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Motorcar Parts Of America (MPAA)
NASDAQ:MPAA
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Motorcar Parts Of America
(NASDAQ:MPAA)
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Rating:66Neutral
Price Target:
$17.50
▲(2.76% Upside)
Motorcar Parts Of America shows strong technical indicators and a positive earnings call outlook, with record revenue and improved margins. However, the high P/E ratio suggests overvaluation, and financial performance is hindered by low profitability and moderate leverage. These factors result in a balanced but cautious overall stock score.
Motorcar Parts Of America (MPAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$329.57M
Dividend YieldN/A
Average Volume (3M)161.54K
Price to Earnings (P/E)216.9
Beta (1Y)1.62
Revenue Growth6.59%
EPS GrowthN/A
CountryUS
Employees5,900
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.13
Shares Outstanding19,352,135
10 Day Avg. Volume107,562
30 Day Avg. Volume161,542
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 Cap1.26
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit2.61
Enterprise Value/Ebitda5.74
Forecast
1Y Price Target
$18.00Price Target Upside5.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 generates revenue primarily through the sale of automotive parts to wholesalers, retailers, and directly to consumers. The company benefits from a diversified revenue model that includes both domestic and international sales, allowing it to tap into various markets. Key revenue streams include the sale of core products such as alternators and starters, which are in high demand due to the ongoing need for vehicle maintenance and repair. Additionally, MPAA engages in strategic partnerships with major automotive retailers and e-commerce platforms, enhancing its distribution capabilities and expanding its market reach. The company also leverages its manufacturing capabilities to produce high-quality parts at competitive prices, contributing to its profitability.
Motorcar Parts Of America Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook. The company reported record-breaking revenue and growth, improved gross margins, and strong cash flow and debt reduction. Expansion in the Mexican market and increased sales guidance further highlight the company's robust performance. However, the impact of tariffs and noncash expenses on gross margins were noted as challenges, albeit with a decreasing trend.Q1-2026 Updates
Positive Updates
Record-Breaking Revenue and Growth
Net sales increased 10.9% to a first quarter record of $188.4 million. Gross profit increased 16.3% to a first quarter record of $33.9 million. Operating income increased to $20.1 million from an operating loss of $6.5 million in the prior year.
Cash Flow and Debt Reduction
Generated $10 million of cash from operating activities and reduced net bank debt by $7 million to $74.4 million. Liquidity remains strong with total cash and availability of approximately $147 million.
Expansion in Mexican Market
Sales in the Mexican market are growing nicely, complementing the strategic and operational distribution footprint.
Improved Gross Margin
Gross margin for the fiscal 2026 first quarter was 18% compared with 17.2% a year earlier. This improvement was despite headwinds related to tariffs.
Guidance Increase
The company increased its fiscal 2026 sales guidance to between $800 million and $820 million, representing between 5.6% and 8.3% year-over-year growth.
Negative Updates
Impact of Tariffs
The June quarter had a $1.4 million net impact of tariffs. Tariffs remain a concern, although their impact is expected to sequentially decrease.
Noncash Expenses Impacting Gross Margin
Noncash expenses, such as core and finished good premium amortization, impacted gross margin by approximately 2.1%.
Company Guidance
During the Motorcar Parts of America Inc. Fiscal 2026 First Quarter Conference Call, the company reported robust performance metrics, including a 10.9% increase in net sales to a record $188.4 million and a 16.3% rise in gross profit to $33.9 million. Operating income surged to $20.1 million from a loss of $6.5 million in the prior year, while EBITDA reached $20.7 million. The company reduced net bank debt by $7 million to $74.4 million and repurchased nearly 198,000 shares. Guidance for fiscal 2026 was revised upward, with sales now expected between $800 million and $820 million, reflecting a 5.6% to 8.3% year-over-year growth. The company also reaffirmed its operating income guidance, projecting a range of $86 million to $91 million. Despite tariff challenges, the company has seen increased market share, particularly in its brake-related product line and expects further operating efficiency and margin improvements.Motorcar Parts Of America Financial Statement Overview
Summary
Motorcar Parts Of America shows strong revenue growth and operational efficiency, but profitability is challenged by ongoing net losses. The balance sheet indicates increased leverage, posing potential risks. However, robust cash flow generation provides liquidity to manage financial pressures.Income Statement
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.65
Positive
Balance Sheet
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.60
Neutral
Cash Flow
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.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 775.83M | 757.35M | 717.68M | 683.07M | 650.31M | 540.78M |
| Gross Profit | 158.57M | 153.83M | 132.55M | 113.96M | 117.86M | 114.73M |
| EBITDA | 72.14M | 50.26M | 58.59M | 48.89M | 41.59M | 57.78M |
| Net Income | 1.66M | -19.47M | -49.24M | -4.21M | 7.36M | 21.48M |
Balance Sheet | ||||||
| Total Assets | 973.35M | 957.64M | 1.01B | 1.03B | 1.02B | 847.88M |
| Cash, Cash Equivalents and Short-Term Investments | 14.49M | 11.31M | 15.81M | 13.61M | 25.22M | 17.18M |
| Total Debt | 205.54M | 201.28M | 239.34M | 277.22M | 265.04M | 189.09M |
| Total Liabilities | 713.24M | 699.94M | 726.89M | 708.09M | 700.43M | 546.74M |
| Stockholders Equity | 260.11M | 257.70M | 285.11M | 320.48M | 315.26M | 301.14M |
Cash Flow | ||||||
| Free Cash Flow | 71.45M | 40.90M | 38.17M | -25.95M | -52.41M | 42.15M |
| Operating Cash Flow | 76.36M | 45.48M | 39.17M | -21.75M | -44.86M | 56.09M |
| Investing Cash Flow | -4.76M | -4.47M | -479.00K | -4.19M | -7.94M | -14.21M |
| Financing Cash Flow | -66.61M | -44.66M | -36.44M | 14.31M | 60.22M | -76.57M |
Motorcar Parts Of America Technical Analysis
Positive
17.03
Price Trends
15.62
Positive
13.56
Positive
11.45
Positive
Market Momentum
0.31
Negative
59.51
Neutral
76.90
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 17.03 is above the 20-day moving average (MA) of 15.96, above the 50-day MA of 15.62, and above the 200-day MA of 11.45, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 59.51 is Neutral, neither overbought nor oversold. The STOCH value of 76.90 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 |
|---|---|---|---|---|---|---|---|
| ― | $1.13B | 37.40 | 4.44% | ― | -0.10% | -53.49% | |
| ― | $5.54B | 12.05 | 9.51% | 2.99% | -3.12% | -8.23% | |
| ― | $273.48M | 14.37 | 8.85% | ― | 5.08% | 12.98% | |
| ― | $130.34M | 4.45 | 8.04% | ― | 17.08% | -18.03% | |
| ― | $329.57M | 216.94 | 0.63% | ― | 6.59% | ― | |
| ― | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | $201.65M | ― | -11.20% | ― | -6.99% | -1688.02% |
* Consumer Cyclical Sector Average
MPAA
Motorcar Parts Of America
17.03
11.76
223.15%
CAAS
China Automotive Systems
4.32
-0.22
-4.85%
LEA
Lear
104.08
11.29
12.17%
SRI
Stoneridge
7.06
0.07
1.00%
STRT
Strattec Security
65.74
28.19
75.07%
THRM
Gentherm
37.06
-4.89
-11.66%
Motorcar Parts Of America Corporate Events
Executive/Board ChangesShareholder Meetings
Motorcar Parts of America Holds Annual Shareholders Meeting
Neutral
Sep 11, 2025
On September 4, 2025, Motorcar Parts of America, Inc. held its Annual Meeting of Shareholders where key decisions were made regarding the company’s governance and financial oversight. Shareholders elected directors to the board, ratified the appointment of Ernst & Young LLP as independent auditors for the fiscal year ending March 31, 2026, and approved the executive compensation on a non-binding advisory basis, indicating continued confidence in the current management and strategic direction.
The most recent analyst rating on (MPAA) stock is a Hold with a $16.00 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 Reports Record First Quarter
Aug 12, 2025
Motorcar Parts of America, Inc. is a company specializing in the remanufacturing, manufacturing, and distribution of automotive aftermarket parts, serving the United States, Canada, and Mexico, with a focus on both traditional and electric vehicle components.
Motorcar Parts of America Reports Record Earnings
Aug 12, 2025
Motorcar Parts of America recently held its earnings call, revealing a strong positive outlook with record sales and profit figures. The company reported improved operating income and a reduction in debt, although challenges such as tariffs and noncash expenses were acknowledged. Overall, the sentiment was optimistic with expectations of continued growth and operational efficiencies.
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.