Motorcar Parts Of America (MPAA) AI Stock Analysis

• Market Cap: $267.94M
• Dividend Yield: N/A
• Average Volume (3M): 195.50K
• Price to Earnings (P/E): 117.1
• Beta (1Y): 1.61
• 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: 252,121
• 30 Day Avg. Volume: 195,502
• 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: 1.84
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 3.08
• Enterprise Value/Ebitda: 6.68
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.49
• Revenue Forecast (FY): $820.00M

• Rating: 57 Neutral
• Price Target: $13.50 ▲(4.98% Upside)

Motorcar Parts Of America shows strong financial performance with solid revenue growth and cash flow generation. However, the stock's technical indicators suggest a bearish trend, and its high P/E ratio indicates potential overvaluation. The positive sentiment from the earnings call provides some optimism for future growth, but profitability challenges remain a concern.

Positive Factors

Revenue Growth

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

Cash Flow Strength

Robust cash flow and debt reduction enhance financial flexibility, enabling strategic investments and resilience against market fluctuations.

Market Expansion

Expansion into new markets and product segments diversifies revenue streams and strengthens competitive positioning.

Negative Factors

Low Profit Margins

Persistently low profit margins can hinder reinvestment and growth, limiting the company's ability to capitalize on market opportunities.

Deferred Purchases Impact

Dependence on key customers poses risks to revenue stability, as delays or changes in purchasing can significantly impact financial performance.

Noncash Expenses

Noncash expenses affecting margins indicate potential inefficiencies, which could erode profitability if not addressed.

Motorcar Parts Of America Business Overview & Revenue Model

Company Description

Motorcar Parts of America (MPAA) is a leading supplier of automotive replacement parts, specializing in the manufacturing and distribution of a wide range of products for both domestic and international markets. The company operates primarily in the automotive aftermarket sector, providing high-quality components such as starters, alternators, and brake systems. MPAA focuses on innovation and quality assurance to meet the needs of its customers, which include automotive retailers and repair shops across North America.

How the Company Makes Money

Motorcar Parts of America generates revenue primarily through the sale of automotive replacement parts. Its key revenue streams include direct sales to automotive retailers, distribution agreements with major retail chains, and partnerships with service providers in the automotive repair industry. The company also benefits from its ability to manufacture a significant portion of its products in-house, which helps in controlling costs and maintaining quality standards. Additionally, MPAA may engage in strategic alliances with other automotive parts suppliers and leverage e-commerce platforms to boost sales, contributing to its overall earnings.

Motorcar Parts Of America Financial Statement Overview

Summary

Motorcar Parts Of America demonstrates solid revenue growth and improving operational efficiency. While leverage is being managed effectively, profitability metrics like net profit margin and return on equity are areas for improvement. Strong cash flow generation is a positive indicator of financial stability.

Income Statement

The company shows a positive revenue growth trend with a TTM growth rate of 1.71%. Gross profit margin is stable at around 20%, but net profit margin is low at 0.31% TTM, indicating challenges in converting revenue into profit. EBIT and EBITDA margins are improving, reflecting operational efficiency gains.

Balance Sheet

The debt-to-equity ratio has improved to 0.44 TTM from higher levels, indicating better leverage management. However, return on equity remains low at 0.95% TTM, suggesting limited profitability from equity. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Free cash flow has grown significantly by 52.8% TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating good cash conversion. However, the free cash flow to net income ratio is high, suggesting reliance on cash flow rather than net income for financial health.

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: Negative
• Last Price: 12.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPAA, the sentiment is Negative. The current price of 12.86 is below the 20-day moving average (MA) of 14.50, below the 50-day MA of 15.51, and above the 200-day MA of 12.28, indicating a neutral trend. The MACD of -0.81 indicates Positive momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 71.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	79 Outperform	$313.90M	13.10	10.85%	―	6.83%	46.38%
LEA	75 Outperform	$5.62B	13.26	8.96%	2.96%	-1.90%	-13.86%
CAAS	69 Neutral	$122.49M	3.66	9.19%	―	16.72%	5.35%
THRM	65 Neutral	$1.09B	35.99	4.44%	―	-0.10%	-53.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MPAA	57 Neutral	$267.94M	117.09	0.94%	―	6.72%	―
SRI	53 Neutral	$158.86M	―	-12.26%	―	-4.91%	-331.53%

Motorcar Parts Of America Corporate Events

Motorcar Parts of America Reports Strong Q2 Results

Motorcar Parts of America, Inc. is a leading remanufacturer, manufacturer, and distributor of automotive aftermarket parts, serving the United States, Canada, and Mexico with a broad range of products including alternators, starters, and brake components. The company also has a subsidiary focused on electric vehicle testing solutions.

Motorcar Parts of America Holds Annual Shareholders Meeting

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

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

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.