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Motorcar Parts Of America
(NASDAQ:MPAA)
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Rating:51Neutral
Price Target:
$12.50
▼(-9.35% Downside)
Action:Reiterated
Date:08/11/26
MPAA scores in the low-50s primarily due to weak recent financial performance (TTM revenue dip, inconsistent earnings, and negative TTM operating/free cash flow) and bearish technicals (below key moving averages with negative MACD). These are partially offset by a more optimistic earnings-call outlook with reaffirmed FY2027 growth/profit guidance and stated upside potential, plus an improving leverage profile. Valuation is constrained by a negative P/E and no provided dividend yield.
Positive Factors
Improving Leverage
Material deleveraging to a ~0.43 TTM debt-to-equity ratio indicates the company has improved balance-sheet flexibility. Lower leverage reduces refinancing risk, supports opportunistic M&A or working-capital needs, and underpins sustainable investment in growth initiatives over the next several quarters.
Negative Factors
Weakened Cash Generation
Trailing‑twelve‑month negative operating and free cash flow reflects recent working-capital strain and inventory swings. Persistent weak cash generation can pressure liquidity, limit capital allocation flexibility for growth or M&A, and increase reliance on external financing during execution of strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Leverage
Material deleveraging to a ~0.43 TTM debt-to-equity ratio indicates the company has improved balance-sheet flexibility. Lower leverage reduces refinancing risk, supports opportunistic M&A or working-capital needs, and underpins sustainable investment in growth initiatives over the next several quarters.
Read all positive factors
Motorcar Parts Of America Key Performance Indicators (KPIs)
Any
Revenue by Product Line
Shows how revenue is split across the company’s product lines, revealing which parts of the business drive sales and profits. Heavy reliance on a single product or line raises concentration risk and makes results sensitive to vehicle production cycles, supply disruptions, or pricing pressure, while growth or a shift toward higher‑margin lines indicates stronger earnings potential. For Motorcar Parts Of America, tracking OEM vs. aftermarket exposure and replacement‑frequency products helps assess sustainability of sales and margins.
Shows how revenue is split across the company’s product lines, revealing which parts of the business drive sales and profits. Heavy reliance on a single product or line raises concentration risk and makes results sensitive to vehicle production cycles, supply disruptions, or pricing pressure, while growth or a shift toward higher‑margin lines indicates stronger earnings potential. For Motorcar Parts Of America, tracking OEM vs. aftermarket exposure and replacement‑frequency products helps assess sustainability of sales and margins.
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The Fly
The FlyMotorcar Parts Of America (MPAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$235.15M
Dividend YieldN/A
Average Volume (3M)125.22K
Price to Earnings (P/E)―
Beta (1Y)1.52
Revenue Growth-0.82%
EPS Growth-353.36%
CountryUS
Employees5,600
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.22
Shares Outstanding18,933,207
10 Day Avg. Volume92,152
30 Day Avg. Volume125,223
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)0.80
Price to Sales (P/S)0.27
P/FCF Ratio9.34
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.00Price Target Upside37.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.74
Revenue Forecast (FY)$800.00M
Motorcar Parts Of America Business Overview & Revenue Model
Company Description
Motorcar Parts of America, Inc. (MPAA) is a company dedicated to the production, reconditioning, and supply of essential aftermarket components for a diverse range of applications, including heavy-duty vehicles, industrial machinery, marine vessel...
How the Company Makes Money
MPAA makes money primarily by selling automotive replacement parts into the North American automotive aftermarket, generating revenue when its customers (e.g., retailers, warehouse distributors, and other aftermarket channels) purchase products fo...
Motorcar Parts Of America Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook. Management emphasized strategic growth drivers (Centric brake brand acquisition, heavy duty relocation to Mexico, expanding SKU coverage) and reaffirmed fiscal 2027 guidance with meaningful upside potential (> $100M additional annualized sales and > $900M expected by year‑end). Liquidity and leverage metrics are healthy (cash + availability ~$112M, net bank debt/EBITDA ~1.26x). Near‑term challenges include Q1 timing‑related lower sales, inventory ramp leading to $11.3M operating cash use, FX headwinds (~$3.5M), and the presence of noncash/one‑time items that depressed reported gross margin (16.2% vs 18% prior year). On balance, the strategic initiatives, guidance reaffirmation, low leverage, and sizable upside potential outweigh the transitory execution and timing headwinds.Positive Updates
Q1 Net Sales and Order Timing
Net sales for fiscal Q1 (ended 06/30/2026) were $168.0 million; management attributes the quarter's sales performance to timing of orders and expects sales momentum to increase as the year progresses.
Negative Updates
Quarterly Gross Margin Pressure and FX Impact
Reported gross margin declined to 16.2% from 18.0% a year ago. Gross margin was negatively impacted by noncash charges (2.4%), one‑time items (1.6%), and unfavorable foreign exchange of ~2% (approximately $3.5M) related to weakening of the U.S. dollar versus the Mexican peso.
Read all updates
Q1-2027 Updates
Positive
Negative
Q1 Net Sales and Order Timing
Net sales for fiscal Q1 (ended 06/30/2026) were $168.0 million; management attributes the quarter's sales performance to timing of orders and expects sales momentum to increase as the year progresses.
Read all positive updates
Company Guidance
Motorcar Parts reaffirmed fiscal 2027 guidance (year ending March 31, 2027) calling for net sales of $780 million to $800 million (up 7.5% to 10.2% year‑over‑year), operating income of $86 million to $91 million (12.3% to 18.8% YoY growth), depreciation & amortization of roughly $9 million, and EBITDA of $95 million to $100 million; guidance assumes new business commitments that are expected to ramp in the second half of the year, excludes certain nonrecurring items (including tariff pass‑through reductions and nonrecurring core revenue), and does not include management’s expectation to add more than $100 million of additional annualized net sales by the end of fiscal 2027 (which would raise annualized net sales to more than $900 million).Motorcar Parts Of America Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
39
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 769.46M | 789.81M | 757.35M | 717.68M | 683.07M | 650.31M |
| Gross Profit | 153.16M | 159.90M | 153.83M | 132.55M | 113.96M | 117.86M |
| EBITDA | 53.51M | 76.75M | 50.26M | 58.59M | 48.89M | 41.59M |
| Net Income | -4.07M | 12.39M | -19.47M | -49.24M | -4.21M | 7.36M |
Balance Sheet | ||||||
| Total Assets | 1.01B | 1.02B | 957.64M | 1.01B | 1.03B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 21.40M | 16.68M | 11.31M | 15.81M | 13.61M | 25.22M |
| Total Debt | 228.70M | 199.63M | 201.28M | 239.34M | 277.22M | 262.71M |
| Total Liabilities | 757.03M | 753.43M | 699.94M | 726.89M | 708.09M | 700.43M |
| Stockholders Equity | 252.99M | 266.01M | 257.70M | 285.11M | 320.48M | 315.26M |
Cash Flow | ||||||
| Free Cash Flow | -2.81M | 22.85M | 40.90M | 38.17M | -25.95M | -52.41M |
| Operating Cash Flow | -2.17M | 19.16M | 45.48M | 39.17M | -21.75M | -44.86M |
| Investing Cash Flow | -7.95M | -3.59M | -4.47M | -479.00K | -4.19M | -7.94M |
| Financing Cash Flow | 16.62M | -10.98M | -44.66M | -36.44M | 14.31M | 60.22M |
Motorcar Parts Of America Technical Analysis
Negative
13.79
Price Trends
13.88
Negative
12.51
Negative
12.62
Negative
Market Momentum
-0.26
Positive
34.28
Neutral
45.07
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 13.79 is above the 20-day moving average (MA) of 13.72, below the 50-day MA of 13.88, and above the 200-day MA of 12.62, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 34.28 is Neutral, neither overbought nor oversold. The STOCH value of 45.07 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 Risk Analysis
Motorcar Parts Of America disclosed 31 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 | $139.99M | 3.23 | 11.39% | ― | 17.64% | 42.96% | |
72 Outperform | $348.60M | 13.57 | 10.75% | ― | 4.22% | 23.13% | |
67 Neutral | $5.96B | 11.32 | 10.90% | 2.14% | 3.55% | 25.67% | |
62 Neutral | $1.27B | 47.71 | 3.69% | ― | 8.68% | -14.53% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $202.80M | -1.73 | -59.31% | ― | -13.70% | -264.88% | |
51 Neutral | $235.15M | -56.87 | -1.57% | ― | -0.82% | -353.36% |
* Consumer Cyclical Sector Average
MPAA
Motorcar Parts Of America
12.45
-2.13
-14.61%
CAAS
China Automotive Systems
4.59
0.49
11.95%
LEA
Lear
121.93
21.33
21.20%
SRI
Stoneridge
6.77
-1.42
-17.34%
STRT
Strattec Security
83.47
1.71
2.09%
THRM
Gentherm
41.41
5.39
14.96%
Motorcar Parts Of America Corporate Events
Business Operations and StrategyExecutive/Board Changes
Motorcar Parts Of America Extends CEO Employment Agreement
Positive
Jul 2, 2026
On June 26, 2026, Motorcar Parts of America, Inc. amended the long-standing employment agreement of Chairman, President and Chief Executive Officer Selwyn Joffe, extending its term from July 1, 2027 to July 1, 2029. The amendment, approved by the ...
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.