Motorcar Parts Of America (MPAA) AI Stock Analysis

• Market Cap: $251.52M
• Dividend Yield: N/A
• Average Volume (3M): 124.98K
• Price to Earnings (P/E): 109.9
• Beta (1Y): 1.66
• Revenue Growth: 6.72%
• EPS Growth: N/A
• Country: US
• Employees: 5,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.16
• Shares Outstanding: 19,558,016
• 10 Day Avg. Volume: 112,824
• 30 Day Avg. Volume: 124,985
• PEG Ratio: 0.16
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 4.57
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 2.62
• Enterprise Value/Ebitda: 5.67
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.15
• Revenue Forecast (FY): $820.00M

• Rating: 59 Neutral
• Price Target: $14.00 ▲(6.71% Upside)

Motorcar Parts Of America has a mixed outlook. The most significant factor is its financial performance, which shows steady growth but struggles with profitability and cash flow. The earnings call provided positive guidance, but technical indicators suggest bearish momentum. The high P/E ratio indicates overvaluation, further impacting the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Debt Reduction

Reducing debt enhances financial stability and flexibility, allowing the company to invest in growth opportunities and mitigate risk.

Operational Efficiency

Improving operational efficiency helps sustain profit margins and competitiveness, crucial for long-term profitability.

Negative Factors

Profitability Challenges

Low profitability margins indicate difficulty in converting sales into net income, potentially impacting future earnings and investment capacity.

Cash Flow Growth

Negative cash flow growth can strain liquidity and limit the ability to fund operations and growth initiatives, affecting long-term sustainability.

Impact of Deferred Purchases

Deferred purchases from major customers can disrupt revenue streams and indicate potential volatility in customer demand, impacting financial stability.

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; 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 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 retail and wholesale customers. Key revenue streams include direct sales to automotive retailers, partnerships with major distributors, and contracts with repair shops. Additionally, MPAA benefits from economies of scale in production, allowing it to offer competitive pricing while maintaining healthy profit margins. Strategic partnerships with retailers and distributors enhance market access, driving volume sales and contributing significantly to the company's earnings.

Motorcar Parts Of America Financial Statement Overview

Summary

Motorcar Parts Of America shows steady revenue growth and improved leverage, but faces challenges in profitability and cash flow growth. Operational efficiency is evident, but there is a need to enhance net income and cash flow sustainability.

Income Statement

Motorcar Parts Of America has shown a positive revenue growth rate of 1.71% TTM, indicating a steady increase in sales. The gross profit margin is healthy at 20.28%, but the net profit margin is quite low at 0.31%, suggesting limited profitability after expenses. The EBIT and EBITDA margins are moderate, reflecting operational efficiency, but there is room for improvement in net income.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.44 TTM, indicating a reduction in leverage and a stronger equity position. Return on equity is low at 0.95%, suggesting limited returns for shareholders. The equity ratio is stable, showing a balanced asset structure.

Cash Flow

Operating cash flow has improved significantly, and the free cash flow to net income ratio is strong at 0.95 TTM, indicating efficient cash generation relative to net income. However, the free cash flow growth rate is negative, highlighting potential challenges in maintaining cash flow momentum.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	789.12M	757.35M	717.68M	683.07M	650.31M	540.78M
Gross Profit	160.02M	153.83M	132.55M	113.96M	117.86M	109.46M
EBITDA	73.88M	50.26M	58.59M	48.89M	41.59M	57.78M
Net Income	2.46M	-19.47M	-49.24M	-4.21M	7.36M	21.48M
Balance Sheet
Total Assets	989.97M	957.64M	1.01B	1.03B	1.02B	847.88M
Cash, Cash Equivalents and Short-Term Investments	17.73M	11.31M	15.81M	13.61M	25.22M	17.18M
Total Debt	190.95M	201.28M	239.34M	277.22M	262.71M	186.45M
Total Liabilities	731.43M	699.94M	726.89M	708.09M	700.43M	546.74M
Stockholders Equity	258.54M	257.70M	285.11M	320.48M	315.26M	301.14M
Cash Flow
Free Cash Flow	70.00M	40.90M	38.17M	-25.95M	-52.41M	42.15M
Operating Cash Flow	75.36M	45.48M	39.17M	-21.75M	-44.86M	56.09M
Investing Cash Flow	-5.23M	-4.47M	-479.00K	-4.19M	-7.94M	-14.21M
Financing Cash Flow	-64.63M	-44.66M	-36.44M	14.31M	60.22M	-76.57M

Motorcar Parts Of America Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 13.12 is above the 20-day moving average (MA) of 12.73, below the 50-day MA of 13.66, and above the 200-day MA of 12.63, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 80.63 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRT	80 Outperform	$323.19M	13.49	10.85%	―	6.83%	46.38%
LEA	75 Outperform	$6.54B	15.23	8.96%	2.63%	-1.90%	-13.86%
THRM	74 Outperform	$1.19B	39.40	4.44%	―	-0.10%	-53.49%
CAAS	69 Neutral	$136.37M	4.07	9.19%	―	16.72%	5.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MPAA	59 Neutral	$251.52M	109.91	0.94%	―	6.72%	―
SRI	45 Neutral	$172.30M	-5.33	-12.26%	―	-4.91%	-331.53%

Motorcar Parts Of America Corporate Events

Motorcar Parts Director Warfield Resigns From Company Board

On January 2, 2026, Motorcar Parts of America, Inc. announced that director Patricia W. (Tribby) Warfield resigned from the company’s board of directors and from its Human Resources and Compensation Committee, citing personal and professional commitments. The company emphasized that her departure did not stem from any disagreement with its operations, policies, or procedures, suggesting no underlying governance conflict and indicating that the resignation is not expected to signal strategic or operational discord for investors or other stakeholders.

The most recent analyst rating on (MPAA) stock is a Hold 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.

Motorcar Parts of America Director Resigns from Board

On November 10, 2025, F. Jack Liebau, Jr. resigned from the Board of Directors of Motorcar Parts of America, Inc., including his roles on the Audit Committee and the Nominating and Corporate Governance Committee. His resignation was not due to any disagreements with the company’s operations, policies, or practices. Following his departure, the board’s size was reduced from ten to nine directors.

The most recent analyst rating on (MPAA) stock is a Hold with a $18.50 price target. To see the full list of analyst forecasts on Motorcar Parts Of America stock, see the MPAA Stock Forecast page.