of $25 million and onetime cash expenses of $6.9 million.
Noncash Expenses Impact
Noncash mark-to-market foreign exchange losses and core amortization expenses impacted results significantly.
Company Guidance
During the Motorcar Parts of America, Inc. fiscal 2025 fourth quarter and year-end conference call, the company provided several key financial metrics and guidance. For fiscal 2025, net sales increased by 5.5% to a record $757.4 million, and gross profit rose by 16.1% to $153.8 million. The company generated $45.5 million in cash from operating activities and reduced net bank debt by $32.6 million to $81.4 million. Looking ahead, Motorcar Parts of America expects net sales for fiscal 2026 to range between $780 million and $800 million, representing growth of 3% to 5.6%. Operating income is projected to grow between 4.3% and 10.4% year-over-year. The company noted that ongoing initiatives to enhance gross margins, along with strategic competitive advantages from tariff mitigation efforts, are expected to support these financial goals.

Motorcar Parts Of America Financial Statement Overview

Summary
Motorcar Parts Of America shows strong revenue growth and operational efficiency. However, profitability is a concern with ongoing net losses, and increased leverage poses potential risks. On the positive side, robust cash flow generation provides liquidity to navigate financial pressures.
Income Statement
65
Positive
Motorcar Parts Of America has demonstrated consistent revenue growth over the years, with a notable increase from $535.8 million in 2020 to $757.4 million in 2025. Despite this growth, the company faces challenges in profitability as evidenced by negative net income in recent years. The EBIT and EBITDA margins have improved, indicating better operational efficiency, yet the net profit margin remains a concern due to persistent net losses.
Balance Sheet
60
Neutral
The company's balance sheet shows a stable equity base, though the debt-to-equity ratio has increased, indicating higher leverage. The equity ratio has slightly decreased, reflecting a proportionally higher increase in liabilities. The return on equity is negative, driven by net losses, which is a critical area for improvement to enhance shareholder value.
Cash Flow
70
Positive
Cash flow performance is a bright spot for Motorcar Parts Of America, with positive operating cash flow and free cash flow in the recent year, indicating a strong ability to generate cash from operations. The free cash flow growth rate is encouraging, showing improvement over previous periods. The operating cash flow to net income ratio suggests effective cash management despite net losses.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue757.35M717.68M683.07M650.31M540.78M
Gross Profit153.83M132.55M113.96M117.86M109.46M
EBITDA50.26M58.59M36.45M28.70M46.63M
Net Income-19.47M-49.24M-4.21M7.36M21.48M
Balance Sheet
Total Assets957.64M1.01B1.03B1.02B847.88M
Cash, Cash Equivalents and Short-Term Investments11.31M15.81M13.61M25.22M17.18M
Total Debt201.28M239.34M277.22M259.29M181.45M
Total Liabilities699.94M726.89M708.09M700.43M546.74M
Stockholders Equity257.70M285.11M320.48M315.26M301.14M
Cash Flow
Free Cash Flow40.90M38.17M-25.95M-52.41M42.15M
Operating Cash Flow45.48M39.17M-21.75M-44.86M56.09M
Investing Cash Flow-4.47M-479.00K-4.19M-7.94M-14.21M
Financing Cash Flow-44.66M-36.44M14.31M60.22M-76.57M

Motorcar Parts Of America Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.93
Price Trends
50DMA
10.66
Positive
100DMA
10.26
Positive
200DMA
8.53
Positive
Market Momentum
MACD
0.42
Negative
RSI
58.39
Neutral
STOCH
85.13
Negative
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 11.93 is above the 20-day moving average (MA) of 10.91, above the 50-day MA of 10.66, and above the 200-day MA of 8.53, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 85.13 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SMSMP
80
Outperform
$739.88M12.969.00%3.68%13.53%-4.76%
78
Outperform
$277.97M13.089.91%5.54%398.82%
72
Outperform
$944.00M19.517.74%-0.51%9.10%
65
Neutral
$242.36M-7.17%5.53%60.54%
64
Neutral
$123.10M4.348.05%18.33%-26.25%
56
Neutral
HK$24.56B3.85-2.03%6.52%-0.31%-67.70%
45
Neutral
$3.54M-80.07%-3.63%36.19%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MPAA
Motorcar Parts Of America
11.93
5.44
83.82%
CAAS
China Automotive Systems
4.23
1.30
44.37%
SMP
Standard Motor Products
33.54
5.50
19.61%
STRT
Strattec Security
64.73
40.74
169.82%
SSUP
Superior Industries International
0.09
-3.33
-97.37%
THRM
Gentherm
31.09
-20.15
-39.32%

Motorcar Parts Of America Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Motorcar Parts of America Appoints New Senior Executives
Neutral
Jun 13, 2025

On June 10, 2025, Motorcar Parts of America announced the appointment of Juliet Stone as Senior Vice President of Government Affairs and Special Projects, and Glenn Burlingame as Vice President, General Counsel, and Secretary. Burlingame, with over 30 years of experience in corporate law, is expected to bring immediate expertise to the company, having previously served as outside legal counsel. The transition highlights the company’s strategic focus on navigating the geopolitical environment and enhancing its legal and governance framework.

The most recent analyst rating on (MPAA) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Motorcar Parts Of America stock, see the MPAA Stock Forecast page.

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.Date of analysis: Jul 01, 2025